HB 891 (Shin) and SB 443 (McPike) 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, … or any other similar approval issued for a solar facility. Governor Spanberger is asking the legislature to consider adopting a substitute version (see Governor’s amendment in the nature of a substitute) that makes several technical changes and specifies that the by-right battery facility may not exceed … 100 percent of the of the nameplate generating capacity of the associated solar facility. For example, if a county has approved a 100 megawatt (MW) solar facility, then the battery facility cannot exceed 100 MW without further local discretionary approval.
VACo opposed the legislation and requested a veto.
In addition to taking away local decision-making, 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 2021 to include battery storage projects as 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 – Virginia Association of Counties).
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.
VACo Contact: Joe Lerch, AICP