Corpus Christi Sun

On Jan. 4, Virginia-based Apex Clean Energy Holdings told the Sinton Independent School District in San Patricio County that it plans to construct a 300-megawatt farm throughout 3,000 acres, that will be called Welder Solar LLC, within district boundaries.

Sinton ISD was given a $75,000 application fee check by Apex Clean Energy and the final agreement is expected to be ratified by Sinton ISD in June, with construction beginning in the fourth quarter of 2021. On Jan. 23, 2022, a 10-year limitation on taxable property value will start. 

“While the program may sometimes have a positive impact on local economic development, serious concerns exist about its oversight, its transparency and its value to the taxpayers" Gov. Greg Abbott said, expressing skepticism about the program. 

Others besides Abbott have also offered criticisms. 

"What’s troubling is that this is a 10-year tax limitation with the promise that in year 11 these investments come on the tax rolls but they depreciate so fast that there is almost nothing left to tax,” Nathan Jensen, a government professor at the University of Texas at Austin, told The Houston Republic. 

There have also been critiques from experts questioning the reliability of the energy being generated.

"Some analysts have claimed that intermittent energy sources wreak havoc on the energy grid’s planning and day-to-day operations since their power output varies over time and isn’t always reliable” reports Austin News.

San Patricio County is also contemplating a 10-year, 100% appraised value limitation Chapter 313 abatement agreement with the Welder Solar project, while Welder Solar is seeking an appraised value limitation from Sinton ISD, for the Welder Solar Project. 

Apex Clean Energy has 2,867 megawatts in operation with 1,600 MW of renewable energy projects currently under their control and has funded 5,419 MW of clean energy and has 13 completed facilities in the United States. The M&O taxable value of Welder Solar is also to be capped at $30 million a year. 

It has been estimated that Sinton ISD could have earned an additional $55 million in M&O tax revenue in lieu of the Chapter 313 agreement. Welder Solar requested that the state waive the mandate of the 313 agreements for 10 qualified jobs in rural school districts, instead wanting to create one qualified job.

The purpose of the Chapter 313 incentive is to draw businesses by giving them a 10-year limitation on their appraised property value for the school district property tax, with the business creating new jobs and property in the district in exchange. Chapter 313 abatements require projects to create at least 10 permanent jobs as a result of their investment. However, the WC Texas News reported that renewable energy projects who received 313 abatements rarely met this job creation requirement. In fact, no recipients in West Central Texas met the requirement. They were granted waivers instead.

Over the past two decades solar and wind developers have been given $19.4 billion in subsidies in Texas. They are expected to receive in another $15.9 billion in the next decade. Subsidies have largely driven the emphasis on wind and solar energy development instead of thermal generation, which is believed by many to be more reliable.