News Story

Petition to keep local control over large wind, solar facilities fails to reach 2024 ballot

Advocates will try again in 2026

A ballot initiative to allow local control over large wind and solar projects will not obtain enough signatures to qualify for the 2024 ballot.

Citizens for Local Choice missed its target to collect at least 356,958 valid signatures before May 29.

The petition drive started after Michigan Democrats, who hold a political trifecta, enacted bills in 2023 giving the state control over large-scale wind and solar projects. The law gives the Michigan Public Service Commission, a body of three members appointed by the governor, power to certify solar energy facilities and energy storage facilities between 50 and 100 megawatts.

Citizens for Local Choice said in a statement that the “ballot campaign has engaged thousands of volunteers across the state and has issued tens of thousands of petitions for signatures in an effort to restore local control of large-scale wind and solar operations.”

“The campaign is strong and robust and while we have not reached the required signature threshold to make the 2024 ballot, we will continue our ambitious effort to leverage our legal 180-day window and work to secure a placement on the 2026 ballot.”

The MPSC’s authority supersedes local zoning regulations under the 2023 law, meaning the state can advance a renewable energy project even if the local government opposes it.

The Michigan Farm Bureau applauded the coalition’s goal.

“Michigan Farm Bureau continues to support restoring local decision-making for large-scale wind and solar operations,” Matt Kapp, Michigan Farm Bureau government relations specialist, said in a statement. “Renewable projects have a major impact on rural communities, and our members believe that local leaders who live in those areas are better suited to make those decisions than unelected government officials.”

Michigan aims to meet all its energy needs with renewable energy by 2050. As of 2022, 12% of Michigan’s electricity generation flowed from renewable sources, according to the U.S. Energy Information Administration. The state plans to increase its use of wind and solar energy, whose installations consume a significant amount of land and will likely be located in rural Michigan.

Michiganders can start petitions to change laws or amend the state constitution. They must gain enough valid signatures to place a question on the ballot or have a majority of lawmakers advance the idea through bills.

The Michigan Energy Innovation Business Council approved the 2023 law. “[T]hese critical siting reforms will help avoid higher energy costs for the average Michigan household while creating jobs and making our economy more competitive,” it posted on social media.

But Neil Sheridan, executive director of the Michigan Township Association, said local authorities and residents should have the final say in whether to allow large-scale renewable energy projects.

“The Citizens for Local Choice ballot initiative aligns with MTA’s long-standing, firmly held belief in the essential need and value of local authority, and in residents and local officials having the final say in issues that impact their community and quality of life,” Sheridan said in a statement. “The Association supports local siting authority over utility-scale renewable energy facilities by Michigan’s local governments. MTA remains committed to fending off any effort that seeks to strip away local control from our communities.”

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

News Story

Water rate increase not a tax hike, court rules

Local government ready to start infrastructure projects

The Michigan Court of Appeals ruled 2-1 that an increase in water and sewer rates is not a tax increase, even if comes without voter approval. The ruling comes in a case arising out of Mackinaw City.

Mackinaw City, which is officially a village, increased its sewer rates in January 2018 after the Michigan Department of Environmental Quality said it violated the Michigan Safe Water Drinking Act. State officials said the village didn’t have enough water storage capacity, and its rates were not high enough to pay for necessary changes.

The Mackinaw Area Tourist Bureau sued the village over the rate increase, claiming it levied a tax increase without voter approval, violating the Headlee Amendment.

Although the village has a population of 860, the water system serves up to 13,000 people during the summer tourist season, when water parks and hotels use large amounts of water.

A lower court had previously ruled in favor of the tourism bureau, but the Court of Appeals sided with the village.

“Increasing water and sewer rates to generate revenue to fund necessary capital improvements to the systems serves a regulatory purpose,” Judge Colleen O’Brien wrote in the 20-page May 23 ruling. “There is no bright-line rule prohibiting water rates from being increased to fund ‘new infrastructure’ necessary for the water-supply system’s continued safe operation.”

Judge Michael Kelly joined O’Brien in the majority while Judge Kirsten Frank Kelly dissented.

The tourism group is made up of hotels, motels, bars and other businesses that benefit from tourism.

The trial court had sided with the tourism bureau, which said the rate increase was a tax because some of it funded a new water tower.

The higher court applied the three-factor test from the case Bolt v. City of Lansing. It found the disputed rates “did not constitute a tax.”

“The court believed that ‘new infrastructure’ could never be funded through a user fee, so the water-rate increase must be a tax,” the May ruling reads. The high court considered this to be in error.

Pat Rivera, superintendent of utilities for Mackinaw City, told CapCon “We’re glad it’s over.”

“There are a lot of infrastructure improvements that have been put on the back burner waiting for a result of this case,” Rivera said in a phone interview. “Now, we want to move forward with these water and wastewater improvements and just put this behind us.”

The attorneys representing the tourism businesses haven’t yet responded to a request for comment. Neither have attorneys for Mackinaw City.

The order reverses the trial court’s order granting the plaintiff’s motion for summary disposition. It remands the trial court to grant summary disposition in favor of Mackinaw City.

A 2017 analysis from the engineering firm C2AE found that a few customers used large amounts of water.

“This means that 18% of your customers use 66% of your water,” the lawsuit says, quoting the analysis.

In 2023, The American Society of Civil Engineers gave Michigan’s stormwater infrastructure system a ‘D’ grade and wastewater a ‘C’ grade.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.