Don't Let Extraterritorial Jurisdiction (ETJ) Get in the Way

Extraterritorial jurisdiction, or ETJ for short, allows municipalities to regulate development outside of their formal boundaries. The rules vary by state. For example, a city of 25,000 in North Carolina can choose to extend an ETJ three miles from its boundaries. In Arkansas, towns with 8,000 residents have jurisdiction one mile outside their corporate boundaries.

Understanding where an ETJ applies and how it is exercised is an important early step in project siting and permitting. These are a few ways we have seen ETJ’s make development more challenging:

Double regulation -

A project that crosses the border of an ETJ will need county approval for parcels outside the ETJ, and municipal approval for parcels inside the ETJ. This means more time, more discretionary approvals and more permitting risk. 

Regulation without representation -

People who own land within an ETJ don’t get a vote in municipal elections, even though the municipality gets to regulate development on their property. This fact tends to enrage business-minded farmers who own land in an ETJ. They may have a tense history with the local town council and might not be the best ambassadors for the project.

State siting loophole –

Statewide standards for renewables may not apply to municipal zoning, which would include an ETJ. In Illinois for example, a project sited outside of village limits, but inside an ETJ would be regulated by the village rather than the state.

The Takeaway: ETJ’s are just one of the many factors that inform the right approach to community engagement and permitting. Our advice is to do your homework early to understand the local situation, identify key decision makers and influencers and develop a clear plan before engaging with the community.