Texas 2021 - 87th Regular

Texas Senate Bill SB760 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 760
	1	+	87R24483 JXC-F
	2	+	By: Springer S.B. No. 760
	3	+	(Shaheen)
	4	+	Substitute the following for S.B. No. 760: No.
2	5
3	6
	7	+	A BILL TO BE ENTITLED
4	8		AN ACT
5	9		relating to the removal of solar power facilities.
6	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	11		SECTION 1. The heading to Title 6, Utilities Code, is
8	12		amended to read as follows:
9	13		TITLE 6. PRIVATE [WIND] POWER AGREEMENTS
10	14		SECTION 2. Title 6, Utilities Code, is amended by adding
11	15		Chapter 302 to read as follows:
12	16		CHAPTER 302. SOLAR POWER FACILITY AGREEMENTS
13	17		Sec. 302.0001. DEFINITIONS. In this chapter:
14	18		(1) "Grantee" means a person, other than an electric
15	19		utility, as defined by Section 31.002, who:
16	20		(A) leases property from a landowner; and
17	21		(B) operates a solar power facility on the
18	22		property.
19	23		(2) "Solar energy device" has the meaning assigned by
20	24		Section 185.001.
21	25		(3) "Solar power facility" includes:
22	26		(A) a solar energy device; and
23	27		(B) a facility or equipment, other than a
24	28		facility or equipment owned by an electric utility, as defined by
25	29		Section 31.002, used to support the operation of a solar energy
26	30		device, including an underground or aboveground electrical
27	31		transmission or communications line, an electric transformer, a
28	32		battery storage facility, an energy storage facility,
29	33		telecommunications equipment, a road, a meteorological tower, or a
30	34		maintenance yard.
31	35		(4) "Solar power facility agreement" means a lease
32	36		agreement between a grantee and a landowner that authorizes the
33	37		grantee to operate a solar power facility on the leased property.
34	38		Sec. 302.0002. APPLICABILITY. This chapter applies only to
35	39		a solar power facility that is a generation asset as defined by
36	40		Section 39.251.
37	41		Sec. 302.0003. WAIVER VOID; REMEDIES. (a) A provision of a
38	42		solar power facility agreement that purports to waive a right or
39	43		exempt a grantee from a liability or duty established by this
40	44		chapter is void.
41	45		(b) A person who is harmed by a violation of this chapter is
42	46		entitled to appropriate injunctive relief to prevent further
43	47		violation of this chapter.
44	48		(c) The provisions of this section are not exclusive. The
45	49		remedies provided in this section are in addition to any other
46	50		procedures or remedies provided by other law.
47	51		Sec. 302.0004. REQUIRED AGREEMENT PROVISIONS ON FACILITY
48	52		REMOVAL. (a) A solar power facility agreement must provide that
49	53		the grantee is responsible for removing the grantee's solar power
50	54		facilities from the landowner's property and that the grantee
51	55		shall, in accordance with any other applicable laws or regulations,
52	56		safely:
53	57		(1) clear, clean, and remove from the property each
54	58		solar energy device, transformer, and substation;
55	59		(2) for each foundation of a solar energy device,
56	60		transformer, or substation installed in the ground:
57	61		(A) clear, clean, and remove the foundation from
58	62		the ground to a depth of at least three feet below the surface grade
59	63		of the land in which the foundation is installed; and
60	64		(B) ensure that each hole or cavity created in
61	65		the ground by the removal is filled with soil of the same type or a
62	66		similar type as the predominant soil found on the property;
63	67		(3) for each buried cable, including power,
64	68		fiber-optic, and communications cables, installed in the ground:
65	69		(A) clear, clean, and remove the cable from the
66	70		ground to a depth of at least three feet below the surface grade of
67	71		the land in which the cable is installed; and
68	72		(B) ensure that each hole or cavity created in
69	73		the ground by the removal is filled with soil of the same type or a
70	74		similar type as the predominant soil found on the property; and
71	75		(4) clear, clean, and remove from the property each
72	76		overhead power or communications line installed by the grantee on
73	77		the property.
74	78		(b) The agreement must provide that, at the request of the
75	79		landowner, the grantee shall:
76	80		(1) clear, clean, and remove each road constructed by
77	81		the grantee on the property; and
78	82		(2) ensure that each hole or cavity created in the
79	83		ground by the removal is filled with soil of the same type or a
80	84		similar type as the predominant soil found on the property.
81	85		(c) The agreement must provide that, at the request of the
82	86		landowner, if reasonable, the grantee shall:
83	87		(1) remove from the property all rocks over 12 inches
84	88		in diameter excavated during the decommissioning or removal
85	89		process;
86	90		(2) return the property to a tillable state using
87	91		scarification, V-rip, or disc methods, as appropriate; and
88	92		(3) ensure that:
89	93		(A) each hole or cavity created in the ground by
90	94		the removal is filled with soil of the same type or a similar type as
91	95		the predominant soil found on the property; and
92	96		(B) the surface is returned as near as reasonably
93	97		possible to the same condition as before the grantee dug holes or
94	98		cavities, including by reseeding pastureland with native grasses
95	99		prescribed by an appropriate governmental agency, if any.
96	100		(d) The landowner shall make a request under Subsection (b)
97	101		or (c) not later than the 180th day after the later of:
98	102		(1) the date on which the solar power facility is no
99	103		longer capable of generating electricity in commercial quantities;
100	104		or
101	105		(2) the date the landowner receives written notice of
102	106		intent to decommission the solar power facility from the grantee.
103	107		Sec. 302.0005. REQUIRED AGREEMENT PROVISIONS ON FINANCIAL
104	108		ASSURANCE. (a) A solar power facility agreement must provide that
105	109		the grantee shall obtain and deliver to the landowner evidence of
106	110		financial assurance that conforms to the requirements of this
107	111		section to secure the performance of the grantee's obligation to
108	112		remove the grantee's solar power facilities located on the
109	113		landowner's property as described by Section 302.0004. Acceptable
110	114		forms of financial assurance include a parent company guaranty with
111	115		a minimum investment grade credit rating for the parent company
112	116		issued by a major domestic credit rating agency, a letter of credit,
113	117		a bond, or another form of financial assurance reasonably
114	118		acceptable to the landowner.
115	119		(b) The amount of the financial assurance must be at least
116	120		equal to the estimated amount by which the cost of removing the
117	121		solar power facilities from the landowner's property and restoring
118	122		the property to as near as reasonably possible the condition of the
119	123		property as of the date the agreement begins exceeds the salvage
120	124		value of the solar power facilities, less any portion of the value
121	125		of the solar power facilities pledged to secure outstanding debt.
122	126		(c) The agreement must provide that:
123	127		(1) the estimated cost of removing the solar power
124	128		facilities from the landowner's property and restoring the property
125	129		to as near as reasonably possible the condition of the property as
126	130		of the date the agreement begins and the estimated salvage value of
127	131		the solar power facilities must be determined by an independent,
128	132		third-party professional engineer licensed in this state;
129	133		(2) the grantee must deliver to the landowner an
130	134		updated estimate, prepared by an independent, third-party
131	135		professional engineer licensed in this state, of the cost of
132	136		removal and the salvage value:
133	137		(A) on or before the 10th anniversary of the
134	138		commercial operations date of the solar power facilities; and
135	139		(B) at least once every five years after the
136	140		commercial operations date of the solar power facilities for the
137	141		remainder of the term of the agreement; and
138	142		(3) the grantee is responsible for ensuring that the
139	143		amount of the financial assurance remains sufficient to cover the
140	144		amount required by Subsection (b), consistent with the estimates
141	145		required by this subsection.
142	146		(d) The grantee is responsible for the costs of obtaining
143	147		financial assurance described by this section and costs of
144	148		determining the estimated removal costs and salvage value.
145	149		(e) The agreement must provide that the grantee shall
146	150		deliver the financial assurance not later than the earlier of:
147	151		(1) the date the solar power facility agreement is
148	152		terminated; or
149	153		(2) the 20th anniversary of the commercial operations
150	154		date of the solar power facilities located on the landowner's
151	155		leased property.
152	156		(f) For purposes of this section, "commercial operations
153	157		date" means the date on which the solar power facilities are
154	158		approved for participation in market operations by a regional
155	159		transmission organization and does not include the generation of
156	160		electrical energy or other operations conducted before that date
157	161		for purposes of maintenance and testing.
158	162		(g) The grantee may not cancel financial assurance before
159	163		the date the grantee has completed the grantee's obligation to
160	164		remove the grantee's solar power facilities located on the
161	165		landowner's property in the manner provided by this chapter, unless
162	166		the grantee provides the landowner with replacement financial
163	167		assurance at the time of or before the cancellation. In the event
164	168		of a transfer of ownership of the grantee's solar power facilities,
165	169		the financial security provided by the grantee shall remain in
166	170		place until the date evidence of financial security meeting the
167	171		requirements of this chapter is provided to the landowner.
168	172		SECTION 3. Chapter 302, Utilities Code, as added by this
169	173		Act, applies only to a solar power facility agreement entered into
170	174		on or after the effective date of this Act. A solar power facility
171	175		agreement entered into before the effective date of this Act is
172	176		governed by the law as it existed immediately before that date, and
173	177		that law is continued in effect for that purpose.
174	178		SECTION 4. This Act takes effect September 1, 2021.
175		-	______________________________ ______________________________
176		-	President of the Senate Speaker of the House
177		-	I hereby certify that S.B. No. 760 passed the Senate on
178		-	April 14, 2021, by the following vote: Yeas 31, Nays 0; and that
179		-	the Senate concurred in House amendment on May 27, 2021, by the
180		-	following vote: Yeas 31, Nays 0.
181		-	______________________________
182		-	Secretary of the Senate
183		-	I hereby certify that S.B. No. 760 passed the House, with
184		-	amendment, on May 19, 2021, by the following vote: Yeas 144,
185		-	Nays 0, two present not voting.
186		-	______________________________
187		-	Chief Clerk of the House
188		-	Approved:
189		-	______________________________
190		-	Date
191		-	______________________________
192		-	Governor