Energy (Local Government)

This bill amends Michigan's zoning enabling act to require local zoning ordinances to comply with the data center planning and responsibility act. It also clarifies rules for mining operations by setting conditions under which local governments can restrict extraction based on potential serious consequences, while allowing reasonable regulations on noise, traffic, and blasting hours. Additionally, the bill protects renewable energy projects that received special land use approval after January 1, 2021, from having their approvals revoked or modified once substantial construction or specific expenditures have occurred. The legislation will only take effect if it is passed together with a companion bill, HB 5882.

This bill prohibits local governments in Michigan, such as cities and counties, from creating or enforcing taxes and regulations based on carbon emissions, energy consumption, or vehicle miles traveled. It defines these restricted measures broadly to include fees on greenhouse gases, specific fuel types, and mandatory emissions trading programs. If passed, any existing local rules violating these restrictions would become invalid, and local entities would be barred from using public funds to defend such policies in court. The legislation also allows individuals to sue to stop the implementation of these prohibited local measures and grants them the right to recover legal fees if they win the case.

This bill establishes the "Data Center Planning and Responsibility Act" to regulate how Michigan local governments can pause the approval of large-scale data centers and cryptocurrency mining facilities. It allows counties, cities, and townships to impose a voluntary moratorium on these projects only if they follow specific steps, such as holding public hearings, requiring impact studies on energy and water use, and banning elected officials from signing nondisclosure agreements about the projects. The law limits any initial pause to six months and any extension to 90 days, while also mandating that the pause be justified by public health, safety, or general welfare concerns. Additionally, the bill creates a process for project owners to appeal a moratorium based on extraordinary hardship and requires local governments to vote on whether to lift the pause before it expires.

SB 275 creates a new act to prohibit local governments in Michigan from imposing bans on the use of natural gas. It also prevents counties, cities, villages, and townships from prohibiting the installation of natural gas infrastructure within their jurisdictions. Any local ordinance, resolution, or policy adopted by a municipality on or after the bill's effective date that violates these provisions would be deemed void and unenforceable. This bill directly affects local governments and their ability to regulate natural gas use and infrastructure.