Texas House Bill HB3422

Texas 2025 - 89th Regular

• Filed: 2/26/25

Caption

Relating to the removal of battery energy storage facilities.

Impact

The provisions in HB3422 require grantees to provide detailed agreements that outline their responsibilities concerning removal and restoration, financially securing their obligations to landowners. It holds the grantee accountable for the costs associated with these removals and stipulates that financial assurance must be provided to the landowner. This framework aims to protect landowners from potential financial burdens associated with decommissioning energy storage facilities and ensures that impacted properties are restored adequately after a facility ceases operations.

Summary

House Bill 3422 addresses the removal of battery energy storage facilities in Texas. It amends the Utilities Code by adding Chapter 303, which lays out the provisions necessary for battery energy storage facility agreements between grantees and landowners. The bill mandates that the grantee, who operates a battery energy storage facility on leased property, bears the responsibility for the proper removal of their facilities once they are no longer in use. This includes the removal of tangible equipment and restoration of the property to its condition prior to the installation of such facilities.

Contention

Notably, the bill emphasizes that any waiver of rights or exemptions regarding liability in the battery energy storage facility agreements is deemed void, empowering landowners significantly. Nevertheless, discussions around the bill may hint at potential contention regarding the balancing of interests between energy developers and landowners' rights. The requirement for grantees to maintain financial assurance and outline specific restoration measures may introduce financial challenges for smaller companies engaged in energy storage, potentially leading to debate on the implications for innovation and local energy projects.