Deschutes County extends rural renewable energy development zone through 2036

The Deschutes County Board of Commissioners voted unanimously May 20 to extend the county’s Rural Renewable Energy Development Zone, keeping eligibility for tax exemptions for qualifying renewable-energy projects through June 30, 2036.

The extension preserves a locally created development zone that excludes Bend and Redmond’s urban growth boundaries and is intended to attract investment in large-scale renewable projects, including solar, wind, geothermal and biofuel facilities. Patricia Lucas of EDCO told the board the zone permits an initial three‑year property-tax exemption, with the possibility of a two‑year extension through a local sponsor, and that eligible projects can qualify for a 100% exemption on newly assessed property value in the first three to five years of operation.

The board also confirmed the zone’s locally set cap — not to exceed $250 million in market value across projects within the zone — and said notices were sent to taxing districts in the county before the hearing. Commissioners said they had received clarifying questions but no taxing district representatives appeared at the public hearing to object. Commissioner Chang said the county had the usual process of notifying the 65 taxing units provided by the county assessor and that district questions had sought clarification, not opposition.

The board recorded a 3‑0 roll call in favor of Resolution 2025‑027, extending the zone to 06/30/2036. Supporters said the incentive helps developers decide to build projects the county otherwise might not attract; opponents did not appear at the hearing to register formal objections. The extension does not change taxation of land itself during the exemption period: landowners continue to pay taxes on land value while new on‑site capital improvements may be exempted under the zone’s terms.

County staff said no applications for the zone had been filed since the original zone was approved in December 2014, but commissioners noted nearby projects in neighboring counties and said the extension keeps the county eligible if developers bring proposals.

The county clerk will publish the resolution and update the county website with the new expiration date. Implementation and any future agreements with project sponsors will be subject to the zone’s conditions and any local sponsor agreements.