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Michigan refines preservation ruling to include wind turbines

By SHELLY STRAUTZ-SPRINGBORN
Michigan Correspondent

LANSING, Mich. – Michigan Department of Agriculture (MDA) recently clarified language in the law that will allow windmills to be constructed on land enrolled in PA 116, a program originally designed to preserve farmland and open space through agreements that restrict development.

Rich Harlow, program manager of the Farmland and Open Space Preservation Division of the MDA, said the ruling made by the state attorney general’s office is not an amendment to the law, but is a clarification about how MDA will treat wind agreements under the PA 116 contract.

“We developed the statement in response to questions regarding the placement of wind turbines on PA 116 property,” Harlow said. “Part of the clarification is that PA 116 allows for the location of easements for utility structures, but the question we had was whether wind turbines are considered to be utilities.”

Matt Kapp, land stewardship specialist with Michigan Farm Bureau, said the ruling was a step in the right direction for those pursuing alternative energy.

He said the issue came to light as Michigan continues its push for the development of alternative energy options and companies continue to pursue wind turbine lease agreements with farmers, especially in the state’s Thumb region.

“Most of the questions I have received are in the Thumb area – Huron and Tuscola counties,” Kapp said. “That makes sense because the largest wind farms are in Huron County, and Tuscola is No. 1 and Huron is No. 2 for land enrolled in PA 116.”

Kapp said Farm Bureau policy supports both PA 116 and alternative energy, such as wind energy, so the clarification is a positive for both.

“I had enough discussions with members in the area to get a sense that if PA 116 contracts were going to limit their ability to sign wind contract, many of them would opt out of PA 116,” Kapp said.
He said he is pleased that the ruling allows farmers to not have to choose between the two, especially since Farm Bureau policy supports both initiatives.

The ruling made Oct. 7, titled Wind Turbines on Land Enrolled in a PA 116  states that wind turbines may be placed on land currently enrolled in PA116 provided that specific conditions are met. Options are available for farm ownership of wind turbines, second party ownership, and for withdrawal of the land from PA116 for public utilities.

Under the new ruling, a wind turbine intended for personal use by the farmer or by a person considered to be essential to the farming operation may be placed on enrolled farmland. In this case, the wind turbine would be considered part of the farming operation and permitted as such.

A wind turbine is considered to be for personal use if its installation and operation meets any of the three following conditions: the wind turbine is not connected to the public utility system and produces energy solely for use on the farm.

Also if the landowner maintains a valid agreement with a participating public utility, but the primary use of the turbine is for self-service power it is considered intended for personal use. Or if the landowner maintains a valid agreement with a participating utility, and the landowner is participating in a net metering program that is approved by the Michigan Public Service Commission, it is intended for personal use.

Under program details pertaining to second party ownership, wind turbines may be placed on the enrolled land by persons other than the landowner via an easement or lease if following four specific conditions are met. These conditions include that the wind turbine must be placed by a public utility or the turbine owner must maintain a valid agreement with a public utility to connect to the public utility system, and the Michigan Department of Agriculture must find that the location of the facility, and ground changing features associated with the wind generator, do not substantially hinder the farming operation, and the facility and placement of the wind turbine must be approved by the unit of government having zoning authority, and the landowner holder must agree with the placement of the facility.

In regards to the program’s withdrawal guidelines, the land may be removed from the program if the wind turbine is being constructed by a public utility or the wind turbine owner has an agreement with a public utility, and the landowner has submitted an application for removal of the land from the program to the local unit of government having zoning authority and the application has been approved by both the local government and Michigan Department of Agriculture, and the portion of the last seven years of PA 116 tax credits attributable to the parcel being released have been repaid to the department.

For more information on the new PA 116 ruling, visit www.michigan.gov/mda/

11/19/2008