The Point Isabel Independent School District recently declined a multi-million dollar tax incentive for a proposed $5.7 billion liquefied natural gas (LNG) project on the Texas Gulf Coast, stating that the facility does not align with the community’s values or budget.
Texas districts often approve such tax breaks, designed to stimulate investment by offering reduced property taxes in exchange for economic development, as seen in previous agreements.
However, the Port Isabel school board, representing a community of 5,200 residents near the Rio Grande, has rejected similar proposals from LNG developers aiming to construct large industrial facilities, including a prior application from the Texas LNG project.
“We are puzzled by the school board’s decision,” said Texas LNG spokesperson Tim Fitzpatrick, noting the agreement could have generated $15 million annually for the district.
Last month, developer Glenfare Group announced plans to finalize financing and commence construction this year on its site along the Brownsville Ship Channel, near Rio Grande LNG, where land clearing occurred in 2023.
Point Isabel ISD stated in a press release that the agreement was not currently in the district’s or taxpayers’ best interest. Heather Scott, school board president, emphasized that decisions prioritize financial stability and community values.
The proposed agreement would have reduced property taxes by $160 million over 10 years for Texas LNG, which planned to create 110 direct and 161 indirect jobs, with a $15.4 million annual payroll, according to the company’s application.
Dick Lavine, a former fiscal analyst, noted that Texas school districts often approved tax abatements. However, a 2022 program allows boards to prioritize community welfare over financial incentives.
During the board meeting, residents raised concerns about potential harm to the eco-tourism industry and increased emissions. Texas LNG’s air pollution permit allows emissions of hazardous pollutants.
The project would also disrupt Garcia Pasture, a Native American archaeological site. Juan Mancias of the Carrizo/Comecrudo Tribe of Texas, criticized the disregard for the site’s historical significance.
Texas LNG is among 18 approved LNG terminal projects in the U.S., mostly in Texas and Louisiana, as per the Federal Energy Regulatory Commission. The Energy Information Agency predicts a doubling of U.S. LNG exports by 2029.
LNG is set to significantly contribute to the Texas economy, according to the state comptroller’s office. However, industry groups did not provide comments.
Point Isabel ISD has previously rejected tax agreements, including the canceled Annova LNG project and a Rio Grande LNG proposal. The City of Port Isabel and other local entities have consistently opposed the LNG plans since 2015.
“The LNG companies will destroy our environment,” said Lupita Sanchez, director of Border Workers United. “We don’t want LNG around us.”
Original Story at insideclimatenews.org