Sponsors pitch community energy pilot to allow third-party projects, local permitting and phased rollout

Representatives Hoops and Ray introduced House Bill 303 in a first hearing before the House Energy Committee, describing a community energy pilot designed to expand distributed generation through third-party private capital while preserving local permitting authority and consumer protections.

Sponsors said the pilot would define community energy projects as single facilities using solar photovoltaic generation or, alternatively, resources such as wind, biomass, landfill gas, hydroelectric power, natural-gas-fired generators, fuel cells and energy storage systems. Sponsors emphasized projects would be limited in size, phased in over four years and would not permit developers to seek rate recovery from the utility rate base for failed investments.

Representative Hoops described the measure as a “free market solution” that leverages private capital and competition to provide local cost stability and new generation. Representative Ray said the bill phases implementation proportionally across distribution territories, limits project size to reduce economic displacement and gives township trustees permitting authority so local officials can approve or reject projects.

Economic and environmental provisions

Sponsor testimony included economic-impact figures: an estimate of $490 million in local tax revenue and $5.6 billion in local economic investment from community energy development. Sponsors said projects could be sited on brownfields, rooftops or other non-farmland locations; decommissioning plans and financial assurances would be required and updated every five years.

Committee concerns and questions

Members asked whether the bill would preclude other fuel types; sponsors said the list is not intended to be exhaustive and that local permitting would be a primary control on siting. Representative Humphrey asked about environmental risks on brownfields; sponsors said studies and decommissioning requirements would be required before projects proceed. Ranking member Rader asked how quickly these projects could be brought on line compared with larger projects; sponsors suggested community projects could reach the grid in roughly 18 months and be a near-term complement while larger baseload projects are developed.

Next steps

The committee concluded the first hearing on House Bill 303. Sponsors requested continued stakeholder engagement and said they would work with townships, utilities and other parties as the measure moves through committee.