89R13084 ANG-D By: McLaughlin H.B. No. 3278 A BILL TO BE ENTITLED AN ACT relating to the study of and incentives for the use of solar and wind energy. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. STUDY ON SOLAR AND WIND ENERGY AND RELATED FACILITIES. (a) In this Act, "commission" means the Texas Commission on Environmental Quality. (b) The commission, in consultation with the Public Utility Commission of Texas, the Parks and Wildlife Department, and any other relevant state agency, shall conduct a study on the effects of solar generation facilities and wind generation facilities on the environment, the economy, and infrastructure in this state. (c) In conducting the study, the commission shall examine: (1) land use and habitat disruption, including the impact of large solar and wind generation facilities on agricultural land, native ecosystems, and wildlife habitats; (2) decommissioning and disposal challenges related to solar and wind generation facilities, including a consideration of the life cycle of solar panels and wind turbines, hazardous waste risks, sustainability of recycling methods, and the disposal of components; (3) grid reliability and energy security, including any effects of an increased reliance on solar and wind energy on electric grid stability, energy storage needs, and grid reliability during periods of peak demand; (4) the economic impact of solar and wind generation facilities on rural communities, including changes in land value, tax revenue, or agricultural productivity in areas where solar generation facilities or wind generation facilities are established; (5) potential fire risks associated with lithium-ion battery storage and the capability of rural emergency services to effectively respond to a fire at a battery facility; (6) risks of soil and water contamination from solar generation facilities, including risks associated with water usage, long-term soil degradation, and the disposal of solar panel materials; (7) wildlife and avian mortality related to the production of wind energy, including the effects of wind turbines on migratory birds, bats, and other wildlife populations; and (8) the noise created by and potential health effects of wind generation facilities, including the potential effects of wind turbine noise, infrasound, and shadow flicker on nearby communities. (d) The commission shall hold public hearings in rural counties and counties in which solar or wind generation facilities are located to collect input relevant to the study from landowners, energy industry representatives, environmental experts, and local officials. (e) Not later than September 1, 2026, the commission shall submit to the governor, the lieutenant governor, the speaker of the house of representatives, and the chair of the standing committee of each house of the legislature with primary jurisdiction over energy production an interim report that includes the initial results of the study conducted under this section. (f) Not later than January 31, 2027, the commission shall submit a final report to the governor, the lieutenant governor, the speaker of the house of representatives, and the chair of the standing committee of each house of the legislature with primary jurisdiction over energy production a written report that includes the results of the study conducted under this section and any recommendations for the legislature. (g) The commission shall begin the interim study required by this section not later than September 1, 2025. SECTION 2. MORATORIUM ON STATE ECONOMIC INCENTIVES. (a) Notwithstanding any other law and except as otherwise provided by this section, during the period that begins on the effective date of this Act and ends on the last day of the 90th Legislature, Regular Session, a solar energy project, wind energy project, solar generation facility, or wind generation facility is not eligible to receive a state economic incentive, including a state tax incentive. (b) Subsection (a) of this section does not apply to a state economic incentive the application for which was submitted on or before the effective date of this Act. (c) The members of the 90th Legislature, Regular Session, by adoption of a concurrent resolution approved by a record vote of a majority of the members of each house of the legislature may terminate the moratorium imposed under Subsection (a) of this section before the date the moratorium would otherwise expire under that subsection. SECTION 3. EXPIRATION. This Act expires September 1, 2027. SECTION 4. EFFECTIVE DATE. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.