Texas 2019 - 86th Regular

Texas Senate Bill SB1610 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R12692 JXC/TJB-D
2	2	By: Hall S.B. No. 1610
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to decommissioning requirements for certain solar
8	8	facilities.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter A, Chapter 312, Tax Code, is amended
11	11	by adding Section 312.0022 to read as follows:
12	12	Sec. 312.0022. LIMITATION ON ABATEMENT OF TAXES ON SOLAR
13	13	FACILITY PROPERTY. (a) In this section, "solar facility" has the
14	14	meaning assigned by Section 35.201, Utilities Code.
15	15	(b) The governing body of a taxing unit may not enter into an
16	16	agreement under this chapter to exempt from taxation a portion of
17	17	the value of real property on which a solar facility is located or
18	18	is planned to be located during the term of the agreement, or of
19	19	tangible personal property that is located or is planned to be
20	20	located on the real property during that term, unless the owner of
21	21	the property has, if required, executed an agreement under Section
22	22	35.202, Utilities Code, applicable to the property.
23	23	SECTION 2. Section 313.024, Tax Code, is amended by adding
24	24	Subsection (b-2) to read as follows:
25	25	(b-2) In this subsection, "solar facility" has the meaning
26	26	assigned by Section 35.201, Utilities Code. The owner of real
27	27	property on which a solar facility is located or is planned to be
28	28	located during the term of an agreement entered into under this
29	29	subchapter, or of tangible personal property that is located or is
30	30	planned to be located on the real property during that term, may not
31	31	receive a limitation on appraised value under this subchapter
32	32	unless the owner has, if required, executed an agreement under
33	33	Section 35.202, Utilities Code, applicable to the property.
34	34	SECTION 3. Chapter 35, Utilities Code, is amended by adding
35	35	Subchapter F to read as follows:
36	36	SUBCHAPTER F. DECOMMISSIONING SOLAR FACILITIES
37	37	Sec. 35.201. DEFINITIONS. In this subchapter, "solar
38	38	facility" means a facility designed and used primarily for the
39	39	purpose of collecting, generating, transferring, or storing solar
40	40	energy. The term does not include a facility installed solely on a
41	41	building.
42	42	Sec. 35.202. DECOMMISSIONING SOLAR FACILITIES. (a) The
43	43	commission may not authorize a person who operates a solar facility
44	44	to interconnect the facility to the ERCOT transmission grid unless
45	45	the person demonstrates to the commission that the owner of the land
46	46	on which the facility is located has entered into an agreement with
47	47	the county in which the facility is located that provides that:
48	48	(1) the landowner is responsible for:
49	49	(A) decommissioning the solar facility,
50	50	including restoring, through soil stabilization and revegetation,
51	51	the first three feet of depth of the soil on any land disturbed by
52	52	the facility; or
53	53	(B) ensuring that the requirements of Paragraph
54	54	(A) are met; and
55	55	(2) the landowner will provide to the county financial
56	56	assurance in the form of certified funds, cash escrow, a bond, a
57	57	letter of credit, or a parent guarantee, payable to the county,
58	58	sufficient to cover the cost of the activities required by
59	59	Subdivision (1).
60	60	(b) The cost described by Subsection (a)(2) must be based on
61	61	an estimate of a qualified independent engineer, engaged by the
62	62	landowner and approved by the county, who has experience in
63	63	preparing decommissioning estimates. The estimate may not exceed
64	64	the sum of:
65	65	(1) the projected cost of decommissioning, including
66	66	accounting for the net salvage value of the solar facility and
67	67	associated equipment;
68	68	(2) a reasonable allowance for estimated
69	69	administrative costs related to a default of the operator; and
70	70	(3) an annual inflation factor.
71	71	(c) Notwithstanding Subsection (a), the commission may
72	72	authorize a person who operates a solar facility to interconnect a
73	73	facility to the ERCOT transmission grid without an agreement if the
74	74	county in which the facility is to be located waives the
75	75	requirements of this section.
76	76	SECTION 4. Section 312.0022, Tax Code, as added by this Act,
77	77	applies only to an agreement entered into under Chapter 312, Tax
78	78	Code, on or after the effective date of this Act.
79	79	SECTION 5. Section 313.024, Tax Code, as amended by this
80	80	Act, applies only to an agreement entered into under Chapter 313,
81	81	Tax Code, on or after the effective date of this Act.
82	82	SECTION 6. This Act takes effect September 1, 2019.