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Staff warns Kern County faces valuation, revenue uncertainty if solar tax exclusion lapses and CEC permitting remains broad
Summary
County planning staff briefed supervisors on the possible 2027 lapse of the solar property‑tax exclusion and on the California Energy Commission's permitting authority for projects 50 MW and larger under AB 205; staff warned of possible billions in assessed‑value reductions and industry speakers urged collaboration to resolve valuation uncertainty.
Planning and natural resources staff presented a report on two related issues: the status of state legislation affecting the solar property‑tax exclusion and the California Energy Commission’s permitting authority for large‑scale solar projects.
Thomas Brown summarized the history and stakes: the solar exclusion dates to 1980 and was codified after Proposition 7; the current exclusion would become inoperative on Jan. 1, 2027, absent new legislative action. Brown said staff is opposing SB 1329 (referred to in the record as "SB 13 29") because it would change how active solar systems are valued for tax purposes by excluding certain subsidies and credits from the income stream used in valuation under the bill’s rules.
"Early estimates suggest Kern County could lose billions of dollars in assessed value exclusions," Brown told the board, explaining that assessor staff had provided income‑approach estimates showing roughly $6,000,000,000 in reduced assessed value on sample projects. Brown also reviewed AB 205, the 2022 budget‑trailer bill that gave the California Energy Commission authority to permit solar facilities of 50 megawatts or more and noted that trailer bills can move policy quickly with limited public review.
Industry representatives urged cooperation to quantify impacts. Eric DeVoe, vice president of development at Terrigen, said the industry and the assessor need to sit down and do the math. "Terrigen's developed over 7 gigawatts of renewable energy here in Kern County, which equates to about an $8,000,000,000 investment in the county to date," DeVoe said, calling the current valuation uncertainty a challenge for project financing and county revenue forecasts.
Board members expressed a mix of concern about lost property‑tax revenue and recognition that large renewable projects have generated local employment and investment. Staff recommended the board receive and file the report; the board moved, seconded, and approved receipt and filing of the update.
Staff said it will continue to monitor legislative developments, coordinate with the assessor and industry, and advocate to protect Kern County’s fiscal interests while recommending further technical work to reconcile valuation approaches.
