Second reading for county wind ordinance coming Tuesday

WASHINGTON — County supervisors plan to once again discuss an ordinance governing tax assessments for wind turbines Tuesday morning, during the group’s regular meeting.

If passed, the ordinance would require that wind farms be assessed in Washington County at a rate depending on their age: 0% of the net acquisition cost for their first year, but compounding 5% of the acquisition cost every year thereafter, until year seven, where assessments would cap at 30%. It’s one of two options the state allows for counties looking to tax wind farms: the other involves classifying turbines as a utility service, setting them up for a higher tax rate, but channeling that revenue mostly or entirely to the state, instead of local governments.

Iowa Farm Bureau Regional Manager Jerry Anderson told elected officials at a meeting Oct. 3 that his business didn’t want to push the vote one way or another, but warned that it would have big repercussions.

“To our knowledge, there’s no counties that have failed to act on this ordinance that do have wind farm developments,” he said. “By passing this, you’re sending out the welcome mat for commercial wind turbines to be installed.”

County officials voted in favor of the ordinance, saying their hands were effectively tied.

Supervisor Stan Stoops said he expected wind development in the county with or without an ordinance, arguing that a failure to enact the code would only cost local taxpayers.

“We have to take care of the county, the welcome mat is out whether we like it or not,” he said. “Twice, companies have wanted to put windmills in this county … eventually, that will come. There’s a nice stretch of road down G36, and the windmill companies recognize that piece of ground, from one end of the county to the other.”

Others on the board agreed.

Supervisor Marcus Fedler said he didn’t expect the state to send much of its utility tax revenue back to the county if it chose not to pass the special assessment rule.

“If we institute an ordinance, that at least that has some local taxing authority,” he said. “Any wind turbines that are going to be installed in the state are basically treated as a utility, unless the county has a special ordinance … if we don’t pass this, the county would get less.”

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Tuesday could be the last reading before the ordinance change takes effect. Iowa law theoretically requires cities and counties to hold at least three meetings with an ordinance change on the agenda before enacting it, but allows them to waive the rules and pass a code change after just two meetings if decision-makers vote to do so.

A tentative agenda for Tuesday’s meeting provided by the Washington County Auditor’s office on Friday did include an item to waive the proposal’s third reading.

While Tuesday’s vote has drawn attention, elected officials expect it to be the less contentious of two wind energy-related ordinances on the radar. Supervisors have previously signaled plans to discuss an ordinance governing rules for the turbines, — including the generators’ placement, setbacks, coloration, signage or other considerations — after the assessment code becomes law.

Supervisors spent months discussing that issue in 2021, bringing the board to a 2-2 split until the special election of Fedler, who filled a vacancy and effectively became the tiebreaking vote. His newfound office ended up not coming into play, however, when the expected wind developer at the time mysteriously announced the cancellation of its plans, 30 minutes before the meeting.

The county has a history of skepticism about renewable energy in general, largely thanks to widespread, vocal opinions against the tax breaks sometimes afforded to such projects. That debate is already playing out over a proposed solar project north of Ainsworth, and has continued to come up in discussions about wind power in recent months.

“I don’t know what the situation is going to be here with your subsidies or your tax breaks or whatever it is,” Supervisor Jack Seward Jr. said to an energy company spokesperson at a meeting in July. “But I am not convinced that wind power is a net positive for everybody.”

Comments: Kalen.McCain@southeastiowaunion.com