ENROLLED
2021 Regular Session
HOUSE CONCURRENT RESOL UTION NO. 40
BY REPRESENTATIVE SCHEXNAYDER
1 A CONCURRENT RESOL UTION
2 To urge and request the Department of Economic Development and the State Board of
3 Commerce and Industry to suspend until thirty days after final adjournment of the
4 2022 Regular Session of the Legislature the Louisiana Industrial Ad Valorem Tax
5 Exemption Program as provided in LAC 13:1 et seq. and any other tax incentives,
6 subsidies, and other public financial support as it relates to utility scale solar projects
7 with advance notifications filed on or after July 1, 2021, that are not undertaken by
8 the Louisiana Energy and Power Authority or a municipal-owned electric system or
9 that are not subject to review and approval by the Louisiana Public Service
10 Commission and the council of the city of New Orleans.
11 WHEREAS, increased solar development activity in Louisiana requires increased
12 leasing of land in Louisiana, which involves private landowners and available farmland; and
13 WHEREAS, the terms and conditions of leases requested by solar developers can
14 provide a significant risk to landowner's future property rights and to future use of available
15 farmland, including but not limited to the responsibilities for equipment removal upon
16 default or termination of a lease; and
17 WHEREAS, because of the lack of historical prevalence, solar leasing has not been
18 provided similar legislative guidance and legal parameters as oil, gas, pipelines, timber, and
19 other types of land use activities in Louisiana; and
20 WHEREAS, solar development speculation and leases of land in Louisiana are
21 increasing to the point of concern for what it might do to long-term stability of both
22 farmland and the electric grid; and
23 WHEREAS, the Louisiana Public Service Commission has an existing process in
24 place for regulated utilities to procure solar resources and other resources under the rules and
25 regulations established by the Louisiana Public Service Commission, which are established
Page 1 of 2 HCR NO. 40 ENROLLED
1 to protect Louisiana citizens, ensure grid operations and reliability, and protect the public
2 interest; and
3 WHEREAS, the proliferation of solar resources outside of a structured and regulated
4 planning process can create reliability and stability issues for the electric grid, as seen
5 recently in other states during recent extreme weather events; and
6 WHEREAS, Louisiana citizens and businesses would best be served by an orderly
7 and regulated development of solar resources that protects landowners, electric utility
8 customers, and the electric grid; and
9 WHEREAS, solar developers have a history of relying heavily on public subsidies
10 and tax incentives to provide financially viable products and projects; and
11 WHEREAS, there is a need to determine whether the granting of tax incentives or
12 subsidies to proposed solar developments is consistent with good economic and public
13 policy.
14 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
15 urge and request the Department of Economic Development and the State Board of
16 Commerce and Industry to suspend until thirty days after final adjournment of the 2021
17 Regular Session of the Legislature the Louisiana Industrial Ad Valorem Tax Exemption
18 Program as provided in LAC 13:1 et seq. and any other tax incentives, subsidies, and other
19 public financial support as it relates to utility scale solar projects with advance notifications
20 filed on or after July 1, 2021, that are not undertaken by the Louisiana Energy and Power
21 Authority or a municipal-owned electric system or that are not subject to review and
22 approval by the Louisiana Public Service Commission and the council of the city of New
23 Orleans.
24 BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
25 secretary of the Department of Economic Development and the chairman of the State Board
26 of Commerce and Industry.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
Page 2 of 2