Last Thursday evening saw an energized group of more than 60 people at the Comanche Community Meeting to discuss the proposed solar facility on 10,909 acres just three miles southeast of Comanche. The audience was well informed on solar project in general and there were several landowners present, both sides were represented, and some good questions came from the discussion.
The question of economic benefit of the construction workers coming in for the year was raised and it was stated that they would bring in about $3,000 dollars a day. This is probably true, but it was mentioned that it only lasts for a year and then they would be gone. The question of a bond was raised, and one landowner stated that he had one written into his contract to protect his children and grandchildren.
No one really knows how much a decommissioning bond should be since most solar farms have been left sitting once inoperable, but it is widely reported that it will take at least one and a half times the amount to decommission as it does to build. In this case Ch 313 states $329 million to build, that means $500 million to decommission.
The discussion highlighted the impending Ch. 313 property tax decision at the next school board meeting and the proposed reinvestment zone at a public hearing on February 28.
The land has been leased by Hecate Energy, LLC., a Limited Liability Corporation based in Chicago. They are asking the school board for a $10,155,178 property tax abatement, which translates to a 67% reduction in their tax liability to the school district. The school will never lose money on this transaction because the state will step in and pay the difference. In layman’s terms that means state tax dollars (the people of Texas tax dollars) are paying this corporation. They already have very generous federal tax credits, renewable tax credits, land tax credits and probably many more we are not aware of. It has been estimated that solar is 85-90% paid for by subsides and credits, this is all tax dollars at one level or another.
The decision for the school board is, do they want to take the extra money being handed out by the corporation. This is all they will receive as a benefit. Remember there is no downside to the school district, which makes this a peach of a program for the solar industry.
They give the school incentive payments of $100/student per year for 10 years, which will work out to be $120,000 to $130,000 per year depending on student attendance. These payments will begin the year after the agreement is signed. There is also a revenue protection payment of approximately $2 +/- million (not sure on that figure yet) which is payable when the facility begins operations. This is not guaranteed, but dependent on what the legislation is at the time, so if they get this amount is anyone’s guess.
Briefly the discussion looked at how this project would enhance the local community, improve the education system, and create high paying jobs. After 1 year of construction there would only be 2 jobs for the next 20-30 years and they would have to go to out of state employees according to the Ch 313 agreement. There was a discussion on how the community felt the wind turbine tax monies had not benefited the county and none believed their taxes had gone down because of that Ch 313 contract.
The risks were explored; they could stop operation; be forced to close by regulation; claim bankruptcy; hazards like hail, fire and wind, the decommissioning and the environmental risks were all explored. The land prices for the surrounding owners and the impact to the businesses was probably the most important factor for group. One dairy stated they hire 60 people who live and raise children, who go to the school and spend their money and tax dollars in the area. They have made a large contribution to the area for many years, and they have questions on environmental and the impact of this solar facility should it be built.
At the end of the day, it seems that a few landowners and seven school board members are making the decisions for the entire county. It is up to the community to come out and voice their opinions and have them heard. The only way to do that is to attend the school board meeting and public hearing on Monday, February 28 at the High School Commons. The meeting starts at 5:30, if you wish to talk, please be there to sign up early.