Brown County Commissioners began the initial steps in a process to create a County Energy Transportation Reinvestment Zone (CERTZ) which will allow the county to apply for CETRZ grant funds for projects such as road repair needed because of increased truck traffic of oil field equipment. The grant will be administered by Texas Department of Transportation.
Commissioners unanimously approved entering into a retainer agreement with Allison, Bass & Associates, LLP of Austin to represent the county in the creation and administration of a CETRZ and preparation and submission of an application for CETRZ grants. These CETRZ grants, as estimated by TxDOT, could mean a minimum amount of $303,000 in grant funds to the county according to Judge Ray West.
West explained to the court when a CERTZ is formed, one consequence is that it has an effect on the county’s ability to tax within the zone. According to West, after the zone is created, increased property values within the zone will not benefit the county, the values essentially would be frozen for a period of time. He explained that this should not be much of a problem as the properties within the area most likely considered for this zone are mainly agriculturally zoned. If the zone is established, the most probable losses in this area, West explained, would be due to new homes being built within the zone.
According to a notice from TxDOT, request of applications for the grant was sent to all Texas counties; approximately $224,500,000 in funding will be available through the grant. The notice included an estimate of allocations for each county, assuming all 254 counties will be eligible and apply and states that actual grant awards may vary from the estimate. This is why the $303,000 amount is a minimal amount if Brown County’s application for the grant funds is awarded.
These CERTZ grants were created by the passage of House Bill 1025 and Senate Bill 1747. HB 1025 appropriates $225 million in general revenue to be transferred to the Transportation Infrastructure Fund to implement the provisions of SB 1747, which outlines the requirements for counties to be eligible for funding authorized under HB 1025 to address the impact the energy sector activity.
According to SB 1747, funds from the grant program will be distributed for transportation infrastructure projects located in counties that have created a county energy transportation reinvestment zone.
The rules of the grant outline eligibility of a county as follows:
(1) be entirely or partially in an area affected by increased oil and gas production;
(2) create a county energy transportation reinvestment zone under Transportation Code, §222.1071; and create an advisory board under Transportation Code, §222.1072 for the county energy transportation reinvestment zone.
To receive money from the fund a county must provide matching funds in an amount at least equal to:
(1) 20 percent of the amount of the grant; or
(2) if the county is an economically disadvantaged county, as defined in Transportation Code, §222.053, 10 percent of the amount of the grant.
These matching funds must be cash and may be from any source other than the department according to SB 1747.
For more information about HB 1025, SB 1747, and CERTZ grants, click here.
