Photo: Cameron County residents and members of Save RGV from LNG coalition outside the county commissioners meeting on August 6, 2019.
By Bekah Hinojosa
Cameron County commissioners are quickly reviewing a massive tax break deal, under Chapter 312, for the Annova LNG company. Commissioners plan to vote at their next meeting, August 20. If they vote in favor of the tax break that day, the County will have avoided complying with a new law requiring more public transparency for a company that seeks to build a disruptive, widely opposed industrial facility in our community.
This could be the second time Cameron County has given away a tax abatement to an LNG company. In 2017, the County approved a $373 million tax cut for NextDecade’s proposed Rio Grande LNG project. The Chapter 312 agreement guarantees an unknown number of permanent jobs for people who have lived within a 100-mile radius of the LNG terminal for six months prior to being hired or born within that radius.
The agenda item for Annova LNG reappeared for discussion (they tabled it in 2015) during closed-door executive session at the July 30 County Commissioners Court meeting, and again at their August 6 meeting, with only some of the commissioners present.
A new revision for Chapter 312 goes into effect on September 1 that would require more transparency for the community, including a 30-day notice for a public meeting, an open discussion of the abatement rather than close-door meetings, and a publicized agreement.
Governor Abbott signed HB 3143 into law in June (with significant support from industry, local governments, and trade associations. Even the County Judges and Commissioners Association of Texas registered in favor of the bill). It changed the procedure for local governments when they consider granting tax abatements to entities seeking incentives to locate in their jurisdiction.
Cameron County Judge Eddie Trevino, Jr. and Commissioners should welcome the opportunity provided by the new law -- to be open and interactive with their constituents and not hide their deliberations about possibly throwing away our tax dollars in closed executive session meetings.
The county needs more revenue, not less. Deliberations on forgoing all or part of new potential revenue should occur in open meetings as will soon be required by the new revisions to Chapter 312.
Annova LNG tried and failed to get a tax break from Cameron County and Point Isabel Independent School District in 2015
In September 2015, Annova LNG approached Cameron County commissioners for a $25 million tax break under Chapter 312 but tabled the agreement because of large opposition, including a petition with 619 signatures, and a need for review. The motion to table was led by Commissioner Sofia Benavides and included a request for a financial assessment from an independent third party by Commissioner David A. Garza. Commissioner Garza cited a concern about a shortfall for the County if Annova LNG was granted the tax abatement.
Later that month, Annova LNG was also vying for a tax abatement under Chapter 313 from the Point Isabel Independent School District (ISD), which was completely rejected because of local opposition. (A Chapter 313 tax abatement is granted through a school district, but a big difference between a school district’s tax abatement and a county’s abatement is that the State of Texas reimburses the ISD for lost revenue.)
Since then, there has been no publicized financial assessment about tax abatements for Annova LNG or any of the LNG companies seeking to build in the Rio Grande Valley. Meanwhile, Cameron County has gained a new County Judge, Eddie Trevino Jr., and two new commissioners -- Gus Ruiz and Joey Lopez.
Annova LNG told the public they wouldn’t reapply for a tax cut
After Annova LNG realized they faced massive opposition, they publicly told news outlets and the Federal Energy Regulatory Commission (FERC) they wouldn’t reapply.
In fact, the final environmental impact statement (FEIS), a lengthy document containing an in-depth analysis of LNG impacts to community and environment prepared by the FERC, specifically states that "Annova discontinued exploring a property tax abatement with Cameron County. As a result, no tax abatements would apply to the Project." FEIS at 4-137. So, if Annova seeks an abatement now, the socio economic impact part of the FEIS should be redone.
The public is being left to fend for themselves and review lengthy documents, try to keep informed through news outlets covering the story, call on public officials, and compare information because it’s unreliable and disorienting.
Annova LNG would pollute the area, destroy wildlife, and communities are against it
There is tremendous local opposition to Annova LNG, Rio Grande LNG, and Texas LNG. All of the communities that would be impacted by LNG -- South Padre Island, Port Isabel, Long Island Village, and Laguna Vista -- have passed anti-LNG resolutions. Residents across Texas have packed hearings and sent thousands of comments to regulators opposing the three LNG projects, and dozens have intervened on the LNG permits.
Annova LNG and the other LNG terminals are not a done deal. The projects have yet to receive permits or approvals needed from the U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, and FERC.
Cameron County should be transparent and listen to the impacted public
Cameron County plans to vote on the massive tax cut for Annova LNG at the August 20 commission meeting. The commissioners should listen to the constituents who would be immediately impacted by Annova LNG, and the other LNG terminals, and who have spoken out against this project. They should at the very least give the community an open process.
Photo: Locals holding up signs during the public comment portion of the Cameron County meeting on August 6, 2019.