                                 CODE OF VIRGINIA

CERTIFIED POLLUTION CONTROL EQUIPMENT AND FACILITIES (§ 58.1-3660)

A. Certified pollution control equipment and facilities, as defined herein, are
hereby declared to be a separate class of property and shall constitute a
classification for local taxation separate from other such classification of
real or personal property and such property. Certified pollution control
equipment and facilities shall be exempt from state and local taxation pursuant
to Article X, &#xA7; 6 (d) of the Constitution of Virginia.

B. As used in this section:
			&#8220;Certified pollution control equipment and facilities&#8221; means any
property, including real or personal property, equipment, facilities, or
devices, used primarily for the purpose of abating or preventing pollution of
the atmosphere or waters of the Commonwealth and which the state certifying
authority or subdivision certifying authority having jurisdiction with respect
to such property has certified to the Department of Taxation as having been
constructed, reconstructed, erected, or acquired in conformity with the state
program or requirements for abatement or control of water or atmospheric
pollution or contamination, except that in the case of equipment, facilities,
devices, or other property intended for use by any political subdivision in
conjunction with the operation of its water, wastewater, stormwater, or solid
waste management facilities or systems, including property that may be financed
pursuant to Chapter 22 (&#xA7; 62.1-224 et seq.) of Title 62.1, the state
certifying authority or subdivision certifying authority having jurisdiction
with respect to such property shall, upon the request of the political
subdivision, make such certification prospectively for property to be
constructed, reconstructed, erected, or acquired for such purposes. Such
property shall include, but is not limited to, any equipment used to grind,
chip, or mulch trees, tree stumps, underbrush, and other vegetative cover for
reuse as mulch, compost, landfill gas, synthetic or natural gas recovered from
waste or other fuel, and equipment used in collecting, processing, and
distributing, or generating electricity from, landfill gas or synthetic or
natural gas recovered from waste, whether or not such property has been
certified to the Department of Taxation by a state certifying authority or
subdivision certifying authority. Such property shall include solar energy
equipment, facilities, or devices owned or operated by a business that collect,
generate, transfer, or store thermal or electric energy whether or not such
property has been certified to the Department of Taxation by a state certifying
authority or subdivision certifying authority. Such property shall also include
energy storage systems, whether or not such property has been certified to the
Department of Taxation by a state certifying authority or subdivision certifying
authority. All such property as described in this definition shall not include
the land on which such equipment or facilities are located.
			&#8220;Energy storage system&#8221; means equipment, facilities, or devices
that are capable of absorbing energy, storing it for a period of time, and
redelivering that energy after it has been stored.
			&#8220;State certifying authority&#8221; means the State Water Control Board
or the Virginia Department of Health, for water pollution; the State Air
Pollution Control Board, for air pollution; the Department of Energy, for solar
energy projects, energy storage systems, and for coal, oil, and gas production,
including gas, natural gas, and coalbed methane gas; and the Virginia Waste
Management Board, for waste disposal facilities, natural gas recovered from
waste facilities, and landfill gas production facilities, and shall include any
interstate agency authorized to act in place of a certifying authority of the
Commonwealth.
			&#8220;Subdivision certifying authority&#8221; means the body of a political
subdivision responsible for administering the political subdivision&#8217;s
water, wastewater, stormwater, or solid waste management facilities or systems.
A subdivision certifying authority may only certify property pursuant to this
section if the property being certified is equipment, facilities, devices, or
other property intended for use by the political subdivision in conjunction with
the operation of its water, wastewater, stormwater, or solid waste management
facilities or systems. If property is certified by a subdivision certifying
authority, it shall not be required to be certified by a state certifying
authority.

C. For solar photovoltaic (electric energy) systems, this exemption applies only
to (i) projects equaling 20 megawatts or less, as measured in alternating
current (AC) generation capacity, for which an initial interconnection request
form has been filed with an electric utility or a regional transmission
organization on or before December 31, 2018; (ii) projects equaling 20 megawatts
or less, as measured in alternating current (AC) generation capacity, that serve
any of the public institutions of higher education listed in &#xA7; 23.1-100 or
any private college as defined in &#xA7; 23.1-105; (iii) 80 percent of the
assessed value of projects for which an initial interconnection request form has
been filed with an electric utility or a regional transmission organization (a)
between January 1, 2015, and June 30, 2018, for projects greater than 20
megawatts or (b) on or after July 1, 2018, for projects greater than 20
megawatts and less than 150 megawatts, as measured in alternating current (AC)
generation capacity, and that are first in service on or after January 1, 2017;
(iv) projects equaling five megawatts or less, as measured in alternating
current (AC) generation capacity, for which an initial interconnection request
form has been filed with an electric utility or a regional transmission
organization on or after January 1, 2019; and (v) 80 percent of the assessed
value of all other projects equaling more than five megawatts and less than 150
megawatts, as measured in alternating current (AC) generation capacity for which
an initial interconnection request form has been filed with an electric utility
or a regional transmission organization on or after January 1, 2019.

D. The exemption for solar photovoltaic (electric energy) projects greater than
five megawatts, as measured in alternating current (AC) generation capacity,
shall not apply to any such project unless an application has been filed with
the locality for the project before July 1, 2030, regardless of whether a
locality assesses a revenue share on such project pursuant to the provisions of
&#xA7; 58.1-2636. If a locality adopts an energy revenue share ordinance under
&#xA7; 58.1-2636, the exemption for solar photovoltaic (electric energy)
projects greater than five megawatts, as measured in alternating current (AC)
generation capacity, shall be 100 percent of the assessed value. If a locality
does not adopt an energy revenue share ordinance under &#xA7; 58.1-2636, the
exemption for solar photovoltaic (electric energy) projects greater than five
megawatts, as measured in alternating current (AC) generation capacity, for
which an initial interconnection request form has been filed with an electric
utility or a regional transmission organization, shall be 80 percent of the
assessed value when an application has been filed with the locality prior to
July 1, 2030. For purposes of this subsection, &#8220;application has been filed
with the locality&#8221; means an applicant has filed an application for a
zoning confirmation from the locality for a by-right use or an application for
land use approval under the locality&#8217;s zoning ordinance to include an
application for a conditional use permit, special use permit, special exception,
or other application as set out in the locality&#8217;s zoning ordinance.

E. For pollution control equipment and facilities certified by the Virginia
Department of Health, this exemption applies only to onsite sewage systems that
serve 10 or more households, use nitrogen-reducing processes and technology, and
are constructed, wholly or partially, with public funds.

F. Notwithstanding any provision to the contrary, for any solar photovoltaic
project described in clauses (iii) and (v) of subsection C for which an initial
interconnection request form has been filed with an electric utility or a
regional transmission organization on or after January 1, 2019, the amount of
the exemption shall be as follows: 80 percent of the assessed value in the first
five years in service after commencement of commercial operation, 70 percent of
the assessed value in the second five years in service, and 60 percent of the
assessed value for all remaining years in service.

G. Notwithstanding any provision to the contrary, the exemption for energy
storage systems provided under this section (i) shall apply only to projects
greater than five megawatts and less than 150 megawatts, as measured in
alternating current (AC) storage capacity, and (ii) shall be in the following
amounts: 80 percent of the assessed value in the first five years of service
after commencement of commercial operation, 70 percent of the assessed value in
the second five years in service, and 60 percent of the assessed value for all
remaining years in service.

H. The exemption for energy storage systems greater than five megawatts, as
measured in alternating current (AC) storage capacity, shall not apply to any
such project unless an application has been filed with the locality for the
project before July 1, 2030, regardless of whether a locality assesses a revenue
share on such project pursuant to the provisions of &#xA7; 58.1-2636. If a
locality adopts an energy revenue share ordinance under &#xA7; 58.1-2636, the
exemption for energy storage systems greater than five megawatts, as measured in
alternating current (AC) storage capacity, shall be 100 percent of the assessed
value. If a locality does not adopt an energy revenue share ordinance under
&#xA7; 58.1-2636, the exemption for energy storage systems greater than five
megawatts, as measured in alternating current (AC) storage capacity, shall be as
set out in subsection G when an application has been filed with the locality
prior to July 1, 2030. For the purposes of this subsection, &#8220;application
has been filed with the locality&#8221; means an applicant has filed an
application for a zoning confirmation from the locality for a by-right use or an
application for land use approval under the locality&#8217;s zoning ordinance to
include an application for a conditional use permit, special use permit, special
exception, or other application as set out in the locality&#8217;s zoning
ordinance.

HISTORY: Code 1950, § 58-16.3; 1972, c. 694; 1984, c. 675; 1995, c. 229; 2003,
c. 859; 2006, cc. 375, 939; 2009, c. 671; 2014, cc. 259, 737; 2016, cc. 346,
518; 2018, c. 849; 2019, c. 441; 2020, cc. 65, 252, 1028, 1029, 1224, 1270;
2021, Sp. Sess. I, cc. 49, 50, 532; 2022, cc. 14, 501.