Commissioners agree to schedule public hearing on extending rural renewable energy development zone

Deschutes County commissioners on March 17 agreed to schedule a public hearing to consider extending the county's Rural Renewable Energy Development Zone, an incentive that allows property tax abatement for qualifying renewable‑energy projects in rural areas outside urban growth boundaries.

The hearing will let taxing districts and the public comment on the county’s request to extend the existing zone for another decade; if approved administratively by the county, the extension would make the zone available through mid‑2036 although staff noted state program limits currently extend only to 2032.

Eric Cropp, deputy county administrator, opened the item and said staff had prepared additional answers to questions raised at an earlier board meeting. County economic-development staff and EDCO representatives described the zone as a “tool in the toolbox” for energy projects — solar, wind, geothermal, biomass and other qualifying energy investments — particularly for projects that need front‑loaded, short‑term tax relief.

According to EDCO staff, Deschutes County collects few applications for the program historically; Crook County used it previously. The county’s rural renewable-energy zone permits short‑term abatements (three to five years administrative approval is typical) and has a $250 million cap per zone. Staff emphasized the zone fills a niche distinct from other programs (SIP and PILOT), because it can provide more immediate, front‑loaded relief for smaller projects and requires a simpler local approval process for shorter agreements.

County Assessor Scott Langton explained that valuation models for energy projects are centrally assessed by the Oregon Department of Revenue and that such projects generally retain a material assessed value after five years because state valuation models assume longer asset lives.

Board members asked whether placing a zone in advance limits the county’s ability to negotiate community benefits with a future developer; staff replied land‑use approvals and other planning requirements still apply and commissioners would review extended abatements on a case‑by‑case basis. Staff also noted that the county does not currently have projects using the zone but has geothermal projects in exploratory phases that may or may not request the incentive.

At the end of the item commissioners indicated support for moving to a public hearing to notify affected taxing districts and solicit public comment. Commissioners and staff said the hearing will be scheduled in accordance with state rules and that county staff will coordinate notice to taxing districts and report back to the board.