Sandoval County commissioners advanced the nearly half-billion-dollar revenue bond for the Diamond Tail massive solar and battery project, expected to generate millions in school funding and reshape the region’s energy economy.
During the May 28 board meeting, commissioners declared their intent to approve a $497 million bond to help build the solar and battery storage project proposed by PCR Investments, SP Four LLC.
“This will be the largest non-Intel industrial revenue bond the county has ever done,” said Rob Burpo, Sandoval County financial adviser. “Which is great for the schools, they’re going to be getting about 43% of the revenues.”
While the move doesn’t finalize the bond, it allows the developer to begin securing financing and receiving gross receipts tax benefits. Officials say the 20-year project could deliver major tax-equivalent payments to five local school districts.
Also during the meeting, commissioners approved a preliminary budget for the upcoming fiscal year, agreed to increase the county’s share of employee retirement contributions, and signed off on a new contract with the county firefighters’ union.
The county issued proclamations recognizing Public Works staff, EMS personnel and older adults for their essential contributions.
The green energy megaproject
The Diamond Tail project would generate 220 megawatts of solar power and 110 megawatts of battery storage on 1,833 acres along New Mexico Highway 14, a scenic stretch known as the Turquoise Trail, in a small pocket of Sandoval County near the Santa Fe County line in the East Mountains.
According to Burpo, construction is set to begin in spring 2027 and take about 20 months, with power expected to come online in early 2029.
The county and the company are still figuring out how much the PILOT will be, but it’ll be based on megawatts and go up 5% every five years. Schools will get 43% of the money, split using a formula that looks at where the project is, how much land each district covers, and how many students they have.
Because this is an energy project, it’s subject to Senate Bill 474, a 2023 law that sets the rules for splitting PILOT funds between the county and local schools, according to Burpo.
The county keeps about 57%, while the remaining 43% goes to schools based on a three-part formula: 50% is based on where the project is located — in this case, the Bernalillo Public Schools district — 40% is based on how much land each district has in the county and 10% is based on total student enrollment, even if most students live outside the county.
“That last part makes a lot of us uncomfortable,” Burpo said, noting that APS gets to count all 74,000 of its students even though it only has one school, Corrales Elementary, in Sandoval County.
Under the formula, Bernalillo gets about 42.75%, Cuba 8%, Jemez Valley 5%, APS 3.4% and Rio Rancho 1.51%.
Jill Sweeney, the county’s bond attorney, said the resolution is the “starting gun” for the Diamond Tail project. It lets the company begin using gross receipts tax breaks through the state’s Economic Development Department and allows the finance team to start drafting the legal paperwork.
She said the resolution also acts as a public notice that the commission plans to adopt a bond ordinance, which will come back for a vote around July 9. In the meantime, the team will put together key documents like the lease and bond purchase agreement. The company will buy the bond itself.
Commissioner Jon Herr asked for an update on the lawsuits filed by residents and community groups who opposed the project.
Burpo said the court appeals are separate from the bond process.
“These projects run on two tracks,” Burpo said. “Land use and zoning approvals go through the Planning and Zoning Commission, the County Commission and the courts. The industrial revenue bond is a different process, and that’s what we’re starting tonight. We kept them separate on purpose to avoid conflicts.”
Sandoval County Attorney Michael Eshelman said two separate appeals have been filed over the project — one by a coalition of citizen groups led by the East Mountain Protection Alliance Coalition and another by Placitas resident Patience O’Dowd.
Eshelman said both cases are now in District Court. The record was submitted last month, and statements of appellate issues were due this week. The citizens group filed Friday and O’Dowd filed Monday.
“There are some pending motions, including one to dismiss one of the appeals and another to consolidate them,” Eshelman said. “The developer, PCR, has also asked to intervene, but the court hasn’t ruled on anything yet.”
He said the county has 30 days to file its response and is working with outside counsel to prepare it.
Eshelman agreed with Burpo that the appeals don’t affect the bond process. “The decision that you made has not been stayed, and no one has even asked for that,” he said. “So it’s in effect, the rezoning has happened.”
Burpo said the developer is still working on their bid for PNM’s request for proposals. Getting the IRB first helps them lock in costs, like the payments in lieu of taxes, so they can include that in their offer.
PNM’s request for proposals (RFP) still needs the Public Regulation Commission’s OK this quarter. After that, companies can send in their bids. Once PNM chooses projects, the power deals will need final approval from the PRC.
The budget
The Sandoval County Commission approved the preliminary operating budget for Fiscal Year 2026.
Finance Director Cassandra Herrera said the budget is balanced and will guide operations for the next couple of months. Once the fiscal year wraps up on June 30, staff will work on finalizing the numbers and bring the final version back around July 23 for approval.
Herrera said the biggest change this year is the addition of about 22 new positions, including 12 in the fire department that are still waiting on funding. Those hires add a big cost to salaries and benefits.
She also said changes to property tax exemptions will lower revenue in the future. On top of that, the county received a one-time boost of a few million dollars this year that won’t come back next year. Altogether, the county is dealing with some revenue shifts and tighter margins.
According to the budget, the General Fund — the county’s main fund for day-to-day expenses — is expected to bring in about $74.5 million. Spending and transfers will total nearly $64 million, and around $10.1 million will be set aside in reserves.
County retirement and Firefighter CBA
Commissioners approved a resolution increasing the county’s share of employee Public Employees Retirement Association of New Mexico (PERA) contributions by 1.18% starting in 2026.
Human Resources Director Angela Rodden said the county currently covers about 68% to 69% of the employee share, depending on the plan. The goal is to bring it up to the full 75% allowed by law — something nearby counties already do.
Commissioners approved a new collective bargaining agreement with the Sandoval County Professional Firefighters Association, Local 4563, for Fiscal Year 2026.
Acting Fire Chief Chris Bagley said the county and union reached a deal after just a few meetings. The agreement includes across-the-board raises — about 6% for EMT-Basics, Intermediates and Paramedics and 4% for Lieutenants — along with minor training updates and general language cleanup.
“All the financial changes are already built into the FY26 budget,” Bagley said.
County Attorney Michael Eshelman, who was on the negotiating team, credited Bagley, former Chief Eric Masterson and HR’s Angela Rodden for doing the “heavy lifting.”
“They were well prepared and did an excellent job,” Eshelman said, adding the union’s leadership also came to the table in good faith. “It went very smoothly because both sides did an excellent job.”
The new contract runs through June 2028 and covers all regular full-time firefighters.
The terms include:
- Hourly wages ranging from $18.03 for EMT-Basics to $28.06 for Lieutenants, depending on experience
- A 56-hour average workweek, with overtime after 106 hours in a two-week period.
- A 2.18% increase in the county’s retirement contribution.
- $10,000 death benefit for line-of-duty deaths.
- 32 hours each of paid EMS and fire training annually.
- Sick leave buyback at 65 cents on the dollar for hours over 672.
Proclamations
Sandoval County commissioners issued three proclamations recognizing Public Works employees, emergency medical services staff and older adults for their contributions to the community.
Chairman Michael Meek sponsored the Public Works Week proclamation, designating May 18–24 for the annual recognition. Meek said the department handles essential infrastructure work but often goes unrecognized.
He said people complain when something breaks and forget about it once it’s fixed.
“Director Hatzenbuhler, thank you for everything that you do to keep that group in line, and we appreciate all the hard work you’re doing.”
The proclamation highlighted recent accomplishments, including the public safety building, Animal Resource Center, and Judicial Complex projects, as well as the operation of 53 county facilities and the disposal of 200,000 tons of solid waste annually.
Commissioner Katherine Bruch sponsored the Emergency Medical Services Week proclamation, also for May 18–24. Bruch credited local EMS teams with saving lives — including those of her family members — and praised their commitment.
“They’re out there day in and day out,” she said. “It’s a big deal.”
Vice Chair Jordan Juarez sponsored the Older Americans Month proclamation, recognizing older adults throughout May.
Juarez called it fitting that “the youngest guy on the commission” got to honor seniors.
Get involved
The next County Commission meeting is at 6 p.m., June 11, at the Administrative Building Commission Chambers, 1500 Idalia Road, Building D in Bernalillo.