Ann Arbor Energy Commission pauses carbon pollution impact fee resolution, refers measure to working group

The Ann Arbor Energy Commission on March 11 postponed consideration of a proposed ordinance that would establish a carbon pollution impact fee on certain new construction and major renovations and referred the proposal to a working group to work with city staff and community stakeholders.

The resolution, presented as a revised version of a measure first discussed in September 2023, would have applied reporting requirements to buildings of about 20,000 square feet and priced carbon at $190 per metric ton of CO2 equivalent, using both on-site and upstream emissions conversion factors. The commission voted to delay and request further work rather than advance the proposal to a formal recommendation to city council.

Why it matters: Commissioners and public speakers said buildings are a major source of local emissions and argued the city must move faster to meet its A2ZERO carbon neutrality goals. Supporters said pricing carbon into new construction could shift developer choices toward electrification; opponents and some commissioners raised legal concerns about whether a locally imposed fee would survive challenges under Michigan law.

Public commenters and commissioners framed the debate broadly.…