(AP) -- LANSING, Mich. - State regulators have approved a key permit that could clear the way for Consumers Energy to build an 830-megawatt coal-fired power plant near Bay City.

The Department of Environmental Quality's decision to approve an air permit was announced Tuesday after months of debate and challenges from environmental groups opposed to the project.

The air permit was approved with conditions. Consumers Energy will be required to retire up to 958 megawatts of coal-fired generating capacity from seven of its oldest existing Michigan plants.

The new Consumers generator would be built in Bay County's Hampton Township. The utility hopes to have the facility online by 2017.

Consumers applied for the air permit more than two years ago.

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