State Energy Facility Siting and Permit Certainty Act.

Prior to task force meetings, ALEC posts these legislative member-submitted draft model policies to our website. The draft model policies are then discussed, debated, and voted on by ALEC task force members. Policies that receive final approval by legislators on the ALEC Board of Directors become official ALEC model policy. Draft model policies that fail to become official ALEC model policy are removed from the website.

Summary

This model policy establishes a statewide process to streamline approval of energy facilities. It limits how long local governments can delay or restrict projects, sets clear timelines for application review, and grants a state siting authority power to resolve conflicts and ensure consistency. The Act aims to create a faster, more transparent, and predictable permitting system for both traditional and renewable energy development.

State Energy Facility Siting and Permit Certainty Act.

Section 1. Short title.
This Act may be cited as the “State Energy Facility Siting and Permit Certainty Act.” 

Section 2. Definitions.
For purposes of this Act: 

1.“Siting authority” means the state agency or committee designated by statute to make siting determinations for energy facilities.  In the instance of states without siting authorities defined in statute, it refers to the state entity given responsibility through executive order, administrative action, or regulatory policy. 

2.”Certificate” or “certificate of site and facility” means the document issued by the committee, containing such terms and conditions as the committee deems appropriate, that authorizes the applicant to proceed with the proposed site and facility siting, construction, operation, and maintenance. 

3.“Energy” means power, including mechanical power, useful heat, or electricity derived from any resource, including, but not limited to, natural gas, coal, oil, wind and solar power. 

4.“Energy facility” means generation, conversion, storage, associated substation, or      transmission facilities subject to state or local siting review, including renewable electric power generating facilities and high-voltage transmission lines;   

  • (a) Any industrial structure that may be used substantially to extract, produce, manufacture, transport or refine sources of energy, including ancillary facilities as may be used or useful in transporting, storing or otherwise providing for the raw materials or products of any such industrial structure. This shall include, but not be limited to industrial structures such as oil refineries, natural gas plants, equipment and associated facilities designed to use any, or a combination of, natural gas, propane gas and liquefied natural gas, which store on site a quantity to provide 7 days of continuous operation at a rate equivalent to the energy requirements of a 30 megawatt electric generating station and its associated facilities, plants for coal conversion, onshore and offshore loading and unloading facilities for energy sources and energy transmission pipelines that are not considered part of a local distribution network. 
  • (b) Electric generating station equipment and associated facilities designed for, or capable of, operation at any capacity of 30 megawatts or more. 
  • (c) An electric transmission line of design rating of 100 kilovolts or more, associated with a generating facility under subparagraph (b), over a route not already occupied by a transmission line or lines. 
  • (d)An electric transmission line of a design rating in excess of 100 kilovolts that is in excess of 10 miles in length, over a route not already occupied by a transmission line. 
  • (e) A new electric transmission line of design rating in excess of 200 kilovolts. 
  • (f) A renewable energy facility. 
  • (g) An electrical storage facility with a peak storage capacity of 30 megawatts or greater. 

5.“Applicant” means any person, corporation, partnership, or governmental entity seeking authorization to site, construct, or operate an energy facility.

6.“Local government” means any county, municipality, township, or other political subdivision with land use or permitting authority.

7.“Moratorium” means an ordinance, resolution, or other local action that forbids or suspends receiving, processing, or approving applications for energy facilities for a specified or unspecified period. 

8.“Complete application” means the submission of materials identified by applicable statute or local ordinance that are reasonably necessary to evaluate the project’s conformity with local standards; local completeness checklists shall be published and updated on a public website within ninety (90) days of enactment. In instances that a website is not maintained, the completeness checklist shall be provided to the applicant no more than five (5) days after receipt. If the completeness checklist is not provided within the timeframe, the checklist will be considered complete.   

Section 3. State policy; preemption; purpose. 

(a) It is the public policy of the State to: 

  1. ensure timely, transparent, and predictable siting and permitting of energy facilities necessary to meet state energy, reliability and economic goals;  
  2. preserve lawful local health, safety, and environmental protections that are not unreasonably burdensome; and  
  3. prevent regulatory arbitrage and forum-shopping that frustrates timely project review. 

(b) This Act does not strip local governments of all zoning authority but provides a uniform statutory standard governing the processing and review of energy facility applications to avoid unnecessary delay, duplication, and inconsistent rules. 

(c) Nothing in this Act shall be construed to alter, limit, or supersede the authority of the Federal Energy Regulatory Commission (FERC) under federal law. 

Section 4. Prohibitions and Restrictions 

(a) No person shall commence to construct any energy facility within the state unless it has obtained a certificate pursuant to this Act and in accordance with the state’s existing siting or certification statute. Such facilities shall be constructed, operated, and maintained in accordance with the terms of the certificate and all applicable state siting requirements. 

Section 5. Limitations on local moratoria.
(a) No local government shall adopt a moratorium that applies to applications for energy facilities for longer than thirty (30) days without approval of the siting authority. Any moratorium longer than 30 days must be justified in writing, based on a showing of imminent threat to public health or safety, and approved by the siting authority following notice to the public and an opportunity for comment. No moratorium, including any extensions or renewals, shall remain in effect for more than one hundred twenty (120) days in total duration unless specifically authorized by the siting authority upon a finding of continuing necessity and substantial progress toward completion of the approved work plan.  

  1. As a condition of approval for any moratorium exceeding thirty (30 days), the local government shall submit to the siting authority a working plan and timeline outlining the specific actions to be undertaken during the moratorium period, including but not limited to drafting, amending, or adopting ordinances, conducting studies, or performing public engagement. The work plan shall identify key milestones and expected completion dates for each task.  
  2. The siting authority may revoke or modify its approval of a moratorium if it determines that the local government has failed to make reasonable progress consistent with the approved timeline or if the justification for the moratorium no longer exists. 

(b) No moratorium shall apply retroactively to invalidate rights or approvals already vested under state law or under an application that was complete and on file prior to the moratorium’s adoption, except where required by a court of competent jurisdiction. 

Section 6. Mandatory local time frames for application processing.
(a) Upon receipt of a complete application for an energy facility, the local government shall:  

  1. accept or reject the application for completeness within thirty (30) days;  
  2. if accepted, make a decision to approve, approve with conditions, or deny the application within one hundred twenty (120) days of acceptance. If the local authority determines that additional technical review is required, it may extend the period by a single additional period not to exceed sixty (60) days upon written notice to the applicant specifying the reasons for the extension. The siting authority may toll these periods for good cause as defined by rule. 

Section 7. Standard for local regulations: undue burden and substantial conflict.

(a) Local regulations, ordinances, conditions, or permit requirements that have the effect of prohibiting, unreasonably delaying, or unreasonably increasing the cost of an energy facility are invalid to the extent they impose an undue burden on the siting, construction, or operation of the facility. A local requirement imposes an undue burden when:

  1. it is not supported by substantial evidence in the administrative record demonstrating a legitimate, material public health, safety, or environmental objective
  2. there is a reasonable, less-burdensome alternative that would accomplish the legitimate objective
  3. it conflicts with clear state statutory or regulatory standards governing energy facility   siting; or 
  4. it discriminates against a facility on the basis of its energy source or technology type 

(b) A local requirement that is neutral, generally applicable, and supported by substantial evidence of legitimate public interest will not be an undue burden solely because it increases compliance costs.
(c) If a court or the siting authority finds that a local requirement is an undue burden, relief may include invalidation of the requirement as applied to the project, appropriate injunctive relief, and, where authorized by law, award of reasonable costs and attorneys’ fees to the prevailing applicant. 

Section 8. State siting review and conflict resolution.
(a) If the siting authority finds that local regulation unduly burdens or conflicts with state siting standards under Section 7 the siting authority may: 

  1.  preempt the local requirement as applied to the project;  
  2.  issue uniform conditions that substitute for the conflicting local requirement; or 
  3.  require the local government to amend its decision within a defined time period.

(b) When a project raises issues beyond the local government’s expertise (e.g., reliability, regional transmission impacts), the siting authority shall have primary jurisdiction to resolve those issues under uniform state standards. 

Section 9. Legal standing and venue (guardrails against forum-shopping).
(a) Only parties with direct, substantial, and specific interests affected by the siting decision may intervene in a state or local energy facility siting application proceedings. For purposes of this section, an organization or person shall demonstrate standing by showing:  

  1. that its members or its own property, health, or legally protected interests will be directly and specially affected by the proposed project;  
  2. the injury alleged is concrete and particularized, and not generalized or purely ideological; and  
  3. the injury is traceable to the challenged action and redressable by the court.

(b) Geographic nexus requirement: no person or organization may intervene in a state energy facility siting application proceeding and/or file suit in a county or judicial district whose boundaries do not contain the proposed project unless the plaintiff establishes that it or its members reside, own property, or are otherwise directly impacted within that county or district. Out-of-state organizations or persons must establish the same geographic nexus and substantial interest.
(c) Forum selection and consolidation: the siting authority may petition a court to consolidate related challenges and to transfer venue to the county or district where the project is located when multiple suits have been filed in multiple counties.
(d) If a plaintiff lacks standing, the court shall dismiss the action at the earliest possible procedural stage and may award costs and reasonable attorneys’ fees to the prevailing defendant if the court finds the action frivolous or brought for improper procedural delay. 

(e) Nothing in this provision shall prohibit or prevent the applicant from participating in pre-application meetings with the energy facility siting authority.  

Section 10. Ex parte communications; recordkeeping; disqualification.
(a) Except as otherwise provided in subsection (b), members of the siting authority and staff who play a substantive role in adjudicatory decision-making shall not engage in ex parte communications with applicants, their agents, or opponents about pending matters unless the communication is:  

  1. disclosed on the public record at the next convened hearing; and  
  2. reduced to writing and included in the administrative record. 

(b) Permitted communications: ministerial scheduling, administrative clarifications, or procedural communications are permitted if promptly placed on the public record and summarized at the next public meeting. Technical exchanges that do not involve advocacy on contested substantive issues may occur between staff and applicants but must be documented.

(c) A decisionmaker who receives an undisclosed ex parte substantive communication shall disclose the communication on the record and shall be subject to disqualification from participating in the decision upon a showing of prejudicial influence.
(d) The siting authority must maintain an administrative record, accessibly posted online, when applicable,  that contains all submissions, written communications, hearing transcripts, exhibits, staff reports, technical studies, and any ex parte communications required to be disclosed under this section. 

(f) Nothing in this section authorizes communications or deliberations among members of the siting authority that would otherwise violate applicable state open meetings or sunshine laws. All substantive deliberations among a quorum of the siting authority shall occur in a publicly noticed meeting consistent with those laws.   

Section 11. Judicial deference; remedies.
(a) Courts shall give due deference to factual determinations of the siting authority where supported by substantial evidence in the record. Questions of law shall be reviewed de novo.
(b) Remedies for violations of this Act may include declaratory and injunctive relief, modification of local conditions, and cost awards where authorized. 

Section 12. Coordination with state and federal environmental review.
Applicants shall file with the siting authority any state or federal environmental review documents (e.g., state environmental assessments, federal NEPA documents) to the extent relevant; the siting authority shall coordinate reviews to reduce duplication and to meet statutory deadline requirements to the extent consistent with law. 

Section 13. Severability.
If any provision of this Act or its application to any person or circumstance is held invalid, the remaining provisions shall continue in effect. 

Section 14. Effective date.
This Act is effective on [date]; the siting authority shall adopt rules necessary to implement this Act within 180 days of enactment.