Riverside County To Consider Solar Plant Tax

Solar energy providers planning to build plants in Riverside County may have to pay more than they bargained for if the Board of Supervisors on Tuesday approves the imposition of a development fee that critics derisively call a “sun tax.”

The board will consider requiring solar power developers to pay the county 2 percent of gross annual receipts generated from the operation of a power station.

According to Executive Office documents, Riverside County is federally recognized as the “largest solar energy zone in California,” with 202,000 acres of productive space extending from Desert Center to the Arizona state line.

The documents state that 118,000 acres are already slated for development, covering a 185-square-mile area nearly equal in size to Cathedral City, Indio, Palm Desert, Palm Springs and Rancho Mirage combined.

“Riverside County and its residents must be compensated for the unavoidable adverse impacts of these massive solar developments within our borders,” a preface to the tax proposal reads. “Miles of (solar radiation absorbing) mirrors … will alter the historic landscape for decades. Hundreds of thousands of acres … will no longer be available for other uses important to our economy, such as recreation and agriculture.

“In addition, county roads, bridges and flood control facilities will endure additional wear and tear as a direct result of building and maintaining these plants. These projects also will permanently increase demand on county services, such as emergency services, medical services, property assessment and law enforcement.”

The Executive Office acknowledged the benefits of renewable power projects, particularly in boosting local employment. But according to county officials, the job gains are generally linked to construction, after which “few long-term jobs will remain” because most plants are automated.

Officials also refuted claims that the county would realize higher property tax receipts stemming from photovoltaic plants, which are exempt under state law from paying taxes on energy generation facilities and equipment.

According to the Executive Office, the county has utilized franchise and development agreements as a condition to granting land-use permits to traditional energy providers for a century, citing its 1913 agreement with Southern California Edison as an example.

SCE and other electricity franchisees in the county currently pay 2 percent of gross annual receipts arising from their local operations, county officials said.

Several groups blasted the county’s proposed new tax policy. The Blythe City Council voted unanimously Tuesday to oppose it, though the action was entirely symbolic.

In a letter to county Executive Officer Bill Luna, Blythe City Manager David Lane expressed concerns about the impact the tax might have on a mammoth solar development planned on federal land just northwest of the airport.

Oakland-based Solar Millenium Group is in the initial phase of constructing the 1,000-megawatt solar power facility, and last week, Gov. Jerry Brown and U.S. Interior Secretary Ken Salazar lauded the project during the groundbreaking ceremony.

“The council is concerned with the potential that the new (county) policy may result in Solar Millenium canceling the project and moving it elsewhere,” Lane said.

Patrick Swarthout, president of the Imperial Valley-based Valley Action Group, called the county plan a “sun tax” that would make the area “anti- competitive,” threatening “tens of millions of dollars of direct tax revenue to the county and hundreds of millions of dollars of secondary economic benefit.”

“Other jurisdictions offer open space, abundant sunshine and no similar tax,” Swarthout said. “Make no mistake about it — Riverside County is competing with other counties and states.”

Coachella Valley Economic Partnership President Thomas Flavin said the potential consequences of establishing a tax need futher review before the board votes.

“CVEP has emphasized the importance of improving our competitive profile if we expect to successfully compete for jobs and investment,” Flavin said in a letter to Luna. “Since Riverside County has always had a good reputation among California government agencies as `business-friendly,’ we want to ensure that we maintain and enhance that reputation.”