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Solar Isn’t Bad, But Incentives Are Bad Bet

Unfortunately, the Chautauqua County IDA has decided to further subsidize an already NYS incentivized and subsidized solar project in the town of Hanover with a 30-year property tax abatement program.

A much larger project is being planned for the town of Ripley and more are being considered throughout the county. The developers are continuing to negotiate with town officials, landowners and the CCIDA. Perhaps this is a wakeup call to Chautauqua County residents to what the IDA is and what it does.

The same progressive principal that Albany uses to justify incentives and tax breaks for “green energy” is the foundation of industrial development associations. It is a central planning tenant based on the idea that government should play a role as investor and/or planner when it comes to industry and business.

I can understand the justification of regulation to a minor extent. For example, as a judicial mediator between industrial and non-industrial land use conflicts. The role of government as an investor gets in to the realm of socialism where government is the sole investor and regulator in industry.

I don’t believe we can justify our local government dabbling in socialism much longer. Besides, our IDA is not very good at creating jobs for all the tax breaks it hands out. The state comptroller’s 2018 report had the CCIDA in the top 10 of 55 in the state with $15.3 million worth of net tax exemptions but comes in at 48th for net jobs gained. That’s $15 million that doesn’t go into the tax base. The burden of not having these funds to pay for local services falls on residential and agricultural taxpayers.

At the November Chautauqua County Planning and Economic Development Committee Meeting, CCIDA CEO Mark Geise said he thinks the Ripley solar project has a “razor-thin edge of profitability even with the PILOT.” If these projects are so fragile why does the IDA think they’re worth a 30-year property tax abatement program? The state budget, which also heavily subsidizes and incentivizes the solar industry, is in dire straits. Is there a possibility the state will cut those subsidies in the next 20 years?

I understand the perspective of the property owners and local municipal leaders. I’m not denying the short-term economic boost that would occur with the building and commissioning of these types of projects. Times are tough for farmers and residents in our county, but I don’t think this is the right direction to help them in the long term. If these solar farms were backed by solely by private investors and sufficiently bonded for decommissioning and disposal, I’d be in favor of their construction.

The Chautauqua County Legislature is likely to consider a resolution or amendment to prevent future CCIDA agreements with large solar energy projects when they meet on Dec. 16, 2020. I’ve contacted my Legislator John Davis and urged him to support such legislation because I’m against the subsidies, not the technology. I encourage you to reach out to your county representatives as well.

Gerrit Cain is a Poland resident.

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