County approves Reinvestment Zone 2A addition for Pedera Solar; clears 200 MW battery project with safety covenants

2368038 · February 19, 2025

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Summary

Freestone County commissioners approved a proposed form of a tax abatement agreement and creation of Reinvestment Zone 2A for a large solar-plus-storage project (Pedera Solar LLC) and also approved a separate 200 MW battery energy storage project with a PILOT and safety covenants including first-responder training and containment measures.

Freestone County commissioners agreed to proceed with a proposed tax abatement form and to create Reinvestment Zone 2A for a large solar-plus-storage project, county staff said, and the court approved a separate 200-megawatt battery energy storage system (BESS) project on roughly 36.85 acres with a listed capital investment of $9,000,000.

County staff told the court the larger project (previously referenced under the name CORE) is changing its entity name to Pedera Solar LLC and is seeking an expansion of an existing reinvestment zone to cover additional acreage for a 300-megawatt solar generation facility plus an additional 100-megawatt battery energy storage system. Staff said they added a one-time, nonrefundable $10,000 upfront fee when applicants return to expand agreements and that the tax abatement process requires a 30-day public-notice period after the proposed form is accepted before the county can finalize the tax abatement agreement.

Separately, the court considered a proposed 200-megawatt battery energy storage project sited on about 36.85 acres with an estimated capital investment of $9 million and a yearly payment-in-lieu-of-taxes (PILOT) listed in the meeting packet as $152,097.75. A representative of OCI Energy, Steven Van Dijk, described OCI as a Texas developer that has built projects totaling more than 2,300 megawatts and said the company expects interconnection filings with ERCOT in coming months and a construction window targeted to begin in early 2026 with commercial operation possibly in early 2027, noting timelines were optimistic.

The court discussed and included in the agreement a set of battery energy storage safety covenants. Staff described those covenants as requiring coordination and at least four hours of training for local first responders, a SCADA monitoring system, an operational notification plan for residents, internal fire suppression, containment for potential toxic releases, and standard maintenance and reporting requirements. Staff also said the county is changing its financial assurance approach for abatements going forward to require a cash deposit held with the treasurer (examples discussed in the meeting included a $100,000 amount for some abatements).

A motion to proceed with the proposed form and related items carried; the court recorded an affirmative voice vote and no verbal opposition was recorded. The staff presentation and developer comment period included questions from nearby landowners; one landowner said the proposal came as a surprise and asked about site location relative to County Roads 471 and 481.

No final tax abatement was executed at the meeting: staff said a 30-day notice period must run and additional negotiations can occur during that interval. The agreements also require ongoing compliance with the stated safety covenants, and staff said the county will use the deposit/letter-of-credit approach for future abatements.