By Matt de Simone
Deputy County Administrator David Moorman presented the Botetourt County Board of Supervisors with a consideration last week to authorize a public hearing regarding an amendment to the county code that would add section 23-341: taxation of solar energy generation facilities during the September board meeting. The board approved to hold an upcoming hearing.
Moorman noted that state law provides for local revenue collection from solar generation facilities either through 1) local taxation, or 2) by exempting them from local taxation and receiving a share of facility revenues. Localities may elect the method of their choice.
An estimation of comparative projects shows that Botetourt County would realize more revenue by taxing solar energy generation facilities than by participating in revenue sharing. To implement a local tax, the county’s tax code would need to be amended to add a tax on solar generation facilities. Moorman recommended that the county maximize the revenues by levying a local tax.
The amendment to section 23-341 is as follows:
(a) Pursuant to section 58.1-2606.1 of the Code of Virginia, 1950, as amended, solar photovoltaic facilities less than five megawatts in alternating current generating capacity shall be exempt from taxation on the following portions of their values: For the first five years after commencement of operation, 80%; for the second five years of operation, 70%; and 60% thereafter. Solar photovoltaic facilities that serve the electricity needs solely of property on which they are located, as provided in section 15.2-2288.7 of the Code of Virginia, 1950, as amended, are exempt from taxation on 100% of their value.
(b) The tax rate applied to the taxable portion of the fair market value of solar photovoltaic facilities mentioned in subsection (a), if any, shall be the same as the real estate tax rate for the county.
(c) The commissioner of the revenue shall assess the fair market value of the solar photovoltaic facilities mentioned in subsection (a) as real, personal, or public service corporation property in the manner provided by general law.
Photo courtesy of Botetourt Co.
Additionally, following a public hearing, the board unanimously approved an amendment to the county comprehensive plan’s future land use map #9 amending the future land designation from Mixed Use Highway Commercial to Industrial/Flex and a rezoning request for a 49.9-acre parcel, located on Lee Hwy (US Route 11), approximately 0.10 miles southwest of its intersection with Old Rt. 604 (SR 811) plus rezoning that parcel from B-2 to M-1, with conditions.
The requests are for a future stand-alone battery energy storage system (BESS) located on the property, interconnecting to the adjacent Appalachian Power-owned 230kV transmission lines. Gateway Grid LLC is developing this energy storage project near an intersection of high-voltage transmission lines. This allows the energy storage facility to provide large amounts of power when load requires it and to serve a broad region.
During citizen comments, the board heard concerns about potential runoff issues with the new energy facility. In the request found in the agenda packet, Gateway Grid specified that the company met with and corresponded with Botetourt County Fire & EMS Chief Jason Ferguson regarding the proposed project. Based on feedback from Chief Ferguson, Gateway included a proffer to coordinate with the chief and provide information satisfactory to the chief to develop an emergency operations plan prior to commercial operation of the proposed facility.
To read more about the request, visit the August meeting’s agenda packet on the Botetourt County website at www.botetourtva.gov/AgendaCenter.
