| 1 | 1 | | By: Hall S.B. No. 829 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to decommissioning requirements for certain solar |
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| 7 | 7 | | facilities. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter A, Chapter 312, Tax Code, is amended |
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| 10 | 10 | | by adding Section 312.0022 to read as follows: |
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| 11 | 11 | | Sec. 312.0022. LIMITATION ON ABATEMENT OF TAXES ON SOLAR |
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| 12 | 12 | | FACILITY PROPERTY. (a) In this section, "solar facility" has the |
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| 13 | 13 | | meaning assigned by Section 35.201, Utilities Code. |
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| 14 | 14 | | (b) The governing body of a taxing unit may not enter into an |
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| 15 | 15 | | agreement under this chapter to exempt from taxation a portion of |
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| 16 | 16 | | the value of real property on which a solar facility is located or |
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| 17 | 17 | | is planned to be located during the term of the agreement, or of |
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| 18 | 18 | | tangible personal property that is located or is planned to be |
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| 19 | 19 | | located on the real property during that term. |
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| 20 | 20 | | SECTION 2. Section 313.024, Tax Code, is amended by adding |
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| 21 | 21 | | Subsection (b-2) to read as follows: |
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| 22 | 22 | | (b-2) In this subsection, "solar facility" has the meaning |
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| 23 | 23 | | assigned by Section 35.201, Utilities Code. The owner of real |
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| 24 | 24 | | property on which a solar facility is located or is planned to be |
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| 25 | 25 | | located during the term of an agreement entered into under this |
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| 26 | 26 | | subchapter, or of tangible personal property that is located or is |
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| 27 | 27 | | planned to be located on the real property during that term, may not |
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| 28 | 28 | | receive a limitation on appraised value. |
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| 29 | 29 | | SECTION 3. Chapter 35, Utilities Code, is amended by adding |
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| 30 | 30 | | Subchapter F to read as follows: |
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| 31 | 31 | | SUBCHAPTER F. DECOMMISSIONING SOLAR FACILITIES |
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| 32 | 32 | | Sec. 35.201. DEFINITION. In this subchapter, "solar |
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| 33 | 33 | | facility" means a facility designed and used primarily for the |
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| 34 | 34 | | purpose of collecting, generating, transferring, or storing solar |
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| 35 | 35 | | energy. The term does not include a facility installed solely on a |
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| 36 | 36 | | building. |
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| 37 | 37 | | Sec. 35.202. DECOMMISSIONING SOLAR FACILITIES. (a) The |
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| 38 | 38 | | commission may not authorize a person who operates a solar facility |
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| 39 | 39 | | to interconnect the facility to the ERCOT transmission grid unless |
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| 40 | 40 | | the person demonstrates to the commission that the operator has |
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| 41 | 41 | | entered into an agreement with the county in which the facility is |
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| 42 | 42 | | located that provides that: |
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| 43 | 43 | | (1) the operator is responsible for: |
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| 44 | 44 | | (A) decommissioning the solar facility, |
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| 45 | 45 | | including restoring, through soil stabilization and revegetation, |
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| 46 | 46 | | the first three feet of depth of the soil on any land disturbed by |
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| 47 | 47 | | the facility; or |
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| 48 | 48 | | (B) ensuring that the requirements of Paragraph |
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| 49 | 49 | | (A) are met; and |
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| 50 | 50 | | (2) the operator will provide to the county financial |
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| 51 | 51 | | assurance in the form of certified funds, cash escrow, a bond, a |
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| 52 | 52 | | letter of credit, or a parent guarantee, payable to the county, |
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| 53 | 53 | | sufficient to cover the cost of the activities required by |
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| 54 | 54 | | Subdivision (1). |
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| 55 | 55 | | (b) The cost described by Subsection (a)(2) must be based on |
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| 56 | 56 | | an estimate of a qualified independent engineer, engaged by the |
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| 57 | 57 | | operator and approved by the county, who has experience in |
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| 58 | 58 | | preparing decommissioning estimates. The estimate may not exceed |
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| 59 | 59 | | the sum of: |
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| 60 | 60 | | (1) the projected cost of decommissioning, including |
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| 61 | 61 | | accounting for the net salvage value of the solar facility and |
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| 62 | 62 | | associated equipment; |
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| 63 | 63 | | (2) a reasonable allowance for estimated |
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| 64 | 64 | | administrative costs related to a default of the operator; and |
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| 65 | 65 | | (3) an annual inflation factor. |
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| 66 | 66 | | SECTION 4. Section 312.0022, Tax Code, as added by this Act, |
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| 67 | 67 | | applies only to an agreement entered into under Chapter 312, Tax |
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| 68 | 68 | | Code, on or after the effective date of this Act. |
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| 69 | 69 | | SECTION 5. Section 313.024, Tax Code, as amended by this |
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| 70 | 70 | | Act, applies only to an agreement entered into under Chapter 313, |
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| 71 | 71 | | Tax Code, on or after the effective date of this Act. |
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| 72 | 72 | | SECTION 6. This Act takes effect September 1, 2021. |
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