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Spotlight

New Lawsuit Threatens Michigan’s Permitting Reform Law

The state’s landmark legislation to overrule local opposition to renewable energy is being challenged by over 70 local jurisdictions.

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Michigan’s Anti-NIMBY Law
Heatmap Illustration / Getty Images

The most important legal challenge for the renewables industry in America may have just been filed in Michigan.

On Friday afternoon, about 70 towns and a handful of Michigan counties appealed the rule implementing part of a new renewable energy siting law – PA 233 – providing primary permitting authority to the Michigan Public Services Commission and usurping local approval powers in specific cases, Heatmap can first report. The law was part of a comprehensive permitting package passed last year by the state legislature and seen by climate advocates as a potential model for combatting NIMBYs across the country.

The appeal challenges multiple aspects of the law’s implementation, saying it went beyond statute, as well as the rulemaking procedure itself, claiming it failed to follow proper processes. The lawsuit aims to effectively undo the law going into effect, or at least enjoin what opponents say are the most onerous restrictions on municipalities and county governments.

Some of the places involved in the litigation have solar, wind, or battery storage proposed in their backyards. But while it’s certainly the case that some opponents may just want to stop projects from being built, one of the attorneys behind the litigation – Michael Homier at Michigan law firm Foster Swift – told me the case represents how these laws inflame broader tensions between communities and their governments.

“[Renewables have] to be sited appropriately, because each community has unique priorities and circumstances that relate to them,” Homier said. “I think what it says is that local voices matter and when you try and implement policy on a one-size fits all approach with all of these local communities, they don’t like it.”

Local control laws like Michigan’s exist because, well, climate change is an imperative that calls for rapid action. Delays stemming from dissent at the municipal or county level can totally gum up the works, as we’ve shown you time and time again. Michigan’s no stranger to this problem. Opponents of the Michigan law sought to repeal it via ballot initiative before the lawsuit was filed, but that effort failed, and some ballot petition backers have since gotten a campaign finance complaint.

But it’s important to note these laws feel like shots to the heart of small-d democracy, and the notion of locally-controlled land use planning, too. As these policies become a go-to for anxious Democratic politicians trying to get shovels into the ground to bring down carbon emissions, one should hardly expect towns and counties to take it lying down.

Take Maryland, where legislators have sought to pass bills similar to Michigand’s. Despite the state’s ambitious climate goals, the Maryland Association of Counties has vociferously opposed bills to ban counties and towns from setting ordinances that restrict renewable development and let community-scale solar advance without strenuous local review. Or take New Jersey, where transmission cables for offshore wind may produce similar litigation to what’s in Michigan, testing the constitutionality of the state’s local control law.

In Michigan, it’ll take upwards of a year or two for the case to wind its way through court proceedings. Until then, we’ll pour one out for any developer or climate wonk who thought that the state's stab at “permitting reform” was going to help.

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Plus

The Promise and Peril of the Blue Wave for Renewables

Talking with Arnab Pal, the executive director of Deploy Action.

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The Q&A subject.
Heatmap Illustration

This week’s conversation is with Arnab Pal, executive director of Deploy Action, president of Clean Infrastructure Advisors, and former principal advisor at the Energy Department’s Loan Programs Office under the Biden administration alongside Jigar Shah.

I reached out to Pal for guidance on where he saw state-level policy going around renewables development after the 2026 blue wave election. Simply put, few could’ve provided better guidance. We have no idea what could happen next after an unprecedented election result, but he couldn’t have been more clear-eyed and, as he put it to me, focused on the future. I appreciated our conversation and decided it was worthwhile to provide it to you in full.

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Spotlight

Was This Really the Data Center Election?

Evidence suggests data center concerns probably didn’t actually flip many votes.

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Voting signs and a data center.
Heatmap Illustration/Getty Images, Library of Congress

This week’s midterm elections were undeniably horrible for the data center industry. But a closer look indicates dominant media narratives about the impact of AI infrastructure on voting behavior also deserve more scrutiny.

On election night, candidates who railed against data center sprawl during their campaigns won across the country, including statewide races in red areas. The most striking example was Gina Hinojosa, now governor-elect for the data center-centric state of Texas, who ran on instituting a complete pause on projects across the Lone Star State. So striking was her win, it sent AI and data center stocks into freefall. Cleanview, a clean energy news and data site, said Hinojosa’s pause, if put into effect, could affect up to 88.4 gigawatts of “planned” data center development, depending on how it's implemented.

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Hotspots

The Place Where a Candidate Promising to Do Less on Data Centers Actually Won

And more of the week’s top fights around development.

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The United States.
Heatmap Illustration/Getty Images

1. McCracken County, Kentucky – A rare bright spot for the data center sector quietly occurred in deep red Kentucky in a race defined by what’ll likely be the first project built on federal land.

  • As I previously reported, a large data center project became the primary point of conflict in the race for McCracken County’s judge-executive. The incumbent Republican Craig Clymer had welcomed the project, and faced a challenge from independent George Bray, mayor of the county’s largest city of Paducah. Bray also supported the data center but said his city, which is adjacent to the project, should’ve received more demarcated benefits. Bray called for a community benefit agreement.
  • Turns out voters in McCracken County didn’t care enough about this issue to make a change and wanted to keep Clymer in office. He won handily, netting more than 12,000 votes to Bray’s roughly 7,600. It’s one of the few races across the country that went in favor of the candidate promising to do less when it came to data centers.

2. Pulaski County, Arkansas – After a blue wave election in Little Rock, this county government is on a collision course with data center development.

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