Commissioners told revenue-share or M&T tax can offset solar impacts; staffing and permitting remain concerns

Commissioners at a Sept. 27 Charlotte County Planning Commission work session said they are concerned that the Virginia Clean Economy Act will drive significant utility-scale solar development in rural areas and strain counties' permitting, inspection and monitoring resources.

"Commissioners expressed concerns that solar was overwhelming staffing resources in rural jurisdictions," the presenter, Joe Lerch of the Virginia Association of Counties, told the commission. Lerch outlined two principal local revenue options: a locally adopted revenue-share ordinance that provides annual payments based on power produced, and the machinery & tools (M&T) tax as an alternative.

Charlotte County has adopted a revenue-share ordinance, Lerch said, and he noted that collectable M&T tax revenue depends on the State Corporation Commission depreciation schedule. He said a recent SCC revision to that schedule reflects longer equipment longevity and will increase M&T-based revenue for localities that collect the tax on solar development.

Lerch also explained a nuance in the VCEA: although the act set renewable-energy quotas for Dominion Energy, projects located inside Dominion's territory that are sold to other buyers do not count toward Dominion's quota, which could affect how and where projects are developed.

Commissioners asked for additional research and support from state agencies, noting the county has limited staffing for permitting and inspections. Discussion items the county identified for follow-up included clarifying which projects would qualify for revenue-share payments, how M&T valuations will be calculated under the revised depreciation schedule, and whether the state will provide resources for local permitting workloads.

The work session ended without votes. County staff and commissioners said they would continue to monitor state rulemaking and follow up on revenue and staffing questions.