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Monday, November 4, 2024

Solar, wind facilities not always creating the jobs required by Texas code

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Texas Tax Code 313.051(b) states that " a property owner is required to create at least 10 new qualifying jobs as defined by Section 313.021 (3) on the owner’s qualified property."" | Adobe Stock

Texas Tax Code 313.051(b) states that " a property owner is required to create at least 10 new qualifying jobs as defined by Section 313.021 (3) on the owner’s qualified property."" | Adobe Stock

A large solar power facility proposed in southwestern Brown County, near Brookesmith, to be built by San Francisco-based Intersect Power may not create very many - if any - jobs, despite job creation requirements under Texas law.  

Local government officials are aware of that.

"One reason local governments like to hand out abatements is for the promise of new jobs," Brown County residents Ronnie and Julia Taylor said in a WC Texas News op-ed piece published Jan. 19. "In the case of Intersect Power, they have assured a grand total of two permanent jobs."

Under the proposal, Intersect Power's subsidiary, IP Radian Solar, will build and operate the solar 3,000-acre facility expected to provide enough electricity to power up to 50,000 homes. The facility will operate solar only and there would be no wind turbines.

The property upon which the proposed facility would be built is inside the Brookesmith Independent School District.

In mid-December, Brown County commissioners voted 4-1 to retain the firm Allison, Bass & McGee LLP as consultants for a proposed tax abatement on the project, according to a News/Talk 102.3 news report at the time.

Late last month, Brookesmith Independent School District Board of Trustees conducted a public hearing and then voted to create a “radian reinvestment zone” for the 3,000-acre project.  The reinvestment zone will allow for an appraisal value limitation agreement between the school district and IP Radian Solar LLC.  

At the same Jan. 29 meeting, the school district's board of trustees also voted to approve a job creation waiver for the project.

School board member Rusty Rice abstained from both votes.

The job creation waiver was necessary to keep the project in compliance with state statute, which requires such projects create jobs.

Such waivers have been common of late. San Francisco-based Logan's Gap Wind received a jobs creation waiver from Comanche Independent School District, creating four new jobs instead of the 10 that state law otherwise requires. Logan's Gap Wind also received a jobs creation waiver from the Mullins Independent School District, creating one new job instead of 10.

Austin-based Logan's Grizzly Ridge Solar received a received a jobs creation waiver from the Hamilton Independent School District, creating one new job instead of 10.

Houston-based Silver Star I Power Partners received a jobs creation waiver from Lingleville Independent School District, creating seven new jobs instead of 10.

No company that received tax abatements in west central Texas created the 10 jobs required under state law and, instead, received job creation waivers.

Brown County commissioners are expected later this year to consider a request for an 85% tax abatement for the project that the Taylors said in their op-ed piece that the commission should vote down.

"There are countless reasons why this is a bad deal for Brown County," the op-ed piece said. "The commissioners want to hear what residents have to say, so we urge you to write, call or email your commissioner and tell them to vote no on the abatement."

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