HB 891 (Shin) and SB 443 (McPike) would make utility-scale Battery Energy Storage Systems (BESS) a by-right use on any parcel that has previously been approved for utility-scale solar and that is subject to an approved special use permit. The legislation bypasses local decision-making authority to make battery energy storage permitted use on all approved utility-scale. The bills have passed both chambers and are headed to the Governor for consideration. VACo opposes the bills and has requested a veto (see letter).
ACTION REQUESTED
- Contact Governor Abigail Spanberger and ask her to oppose HB 891 and SB 443.
- The legislation also exempts such installations from the requirement that applicants give the locality written notice of their intent to locate in such locality and request a meeting to negotiate a host siting agreement pursuant to Virginia law on the Siting of Solar Projects and Energy Storage Projects.
- It is important to note the host siting agreement law was amended in 2021 to include battery storage projects as a way to offset the loss in revenue due to state mandated exemptions from local machinery and tools tax on the equipment –80% exemption for the first 5 years of operation; 70% exemption for years 6-10; and 60% exemption for years 11 and beyond (see Legislature passes complex changes to laws regarding the siting and taxing of solar and energy storage projects).
KEY POINTS
- The legislation would permit the installation of battery storage infrastructure on any land associated with hundreds of locally approved utility-scale solar sites across the Commonwealth without the consent of the counties and the constituents they represent.
- Additionally, the legislation would remove such installations from the requirements of the host siting agreement law, which have proven very successful for solar and BESS projects to be negotiated for approval by localities.
- Without the requirement for an applicant to seek a host siting agreement, and because of loss in revenue due to state-mandated exemption from local taxes, counties cannot adequately address limited resources of their fire departments and public safety operations who must be familiar with the layouts and protocols for each site and have adequate resources to respond to fire and emergency calls.
KEY CONTACT
VACo Contact: Joe Lerch, AICP