Michigan enacted one of the most consequential statutory climate transformations in the nation through the passage of the Clean Energy and Jobs Act (Public Acts 229 through 236 of 2023). The legislative package codifies an aggressive decarbonization timeline for regulated electric utilities while fundamentally restructuring how large-scale wind, solar, and battery storage projects are permitted across the state.

At the center of legal, political, and municipal discussions is Public Act 233 of 2023, which transfers final siting and permitting authority for utility-scale clean energy facilities from local township zoning boards to the Michigan Public Service Commission (MPSC).

Here is an exhaustive examination of Michigan’s statutory clean energy targets, the state-level siting preemption mechanism, and the operational implications for landowners, developers, and local governments in 2026.

The Statutory Pillars: Public Act 235 & Decarbonization Targets

Public Act 235 amends the Clean and Renewable Energy and Energy Waste Reduction Act (Public Act 295 of 2008), setting aggressive, legally binding clean energy generation benchmarks for DTE Energy, Consumers Energy, municipal electric providers, and alternative electric suppliers (AESs).

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|                  MICHIGAN STATUTORY CLEAN ENERGY TIMELINE               |
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  2025-2026: 15% Baseline Renewable Portfolio Standard (RPS)              
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     2030:   50% Renewable Energy Mandate (Solar, Wind, Hydro, Geothermal)
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     2035:   60% Renewable Generation Threshold                          
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     2040:   100% Carbon-Free Clean Energy Standard (Renewables + Nuclear + 90% CCS)

What Counts as Carbon-Free Energy?

The law establishes clear definitions regarding eligible fuel types: 1. Renewable Energy Sources: Photovoltaic solar, concentrated solar, onshore and offshore wind, run-of-river and pumped storage hydroelectric, landfill methane capture, and qualified sustainable biomass. 2. Clean Baseload Energy: Nuclear power (such as generation from the restarted Palisades Nuclear Plant in Van Buren County and DTE’s Fermi 2 facility in Monroe County) counts toward the 2040 100% clean energy portfolio. 3. Natural Gas with Carbon Capture: Natural gas generation facilities equipped with certified Carbon Capture and Sequestration (CCS) systems that permanently capture at least 90% of greenhouse gas emissions qualify under the 2040 standard.

Energy Waste Reduction (EWR) Expansion

PA 235 also raises the annual Energy Waste Reduction performance standard for electric utilities from 1.0% to 1.5% of annual retail sales, with incentives to achieve 2.0%. This mandate requires utilities to invest in commercial building weatherization, residential heat pump conversion rebates, and industrial motor efficiency upgrades.

Public Act 233: The MPSC Siting Preemption Framework

Prior to November 2024, commercial renewable energy projects were governed solely by Michigan’s Michigan Zoning Enabling Act (Public Act 110 of 2006). Dozens of rural townships enacted moratoriums, multi-thousand-foot setbacks, or zoning restrictions that made large-scale solar and wind development virtually impossible.

To meet the 2030 and 2040 statutory mandates, the Michigan Legislature passed Public Act 233 of 2023, granting the MPSC authority to issue state-level Certificates of Public Convenience and Necessity for major renewable energy installations.

Eligible Project Thresholds Under PA 233

The MPSC’s direct siting jurisdiction applies to facilities that meet or exceed specific capacity thresholds: * Solar Energy Facilities: Nameplate generating capacity of 50 megawatts (MW) or more. * Wind Energy Facilities: Nameplate generating capacity of 100 megawatts (MW) or more. * Battery Energy Storage Systems (BESS): Nameplate capacity of 50 megawatts (MW) or more with an energy discharge capability of 200 megawatt-hours (MWh) or more.

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|                  MPSC RENEWABLE SITING PROCEDURAL WORKFLOW              |
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                                     |
                                     v
       [Step 1] Developer Submits Notice to Affected Township
                                     |
               +---------------------+---------------------+
               |                                           |
               v                                           v
    [Township HAS a CREO]                      [Township LACKS a CREO]
    * 120-Day Local Hearing Window             * Developer files directly
    * Must approve if compliant with CREO        with MPSC under PA 233
               |                                           |
    +----------+----------+                                |
    |                     |                                |
[Approved]           [Denied/Timed Out]                    |
    |                     |                                |
[Construction]       [Appeal to MPSC]                      |
                          |                                |
                          +----------------+---------------+
                                           |
                                           v
                     [MPSC State-Level Review (1 Year Max)]
                     * Environmental Review (EGLE / MDNR)
                     * Prevailing Wage & Apprenticeship Audit
                     * Community Benefit Agreement ($5,000/MW)
                     * Public Contested Case Hearings
                                           |
                                           v
                       [MPSC Issues Certificate / Permit]

Compatible Renewable Energy Ordinances (CREOs)

To preserve a degree of local control, PA 233 allows municipalities to adopt a Compatible Renewable Energy Ordinance (CREO). A CREO enables the township to review and approve projects locally, provided the municipal rules are no more restrictive than the statutory defaults in PA 233:

If a township adopts a CREO, the developer must submit its application locally. The township has 120 days to issue a decision. If the township approves the project, development proceeds under local oversight. If the township denies the project despite compliance, or fails to act within 120 days, the developer may immediately petition the MPSC for state certificate issuance.

Labor, Community Benefits, and Agricultural Protections

PA 233 and PA 235 balance utility infrastructure expansion with labor equity, host community support, and environmental conservation:

1. Prevailing Wage & Registered Apprenticeships

Any developer receiving an MPSC certificate or utility clean energy contract must pay workers not less than the prevailing wage in the county of construction and must hire a verified percentage of apprentices enrolled in certified programs registered with the U.S. Department of Labor.

2. Community Benefits Agreements (CBAs)

Developers applying for MPSC certification must negotiate a Community Benefits Agreement with each host municipality: * Financial Contribution: The developer must pay up to $5,000 per megawatt of nameplate capacity (or up to $2,000 per megawatt-hour for energy storage) to host local governments. * Eligible Uses: Municipalities can use these funds for road improvements, emergency services, park upgrades, property tax stabilization, or local economic development initiatives.

3. Farmland Preservation & PA 116 Agreements

Michigan leads the Midwest in agricultural solar integration: * Farmland Development Rights Agreements (PA 116): Michigan Department of Agriculture and Rural Development (MDARD) policy allows farmers to enroll agricultural land in utility solar leases while maintaining PA 116 status, provided the developer plants pollinator-friendly cover crops, avoids permanent topsoil destruction, and executes a decommissioning bond guaranteeing complete site restoration. * Agrivoltaics: Projects combining solar generation with active agricultural production—such as sheep grazing, apiaries, or low-canopy specialty crops—receive expedited environmental permitting from state agencies.

Legal Challenges and Future Outlook

The centralization of zoning authority under PA 233 faced legal scrutiny, including ballot initiative petitions by municipal associations asserting violations of home-rule governance. However, the Michigan Constitution (Article IV, Section 51 and 52) expressly grants the Legislature broad plenary authority to regulate public health, natural resource management, and utility infrastructure.

As MPSC dockets open for utility-scale solar and battery storage petitions, Michigan’s regulatory landscape provides long-term statutory certainty for developers while establishing strong environmental and economic protections for host communities.