Texas 2021 - 87th Regular

Texas Senate Bill SB2213 Compare Versions

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1	1	By: Springer S.B. No. 2213
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the removal of electric energy storage facilities.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Title 6, Utilities Code, is amended by adding
9	9	Chapter 303 to read as follows:
10	10	CHAPTER 303. ELECTRIC ENERGY STORAGE FACILITY AGREEMENTS
11	11	Sec. 303.0001. DEFINITIONS. In this chapter:
12	12	(1) "Electric energy storage facility" includes a
13	13	facility or equipment, other than a facility or equipment owned by
14	14	an electric utility, as defined by Section 31.002, used to support
15	15	the operation of electric energy storage, including an underground
16	16	or aboveground electrical transmission or communications line, an
17	17	electric transformer, telecommunications equipment, a road, a
18	18	meteorological tower, or a maintenance yard.
19	19	(2) "Electric energy storage facility agreement"
20	20	means a lease agreement between a grantee and a landowner that
21	21	authorizes the grantee to operate an electric energy storage
22	22	facility on the leased property.
23	23	(3) "Grantee" means a person, other than an electric
24	24	utility, as defined by Section 31.002, who:
25	25	(A) leases property from a landowner; and
26	26	(B) operates an electric energy storage facility
27	27	on the property.
28	28	Sec. 303.0002. APPLICABILITY. This chapter applies only to
29	29	electric energy storage that is a generation asset as defined by
30	30	Section 39.251.
31	31	Sec. 303.0003. WAIVER VOID; REMEDIES. (a) A provision of
32	32	an electric energy storage facility agreement that purports to
33	33	waive a right or exempt a grantee from a liability or duty
34	34	established by this chapter is void.
35	35	(b) A person who is harmed by a violation of this chapter is
36	36	entitled to appropriate injunctive relief to prevent further
37	37	violation of this chapter.
38	38	(c) The provisions of this section are not exclusive. The
39	39	remedies provided in this section are in addition to any other
40	40	procedures or remedies provided by other law.
41	41	Sec. 303.0004. REQUIRED AGREEMENT PROVISIONS ON FACILITY
42	42	REMOVAL. (a) An electric energy storage facility agreement must
43	43	provide that the grantee is responsible for removing the grantee's
44	44	electric energy storage facilities from the landowner's property
45	45	and that the grantee shall, in accordance with any other applicable
46	46	laws or regulations, safely:
47	47	(1) clear, clean, and remove from the property each
48	48	piece of electric energy storage equipment, including any
49	49	transformers or substations;
50	50	(2) for each foundation of electric energy storage
51	51	equipment, including a transformer or substation installed in the
52	52	ground:
53	53	(A) clear, clean, and remove the foundation from
54	54	the ground to a depth of at least three feet below the surface grade
55	55	of the land in which the foundation is installed; and
56	56	(B) ensure that each hole or cavity created in
57	57	the ground by the removal is filled with topsoil of the same type or
58	58	a similar type as the predominant topsoil found on the property;
59	59	(3) for each buried cable, including power,
60	60	fiber-optic, and communications cables, installed in the ground:
61	61	(A) clear, clean, and remove the cable from the
62	62	ground to a depth of at least three feet below the surface grade of
63	63	the land in which the cable is installed; and
64	64	(B) ensure that each hole or cavity created in
65	65	the ground by the removal is filled with topsoil of the same type or
66	66	a similar type as the predominant topsoil found on the property; and
67	67	(4) clear, clean, and remove from the property each
68	68	overhead power or communications line installed by the grantee on
69	69	the property.
70	70	(b) The agreement must provide that, at the request of the
71	71	landowner, the grantee shall:
72	72	(1) clear, clean, and remove each road constructed by
73	73	the grantee on the property; and
74	74	(2) ensure that each hole or cavity created in the
75	75	ground by the removal is filled with topsoil of the same type or a
76	76	similar type as the predominant topsoil found on the property.
77	77	(c) The agreement must provide that, at the request of the
78	78	landowner, if reasonable, the grantee shall:
79	79	(1) remove from the property all rocks over 12 inches
80	80	in diameter excavated during the decommissioning or removal
81	81	process;
82	82	(2) return the property to a tillable state using
83	83	scarification, V-rip, or disc methods, as appropriate; and
84	84	(3) ensure that:
85	85	(A) each hole or cavity created in the ground by
86	86	the removal is filled with topsoil of the same type or a similar
87	87	type as the predominant topsoil found on the property; and
88	88	(B) the surface is returned as near as reasonably
89	89	possible to the same condition as before the grantee dug holes or
90	90	cavities, including by reseeding pastureland with native grasses
91	91	prescribed by an appropriate governmental agency, if any.
92	92	(d) The landowner shall make a request under Subsection (b)
93	93	or (c) not later than the 180th day after the later of:
94	94	(1) the date on which the electric energy storage
95	95	facility is no longer capable of storing electricity in commercial
96	96	quantities; or
97	97	(2) the date the landowner receives written notice of
98	98	intent to decommission the electric energy storage facility from
99	99	the grantee.
100	100	Sec. 303.0005. REQUIRED AGREEMENT PROVISIONS ON FINANCIAL
101	101	ASSURANCE. (a) An electric energy storage facility agreement must
102	102	provide that the grantee shall obtain and deliver to the landowner
103	103	evidence of financial assurance that conforms to the requirements
104	104	of this section to secure the performance of the grantee's
105	105	obligation to remove the grantee's electric energy storage
106	106	facilities located on the landowner's property as described by
107	107	Section 303.0004. Acceptable forms of financial assurance include a
108	108	parent company guaranty with a minimum investment grade credit
109	109	rating for the parent company issued by a major domestic credit
110	110	rating agency, a letter of credit, a bond, or another form of
111	111	financial assurance acceptable to the landowner.
112	112	(b) The amount of the financial assurance must be at least
113	113	equal to the estimated amount by which the cost of removing the
114	114	electric energy storage facilities from the landowner's property
115	115	and restoring the property to as near as reasonably possible the
116	116	condition of the property as of the date the agreement begins
117	117	exceeds the salvage value of the electric energy storage
118	118	facilities, less any portion of the value of the electric energy
119	119	storage facilities pledged to secure outstanding debt.
120	120	(c) The agreement must provide that:
121	121	(1) the estimated cost of removing the electric energy
122	122	storage facilities from the landowner's property and restoring the
123	123	property to as near as reasonably possible the condition of the
124	124	property as of the date the agreement begins and the estimated
125	125	salvage value of the electric energy storage facilities must be
126	126	determined by an independent, third-party professional engineer
127	127	licensed in this state;
128	128	(2) the grantee must deliver to the landowner an
129	129	updated estimate, prepared by an independent, third-party
130	130	professional engineer licensed in this state, of the cost of
131	131	removal and the salvage value at least once every five years for the
132	132	remainder of the term of the agreement; and
133	133	(3) the grantee is responsible for ensuring that the
134	134	amount of the financial assurance remains sufficient to cover the
135	135	amount required by Subsection (b), consistent with the estimates
136	136	required by this subsection.
137	137	(d) The grantee is responsible for the costs of obtaining
138	138	financial assurance described by this section and costs of
139	139	determining the estimated removal costs and salvage value.
140	140	(e) The agreement must provide that the grantee shall
141	141	deliver the financial assurance not later than the earlier of:
142	142	(1) the date the electric energy storage facility
143	143	agreement is terminated; or
144	144	(2) the 10th anniversary of the commercial operations
145	145	date of the electric energy storage facilities located on the
146	146	landowner's leased property.
147	147	(f) For purposes of this section, "commercial operations
148	148	date" means the date on which the electric energy storage
149	149	facilities are approved for participation in market operations by a
150	150	regional transmission organization and does not include the
151	151	generation of electrical energy or other operations conducted
152	152	before that date for purposes of maintenance and testing.
153	153	(g) The grantee may not cancel financial assurance before
154	154	the date the grantee has completed the grantee's obligation to
155	155	remove the grantee's electric energy storage facilities located on
156	156	the landowner's property in the manner provided by this chapter,
157	157	unless the grantee provides the landowner with replacement
158	158	financial assurance at the time of or before the cancellation. In
159	159	the event of a transfer of ownership of the grantee's electric
160	160	energy storage facilities, the financial security provided by the
161	161	grantee shall remain in place until the date evidence of financial
162	162	security meeting the requirements of this chapter is provided to
163	163	the landowner.
164	164	SECTION 2. Chapter 303, Utilities Code, as added by this
165	165	Act, applies only to an electric energy storage facility agreement
166	166	entered into on or after the effective date of this Act. An
167	167	electric energy storage facility agreement entered into before the
168	168	effective date of this Act is governed by the law as it existed
169	169	immediately before that date, and that law is continued in effect
170	170	for that purpose.
171	171	SECTION 3. This Act takes effect September 1, 2021.