County Approves Lower ‘Sun Tax’ To Entice Solar Farms
Riverside County supervisors approved a proposal to assess per-acre fees on solar power providers — and offer various incentives to reduce the companies’ costs.
Supervisors voted against the 2 percent flat assessment in preference of a $450-per-acre fee. That was lower that the original $640-per-acre fee for each acre used in the power production process and paid annually. The county believes the fee should be assessed because it alters the landscape of the desert and the land will never be available for other use again. Preliminary estimates say the solar industry will cover about 185 square miles in Riverside County-the largest development project ever.
Since July, county officials and representatives from solar power companies have been locked in negotiations over what would constitute a reasonable fee for the firms to pay in exchange for access to public rights-of- way, altering landscapes and increasing the demand for public services. The primary disagreement was based on the fee. The solar companies countered the $640-per-acre fee with a $140-per-acre fee. The solar companies had hoped to delay the vote while they had an economic impact study done.
The incentives include a $2500 per person local hire incentive and a 10% fee reduction for construction completed by January 1, 2014.
About 20 solar electricity generating projects are in the works locally, primarily in the eastern county region.
At the end of last fiscal year, the county Executive Office proposed assessing a 2 percent franchise or development fee that would apply to gross receipts “arising from the use, operation or possession” of a solar project. The idea triggered an avalanche of criticism, not only from solar developers but union interests and public officials, including the mayor of Blythe.
Critics labeled the proposal a “sun tax” and argued it would deter renewable energy companies from doing business, putting potential jobs at risk.
