86R12692 JXC/TJB-D
By: Hall S.B. No. 1610
A BILL TO BE ENTITLED
AN ACT
relating to decommissioning requirements for certain solar
facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 312, Tax Code, is amended
by adding Section 312.0022 to read as follows:
Sec. 312.0022. LIMITATION ON ABATEMENT OF TAXES ON SOLAR
FACILITY PROPERTY. (a) In this section, "solar facility" has the
meaning assigned by Section 35.201, Utilities Code.
(b) The governing body of a taxing unit may not enter into an
agreement under this chapter to exempt from taxation a portion of
the value of real property on which a solar facility is located or
is planned to be located during the term of the agreement, or of
tangible personal property that is located or is planned to be
located on the real property during that term, unless the owner of
the property has, if required, executed an agreement under Section
35.202, Utilities Code, applicable to the property.
SECTION 2. Section 313.024, Tax Code, is amended by adding
Subsection (b-2) to read as follows:
(b-2) In this subsection, "solar facility" has the meaning
assigned by Section 35.201, Utilities Code. The owner of real
property on which a solar facility is located or is planned to be
located during the term of an agreement entered into under this
subchapter, or of tangible personal property that is located or is
planned to be located on the real property during that term, may not
receive a limitation on appraised value under this subchapter
unless the owner has, if required, executed an agreement under
Section 35.202, Utilities Code, applicable to the property.
SECTION 3. Chapter 35, Utilities Code, is amended by adding
Subchapter F to read as follows:
SUBCHAPTER F. DECOMMISSIONING SOLAR FACILITIES
Sec. 35.201. DEFINITIONS. In this subchapter, "solar
facility" means a facility designed and used primarily for the
purpose of collecting, generating, transferring, or storing solar
energy. The term does not include a facility installed solely on a
building.
Sec. 35.202. DECOMMISSIONING SOLAR FACILITIES. (a) The
commission may not authorize a person who operates a solar facility
to interconnect the facility to the ERCOT transmission grid unless
the person demonstrates to the commission that the owner of the land
on which the facility is located has entered into an agreement with
the county in which the facility is located that provides that:
(1) the landowner is responsible for:
(A) decommissioning the solar facility,
including restoring, through soil stabilization and revegetation,
the first three feet of depth of the soil on any land disturbed by
the facility; or
(B) ensuring that the requirements of Paragraph
(A) are met; and
(2) the landowner will provide to the county financial
assurance in the form of certified funds, cash escrow, a bond, a
letter of credit, or a parent guarantee, payable to the county,
sufficient to cover the cost of the activities required by
Subdivision (1).
(b) The cost described by Subsection (a)(2) must be based on
an estimate of a qualified independent engineer, engaged by the
landowner and approved by the county, who has experience in
preparing decommissioning estimates. The estimate may not exceed
the sum of:
(1) the projected cost of decommissioning, including
accounting for the net salvage value of the solar facility and
associated equipment;
(2) a reasonable allowance for estimated
administrative costs related to a default of the operator; and
(3) an annual inflation factor.
(c) Notwithstanding Subsection (a), the commission may
authorize a person who operates a solar facility to interconnect a
facility to the ERCOT transmission grid without an agreement if the
county in which the facility is to be located waives the
requirements of this section.
SECTION 4. Section 312.0022, Tax Code, as added by this Act,
applies only to an agreement entered into under Chapter 312, Tax
Code, on or after the effective date of this Act.
SECTION 5. Section 313.024, Tax Code, as amended by this
Act, applies only to an agreement entered into under Chapter 313,
Tax Code, on or after the effective date of this Act.
SECTION 6. This Act takes effect September 1, 2019.