At the Task Force's August 16 meeting. Senator Watkins asked staff to identify the provisions in the Code of Virginia that establish credits or other incentives for the use or manufacture of renewable energy technologies. The following is a summary of the various statutory provisions that are intended to promote renewable sources of energy. Copies of the full Code sections are attached in the appendix beginning on page 5.
The Solar Photovoltaic Manufacturing Incentive Grant Program, established in 1993, provides an incentive grant for firms that manufactures solar photovoltaic panels in the Commonwealth. Pursuant to § 45.1-392, each manufacturer is eligible for a grant of $0.75 per watt of the rated capacity of panels sold in a calendar year.
If a manufacturer commenced eligible sales during calendar year 1995, it is eligible for grants for panels produced during the five years from 1995 through 1999. If it commences eligible sales at any time after December 31, 1995, and sells solar photovoltaic panels it manufactured in Virginia during any of years 1996 through 2001, it is entitled to an annual grant based on the rated capacity of panels sold in the calendar year. No manufacturer may receive grants for more than five years.
If applications for grants for more than six million watts are made in any year (or $4.5 million in grant requests), grant payments will be apportioned among the eligible applicants on a pro rata basis. Applications are due the March 31 following the calendar year in which the sales eligible were made.
HB 1026 and Senate Bill 254 would have extended the program from 2001 to 2003; these bills failed in the 1998 Session.
The grants are payable from the Solar Photovoltaic Manufacturing Incentive Grant Fund. Item 547 F of the 1999 Appropriations Act authorizes the Governor to transfer $1,218,750 in FY 2000 to DMME for grants under this program.
Section 36-55.31:1 requires the Virginia Housing Development Authority to establish a program of loans for financing the purchase and installation of solar or other alternative energy sources, and for insulation, storm windows and doors, which will reduce the reliance on present sources of energy. The improvements may be used in (i) residences occupied by persons or families of low and moderate income and (ii) public or nonprofit buildings or facilities.
Section 58.1-3661 allows local governments to exempt solar energy equipment from local taxation. Exempt equipment includes any solar energy equipment that conserves conventional energy or electricity that would otherwise be used for water heating, space heating or cooling, or other applications. This exemption is authorized by Article X, Section 6 (d) of the Virginia Constitution.
Local governing bodies are authorized by § 58.1-3662 to adopt an ordinance establishing a full or partial property tax exemption for generating equipment installed for the purpose of converting from oil or natural gas to such renewable sources as wood, wood bark, or wood residue, or to another alternate energy source, as well as to coal, for use in manufacturing. This exemption is authorized by Article X, Section 6 (i) of the Virginia Constitution.
The Virginia Solar Easements Act (§ 55-352 et seq.) was established to encourage the use and development of solar energy by establishing criteria for easements established to protect exposure of solar energy equipment, facilities or devices. Instruments creating solar easements shall include such information as the vertical and horizontal angles at which the solar easement extends over the servient property, terms or conditions under which the solar easement is granted, and provisions for compensating the owner of the property subject to the easement.
The Virginia Solar Energy Center, created pursuant to § 45.1-391, has been established to receive non-state funds for purposes related to solar energy, including serving as an information clearinghouse, coordinating programs, and developing education programs. The Center is administered by the DMME.
Section 56-594 establishes "net energy metering" as part of Virginia's restructuring program. "Eligible customer-generators," as defined in this section, self-generate electric power using solar, wind or hydro energy. Excess electricity self-generated from these renewable resources over and above household or business use is fed back to the electric grid and netted against the electricity supplied to the household or business by its electric service provider during a twelve-month period. If, at the end of a year, the customer has supplied to the provider more electricity than the customer has consumed, the statute permits arrangements to be made between the parties to compensate the customer for this excess.
Section 56-592 encourages the development of full and fair disclosures concerning the sale of renewable energy by directing the Commission to establish standards governing all generation fuels and emissions information in (i) competitive suppliers' marketing materials, and (ii) electricity customers' billing statements.
Section 15.2-2242 authorizes local governments to include provisions in their subdivision ordinance for establishing and maintaining access to solar energy to encourage the use of solar heating and cooling devices in new subdivisions. The provisions are applicable to a new subdivision only when requested by the subdivider.
House Bill 2646 (1999) amended § 56-232 to encourage the development of Virginia's independent hydroelectric industry by exempting from Commission regulation, as public utilities, qualifying small power producers. The exempt producers are those producing electricity by using renewable or nondepletable primary energy sources, with a rated generation capacity of 7.5 megawatts or less, and whose output is not sold to residential customers. Aggregators of such small power producers were also exempted from SCC regulation by this bill.
Section 45.1-390 provides that the Division of Energy, within the Department of Mines, Minerals and Energy, is established to ensure Virginia's commitment to the development of renewable and indigenous energy sources.
The Coal and Energy Commission is directed in its enabling legislation to "endeavor to stimulate, encourage, promote and assist in the development of renewable and alternative energy resources other than petroleum." Section 9-145.1 E provides that the Commission shall "[e]ndeavor to encourage research designed to further new and more extensive use of the coal as well as alternative and renewable energy resources of the Commonwealth." It is to coordinate its efforts with those of the Virginia Solar Energy Center and the Virginia Center for Coal and Energy Research.
Sections 58.1-331 and 58.1-431 provided income tax credits for individuals and corporations, respectively, for a percentage of their renewable energy source expenditures, as defined in § 23 of the Internal Revenue Code. Section 23 of the I.R.C., which established a residential energy tax credit, was repealed in November, 1990.
Virginia's tax credit applied to expenditures (excluding labor costs) made between January 1, 1985, and December 31, 1987. The percentage of the expenditures that qualified for the tax credits declined from 20 percent in the first year to 10 percent in the third year. The amount of the credit was capped at $1,000 for a qualified renewable energy source expenditure or the tax imposed by this chapter, whichever is less. Credits in excess of tax liability may be carried forward until used.
§ 9-145.1. Commission established; agency assistance; powers and duties.
The Virginia Coal and Energy Commission is hereby established as a permanent agency of the Commonwealth and is hereafter referred to in this chapter as "Commission." The Commission shall generally study all aspects of coal as an energy resource and endeavor to stimulate, encourage, promote, and assist in the development of renewable and alternative energy resources other than petroleum. The Commission shall have no authority to promulgate rules and regulations. All agencies of the Commonwealth shall assist the Commission in its work. In addition to the aforementioned general powers, the Commission shall also perform the following functions:
A. Act in an advisory capacity to the Governor and executive branch agencies upon energy related matters;
B. Investigate and consider such questions and problems relating to the field of coal and energy utilization and alternative energy sources as may be submitted;
C. Make recommendations to the Governor and General Assembly on its own initiative;
D. Consult with applicable state agencies on all matters regarding energy conservation, including the promotion and implementation of initiatives for the public-at-large to conserve energy;
E. Endeavor to encourage research designed to further new and more extensive use of the coal as well as alternative and renewable energy resources of the Commonwealth;
F. Effectively disseminate any such proposals to groups and organizations, both state and local, so as to stimulate local governing bodies and private business initiative in the field of energy related matters; and
G. Coordinate its efforts with those of the Virginia Solar Energy Center established pursuant to § 45.1-391 and the Virginia Center for Coal and Energy Research established pursuant to Article 2.01 (§ 23-135.7:1 et seq.) of Chapter 11 of Title 23;
H. Actively seek federal and other funds to be used to carry out its functions;
I. Seek to establish alternative fuel capability within the Commonwealth.
§ 15.2-2242. Optional provisions of a subdivision ordinance.
A subdivision ordinance may include:
. . . . .
6. Provisions for establishing and maintaining access to solar energy to encourage the use of solar heating and cooling devices in new subdivisions. The provisions shall be applicable to a new subdivision only when so requested by the subdivider.
§ 36-55.31:1. Loans for installation of certain energy-saving devices.
The Virginia Housing Development Authority shall establish a program of loans for financing the purchase and installation of insulation, storm windows and doors and solar or other alternative energy sources which will reduce the reliance on present sources of energy for use in the dwellings of residents of the Commonwealth or public or nonprofit buildings or facilities. Any and all funds available through specific state appropriations or federal grants or other state or federal assistance for such purposes may be utilized by the Virginia Housing Development Authority. Any loan made pursuant to this section may be secured by a mortgage or otherwise or may be unsecured, shall be repaid, shall bear interest and shall be upon such terms and conditions as may be determined by HDA in its rules and regulations or in the HDA resolution, or commitment for, such loan. Any such loans made with respect to dwellings of residents of the Commonwealth shall be limited to dwellings occupied by persons or families of low and moderate income. The Commissioners of the Virginia Housing Development Authority shall promulgate rules and regulations for the orderly administration of this section.
§ 45.1-390. Division of Energy established; findings and policy; powers and duties.
The General Assembly finds that because energy-related issues continually confront the Commonwealth, and many separate agencies are involved in providing energy programs and services, there exists a need for a state organization responsible for coordinating Virginia's energy programs and ensuring Virginia's commitment to the development of renewable and indigenous energy sources, as well as the efficient use of traditional energy resources. In accordance with this need, the Division of Energy is created in the Department of Mines, Minerals and Energy. The Director shall have the immediate authority to coordinate development and implementation of energy policy in Virginia.
The Division shall coordinate the energy-related activities of the various state agencies and advise the Governor on energy issues that arise at the local, state and national levels. All state agencies and institutions shall cooperate fully with the Division to assist in the proper execution of the duties assigned by this section.
In addition, the Division is authorized to make and enter into all contracts and agreements necessary or incidental to the performance of its duties or the execution of its powers, including the implementation of energy information and conservation plans and programs.
The Division shall:
1. Consult with any or all state agencies and institutions concerning energy-related activities or policies as needed for the proper execution of the duties assigned to the Division by this section.
2. Maintain liaison with appropriate agencies of the federal government on the activities of the federal government related to energy production, consumption, transportation and energy resource management in general.
3. Provide services to encourage efforts by and among Virginia businesses, industries, utilities, academic institutions, state and local governments and private institutions to develop energy conservation programs and energy resources; and
4. Observe the energy-related activities of state agencies and advise these agencies in order to encourage conformity with established energy policy.
§ 45.1-391. Solar Energy Center; purposes.
The Virginia Solar Energy Center is continued as a part of the Department. The purposes of the Center are (i) to serve the people of the Commonwealth as a clearinghouse to gather, maintain and disseminate general and technical information on solar energy and its utilization; (ii) to coordinate programs for solar energy data-gathering in Virginia; (iii) to coordinate efforts and programs on solar energy with other state agencies and institutions, other states and federal agencies; (iv) to promote cooperation among and between Virginia business, industry, agriculture and the public related to the use of solar energy; (v) to develop public education programs on solar energy for use in schools and by the public; and (vi) to provide assistance in formulating policies on the utilization of solar energy that would be in the best interest of the Commonwealth.
The intent of the General Assembly is to provide an organization for the purposes set out in this section to receive nonstate funds for such purposes.
§ 45.1-392. Solar Photovoltaic Manufacturing Incentive Grant Program.
A. Any manufacturer commencing eligible sales during calendar year 1995 who, from January 1, 1995, through December 31, 1999, sells solar photovoltaic panels it manufactured in Virginia shall be entitled to receive an annual solar photovoltaic manufacturing incentive grant in an amount of seventy-five cents per watt of the rated capacity of panels sold in a calendar year. The grants shall be paid from a fund to be entitled the Solar Photovoltaic Manufacturing Incentive Grant Fund (the "Fund").
B. Any manufacturer commencing eligible sales at any time subsequent to December 31, 1995, and who, from January 1, 1996, through December 31, 2001, sells solar photovoltaic panels it manufactured in Virginia shall be entitled to receive an annual solar photovoltaic manufacturing incentive grant in an amount up to seventy-five cents per watt of the rated capacity of panels sold in a calendar year. The grants shall be paid from the Fund. No manufacturer shall be eligible to receive grants for more than five years.
C. In the event applications for grants exceed six million watts per calendar year, the grant payments will be apportioned among the eligible applicants, based upon the total wattage evidenced by such applicants, the amount per watt the applicant is eligible to receive, and the total wattage eligible for grants specified in this section.
D. Any manufacturer entitled to apply for a grant pursuant to this section shall provide evidence, satisfactory to the Director, of manufacturing such panels in Virginia, the sale of such solar photovoltaic panels, and the wattage sold per year. The reports of manufacturing and sales shall be filed no later than March 31 following the calendar year in which the sales eligible for the grant were made. Failure to meet the filing deadline shall render the applicant ineligible to receive a grant. The postmark cancellation shall govern the date of the filing determination unless the Director has approved an alternative means of filing.
E. The Director shall certify to the Comptroller the amount of grant a manufacturer of solar photovoltaic panels is eligible to receive in a given calendar year. Payments shall be paid by check issued by the Treasurer of Virginia on warrant of the Comptroller.
F. The Director, upon presenting appropriate credentials, may examine the records, books, invoices, bills of lading, storage and production facilities and other applicable documents to determine whether the manufacturing and sale of the photovoltaic panels meet the requirements for grants as set forth in this section.
§ 55-352. Short title.
This chapter may be cited as the "Virginia Solar Easements Act."
[Acts 1978, c. 323, which enacted this chapter, contains a preamble expressing the desire of the General Assembly to encourage the use and development of solar energy.]
§ 55-353. Creation of solar easements.
Any easement obtained for the purpose of exposure of solar energy equipment, facilities or devices shall be created in writing and shall be subject to the same conveyancing and instrument recording requirements as other easements.
§ 55-354. Contents of solar easement agreements.
Any instrument creating a solar easement shall include, but the contents shall not be limited to:
1. The vertical and horizontal angles, expressed in degrees, at which the solar easement extends over the real property subject to the solar easement.
2. Any terms or conditions or both under which the solar easement is granted or will be terminated.
3. Any provisions for compensation of the owner of the property subject to the solar easement.
§ 56-232. Public utility and schedules defined.
The term "public utility" as used in §§ 56-233 to 56-240 and 56-246 to 56-250 shall mean and embrace every corporation (other than a municipality), company, individual, or association of individuals or cooperative, their lessees, trustees, or receivers, appointed by any court whatsoever, that now or hereafter may own, manage or control any plant or equipment or any part of a plant or equipment within the Commonwealth for the conveyance of telephone messages or for the production, transmission, delivery, or furnishing of heat, chilled air, chilled water, light, power, or water, or sewerage facilities, either directly or indirectly, to or for the public.
But the term "public utility" as herein defined shall not be construed to include any corporation created under the provisions of Title 13.1 unless the articles of incorporation expressly state that the corporation is to conduct business as a public service company. Notwithstanding any provision of law to the contrary, no person, firm, corporation, or other entity shall be deemed a public utility or public service company, solely by virtue of engaging in production, transmission, or sale at retail of electric power as a qualifying small power producer using renewable or nondepletable primary energy sources within the meaning of regulations adopted by the Federal Energy Regulatory Commission in implementation of the Public Utility Regulatory Policies Act of 1978 (P.L. 95-617) and not exceeding 7.5 megawatts of rated capacity, nor solely by virtue of serving as an aggregator of the production of such small power producers, provided that the portion of the output of any qualifying small power producer which is sold at retail shall not be sold to residential consumers. No qualifying small power producer, within the meaning of regulations adopted by the Federal Energy Regulatory Commission, shall be deemed a public utility within the meaning of Chapter 7 (§ 62.1-80 et seq.) of Title 62.1. The term "public utility" as herein defined shall not be construed to include any chilled water air-conditioning cooperative serving residences in less than a one square mile area, or any company which is excluded from the definition of "public utility" by subdivision (b) (4) of § 56-265.1.
Subject to the provisions of § 56-232.1, the term "schedules" as used in §§ 56-234 through 56-245 shall include schedules of rates and charges for service to the public and also contracts for rates and charges in sales at wholesale to other public utilities or for divisions of rates between public utilities, but shall not include contracts of telephone companies with the state government or contracts of other public utilities with municipal corporations or the federal or state government, or any contract executed prior to July 1, 1950.
§ 56-592. Consumer education and protection; Commission report to Legislative Task Force.
A. The Commission shall develop a consumer education program designed to provide the following information to retail customers during the period of transition to retail competition and thereafter:
1. Opportunities and options in choosing (i) suppliers and aggregators of electric energy and (ii) any other service made competitive pursuant to this chapter;
2. Marketing and billing information suppliers and aggregators of electric energy will be required to furnish retail customers;
3. Retail customers' rights and obligations concerning the purchase of electric energy and related services; and
4. Such other information as the Commission may deem necessary and appropriate in the public interest.
B. The Commission shall complete the development of the consumer education program described in subsection A, and report its findings and recommendations to the Legislative Transition Task Force on or before December 1, 1999, and as frequently thereafter as may be required by the Task Force concerning:
1. The scope of such recommended program consistent with the requirements of subsection A;
2. Materials and media required to effectuate any such program;
3. State agency and nongovernmental entity participation;
4. Program duration;
5. Funding requirements and mechanisms for any such program; and
6. Such other findings and recommendations the Commission deems appropriate in the public interest.
C. The Commission shall develop regulations governing marketing practices by public service companies, licensed suppliers, aggregators or any other providers of services made competitive by this chapter, including regulations to prevent unauthorized switching of suppliers, unauthorized charges, and improper solicitation activities. The Commission shall also establish standards for marketing information to be furnished by licensed suppliers, aggregators or any other providers of services made competitive by this chapter during the period of transition to retail competition, and thereafter, which information shall include standards concerning:
1. Pricing and other key contract terms and conditions;
2. To the extent feasible, fuel mix and emissions data on at least an annualized basis;
3. Customer's rights of cancellation following execution of any contract;
4. Toll-free telephone number for customer assistance; and
5. Such other and further marketing information as the Commission may deem necessary and appropriate in the public interest.
D. The Commission shall also establish standards for billing information to be furnished by public service companies, suppliers, aggregators or any other providers of services made competitive by this chapter during the period of transition to retail competition, and thereafter. Such billing information standards shall require that billing formation:
1. Distinguishes between charges for regulated services and unregulated services;
2. Itemizes any and all nonbypassable wires charges;
3. Is presented in a format that complies with standards to be established by the Commission;
4. Discloses, to the extent feasible, fuel mix and emissions data on at least an annualized basis; and
5. Includes such other billing information as the Commission deems necessary and appropriate in the public interest.
E. The Commission shall establish or maintain a complaint bureau for the purpose of receiving, reviewing and investigating complaints by retail customers against public service companies, licensed suppliers, aggregators and other providers of any services made competitive under this chapter. Upon the request of any interested person or the Attorney General, or upon its own motion, the Commission shall be authorized to inquire into possible violations of this chapter and to enjoin or punish any violations thereof pursuant to its authority under this chapter, this title, and under Title 12.1. The Attorney General shall have a right to participate in such proceedings consistent with the Commission's Rules of Practice and Procedure.
F. The Commission shall establish reasonable limits on customer security deposits required by public service companies, suppliers, aggregators or any other persons providing competitive services pursuant to this chapter.
§ 56-594. Net energy metering provisions.
A. The Commission shall establish by regulation a program, to begin no later than July 1, 2000, which affords eligible customer-generators the opportunity to participate in net energy metering. The regulations may include, but need not be limited to, requirements for (i) retail sellers; (ii) owners and/or operators of distribution or transmission facilities; (iii) providers of default service; (iv) eligible customer-generators; or (v) any combination of the foregoing, as the Commission determines will facilitate the provision of net energy metering, provided that the Commission determines that such requirements do not adversely affect the public interest.
B. For the purpose of this section:
"Eligible customer-generator" means a customer that owns and operates an electrical generating facility that (i) has a capacity of not more than ten kilowatts for residential customers and twenty-five kilowatts for nonresidential customers; (ii) uses as its total source of fuel solar, wind, or hydro energy; (iii) is located on the customer's premises; (iv) is interconnected and operated in parallel with an electric company's transmission and distribution facilities; and (v) is intended primarily to offset all or part of the customer's own electricity requirements.
"Net energy metering" means measuring the difference, over the net metering period, between (i) electricity supplied to an eligible customer-generator from the electric grid and (ii) the electricity generated and fed back to the electric grid by the eligible customer-generator.
"Net metering period" means the twelve-month period following the date of final interconnection of the eligible customer-generator's system with an electric service provider, and each twelve-month period thereafter.
C. The Commission's regulations shall ensure that the metering equipment installed for net metering shall be capable of measuring the flow of electricity in two directions, and shall allocate fairly the cost of such equipment and any necessary interconnection. An eligible customer-generator's solar, wind or hydro electrical generating system shall meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories. Beyond the requirements set forth in this section, a customer-generator whose solar, wind or hydro electrical generating system meets those standards and rules shall bear the reasonable cost, if any, as determined by the Commission, to (i) install additional controls, (ii) perform or pay for additional tests, or (iii) purchase additional liability insurance.
D. The Commission shall establish minimum requirements for contracts to be entered into by the parties to net metering arrangements. Such requirements shall protect the customer-generator against discrimination by virtue of its status as a customer-generator. Where electricity generated by the customer-generator over the net metering period exceeds the electricity consumed by the customer-generator, the customer-generator shall not be compensated for the excess electricity unless the entity contracting to receive such electric energy and the customer-generator enter into a power purchase agreement for such excess electricity. The net metering standard contract or tariff shall be available to eligible customer-generators on a first-come, first-served basis in each electric distribution company's Virginia service area until the rated generating capacity owned and operated by eligible customer-generators in the state reaches 0.1 percent of each electric distribution company's adjusted Virginia peak-load forecast for the previous year.
§ 58.1-331. Energy income tax credit.
A. Any individual shall be allowed a credit against the tax imposed by § 58.1-320 of an amount equaling twenty percent of renewable energy source expenditures, as defined in § 23 of the Internal Revenue Code and the regulations adopted pursuant thereto, made after January 1, 1985, and before January 1, 1986; a credit of an amount equaling fifteen percent of renewable energy source expenditures made after January 1, 1986, and before January 1, 1987; and a credit of an amount equaling ten percent of renewable energy source expenditures made after January 1, 1987, and before January 1, 1988, by such individual. Only one such credit shall be permitted for each such expenditure.
B. The amount of such credit shall not exceed $1,000 for a qualified renewable energy source expenditure or the tax imposed by this chapter, whichever is less. In determining such expenditures, the labor of the taxpayer shall not be included.
C. If the credit allowable, but not in excess of $1,000 for each qualified expenditure for any taxable year, exceeds the tax imposed by this chapter for such taxable year, such excess may be carried to the succeeding taxable year by the taxpayer and added to any credit allowable under subsection A for such succeeding taxable year.
§ 58.1-431. Energy income tax credit.
A. Any corporation shall be allowed a credit against the tax imposed by § 58.1-400 of an amount equaling twenty percent of renewable energy source expenditures made after January 1, 1985, and before January 1, 1986; a credit of an amount equaling fifteen percent of renewable energy source expenditures made after January 1, 1986, and before January 1, 1987; and a credit of an amount equaling ten percent of renewable energy source expenditures made after January 1, 1987, and before January 1, 1988, by such corporate taxpayer. Only one such credit shall be permitted for each individual expenditure. The Tax Commissioner shall adopt rules and regulations for the certification of such expenditures using the definitions of § 23 of the Internal Revenue Code as it relates to individuals whenever practicable.
B. The amount of such credit shall not exceed $1,000 for a qualified renewable energy source expenditure or the tax imposed by this chapter, whichever is less. In determining such expenditures, the labor of the taxpayer shall not be included.
C. If the credit allowable, but not in excess of $1,000 for each qualified expenditure for any taxable year, exceeds the tax imposed by this chapter for such taxable year, such excess may be carried to the succeeding taxable year by the taxpayer and added to any credit allowable under subsection A for such succeeding taxable year.
§ 58.1-3661. Certified solar energy equipment, facilities or devices and certified recycling equipment, facilities or devices.
A. Certified solar energy equipment facilities or devices and certified recycling equipment, facilities, or devices, as defined herein, are hereby declared to be a separate class of property and shall constitute a classification for local taxation separate from other classifications of real or personal property. The governing body of any county, city or town may, by ordinance, exempt or partially exempt such property from local taxation in the manner provided by subsection D.
B. As used in this section:
"Certified recycling equipment, facilities, or devices" means machinery and equipment which is certified by the Department of Waste Management as integral to the recycling process and for use primarily for the purpose of abating or preventing pollution of the atmosphere or waters of the Commonwealth, and used in manufacturing facilities or plant units which manufacture, process, compound, or produce for sale recyclable items of tangible personal property at fixed locations in the Commonwealth.
"Certified solar energy equipment, facilities or devices" means any property, including real or personal property, equipment, facilities, or devices, certified by the local certifying authority to be designed and used primarily for the purpose of providing for the collection and use of incident solar energy for water heating, space heating or cooling or other application which would otherwise require a conventional source of energy such as petroleum products, natural gas, or electricity.
"Local certifying authority" means the local building departments or the Department of Waste Management. The State Board of Housing and Community Development shall promulgate regulations setting forth criteria for certifiable solar energy equipment. The Department of Waste Management shall promulgate regulations establishing criteria for recycling equipment, facilities, or devices.
C. Any person residing in a county, city or town which has adopted an ordinance pursuant to subsection A may proceed to have solar energy equipment, facilities or devices certified as exempt, wholly or partially, from taxation by applying to the local building department. If, after examination of such equipment, facility or device, the local building department determines that the unit primarily performs any of the functions set forth in subsection B and conforms to the requirements set by regulations of the Board of Housing and Community Development, such department shall approve and certify such application. The local department shall forthwith transmit to the local assessing officer those applications properly approved and certified by the local building department as meeting all requirements qualifying such equipment, facility or device for exemption from taxation. Any person aggrieved by a decision of the local building department may appeal such decision to the local board of building code appeals, which may affirm or reverse such decision.
D. Upon receipt of the certificate from the local building department or the Department of Waste Management the local assessing officer shall, if such local ordinance is in effect, proceed to determine the value of such qualifying solar energy equipment, facilities or devices or certified recycling equipment, facilities, or devices. The exemption provided by this section shall be determined by applying the local tax rate to the value of such equipment, facilities or devices and subtracting such amount, wholly or partially, either (i) from the total real property tax due on the real property to which such equipment, facilities, or devices are attached or (ii) if such equipment, facilities, or devices are taxable as machinery and tools under § 58.1-3507, from the total machinery and tools tax due on such equipment, facilities, or devices, at the election of the taxpayer. This exemption shall be effective beginning in the next succeeding tax year, and shall be permitted for a term of not less than five years. In the event the locality assesses real estate pursuant to § 58.1-3292, the exemption shall be first effective when such real estate is first assessed, but not prior to the date of such application for exemption.
E. It shall be presumed for purposes of the administration of ordinances pursuant to this section, and for no other purposes, that the value of such qualifying solar energy equipment, facilities and devices is not less than the normal cost of purchasing and installing such equipment, facilities and devices.
§ 58.1-3662. Generating and cogenerating equipment used for energy conversion.
Generating equipment installed after December 31, 1974, for the purpose of converting from oil or natural gas to coal or to wood, wood bark, wood residue, or to any other alternate energy source for manufacturing, and any cogenerating equipment installed since such date for use in manufacturing, are hereby declared to be a separate class of property and shall constitute a classification for local taxation separate from other classifications of tangible personal property. The governing body of any county, city or town may, by ordinance, exempt or partially exempt such property from local taxation, and such ordinance shall become effective on January 1 of the year following the year of adoption.