Large Solar Projects Face Possible County Tax

Some of the largest solar projects in the world are in the works for eastern Riverside County, but now those developers are saying they’ve been blind sided by what they see as a last minute money grab by the county.

Tuesday county supervisors will vote on a solar energy development tax. Opponents of the fee are calling it a “sun tax.” The future of solar energy in the county could ride on Tuesday’s vote.

“Yes! We are going to be a leader in solar and all the jobs it can create.”

The words of Governor Jerry Brown less than two weeks ago at the ground breaking for a 1000 mega-watt solar project in Blythe, billed as the largest of its kind in the world. But now there’s concern the project and others like it slated for eastern Riverside County may be in jeopardy.

The county wants to hit solar companies with a two percent tax on gross revenues produced at plants built within its boundaries. “You know we are gonna be looking at 118,000acres covered with mirrors, troughs and towers. There’s certainly room for a little help back to the county.” said County Supervisor, John Benoit.

While the county looks at it as compensation for the impact the plants could have on county services, Jim Woodruff of First Solar sees it differently. His company has green lighted a 550 mega-watt facility near Desert Center. If the tax goes through, it could cost his company an additional $3.5 million a year to operate. “If Riverside county were to implement this 2-percent gross revenue, we would have to consider other options for this project,” said Woodruff.

And if the project was scrubbed that would mean a loss of 400 to 450 construction jobs on top of permanent jobs at the plant. As you might imagine the tax proposal that the county recently decided it might impose isn’t sitting well with trade and craft unions. “The extra cost this late into it, where these jobs are already set to go after years of waiting on these; it’s now real. The jobs will happen this year, so this tax could prevent that,” said Roger Roper, President of IBEW Local 440.

Still, the county believes with solar companies receiving federal and state tax breaks, it’s not asking for too much. But what about the county scaring off the solar industry. “Riverside needs to compete with other counties and jurisdictions that also have very good sunshine, good labor, good place to put in terms of land,” said Woodruff.

Supervisor Benoit on the other hand doesn’t believe the county is risking its solar future.

“It all comes together here. We have the climate, the geography, the sunshine. We have the location, the transmission lines and we’re close to the need for demand. You can’t move to Arizona and get that,” said Benoit.