This summer the world is experiencing an unprecedented number of climate change disasters including wildfires, flooding, drought, record low snowfalls and a melting Arctic. While the impetus to use more alternative energy sources has never been greater, the Trump Administration has claimed climate change is a hoax. The January 2025 Presidential Wind Memorandum executive order held up issuance of all federal wind project permitting activities, which put a halt to the final permitting needed for Scout Clean Energy’s 180-megawatt Nimbus Wind Farm project located on about 9,000 acres of mountain ridges south of Green Forest and east of Alpena.
According to the U.S. Fish & Wildlife Service, Nimbus received an Incidental Take Permit required under the Endangered Species Act for golden and bald eagles. But an ITP for bats has been on hold because of the presidential order. However, in mid-June, the Trump Administration withdrew its appeal of a federal court ruling that overturned the wind permitting freeze.
That clears the way for Nimbus to proceed with obtaining an ITP for bats. A 60-day comment period is required before that can be issued. For more information, see fws.gov/project/nimbus-wind-farm-habitat-conservation-plan.
There have been years of heated controversy including major opposition from local residents to the $400-million project with turbines more than 600 feet tall. Residents said they felt the industrial project threatened their mountain paradise by potentially disrupting wells and springs, reducing property values, creating fire and pollution dangers, and harming human and animal health.
There were concerns that Carroll County had been targeted because it had cheap land, no regulations for wind generation, no building codes and no state oversight. For years, nearly every monthly Carroll County Quorum Court (QC) meeting had Nimbus opponents—often large numbers of them—in attendance.
But Nimbus has been built; the turbines are turning. One recent day, 14 out of 15 giant turbines could be seen rotating from one spot along CR 905.
Scout also now faces new permitting requirements from wind generation rules recently adopted by the Arkansas Public Service Commission (PSC) after the passage of Act 945 by the Arkansas Legislature. Arkansas was previously one of only four states without wind facility regulations. Nimbus would not qualify under the rules just adopted, but can request to be grandfathered in.
“I’ve written a letter to the PSC pointing out that under the act and under PSC’s regulations, Scout has to apply for an exemption,” George Caudle said. Caudle, along with Julie Morton, spearheaded a successful effort to lobby the legislature to adopt Act 945. “They are not supposed to be operational until they have gone through the requirements of the PSC and received a declaratory order that Scout is exempt. To my knowledge, Scout also hasn’t announced the buyer of the energy. Normally when a project enters a purchase agreement, they announce that to the public.”
Nimbuswind.com states that the project will generate $15 million in lease revenues and $31.5 million in tax revenues over the 30-year life of the project. But County Tax Assessor Jeannie Davidson said the taxes revenues won’t come as soon as people think and might not be as much as some expect.
“Scout is a utility entity, so it will be patched through the PSC, which will send us information on how to tax the project,” Davidson said. “It won’t be going on 2026 taxes because it was not operating by January 1. It will get assessed by the new County Tax Assessor Brittany Blok in 2027, and taxes won’t be due until 2028. I think some people think it is going to be millions of dollars. I don’t think it is going to be that much when you get to the bottom of the barrel. If each turbine is assessed at $1 million, we tax at only twenty percent.”
If you multiply that by the millage of .05450, it amounts to $320,000 per year in taxes for 30 turbines.
“I hope I’m wrong, but I honestly think it is not going to be as much as everybody thinks,” Davidson said.
Caudle said the PSC is expected to come up with procedures for assessing wind projects. He said the tax issue needs scrutiny. “Unless procedures are used to accurately assess the project, the people are not going to get what they deserve,” Caudle said. “In different states, they only assessed taxes for an acre or even a quarter of an acre, the footprint of the tower. So, they only taxed commercial or industry use on that quarter acre. If it is not properly assessed—if you do it based on what Scout tells you—the county and school systems will get shafted.”
A report prepared for Scout by Strategic Economic Research dated Feb. 27, 2024, that was submitted to the QC estimated a total of more than $23.2 million in total school district revenues over the 30-year life of the project, with $8.2 million in property taxes for Carroll County. The report assumed that Scout Clean Energy will pay ordinary property taxes instead of a Payment in Lieu of Taxes (PILOT). That agreement is at the discretion of County Judge David Writer—not the QC.
Former County Judge E. Richard Williams lives on CR 905 with three turbines in view of his home, and about 20 within one mile of him. Williams said that Arkansas Code Title 26 requires all the land that has been leased or purchased for Nimbus be changed from agricultural use to commercial use. Agricultural zoning has the lowest tax rate, with commercial use significantly higher.
Williams quotes Ark. Code R. § 001: Requires all county assessors and equalization boards to substantially comply with the law to ensure all property is assessed in relative proportion to its just and true value. Williams said the code specifies it is the responsibility of the landowner to notify the tax assessor when there is a change in use.
“Has anybody given written notification of this change? No, as per replies to my Freedom of Information Act requests to the county tax assessor,” Williams said. “There are code penalties for not reporting a change from ag to commercial. This is not discretionary. Whenever land is converted for another use, the person converting it must immediately notify the county tax assessor in writing of the change of use. When landowners signed leases with Scout, and Scout purchased property, they had the responsibility to notify the tax assessor of the change of use. The penalty for failure to give written notice of land use change is an amount equal to three years of taxes at the value of the new use.”
The county could use more money. The Carroll County QC recently discussed adding a one percent sales tax to help the county have more revenue to meet the needs. The county receives 20 percent of property tax revenue. About 80 percent goes to public schools, in this case those in Green Forest and Alpena, which have some of the lowest per capita incomes and property tax revenues in the state—which has some of the lowest per capita incomes in the nation.
The waters—or the air in this case—get even murkier. Opponents say that 25 Nimbus wind turbine blades 130 feet long are de-laminating and must be replaced. Recently there was such a dark cloud from cutting up one turbine blade for removal that initially residents thought it was being burned. After being cut in sections, it was hauled off in an 18-wheel truck bearing Texas license plates.
There are concerns that the amount of pollution being put into the air from cutting up defective turbine blades could potentially contaminate land and create stormwater runoff. Williams is concerned about pollution to wells, springs and rivers if the debris is not collected and removed. He said that could impact drinking water supplies for residents, livestock and wildlife.
And if those blades aren’t replaced and the project doesn’t come online producing electricity by Jan. 1, 2027, it wouldn’t be assessed until 2028, and tax revenues wouldn’t be due until October 2029. Landowners who leased to Scout are paid per turbine with a bonus for the amount of electricity generated.
Scout Clean Energy has not responded to requests for comment by this newspaper. Judge Writer could not be reached for comment prior to deadline.
Thank you, Becky Gillette, for this thorough piece. What a mess this has become, mostly because, IMHO, the Quorum Court was flummoxed and scared of Scout’s attorneys, and Judge Writer did not do a thorough job of ensuring public protections before approving the road agreement.