(The Center Square) – A proposal to add energy requirements to Virginia’s school construction sales tax provisions drew questions Monday about upfront costs and potential savings for taxpayers.

Energy Commission of Virginia staff presented the recommendation to a commission subcommittee reviewing energy use and backup power in public schools.

Staff recommended incorporating on-site renewable energy generation, energy storage and features that help schools operate during outages into provisions governing the additional local sales tax for school construction and renovation.

Localities can ask voters to approve an additional sales tax of up to 1% for school construction and renovation. Participating cities and counties will put that question before voters Nov. 3.

Sen. Mark Obenshain, R-Rockingham, questioned whether the approach would leave localities choosing between accepting additional project costs and forgoing the tax revenue.

He asked for estimates showing how much the requirements would add to construction costs and what retrofitting existing buildings would cost. He said local governments need information about both expenses and savings before members proceed with policy discussions.

Commission Executive Director Carrie Hearne said costs would vary by project and staff could continue researching them. She pointed to energy savings performance contracts, which guarantee savings as part of an energy efficiency investment, as one financing option.

Sen. Scott Surovell, D-Fairfax, agreed that members need a clearer comparison of upfront costs and long-term savings. He said energy improvements can save taxpayers money over time, even when they increase initial expenses.

Hearne said examining past school solar and battery storage investments would require additional time.

The recommendation was presented as a proposal for discussion.

The exchange also addressed existing building standards. Hearne said staff interprets Virginia’s stated goal of having new and renovated schools generate more electricity than they consume as aspirational rather than mandatory.

A separate law establishes high-performance standards for certain local government buildings, including school division facilities. It applies to new buildings larger than 5,000 square feet and renovations costing more than 50% of a building’s value.

Staff said that provision lacks a reporting mechanism to track compliance and includes exemptions when compliance would be impractical for cost reasons.

Staff also recommended extending the Solar Interconnection Grant Program beyond its July 1, 2027, expiration and continuing funding through the commonwealth’s general fund or considering Regional Greenhouse Gas Initiative revenue.

The program provides $2 million in competitive grants to help public bodies cover the cost of connecting solar facilities to the electric grid.

Roanoke City Public Schools’ prepared presentation describes a solar plan already underway, with its first two phases completed in December 2024 and December 2025. The final phase is expected by June 2027.

The plan uses a 25-year power purchase agreement, allowing the division to buy electricity from privately owned solar systems without paying the upfront capital cost of installing them.