Bills aim to give wind developers a break

RICHMOND — Sen. Frank Wagner's proposed bill on wind energy development in Virginia provides strong incentives to those who hope to construct utilities generating less than 100 megawatts of electric power from wind.

Wagner introduced Senate Bill 1194 to advance wind power in Virginia, and an identical bill (HB 2175) was introduced in the House by Del. Clark N. Hogan (R-South Boston).

In addition, there Senate Bill 1347 and its twin, House Bill 2525, have been proposed to require the Department of Environmental Quality to develop a procedure for permitting "small" wind energy plants, defined as those generating less than 100 megawatts, by Jan. 1, 2010.

Here are the highlights of those bills, and their current status in the General Assembly session:

Senate Bill 1194:

Small renewable

energy projects

• Introduced by Sen. Phillip Puckett (D-Tazewell); referred Jan. 13 to the Committee on Agriculture, Conservation, and Natural Resources. Sen. Emmett Hanger, Highland County's representative, serves on this committee, along with Sen. Creigh Deeds, a former Highland delegate, and Sen. Mark Obenshain, the Harrisonburg attorney whose firm represents Highland New Wind Development, LLC.

• Addresses renewable energy sources including sunlight, wind, falling water, and the like, but does not include coal, oil, natural gas, or nuclear power.

• Defines small renewable projects as those with a rated capacity of 100 megawatts or less.

• Requires the DEQ to create a "permit rule" for such projects by Jan. 1, 2010.

• Under the permit rule, local governing bodies would certify the project complies with local land use ordinances; an analysis of potential environmental impacts would be required; for wind projects, an analysis of potential impacts on migrating birds is required, including one year of pre-construction monitoring.

• The rule would also requires an engineer to certify such facilities meet standards established by the permit rule and complies with any other environmental permit required.

• Any developer of a project this size would be exempt from SCC regulations in place on utilities.

• Highland supervisors find the reference to local land use ordinances "more palatable" than the lack of such in SB 1347 and HB 2525, which they oppose.

• Identical bill (HB 2175) introduced in the House by Del. Clark N. Hogan (R-SouthBoston); referred Jan. 26 to the House commerce and labor subcommittee on energy.

Senate Bill 1347: Small wind energy

facilities

• Introduced by Wagner; referred Jan. 23 to the Commerce and Labor subcommittee on utilities.

• Proposes that smaller wind energy plants be designated as those with a generating capacity of less than 100 megawatts.

• Instead of approval through the State Corporation Commission, as all utilities are, smaller wind energy plants would be get permits from the Department of Environmental Quality, and the SCC would not be allowed to step in and set any additional conditions. DEQ would be considered the lead agency.

• DEQ would not be allowed to require monitoring studies on birds or other wildlife that last more than a year after the plant is operating.

• The developer would not be responsible for paying for any studies outside the first year; DEQ would set costs it feels are reasonable for post-construction monitoring, but the proposal does not say who would pay for more studies if needed.

• The wind project company's partners or shareholders would get to share a state tax credit equal to 35 percent of the cost of construction, equipment, or leasing equipment. The credit be taken in five installments, and cannot be more than half what the owners owe in taxes or higher than $500,000. The credit would be reported on their individual income tax returns.

• For wind utilities this size, 80 percent of their value would be exempt from state and local taxes.

• Opposed by the Highland County Board of Supervisors.

• Identical bill (HB 2525) introduced in the House by Del. Jackson Miller (R-Manassas); referred Jan. 26 to the House commerce and labor subcommittee on energy.