Urgent: Jefferson County Demands Tax Revenue from Solar Firm

UPDATE: Jefferson County officials are intensifying pressure on renewable energy developer Convergent Energy and Power to begin paying local taxes, following years of tax exemptions that have left the community without vital funding. Since the solar farm’s construction, the developer has not contributed a single dollar to the county, town of Lyme, village of Chaumont, or the Lyme School District.

State Assemblyman Scott Gray expressed frustration over the situation, stating, “The company should be paying local taxes.” The urgency is heightened by a recent incident involving a lithium battery fire at the facility, which necessitated a response from over 30 fire departments and state officials, raising questions about the financial burden on local resources.

Gray emphasized the financial implications of the fire, but when asked about the costs incurred by local authorities, he could only estimate, “Oh, I have no idea. It’s tremendous, right?” This incident exemplifies the strain on local communities that lack financial contributions from major developers like Convergent.

Legally, Convergent may not be obligated to pay taxes due to the facility’s construction under Section 487 of New York state real property tax law. This law allows municipalities just 60 days to negotiate Payment in Lieu of Taxes (PILOT) agreements after a developer announces plans for a renewable energy project. However, during the COVID-19 pandemic, neither the town nor the village responded in time, and the county failed to follow up on its intent.

Jefferson County Administrator Ryan Pitcher highlighted the plight of smaller communities, stating, “Small communities find themselves up against pressure from large developers and without a lot of tools in the toolbox to withstand that pressure.”

In a move to protect future projects, New York state updated its laws in April 2021. The changes allow municipalities to create local legislation requiring PILOT negotiations for all future renewable energy projects, overriding Section 487. While Pitcher welcomed this advancement, he asserted that more needs to be done. “We really need a united approach. These rural communities need to stand together – county, town, school district, village, together and negotiate the best possible deal with these solar companies,” he urged.

As of now, Convergent Energy has not responded to comments regarding the tax situation. However, Gray confirmed that there is potential progress, stating, “Convergent plans to meet with stakeholders to work toward a resolution to start bringing in tax money from the project.”

This story is developing, and its implications for local funding and community resources are significant. Keep an eye on further updates as this situation unfolds, affecting not just Jefferson County but also the broader landscape of renewable energy initiatives across New York state.