2005 Senate Bill 522 / Public Act 103

Eliminate local government’s power to block pipelines

Introduced in the Senate

May 19, 2005

Introduced by Sen. Michelle McManus (R-35)

To remove the authority of a city, village, or township to block utility lines and structures, including pipelines, within the right-of-way of a limited access highway and intersecting streets, if the project is approved by the Michigan Public Service Commission. The bill was introduced after the state Supreme Court found that the plain language of the current statute does not prohibit local governments from blocking such projects. That case involved the City of Lansing blocking a gasoline pipeline along Interstate 96. The court “invited” the legislature to revise this statute.

Referred to the Committee on Transportation

June 8, 2005

Reported without amendment

With the recommendation that the bill pass.

Amendment offered by Sen. Virg Bernero (D-23)

To tie-bar the bill to Senate Bills 562 and 563, which would allow local governments to collect "impact fees" from petroleum pipeline owners, and require that the Public Service Commission hold public hearings before allowing pipelines.

The amendment failed by voice vote

Substitute offered by Sen. Virg Bernero (D-23)

To replace the previous version of the bill with one that would establish a "binding arbitration" system empowered to issue authoritative rulings when local governments seek to block utility infrastructure projects.

The substitute failed by voice vote

Passed in the Senate 29 to 9 (details)

Received in the House

June 8, 2005

Referred to the Committee on Energy and Technology

June 22, 2005

Reported without amendment

With the recommendation that an amendment requiring a pipeline company to reimburse the Department of Transportation for any expenses it incurs be adopted and that the bill then pass.

June 28, 2005

Amendment offered

To require the pipeline company or other utility to repay any reasonable costs incurred by the state related to the project that are not covered by the permit fee.

The amendment passed by voice vote

Passed in the House 60 to 46 (details)

To remove the authority of a city, village, or township to block utility lines and structures, including pipelines, within the right-of-way of a limited access highway and intersecting streets, if the project is approved by the Michigan Public Service Commission. The bill was introduced after the state Supreme Court found that the plain language of the current statute does not prohibit local governments from blocking such projects. That case involved the City of Lansing blocking a gasoline pipeline along Interstate 96. The court “invited” the legislature to revise this statute.

Received in the Senate

June 30, 2005

Passed in the Senate 31 to 6 (details)

To concur with the House-passed version of the bill.

Signed by Gov. Jennifer Granholm

July 21, 2005