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SB 983

Retail Sales and Use Tax; dealer discount.

2025 Regular Session Introduced by Tammy Mulchi

Establishes a state DGCPCN permit for 2-5 MW community solar outside municipalities, standardizing siting/design and speeding statewide approvals.

Left in Finance and Appropriations
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Bill Summary · SB 983

SB 983 — Solar Energy: Distributed Generation CPCN, Ground‑Mounted Solar, and Small Solar Siting Workgroup

Status: Hearing 3/06 at 1:00 p.m. (Education, Energy, and the Environment)
Introduced: January 28, 2025 (Sen. Brooks) — Effective date shown in analysis: July 1, 2025. (Provisions for workgroup and county zoning prohibition terminate June 30, 2027.)

Main purpose

Create a streamlined permit path — a new “Distributed Generation Certificate of Public Convenience and Necessity” (DGCPCN) — to authorize construction and operation of certain community (distributed) solar projects (greater than 2 MW up to 5 MW AC) located outside municipalities; establish standardized siting, design and licensing requirements; and form a Small Solar Siting Workgroup to recommend best practices and statewide model policies.

Key provisions

  • DGCPCN established: a certificate issued by the Public Service Commission (PSC) authorizing construction/operation of a “distributed solar energy generating system” (community solar >2 MW and ≤5 MW AC, not inside a municipality). A project with a DGCPCN is exempt from obtaining a full CPCN under the existing power‑plant statute.
  • Power Plant Research Program (PPRP, within DNR) duties:
    • By July 1, 2026, develop and submit proposed standard siting & design requirements and proposed standard licensing conditions to PSC after public notice/comment.
    • Consider climate goals, reasonable setbacks and screening, forest protection (narrowed exceptions for clearing), stormwater/erosion controls, historic preservation, public safety, decommissioning, and industry best practices.
    • Within 90 days of receiving a DGCPCN application, determine whether the project satisfies the standard siting/design requirements and notify PSC, including cure guidance if deficient.
  • PSC duties:
    • By July 1, 2027, adopt regulations implementing DGCPCN standards, application form/fees, and processing procedures (considering PPRP proposals).
    • Provide public hearings (in each county where construction is proposed; virtual permitted with comparable participation).
    • Within 60 days after PPRP’s determination, schedule a hearing and decide whether the project meets requirements; if so, issue a DGCPCN subject to standard licensing conditions.
  • Application process: Applicants must file DGCPCN with PSC and provide copies to PPRP and the county governing body where the project is proposed.
  • Permit coordination: A DGCPCN holder remains subject to required county/municipal/soil conservation permits, but PSC license conditions will be standard and pre‑specified.
  • Temporary local zoning limitation: The bill temporarily prohibits counties from enacting zoning or regulations that restrict or prohibit construction/operation of certain ground‑mounted solar facilities up to 2 MW (sunset June 30, 2027).
  • Small Solar Siting Workgroup: Established to review and recommend best practices and statewide model policies for small/ground‑mounted solar; reporting requirement and sunset tied to 6/30/2027.

Who is affected

  • Solar developers: community/distributed solar projects sized >2 MW and ≤5 MW AC outside municipalities would use the DGCPCN path.
  • State agencies: DNR/PPRP (develop standards; review applications) and PSC (regulations, hearings, issuance).
  • Counties and municipalities: must receive applications and continue to issue local permits; temporarily limited from enacting zoning restrictions for certain ≤2 MW ground‑mounted systems.
  • Small businesses and local economies: noted as meaningfully affected (project development, suppliers, contractors).
  • Ratepayers/public: public hearings and comment opportunities are required.

Fiscal and timeline notes

  • Effective date: July 1, 2025. PPRP must deliver proposed standards by July 1, 2026; PSC must adopt implementing regulations by July 1, 2027.
  • Fiscal impacts (per fiscal note): increased DNR general/special fund expenditures of ~$952,600 in FY2026 (consultant/staffing) and PSC special fund expenditures of ~$121,300 in FY2027; ongoing costs thereafter. Local government operations and small businesses also affected.

Practical effect

SB 983 creates a targeted, standardized pathway for mid‑sized (2–5 MW) community solar projects outside municipalities to obtain state authorization with pre‑set siting/design conditions, while promoting faster, more consistent permitting across jurisdictions and providing state guidance on siting and environmental protections. The bill couples this permitting streamlining with temporary limits on local zoning for very small ground‑mounted systems and a short‑term workgroup to craft model policies.

Compiled from official sources — confirm details with the bill’s official record.

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