Lawmakers weigh uniform capacity tax for solar, storage and other renewables; developers and towns clash over retroactivity and rates

Developers, municipal officials and energy companies told the Finance, Revenue and Bonding Committee that a proposal to establish a uniform capacity tax for renewable projects raises unresolved questions about retroactivity, local revenue impacts and differences among technologies.

Jobie (Joby) Moss, director of business development at Verigee, told the committee Verigee "opposes unless amended House Bill 7,266" and asked the legislature to exclude projects that have already reached commercial operation or completed financing from the tax’s reach. Moss said retroactive application would increase expenses for projects that completed financing and might trigger defaults or foreclosures; he recommended protecting existing tax-stabilization agreements and pilot agreements negotiated with host municipalities.

Will Herschel, chief executive officer of Verigee, reiterated the company’s concerns and said he supported the Office of Policy and Management’s (OPM) written testimony. Jeff Hinske, vice…