The Hill County Commissioners Court unanimously voted to rescind the county’s one-year moratorium on new data center construction in a special meeting Thursday, June 4, but other proposals were approved in an effort to rein in large-scale development.
The court originally approved the moratorium May 12 amid growing interest in data center development and increasing public opposition.
About two weeks later, data center developer RCM Hill sued the county, claiming that the court’s action was illegal and prevented the company from fulfilling its obligation to pay over $80 million to four landowners in unincorporated Hill County. The company warned that the moratorium could expose the county to more than $100 million in potential liability.
After a lengthy public comment session in which residents once again urged the court to remain firm in its stance against data center development, the court convened in executive session for legal consultation.
When open session resumed, Precinct 4 Commissioner Martin Lake made a motion to rescind the moratorium, and Precinct 3 Commissioner Scotty Hawkins seconded it. Both commissioners voted against the initial moratorium, with Hawkins stating that he wanted to stop data centers but not through what he believed was an illegal action.
Both Precinct 1 Commissioner Jim Holcomb, who initially proposed the moratorium, and Precinct 2 Commissioner Larry Crumpton, who voted in favor of it, also voted in favor of rescinding it. County Judge Shane Brassell, who cast the tie-breaking vote to pass the moratorium, also voted to reverse it.
Holcomb said, “Given the exposure that the county is subject to, and in light of the other things that are on our agenda (related to development regulations), I think that some of our goals — not all of our goals — have been achieved.” He continued, “I think that in order to protect the citizens of Hill County going forward from further liability, of which there is a significant amount, I vote yes.”
“We tried,” said Crumpton. “Due to the liability of it, I vote yes,” he added.
The court moved on to other discussions related to data centers and large-scale industrial development as the county continues to explore ways to rein in projects within its limited legal authority.
Commissioners approved a development checklist, which was originally proposed by members of the grassroots movement working to slow or stop the projects. The goal is to have those planning data centers, battery energy storage systems, electrical generation facilities, renewable energy projects or other large-scale developments to come before the county and make their plans known.
With limited regulation authority, it has been difficult for the county to keep up with the projects being proposed. Brassell said last month that he was unaware of the level of interest from data center developers, as some only started contacting the county after the moratorium was proposed.
The policy states that prior to requesting county approvals, development agreements, road use agreements, tax abatements, infrastructure agreements, subdivision approvals, or any other discretionary action by the county, the companies must submit a complete development review package.
They will also be required to place money in escrow to pay for outside engineers who can review the plans independently.
The checklist covers project ownership, site plans, road impacts, water use, wastewater disposal, drainage, electrical infrastructure, air emissions, noise and lighting impacts, environmental studies, hazardous materials, emergency planning and economic impacts.
Developers would also be required to provide technical studies analyzing effects on county roads, groundwater supplies, emergency services, flood risks, neighboring properties and public infrastructure.
After discussing the document, the court proposed some additions based on community feedback. Language will be added to require that developers provide projected water use during construction, submit an evacuation plan in conjunction with their hazardous materials plan, and provide notice to neighboring residents with both signage in the area and newspaper notices.
The court also voted to request proposals from engineering firms to review potential heavy industrial projects in the county at the expense of the developers from money placed in escrow.
Commissioners also passed a proclamation regarding large-scale industrial construction projects after citizens presented a draft.
The resolution emphasizes that all such developments must comply with applicable federal, state and county laws and engineering standards. It cites the county’s legal authority over roads, drainage, floodplain management, subdivision/platting and related infrastructure.
It also directs developers to coordinate early with county departments and encourages ongoing coordination with state and regional agencies.
The court discussed adopting national fire safety standards as a way to strengthen developer requirements, but the county is now weighing a different approach after concerns about the effects on volunteer fire departments.
Emergency Services District (ESD) 1 President Greg Brown told the court that adoption of the standards could include requirements for fire departments that would be impossible for volunteer organizations to meet.
He said it would be a huge expense for departments to purchase the necessary equipment, and there would be other requirements related to training and physical fitness that could result in departments staffed by older volunteers shutting their doors.
Another potential expense would be insurance costs, which Brown said could double or triple.
“You’re going to lose probably five fire departments in the first six months after passing these rules,” he said.
In response, the county is now considering using international model codes as a baseline and then amending them to better fit local conditions.
Brassell said that international standards focus more on development instead of fire departments, and he has been in talks with Johnson and Ellis counties, both of which are working on documents based on international standards with amendments to tailor them to counties’ needs.
Brassell said that Emergency Management Coordinator Chris Jackson has been in contact with the state fire marshal’s office, and it is prepared to help the county as it works to hire its own fire marshal.
Commissioners tabled the item with plans to continue working through the document and adjusting it to the county’s needs.
A request for a waiver from the county’s data center moratorium was also on the agenda for discussion, but no action was needed after the moratorium was rescinded. The request came from Abbott Land Holdings, LLC, for a 270-acre project in the area of HCR 3106.
The Lakelander 