Corangamite Shire councillors have refused to hand over their power to decide the fate of a major project to the planning minister, with one saying it would make them look "weak" if they did.
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Proponent ACEnergy wanted its $100 million battery storage project, earmarked for Terang, to be fast-tracked by ministerial intervention instead of going through the normal council process of lodging a planning permit.
The suggestion was thwarted by councillors on Tuesday night, who raised concerns over transparency and community input.
"It looks weak if we hand this decision on," said Cr Simon Illingworth.
"There has to be a pretty important reason for us to step aside and take away the capacity for anyone to go to VCAT."
The community consultation process into the project was also criticised as confusing and rushed.
"There was a lack of opportunity to view various plans provided by ACEnergy and there was a common sentiment that the time frame was too short," Cr Ruth Gstrein said.
"Councillors are elected to make these decisions and not just pass them on, we should be ones setting the conditions if it goes through."
Mayor Neil Trotter said he felt conflicted as the development would be a significant investment in the local economy and cement the shire as an "energy hub".
However he ultimately shared the view that the community should have a say in the development.
The council will now require the proponent to submit a planning permit, which will be open to community input and debated at a public council meeting.
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