A proposal to restore the ability of municipalities to oppose green energy projects has been quashed in the Ontario legislature.

The Liberals and the New Democrats teamed up Thursday to defeat the Conservative private member's bill by a vote of 45-32.

Premier Dalton McGuinty had promised to listen to the proposal, which would have given municipalities more say over new wind and solar projects.

The bill was aimed at removing a section of the Green Energy Act that stripped municipalities of their decision-making powers.

Tory Todd Smith, who introduced the bill earlier this week, said he was disappointed by the NDP's opposition to the bill.

But he said the party isn't giving up on the issue, given that many green energy projects are being built over the objections of local residents.