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Why one Louisiana parish is welcoming a solar power company ... - The Advocate

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Why one Louisiana parish is welcoming a solar power company while its neighbor fights it | Baton Rouge | theadvocate.com

When the Pointe Coupee Parish Council approved a second solar farm Tuesday, it did so quickly and unanimously.

It's a far cry from how the company behind the project, NextEra Energy, has been received in neighboring Iberville Parish, where the company has faced backlash from residents and resistance from parish leaders.

A simple explanation for the starkly different reactions: Pointe Coupee needs NextEra Energy and Iberville doesn’t.

“Rather than trying to rely on raising sales tax or property taxes, if we can diversify our revenue stream by bringing different industries in, that’s what we want to do,” said Pointe Coupee Parish President Major Thibaut.

The Mondu Solar project from Juno, Florida-based NextEra Energy Resources will take over 2,000 acres between Livonia and Lottie and deliver up to 150 megawatts of renewable energy to the parish, according to the company. Thibaut said it will bring a $230 million investment to the parish and more than $50 million in taxes over time, plus provide around 200 short-term construction jobs.

“I’m happy for Pointe Coupee. That’s a big economic engine for them,” said Iberville Parish President Mitch Ourso. “But that’s small potatoes for Iberville Parish.”

In 2022, Iberville Parish collected $88 million in sales tax, with $57 million of that attributed to industry. This year to date, the parish has collected $76 million in sales tax, about $49 million of that attributed to chemical and other industry-affiliated companies, according to Ourso.

In Pointe Coupee, sales tax revenue was $19.9 million.

“If we had Dow and Shintech and Exxon and these companies in our backyards the conversation could be different, but we’re at a point where we need to diversify our revenue streams and Pointe Coupee is open for business,” Thibaut said.

Thibaut said his administration has still negotiated with the company. For example, rather than qualifying for the Industrial Tax Exemption Program, Pointe Coupee pushed for NextEra to work on the payment in lieu of taxes, or PILOT, model. The tax incentive gives the parish the title of the project for a specified term before leasing it back to the company.

Thibaut said in this case the PILOT route offers about 15% less of a tax break than NextEra would have received with an ITEP.

“It’s been a 2½-year process of not only negotiating but doing due diligence and making sure that the partnership and company is the right fit,” Thibaut said. "We’ve been approached over the years by a number of solar companies, but I think Nextera is the caliber of company any community would want as a partner.”

A representative from NextEra said the company is grateful to the Pointe Coupee Parish council and looks forward to working through the permitting process in Iberville.

“The Mondu Solar project is more than just solar panels. It represents millions in additional tax revenue for the community, money that can enhance local roads, schools and services,” NextEra senior communications manager Sara Cassidy said.

In Iberville, residents protested a proposed NextEra project during a September meeting, citing concerns for the appearance of the panels, the impact on nearby property values and how a solar farm would diminish farmland. NextEra said the Coastal Prairie Solar Project planned near La. 993 would create 175 megawatts of solar energy and provide clean energy to 26,000 homes.

Meanwhile, some residents in Pointe Coupee also expressed concern about the solar farm’s impact on agriculture, but overall the issue was much less contentious than in Iberville.

Sugar cane is the largest industry in Pointe Coupee, and Thibaut said he didn’t see solar farms changing that. In fact, in 2023 Pointe Coupee has 77,000 acres of sugar cane ground, an increase from 65,000 acres in 2020. Despite a freeze, last year Louisiana saw a record sugar cane harvest.

“We’re ag-based and we don’t want to change that. We love where we live, but I think it’s imperative as we move forward — like many rural communities — to fix aging infrastructure and continue to provide quality of life for our citizens," Thibaut said. "We have to look at opportunities that don’t change our culture or landscape but allow us to diversify and keep with the times."

Pointe Coupee’s existing solar farm, operated by San Francisco-based Lightsource bp in Ventress, is expected to be complete by the end of the year. Thibaut said with these two projects Pointe Coupee is probably at its capacity for solar but is open to working with other industries.

Related Knowledge Center: ENERGY BASICS: solar

State of Play

Declining costs and government encouragement have resulted in a rapid increase in solar energy production in the United States over the past 10 years, although solar’s share remains small: 1.6 percent of all electricity generation in 2018. That rapid growth is projected to continue.

More informationabout ENERGY BASICS: solar