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COLUMBUS — The Colorado County Commissioners Court approved its side of a proposed agreement between the county and developers of a battery energy storage system and a solar farm for consultation services regarding tax abatements during its meeting Monday, Aug. 24.
Under the agreement, Capex Resources Group would assist the county in developing guidel ines for granting tax abatements and designating reinvestment zones and handle the negotiation and execution of any tax agreements.
The ongoing projects in question are a BESS facility by Paloma Energy and Paloma BESS and a solar panel farm by Firefly Field Energy. Construction on the two projects has already begun and is estimated to be completed by late December. (where is the construction?)
“It’s all for the needs of the community and betterment of the citizens because the business part of it is simply how do we protect our citizens as far as their tax rate and tax structure and everything else,” County Judge Ty Prause said. “…The big picture is trying to get the best outcome with the givens or the knowns that we have to work within.”
Prause previously said counties in Texas have limited authority over land use because they do not have general zoning powers, making development and tax abatement agreements one of the few tools available to negotiate project conditions.
In June 2025, the county denied a tax abatement to a BESS developer over public safety concerns, including not being the operator and lack of communication with nearby residences and local first responders. Prause said his concerns also apply to the two ongoing projects.
“(Capex) seemed to have a good grasp on possibly what the county can do as far negotiate (an agreement) for protecting its citizens,” Prause said. “It could be conditional on the benefits of the county.”
The county approved to establish reinvestment zones for the projects July 13. Prause clarified that the zone creates room for negotiation and does not automatically grant a tax abatement.
Neighboring Austin County recently passed a moratorium on BESS and artificial intelligence data centers, outlining restrictions for developers and equipment. Prause said the county’s attorneys are reviewing Austin County’s order.
“At this point, there is no request for an agenda item by any member of the court based on advice of counsel to do the same,” Prause said.
Per the proposal, the cost of the services will be payable by the developers with fees to ideally not exceed $30,000. Prause clarified that the services would not cost taxpayers any money.
“The fee is only paid by possibly one of these projects if some pilot agreement is reached, but at no time is the county liable for any of the funds,” Prause said.
Prause signed the proposal on Aug. 14, and the county subsequently cancelled previously scheduled public hearings for the Paloma Energy, Paloma BESS and Firefly Fields Energy Center projects on Aug. 24.
Prause said the court will not have any further hearings on these specific projects before the court votes on the abatement. He cited having “good dialogue” with the public in past hearings.
“I think the public certainly has access, has had access. There’s nothing to hide, nothing nefarious going on other than trying to learn and get the best outcome,” Prause said. “We have received and taken every bit of the public’s comment that has come to court and expressed their heart about what their concerns are. We will try to reach those within the boundaries of the law.”
