PRINTER'S NO. 985
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
798
Session of
2023
INTRODUCED BY MASTRIANO, BARTOLOTTA, J. WARD, DUSH AND GEBHARD,
JUNE 28, 2023
REFERRED TO AGRICULTURE AND RURAL AFFAIRS, JUNE 28, 2023
AN ACT
Providing for solar energy facilities on certain land; imposing
powers and duties on the Department of Agriculture; and
providing for a tax credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Solar Energy
Facility Location Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Abandoned mine." An area of land that is no longer in use
and is placed upon, under or above the surface of another area
of land by a person, used in extracting a natural resource from
its natural deposits in the earth by any means or method.
"Agricultural land." Land that is used or capable of being
used for a normal agricultural operation.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
"Brownfield." A property, the expansion, redevelopment or
reuse of which may be complicated by the presence or potential
presence of a hazardous substance, pollutant or contaminant.
"Capped landfill." A capped facility of trash and garbage
disposal in which the waste is buried between layers of earth.
"Department." The Department of Agriculture of the
Commonwealth.
"Normal agricultural operation." As defined in section 2 of
the act of June 10, 1982 (P.L.454, No.133), referred to as the
Right-to-Farm Law.
"Parking facility canopy." A structure that is constructed
over the top of a public or private parking lot.
"Solar energy facility." A facility that is designed for the
supply of merchant power and utilizes solar energy to produce or
distribute energy.
"Warehouse." The term includes a distribution facility,
fulfillment center, logistics facility and similar uses.
"Warehouse rooftop." A roof that is located on a building or
group of buildings primarily used for indoor storage, transfer
and distribution of products and materials, but not including
retail uses or a truck terminal.
Section 3. Location of solar energy facilities.
A solar energy facility may not be located on agricultural
land with soil that is deemed Class 1 or Class 2 within the Land
Capability Classification System of the Natural Resource
Conservation Service.
Section 4. Soil classification certification.
(a) Request for determination.--The owner of agricultural
land that wishes to lease the land for the purposes of siting a
solar energy facility must submit a written request to the
20230SB0798PN0985 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
department for a determination as to whether the land is
considered Class 1 or Class 2 soil. The request must be
submitted in such form and manner as prescribed by the
department.
(b) Review and certification by department.--
(1) Within 30 days of receipt of a written request
submitted under subsection (a), the department shall review
the request to determine whether the proposed solar facility
is located on Class 1 or Class 2 soil.
(2) The department shall provide notification to the
requester after a determination is made electronically, if
electronic contact information is available, and by certified
and registered mail.
Section 5. Tax credit.
(a) Eligibility.--The owner of a solar energy facility may
claim an annual tax credit against the owner's tax liability
under Article IV of the act of March 4, 1971 (P.L.6, No.2),
known as the Tax Reform Code of 1971.
(b) Application.--
(1) The owner of a solar energy facility may apply to
the Department of Community and Economic Development of the
Commonwealth for a tax credit under this section. The
application shall be on the form required by the Department
of Community and Economic Development.
(2) The application must be submitted to the Department
of Community and Economic Development by February 1 of each
year for the tax credit claimed during the prior calendar
year.
(c) Amount.--The tax credit shall be equal to 3ยข per
kilowatt, but not to exceed 30% of the project's cost of
20230SB0798PN0985 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
electricity generated for the first 10 years of the solar energy
facility's operation.
(d) Annual limit.--The total amount of tax credits issued by
the Department of Community and Economic Development under this
section may not exceed $5,000,000 in a fiscal year.
(e) Review and approval.--
(1) The Department of Community and Economic Development
shall review and approve applications meeting the
requirements of this article by March 20 of each year.
(2) The Department of Community and Economic Development
may require information necessary to document that a solar
energy facility qualifies as an eligible facility.
(3) In the review of an application for a tax credit
under this section, the Department of Community and Economic
Development shall consult with the Department of
Environmental Protection with respect to whether a solar
facility qualifies as an eligible facility under subsection
(g).
(4) Prior to approving an application, the applicant
must have:
(i) filed all required State tax reports and returns
for all applicable taxable years; and
(ii) paid any balance of State tax due as determined
by assessment or determination by the Department of
Revenue and not under timely appeal.
(5) Upon approval, the Department of Community and
Economic Development shall issue a certificate stating the
amount of tax credit granted for electricity generated in the
prior calendar year.
(f) Availability of tax credits.--Tax credits under this
20230SB0798PN0985 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
section shall be made available by the Department of Community
and Economic Development on a first-come, first-served basis
within the limitation established under subsection (d).
(g) Land eligible for tax credit.--Any of the following land
is eligible for the tax credit:
(1) Land that is located on a brownfield.
(2) Land that consists of an abandoned mine.
(3) Land that consists of a capped landfill.
(4) Land that consists of a warehouse rooftop.
(5) Land that consists of a parking facility canopy.
Section 6. Applicability.
This act does not apply to:
(1) A solar energy facility sited or under a solar
energy facility agreement entered into prior to the effective
date of this section.
(2) A solar energy facility with a nameplate capacity of
two megawatts AC or less.
(3) A customer-generator as defined in section 2 of the
act of November 30, 2004 (P.L.1672, No.213), known as the
Alternative Energy Portfolio Standards Act.
(4) Agricultural land where Class 1 and Class 2 soils
make up a de minimus portion, as determined by the
department, of the total land parcel proposed for a solar
energy facility.
Section 7. Enforcement.
An action to enjoin the development or construction, or to
require the removal of, a solar energy facility in violation of
this act may be brought, in the name of the Commonwealth, by the
Attorney General, the department or the municipality at issue.
Section 8. Effective date.
20230SB0798PN0985 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
This act shall take effect in 60 days.
20230SB0798PN0985 - 6 -
1