Texas 2025 - 89th Regular

Texas House Bill HB3228 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		89R3533 RDR-F
2	2		By: Lambert H.B. No. 3228
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5	7		A BILL TO BE ENTITLED
6	8		AN ACT
7	9		relating to the inclusion of recycling or disposal provisions in
8	10		certain lease agreements of wind or solar power facilities.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. Section 301.0001, Utilities Code, is amended by
11	13		adding Subdivision (1-a) and amending Subdivision (2) to read as
12	14		follows:
13	15		(1-a) "Recycle" means the processing of an item to
14	16		recover a usable product.
15	17		(2) "Wind power facility" includes:
16	18		(A) a wind turbine generator and any related
17	19		components of the wind turbine, including a nacelle, a rotor hub,
18	20		blades, and a gearbox assembly; and
19	21		(B) a facility or equipment used to support the
20	22		operation of a wind turbine generator, including an underground or
21	23		aboveground electrical transmission or communications line, an
22	24		electric transformer, a battery storage facility, an energy storage
23	25		facility, telecommunications equipment, a road, a meteorological
24	26		tower with wind measurement equipment, or a maintenance yard.
25	27		SECTION 2. Section 301.0003, Utilities Code, is amended by
26	28		adding Subsection (a-1) to read as follows:
27	29		(a-1) A wind power facility agreement must provide that the
28	30		grantee is responsible for:
29	31		(1) collecting and reusing or recycling, or shipping
30	32		for reuse or recycling, all components of the wind power facility
31	33		practicably capable of being reused or recycled, including the wind
32	34		turbine blades, in accordance with any other applicable laws or
33	35		regulations; and
34	36		(2) disposing of all components of the wind power
35	37		facility not practicably capable of being reused or recycled:
36	38		(A) at a facility authorized under state and
37	39		federal law to dispose of hazardous substances for a component
38	40		considered hazardous under those laws; or
39	41		(B) for nonhazardous components, at a municipal
40	42		solid waste landfill or other appropriate waste disposal facility
41	43		authorized under state and federal law to dispose of that type of
42	44		component.
43	45		SECTION 3. Sections 301.0004(a), (b), (c), and (d),
44	46		Utilities Code, are amended to read as follows:
45	47		(a) A wind power facility agreement must provide that the
46	48		grantee shall obtain and deliver to the landowner evidence of
47	49		financial assurance that conforms to the requirements of this
48	50		section to secure the performance of the grantee's obligations
49	51		under [obligation to remove the grantee's wind power facilities
50	52		located on the landowner's property as described by] Section
51	53		301.0003. Acceptable forms of financial assurance include a parent
52	54		company guaranty with a minimum investment grade credit rating for
53	55		the parent company issued by a major domestic credit rating agency,
54	56		a letter of credit, a bond, or another form of financial assurance
55	57		acceptable to the landowner.
56	58		(b) The amount of the financial assurance must be at least
57	59		equal to the estimated amount by which the cost of removing the wind
58	60		power facilities from the landowner's property, recycling or
59	61		disposing of all the components of the wind power facilities, and
60	62		restoring the property to as near as reasonably possible the
61	63		condition of the property as of the date the agreement begins
62	64		exceeds the salvage value of the wind power facilities, less any
63	65		portion of the value of the wind power facilities pledged to secure
64	66		outstanding debt.
65	67		(c) The agreement must provide that:
66	68		(1) the estimated cost of removing the wind power
67	69		facilities from the landowner's property, recycling or disposing of
68	70		all the components of the wind power facilities, and restoring the
69	71		property to as near as reasonably possible the condition of the
70	72		property as of the date the agreement begins and the estimated
71	73		salvage value of the wind power facilities must be determined by an
72	74		independent, third-party professional engineer licensed in this
73	75		state;
74	76		(2) the grantee must deliver to the landowner an
75	77		updated estimate, prepared by an independent, third-party
76	78		professional engineer licensed in this state, of the cost of
77	79		removal and recycling or disposal of the wind power facilities and
78	80		the salvage value at least once every five years for the remainder
79	81		of the term of the agreement; and
80	82		(3) the grantee is responsible for ensuring that the
81	83		amount of the financial assurance remains sufficient to cover the
82	84		amount required by Subsection (b), consistent with the estimates
83	85		required by this subsection.
84	86		(d) The grantee is responsible for the costs of obtaining
85	87		financial assurance described by this section and costs of
86	88		determining the estimated removal, recycling, and disposal costs
87	89		and salvage value.
88	90		SECTION 4. Section 302.0001, Utilities Code, is amended by
89	91		adding Subdivision (1-a) to read as follows:
90	92		(1-a) "Recycle" means the processing of an item to
91	93		recover a usable product.
92	94		SECTION 5. Section 302.0004, Utilities Code, is amended by
93	95		adding Subsection (a-1) to read as follows:
94	96		(a-1) A solar power facility agreement must provide that the
95	97		grantee is responsible for:
96	98		(1) collecting and reusing or recycling, or shipping
97	99		for reuse or recycling, all components of the solar power facility
98	100		practicably capable of being reused or recycled, including the
99	101		photovoltaic modules, in accordance with any other applicable laws
100	102		or regulations; and
101	103		(2) disposing of all components of the solar power
102	104		facility not practicably capable of being reused or recycled:
103	105		(A) at a facility authorized under state and
104	106		federal law to dispose of hazardous substances for a component
105	107		considered hazardous under those laws; or
106	108		(B) for nonhazardous components, at a municipal
107	109		solid waste landfill or other appropriate waste disposal facility
108	110		authorized under state and federal law to dispose of that type of
109	111		component.
110	112		SECTION 6. Sections 302.0005(a), (b), (c), and (d),
111	113		Utilities Code, are amended to read as follows:
112	114		(a) A solar power facility agreement must provide that the
113	115		grantee shall obtain and deliver to the landowner evidence of
114	116		financial assurance that conforms to the requirements of this
115	117		section to secure the performance of the grantee's obligations
116	118		under [obligation to remove the grantee's solar power facilities
117	119		located on the landowner's property as described by] Section
118	120		302.0004. Acceptable forms of financial assurance include a parent
119	121		company guaranty with a minimum investment grade credit rating for
120	122		the parent company issued by a major domestic credit rating agency,
121	123		a letter of credit, a bond, or another form of financial assurance
122	124		reasonably acceptable to the landowner.
123	125		(b) The amount of the financial assurance must be at least
124	126		equal to the estimated amount by which the cost of removing the
125	127		solar power facilities from the landowner's property, recycling or
126	128		disposing of all the components of the solar power facilities, and
127	129		restoring the property to as near as reasonably possible the
128	130		condition of the property as of the date the agreement begins
129	131		exceeds the salvage value of the solar power facilities, less any
130	132		portion of the value of the solar power facilities pledged to secure
131	133		outstanding debt.
132	134		(c) The agreement must provide that:
133	135		(1) the estimated cost of removing the solar power
134	136		facilities from the landowner's property, recycling or disposing of
135	137		all the components of the solar power facilities, and restoring the
136	138		property to as near as reasonably possible the condition of the
137	139		property as of the date the agreement begins and the estimated
138	140		salvage value of the solar power facilities must be determined by an
139	141		independent, third-party professional engineer licensed in this
140	142		state;
141	143		(2) the grantee must deliver to the landowner an
142	144		updated estimate, prepared by an independent, third-party
143	145		professional engineer licensed in this state, of the cost of
144	146		removal and recycling or disposal of the solar power facilities and
145	147		the salvage value:
146	148		(A) on or before the 10th anniversary of the
147	149		commercial operations date of the solar power facilities; and
148	150		(B) at least once every five years after the
149	151		commercial operations date of the solar power facilities for the
150	152		remainder of the term of the agreement; and
151	153		(3) the grantee is responsible for ensuring that the
152	154		amount of the financial assurance remains sufficient to cover the
153	155		amount required by Subsection (b), consistent with the estimates
154	156		required by this subsection.
155	157		(d) The grantee is responsible for the costs of obtaining
156	158		financial assurance described by this section and costs of
157	159		determining the estimated removal, recycling, and disposal costs
158	160		and salvage value.
159	161		SECTION 7. Chapters 301 and 302, Utilities Code, as amended
160	162		by this Act, apply only to a wind or solar power facility agreement
161	163		entered into on or after the effective date of this Act. A wind or
162	164		solar power facility agreement entered into before the effective
163	165		date of this Act is governed by the law as it existed immediately
164	166		before that date, and that law is continued in effect for that
165	167		purpose.
166	168		SECTION 8. This Act takes effect September 1, 2025.