Calcasieu School Board approves ITEP for Sulphur solar farm
Published 4:55 pm Thursday, December 14, 2023
- (American Press Archives)
The Calcasieu Parish School Board approved an industrial tax exemption this week for a $244 million solar farm that is planned for the Sulphur area.
The passage of the ITEP did not happen without discussion or oppostition. At last month’s meeting, this ITEP was rejected by the board with a 7-6 vote; the general consensus of the board was there was not enough information about the project provided. At the December meeting, Nova Clean Energy representatives provided clarity on the details of the project.
Sulphur Solar LLC is a utility sales solar project that is being spearheaded by Nova Clean Energy — the U.S. development platform of Bluestar Energy Capital. The solar farm would generate electricity through solar panels that are mounted to the ground. The electricity will be collected at the Sulphur Solar project substation and sent off to an Entergy owned switch yard that will distribute the solar powered electricity to the community.
Karina Sommerlot, project manager, Nova Clean Energy, said at the meeting that a project of this size could power approximately 25,000 homes, or150 megawatts. The project will be located in District 30, just outside of Sulphur near the end of Steagel Rd, west of the salt domes.
Sulphur Solar is still in developmental phases, with construction planned to begin at the end of 2024. During construction, an estimated 200 jobs will be created with a payroll of $18,751,000, according to provided ITEP documentation. Representatives said that the construction jobs will be a combination of locals and “experts from other areas.”
As part of the ITEP, the project will create one direct job with an annual salary of $50,000. CPSB’s approval of the ITEP will lead to a total estimated 10 year property tax exemption of $6,029,551 for CPSB.
Sommerlot said that over the 35 year lifetime of the project, an estimated $41 million in property tax revenue will be generated in Calcasieu; $6 million in sales tax will be generated at the state level and $7.8 million in sales tax at the local level. CPSB will receive $3.4 of the local sales tax, and this money will be seen in year one of the project.
Representatives said that the success of the solar farm hinges on the ITEP, as the high sales and property taxes in the area make it difficult to get a project this large off of the ground.
Former gubernatorial candidate Hunter Lundy spoke at the CPSB meeting to advocate for Sulphur Solar, and stated that the solar plant was a “very small piece of a large puzzle.”
According to Lundy, the completion of a green hydrogen plant and a methanol plant is also reliant on the success of Sulphur Solar. In August of this year, he announced that Apollo Lake Charles LLC has plans to build this plant, which would produce methanol for the maritime industry – above the old Sulphur mines. To qualify as a “green” hydrogen plant, the plant will be powered by solar energy.
“Yes, they’re providing energy to the community, but they’re really providing energy to a green hydrogen and methanol plant which work hand in hand.”
He said these two plants are planned to be built “in close proximity” to Sulphur Solar.
Jean Goodwillie, head of development, Nova Clean Energy, told the American Press on Wednesday in an email that Nova Clean Energy and Sulphur Solar LLC “are not affiliated with any green fuel projects on the property.”
There was resistance to the ITEP from some locals and board members. One citizen, James Hiatt, said that he was “shocked” to see the ITEP consideration back on the agenda after being rejected at the last meeting, and stated that what industrial companies give back to the community is only “pennies on the dollar” of the exemption amounts. Another, Renee Rule, expressed concern that CPSB’s “funding is already stretched,” and that the approval of the ITEP takes money away from students, faculty and staff in the school district.
Dean Roberts, district 6 board member, reminded those in attendance that salary supplements are funded with sales tax monies, not property tax, and that the salary supplements that were distributed in October – $7,025 for non-support personnel and $4,920 for support personnel – were the largest in CPSB history.
He also noted that excess sales tax revenue that is used to provide supplements is “generated by industry that we are so fortunate to have.”
“These projects bring economic change to our community.”
Desmond Wallace, district 14 board member, said that while he understands “investing in investments” and strategic financial planning, he is concerned about a loss of funds, especially with ESSER funds expiring in September 2024.
“We will not have that cushion come next year.”
His concerns also extended to the confusion over the details of the project at the meeting in November.
“Every single one of us up here, we represent a diverse constituency, and they deserve for us to be in the room because they elected us to be in the room to know all of the ins and outs so that we can make well-educated and well-informed decisions on anything that comes before this board.”
Prior to the December meeting, the Nova Clean Energy team reached out to individual CPSB members and held two open meetings to provide information and answer any questions that they had. Goodwillie said that they continue to communicate transparently with local governing bodies and “the broader Calcasieu community to make this project beneficial for everyone.”
Also at the meeting, Eric Tarver, district 8 board member, was unanimously elected board president and Wallace was unanimously elected vice-president for 2024.
