Texas 2019 - 86th Regular

Texas House Bill HB2845 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 2845
	1	+	By: Canales, et al. H.B. No. 2845
	2	+	(Senate Sponsor - Creighton, Campbell)
	3	+	(In the Senate - Received from the House April 30, 2019;
	4	+	May 1, 2019, read first time and referred to Committee on Business &
	5	+	Commerce; May 19, 2019, reported favorably by the following vote:
	6	+	Yeas 7, Nays 0; May 19, 2019, sent to printer.)
	7	+	Click here to see the committee vote
2	8
3	9
	10	+	A BILL TO BE ENTITLED
4	11		AN ACT
5	12		relating to the removal of wind power facilities.
6	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	14		SECTION 1. The Utilities Code is amended by adding Title 6
8	15		to read as follows:
9	16		TITLE 6. WIND POWER
10	17		CHAPTER 301. WIND POWER FACILITY AGREEMENTS
11	18		Sec. 301.0001. DEFINITIONS. In this chapter:
12	19		(1) "Grantee" means a person who:
13	20		(A) leases property from a landowner; and
14	21		(B) operates a wind power facility on the
15	22		property.
16	23		(2) "Wind power facility" includes:
17	24		(A) a wind turbine generator; and
18	25		(B) a facility or equipment used to support the
19	26		operation of a wind turbine generator, including an underground or
20	27		aboveground electrical transmission or communications line, an
21	28		electric transformer, a battery storage facility, an energy storage
22	29		facility, telecommunications equipment, a road, a meteorological
23	30		tower with wind measurement equipment, or a maintenance yard.
24	31		(3) "Wind power facility agreement" means a lease
25	32		agreement between a grantee and a landowner that authorizes the
26	33		grantee to operate a wind power facility on the leased property.
27	34		Sec. 301.0002. WAIVER VOID; REMEDIES. (a) A provision of a
28	35		wind power facility agreement that purports to waive a right or
29	36		exempt a grantee from a liability or duty established by this
30	37		chapter is void.
31	38		(b) A person who is harmed by a violation of this chapter is
32	39		entitled to appropriate injunctive relief to prevent further
33	40		violation of this chapter.
34	41		(c) The provisions of this section are not exclusive. The
35	42		remedies provided in this section are in addition to any other
36	43		procedures or remedies provided by other law.
37	44		Sec. 301.0003. REQUIRED AGREEMENT PROVISIONS ON FACILITY
38	45		REMOVAL. (a) A wind power facility agreement must provide that the
39	46		grantee is responsible for removing the grantee's wind power
40	47		facilities from the landowner's property and that the grantee
41	48		shall, in accordance with any other applicable laws or regulations,
42	49		safely:
43	50		(1) clear, clean, and remove from the property:
44	51		(A) each wind turbine generator, including
45	52		towers and pad-mount transformers;
46	53		(B) all liquids, greases, or similar substances
47	54		contained in a wind turbine generator;
48	55		(C) each substation; and
49	56		(D) all liquids, greases, or similar substances
50	57		contained in a substation;
51	58		(2) for each tower foundation and pad-mount
52	59		transformer foundation installed in the ground:
53	60		(A) clear, clean, and remove the foundation from
54	61		the ground to a depth of at least three feet below the surface grade
55	62		of the land in which the foundation is installed; and
56	63		(B) ensure that each hole or cavity created in
57	64		the ground by the removal is filled with topsoil of the same type or
58	65		a similar type as the predominant topsoil found on the property;
59	66		(3) for each buried cable, including power,
60	67		fiber-optic, and communications cables, installed in the ground:
61	68		(A) clear, clean, and remove the cable from the
62	69		ground to a depth of at least three feet below the surface grade of
63	70		the land in which the cable is installed; and
64	71		(B) ensure that each hole or cavity created in
65	72		the ground by the removal is filled with topsoil of the same type or
66	73		a similar type as the predominant topsoil found on the property; and
67	74		(4) clear, clean, and remove from the property each
68	75		overhead power or communications line installed by the grantee on
69	76		the property.
70	77		(b) The agreement must provide that, at the request of the
71	78		landowner, the grantee shall:
72	79		(1) clear, clean, and remove each road constructed by
73	80		the grantee on the property; and
74	81		(2) ensure that each hole or cavity created in the
75	82		ground by the removal is filled with topsoil of the same type or a
76	83		similar type as the predominant topsoil found on the property.
77	84		(c) The agreement must provide that, at the request of the
78	85		landowner, if reasonable, the grantee shall:
79	86		(1) remove from the property all rocks over 12 inches
80	87		in diameter excavated during the decommissioning or removal
81	88		process;
82	89		(2) return the property to a tillable state using
83	90		scarification, V-rip, or disc methods, as appropriate; and
84	91		(3) ensure that:
85	92		(A) each hole or cavity created in the ground by
86	93		the removal is filled with topsoil of the same type or a similar
87	94		type as the predominant topsoil found on the property; and
88	95		(B) the surface is returned as near as reasonably
89	96		possible to the same condition as before the grantee dug holes or
90	97		cavities, including by reseeding pastureland with native grasses
91	98		prescribed by an appropriate governmental agency, if any.
92	99		(d) The landowner shall make a request under Subsection (b)
93	100		or (c) not later than the 180th day after the later of:
94	101		(1) the date on which the wind power facility is no
95	102		longer capable of generating electricity in commercial quantities;
96	103		or
97	104		(2) the date the landowner receives written notice of
98	105		intent to decommission the wind power facility from the grantee.
99	106		Sec. 301.0004. REQUIRED AGREEMENT PROVISIONS ON FINANCIAL
100	107		ASSURANCE. (a) A wind power facility agreement must provide that
101	108		the grantee shall obtain and deliver to the landowner evidence of
102	109		financial assurance that conforms to the requirements of this
103	110		section to secure the performance of the grantee's obligation to
104	111		remove the grantee's wind power facilities located on the
105	112		landowner's property as described by Section 301.0003. Acceptable
106	113		forms of financial assurance include a parent company guaranty with
107	114		a minimum investment grade credit rating for the parent company
108	115		issued by a major domestic credit rating agency, a letter of credit,
109	116		a bond, or another form of financial assurance acceptable to the
110	117		landowner.
111	118		(b) The amount of the financial assurance must be at least
112	119		equal to the estimated amount by which the cost of removing the wind
113	120		power facilities from the landowner's property and restoring the
114	121		property to as near as reasonably possible the condition of the
115	122		property as of the date the agreement begins exceeds the salvage
116	123		value of the wind power facilities, less any portion of the value of
117	124		the wind power facilities pledged to secure outstanding debt.
118	125		(c) The agreement must provide that:
119	126		(1) the estimated cost of removing the wind power
120	127		facilities from the landowner's property and restoring the property
121	128		to as near as reasonably possible the condition of the property as
122	129		of the date the agreement begins and the estimated salvage value of
123	130		the wind power facilities must be determined by an independent,
124	131		third-party professional engineer licensed in this state;
125	132		(2) the grantee must deliver to the landowner an
126	133		updated estimate, prepared by an independent, third-party
127	134		professional engineer licensed in this state, of the cost of
128	135		removal and the salvage value at least once every five years for the
129	136		remainder of the term of the agreement; and
130	137		(3) the grantee is responsible for ensuring that the
131	138		amount of the financial assurance remains sufficient to cover the
132	139		amount required by Subsection (b), consistent with the estimates
133	140		required by this subsection.
134	141		(d) The grantee is responsible for the costs of obtaining
135	142		financial assurance described by this section and costs of
136	143		determining the estimated removal costs and salvage value.
137	144		(e) The agreement must provide that the grantee shall
138	145		deliver the financial assurance not later than the earlier of:
139	146		(1) the date the wind power facility agreement is
140	147		terminated; or
141	148		(2) the 10th anniversary of the commercial operations
142	149		date of the wind power facilities located on the landowner's leased
143	150		property.
144	151		(f) For purposes of this section, "commercial operations
145	152		date" means the date on which the wind power facilities are approved
146	153		for participation in market operations by a regional transmission
147	154		organization and does not include the generation of electrical
148	155		energy or other operations conducted before that date for purposes
149	156		of maintenance and testing.
150	157		(g) The grantee may not cancel financial assurance before
151	158		the date the grantee has completed the grantee's obligation to
152	159		remove the grantee's wind power facilities located on the
153	160		landowner's property in the manner provided by this chapter, unless
154	161		the grantee provides the landowner with replacement financial
155	162		assurance at the time of or before the cancellation. In the event
156	163		of a transfer of ownership of the grantee's wind power facilities,
157	164		the financial security provided by the grantee shall remain in
158	165		place until the date evidence of financial security meeting the
159	166		requirements of this chapter is provided to the landowner.
160	167		SECTION 2. Chapter 301, Utilities Code, as added by this
161	168		Act, applies only to a wind power facility agreement entered into on
162	169		or after the effective date of this Act. A wind power facility
163	170		agreement entered into before the effective date of this Act is
164	171		governed by the law as it existed immediately before that date, and
165	172		that law is continued in effect for that purpose.
166	173		SECTION 3. This Act takes effect September 1, 2019.
167		-	______________________________ ______________________________
168		-	President of the Senate Speaker of the House
169		-	I certify that H.B. No. 2845 was passed by the House on April
170		-	30, 2019, by the following vote: Yeas 145, Nays 0, 1 present, not
171		-	voting.
172		-	______________________________
173		-	Chief Clerk of the House
174		-	I certify that H.B. No. 2845 was passed by the Senate on May
175		-	22, 2019, by the following vote: Yeas 30, Nays 1.
176		-	______________________________
177		-	Secretary of the Senate
178		-	APPROVED: _____________________
179		-	Date
180		-	_____________________
181		-	Governor
	174	+	* * * * *