Proposed battery project site raises hackles in Oakland County

Tensions over the build-out of Michigan's clean energy grid are on display in a northern Oakland County community where township officials are racing to set their own standards on a proposed battery storage facility before the state takes control of renewable energy project approvals.

Irving, Texas-based Vesper Energy has approached Groveland Township officials about its plans to build a 300-megawatt battery storage project on the southern edge of the township. For the development, the company eyes a 63-acre parcel nestled between power lines and Interstate 75.

Township Supervisor Robert DePalma would like to say no to the project.

He and his fellow township leaders would have, he said, had state legislators not passed a law last year giving the state-level Michigan Public Service Commission authority to approve renewable energy production and storage projects.

Without the law, "I don't think this thing would have a snowball's chance," DePalma said.

The law looming over Groveland Township officials, Public Act 233, effectively bars local governments from placing rules on renewable projects that are more restrictive than the state law. It was passed as part of last year's package of clean energy laws that also require electricity providers to use carbon-free sources of power by 2040, require better energy efficiency and set targets for energy storage. Rural communities around Michigan have previously organized to block wind and solar developments.

Still, Groveland Township officials are advancing an ordinance that would place restrictions on battery energy storage systems that are beyond what the state requires. They hope that by adopting the ordinance before Public Act 233 goes into effect on Nov. 29 they can get the developer to follow the township's plan instead of seek approval from the MPSC.

Vesper Energy is voluntarily working with the township to develop the local ordinance, said EJay Fyke, Vesper Energy community affairs manager. The company has agreed to comply with the local measures that are stricter than the state's, even though it won't have to after Nov. 29.

"If we're going to build this in the backyard of these folks, we wanted to make sure they have a say in it," Fyke said. "A lot of the things they've required, we've adhered to and they're much more stringent than the state level. We're comfortable with that, because we want to build a project that is comfortable for the community, at least as comfortable as we can get."

Under its latest draft of the ordinance, Groveland Township would require battery storage facilities to be set back at least 650 feet from its neighbors, while the state's rules require only 300 feet. The township would allow only 45 decibels of noise to reach a neighboring property, whereas the state would allow up to 55 decibels.

"There's a whole litany of changes we made that are much stricter than the state, just to try to protect us as much as we can," DePalma said. "Because the way the law is written, we don’t have any option to not (allow the project)."

Once Public Act 233 goes into effect, the township's local standards will be superseded by the state's.

In early October, the MPSC determined the new state law allows renewable developers to seek project approval from the commission if a local government denies an application, fails to act on an application within 120 days or adds "additional provisions more restrictive than those contained in state law while an application is pending."

DePalma said he directed the township attorney to review an effort by law firm Foster Swift to coordinate joint appeals of PA 233 and MPSC's interpretation of it. The course of that potential legal effort could determine whether the township continues pursuing its local ordinance.

"No one likes someone else telling them how to run their backyard as if they know what's best for their community," he said.

Battery storage systems are seen as a key addition to a cleaner electricity grid that increasingly relies on renewable solar and wind power, since solar and wind production is variable and might not always meet state residents' demands for electricity.

The Groveland Township battery project would store excess power from the electricity grid that currently is wasted, Fyke said. When demand for power is high, "we can flip a switch and put it back on the grid immediately," he said, removing the need for fossil fuel-powered plants to turn on and generate power.

The batteries would be built on 12 to 15 acres of the 63-acre wooded parcel, Fyke said. He said the project at earliest could be finished in 2029, but Vesper Energy still has to sign agreements with local power and transmission companies and conduct other environmental and cultural reviews.

Although battery storage plays a role in decarbonizing the electricity grid, Fyke cautioned against assuming Vesper Energy's plans for Groveland Township are strictly motivated by a desire to combat climate change. The project also is financially sound, he said, and funded by private investors.

"This is driven in tandem with the need for new renewable sources of energy," Fyke said, "but it's really being driven by capitalism."

A group called the Economic Development Responsibility Alliance has emerged as a vocal opponent to the project.

The group is a 501(c)4, meaning it is a nonprofit "social welfare" organization that is allowed to engage in politics so long as it primarily sticks to quality of life issues and can accept unlimited donations. It was incorporated by a California resident named Frances Severe in summer 2023.

Groveland Township resident Cristine Nettie criticized the township for working with Vesper Energy to write its local ordinance for battery storage systems.

"They're basically writing their own (ordinance), so why wouldn't they file an application?" Nettie said in a press release circulated by EDRA.

The press release encouraged Groveland Township to stop the ordinance process and coordinate with law firm Foster Swift on its appeal.

DePalma, the township supervisor, said the township attorney is reviewing the law firm's efforts to push back against the MPSC and PA 233.

EDRA pointed to fires at battery storage sites as a chief issue with the proposed Groveland Township project.

Lithium battery cells can experience "thermal runaway," which causes them to release very hot flammable, toxic gases and can lead to explosions or fires that are difficult to extinguish, according to the Federal Emergency Management Agency, which funded a University of Texas at Austin research project into the issue.

Vesper Energy is coordinating with local fire officials and will develop a safety plan and provide free training for fire departments if its battery storage plans come to fruition, Fyke said. He also said newer battery technology is increasingly safe.

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