Dates set for reinvestment zone, abatement consideration for solar, battery project

Following a town hall meeting in November, the Young County Commissioners Court are taking steps to move forward to consider granting a reinvestment zone and abatement for a solar and battery storage project.

Young County is in talks with Titus LCV regarding a potential tax abatement for the Tapaderos solar project seven miles west of Eliasville. 

An abatement is the full or partial exemption of taxes of certain property in a reinvestment zone designated by the county for economic development purposes.

The project is anticipated to be in operation no later than Dec. 31, 2028 and within a draft abatement agreement it is stated that if commercial operation is not achieved before Jan. 1, 2029, the county will cancel the agreement.

Public meetings

The Young County Commissioners Court met Monday, Dec. 8 and approved starting a schedule to discuss and consider designating a reinvestment zone for the project and a tax abatement agreement regarding the Tapaderos solar and battery storage project. 

A public hearing was scheduled for 10 a.m. Jan. 12, 2026 for designating a 2,754-acre area in southwestern Young County as a solar reinvestment zone. Following the public hearing, the commissioners will consider taking action on designating the reinvestment zone.

Two weeks after the reinvestment zone meeting, there will be another commissioners court meeting at 10 a.m. Jan. 26, 2026 with an agenda item to discuss and consider entering into a tax abatement agreement.

Local outreach

The company is required under the agreement to make a “good faith effort” to require all contractors and vendors of materials used in the construction of the project and improvements to be used within the county so it can benefit from the sales and use taxes.

Within the draft Local Outreach Plan, it is stated the company will make “reasonable efforts” to utilize Young County individuals and business for materials, labor and services and employ qualified and experienced individuals within the borders of the county.

During the planning, design and construction of the project and improvements, the company along with its contractors and agents working in the county will utilize county-based lodging unless they are commuting from a prior residence. 

The company or its general contractor will hold a job and contracting information session in Ballinger prior to beginning construction. Peña said there could be around 100-150 construction jobs, but once the project is completed, the project is looking at no more than two permanent positions.

PILOT, abatement

During the 10-year abatement period, 100% of county property tax on the certified appraised value of the property will be abated. 

The company will make Payments in Lieu of Taxes (PILOT) to the county each year along with a one-time payment of $300,000 for the county volunteer fire departments and $213,280 for the Young County Sheriff’s Office within 30 days of commencement of construction.

PILOT payments will be due at the Jan. 31 of the calendar year following the one where the abatement is in place. 

The Tapaderos project includes a solar power generation facility with capacity generation of approximately 300 MW along with a battery storage component with capacity of 200 MW. 

The PILOT for the solar component is based on megawatts of namedplate capacity of generation (or $2,439 per MW) and for the battery storage is for nameplate capacity of two-hour storage (or $1,028 per MWH).

For the solar that comes out to $2,439 times 300 MW of solar capacity, or an annual PILOT of $731,713 paid to the county. For the battery storage that comes out to $1,028 times 400 MWH of two-hour storage, or an annual PILOT of $411,200.

Together that PILOT is an annual county payment of $1,142,913 and over a period of 10 years would be $11,429,130. 

While the public notice lists the project as $512 million in improvements from the county’s consultant Jeff Snowden, Texas Energy Consultants President Robert Peña said in the initial application with the county the company estimated an investment of $264.6 million and are now projecting somewhere around $325 million.

“We know right now we're in it for $325 million, at least. The county thinks we're going to be in it for up to $512 million, so it's likely going to fall within that space,” Peña said.

Snowden said the reason the county shoots for the highest number is there is a limited window to capture that and incorporate covenants for performance.

“If an elected official of any tax entity calls the appraisal district, chief appraiser or any of their staff or consultants and tries to influence the value of any property that they don't own, personally, they have violated the law and are subject to misdemeanor charges and fines. So the only bite of the apple we have to influence the value of this project is now,” Snowden said.

After the expiration of the abatement period, the certified appraised value of real and personal property owned in the reinvestment zone will be fully taxable. 

The abatement agreement will only last for 10 years, with no option to renegotiate or extend the agreement period.

Draft agreements

Within the agreement, the company will be required to accept  that once the project and improvements are constructed, they will remain in place for at least the remainder of the 10-year term. 

If the company breaches this portion of the agreement, they will be required to pay the county the full amount of actual taxes abated on the removed project and improvements. 

The owners of the land on the properties for the project have entered into agreements with the company which will require the land be restored and equipment removed in the event of the project being decommissioned.

Under the agreement, 45 days prior to construction of the project and improvements, the company will have to deliver several documents to the county.

Those include an exterior buffer zone plan providing a minimum of 75-foot distance between the property line and the screening plan for equipment located within 500 feet of a business or residence, engineering drawings with pre and post development topographic information, environmental site assessment, stormwater pollution prevention plan and a vegetation control plan which includes a fire risk mitigation at the perimeter.

The project is planning to have a 75-foot vegetative buffer zone at the border of every property within the reinvestment zone and part of the project, with some areas having a large buffer zone.

Additionally, the company must provide the county with items related to the battery storage component 60 days prior to the commercial operations of the project.

The company must provide a certification of compliance and report by a third-party engineer licensed by the state of Texas evaluating the design, safety and installation of the component.

An emergency operations plan for the battery storage component must be presented with potential risks and hazards for the site as well as environmental effects due to equipment failure. 

The plan must include safe shutdown procedures, or isolation of equipment under emergency conditions, procedures for handling equipment damaged in a fire, drills that must be conducted per the Texas Utilities Code, first responder communication and education provided to first responders at no cost to respond to incidents at the site.

The company will be responsible for county as state roads and right-of-ways that are impacted during operations and maintenance of the project. 

Project development

Titus LCV has spent two years working through the development stage with environmental impact studies and how the project will connect to the electrical grid. 

The company obtained both local utility and ERCOT grid interconnect approvals.

The company completed a critical issues analysis and will start phase one of their environmental assessment in January 2026 with the process taking around a month to complete. 

During the town hall in November, Peña said the lack of a county abatement would not “kill” the project but move it further out on a priority list for Titus LCV.

“It does not change Titus’ development proposal. It will actually change the financial outlook that then Titus begins to consider in what order they will develop,” Peña said. “Currently, Titus has a dozen or so projects in development or in process throughout the state of Texas, some ahead of others. …Titus would reconsider the level of where that project falls.”