The Michigan Department of Natural Resources last Friday gave an initial green light to a new coal-fired power plant to be located in the city of Holland.
The Holland Board of Public Works would build the new plant.
Financing details — including the cost and whether the board would use tax-exempt debt to finance its construction — are still uncertain, a spokesman said.
The state approved an air permit that it had denied last year under an order from then-Gov. Jennifer Granholm.
Granholm said the state would begin assessing energy needs as part of its evaluation for granting permits.
An Ottawa County Circuit Judge, however, recently ruled that need could not legally be considered a factor in deciding air permits, according to local reports.
The plant still needs to meet U.S. Environmental Protection Agency air-quality rules.
The board is considering building the new plant on the grounds of the existing power plant or partnering with other utilities, officials said.