Committee Report

May 3, 2023

H.3989

Introduced by Reps Ott, G. M. Smith, Cobb-Hunter, Ligon, Kirby, Haddon, Oremus, Brewer, Gagnon, Sandifer and Weeks

S. Printed 05/03/23--H.

Read the first time February 16, 2023

________

The committee on House Labor, Commerce and Industry

To who was referred a Bill (H.3989) to amend the South Carolina Code of Laws by adding Article 9 to Chapter 33, Title 58 so as to establish the "Solar, Agricultural, Farmland, and Environmental Act", etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

    Amend the bill, after the title but before the enacting words, by adding:

Whereas, the General Assembly intends to establish a process for reviewing and mitigating the use of high-value agricultural lands by photovoltaic energy facilities; and

Whereas, the applicability of the Utility Facility Siting and Environmental Protection Act to a proposed electric generating plant is based on its generating capacity and not the acreage of the proposed generating plant; and

Whereas, nothing in this act shall be construed to affect the definition of "Major Utility Facility" under the Utility Facility Siting and Environmental Protection Act. Now, therefore,

Amend the bill further, SECTION 1, by striking Section 58-33-530(A)(2) and (2) and inserting:

(1) No person shall commence to construct a photovoltaic energy facility on farmland without first having obtained a certificate issued with respect to that facility by the commission. The replacement of an existing photovoltaic energy facility with a like facility, as determined by the commission, shall not constitute construction of a photovoltaic energy facility. Any photovoltaic energy facility, with respect to which a certificate is required, shall be constructed, operated, and maintained in conformity with the certificate and any terms, conditions, and modifications contained therein. A certificate may only be issued pursuant to this article; provided, however, any authorization relating to a photovoltaic energy facility on farmland granted under other laws administered by the commission shall constitute a certificate if the requirements of this article have been complied with in the proceeding leading to the granting of such authorization.

       (2) All land that is taxable as agricultural land upon which an applicant seeks to construct a photovoltaic energy facility is considered farmland for purposes of this article unless and until the applicant has a determination in writing from the Clemson Extension that the land upon which it seeks to construct a photovoltaic energy facility is not farmland as defined in this article. A copy of all requests for a determination from the Clemson Extension as to whether land is farmland must be provided to the Regulatory Staff on the day on which the request is made. To the extent a person seeks to construct a photovoltaic energy facility on land that is determined by the Clemson Extension to not be farmland, it is not subject to the terms of this article.

Amend the bill further, SECTION 1, by deleting Section 58-33-600(D).

Amend the bill further, SECTION 1, by deleting Section 58-33-610.

Renumber sections to conform.

Amend title to conform.

BILL SANDIFER for Committee.

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill establishes the Solar, Agricultural, Farmland, and Environmental Act.  The bill requires an individual to obtain a certificate from PSC prior to constructing a photovoltaic energy facility.  All land upon which an applicant seeks to construct a photovoltaic energy facility is considered farmland for purposes of this bill until the applicant has a determination in writing from the Clemson Extension that the land is not farmland.  A copy of all requests for such determinations from the Clemson Extension must be provided to ORS.  The bill also specifies as to when the construction of a photovoltaic energy facility is excluded from the provisions of this bill.

The bill also specifies the information that must be included in the application for the certificate to construct a photovoltaic energy facility.  Additionally, each application must be accompanied by proof of service of a copy of the application on ORS, the chief executive officer of each municipality, and the head of each state and local governmental agency in the area of the county where the photovoltaic energy facility is to be located. 

Additionally, upon receipt of an application, PSC must promptly establish a date for the commencement of hearings regarding the construction of a photovoltaic energy facility.  The parties to a certification hearing must include the applicant, ORS, DHEC, DNR, all land-grant universities in the state, the Department of Agriculture, PRT, each municipality and governmental agency entitled to receive a copy of the application filed with PSC, and any person entitled to receive a copy of the application. The bill also requires PSC to render a decision either granting or denying the application.

The bill also specifies that all entities and persons filing an application for construction of a photovoltaic energy facility must bear the costs associated with the filing that are incurred by ORS and PSC.  Exceptions include filings by a public utility that pays a license tax pursuant to  12-20-100.  ORS must report all costs incurred for the investigation of the application, and PSC must report all costs incurred by the commission for adjudicating the application to DOR. 

The bill further establishes the Agricultural and Farmland Viability Protection Fund, which is in the custody of DOR.  If PSC approves the application, 10 percent of the total project costs must be remitted to DOR and placed in the fund.  All monies deposited in the fund must be used for agricultural and farmland protection activities as follows:

Education to impacted communities about easements, green bank opportunities, and funding sources that may be used to conserve agricultural land;

Conservation of agricultural lands in South Carolina; or