Louisiana House Bill HCR40

Louisiana 2021 Regular Session

• Introduced: 4/21/21
• Refer: 4/22/21
• Report Pass: 5/3/21
• Engrossed: 5/11/21
• Refer: 5/12/21
• Report Pass: 5/26/21
• Passed: 6/7/21

Caption

Requests the Department of Economic Development and the State Board of Commerce and Industry to suspend certain tax incentives, subsidies, and other public financial support for certain utility scale solar projects

Impact

The resolution aims to address the rapid increase in solar developments that could potentially threaten the stability of farmland and the electric grid. Stakeholders have expressed apprehension regarding the terms of leases between solar developers and private landowners, highlighting risks to landowner rights, including equipment removal obligations upon lease termination. By seeking a temporary halt to new financial incentives, the resolution emphasizes the need for a more structured regulatory framework governing solar energy development, similar to that already in place for traditional energy sectors.

Summary

House Concurrent Resolution No. 40 (HCR40) urges the Department of Economic Development and the State Board of Commerce and Industry to suspend the Louisiana Industrial Ad Valorem Tax Exemption Program and other financial supports related to utility scale solar projects. This suspension is proposed until thirty days after the final adjournment of the 2021 Regular Legislative Session, particularly affecting projects not managed by the Louisiana Energy and Power Authority or municipal systems. The resolution was motivated by growing concerns about the implications solar leasing has on land use, property rights, and the electric grid stability in Louisiana.

Sentiment

Sentiment around HCR40 is mixed but largely aligns with concerns for landowner protections and regulatory oversight. Supporters of the resolution argue that suspending tax incentives for these projects is necessary to provide clarity and protect the public interest. They believe it is crucial to prevent hasty solar expansions that could lead to unchecked land leasing and utility grid issues. On the other hand, some critics might view this resolution as a hindrance to the advancement of renewable energy projects, which are essential for modern energy solutions.

Contention

Notable points of contention surrounding HCR40 include the balancing of economic growth through renewable energy initiatives against the need for robust regulations to safeguard land use and property rights. Proponents of the bill are focused on ensuring that solar project developments follow established regulatory processes, while opponents may argue that this could stall progress in renewable energy adoption. The conversation highlights an ongoing debate between fostering new energy solutions and maintaining order and stability in land use across Louisiana.