1 | 1 | | 89R14038 SCR/CJC-D |
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2 | 2 | | By: McLaughlin H.B. No. 3580 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to renewable energy generation facilities. |
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10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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11 | 11 | | SECTION 1. Subtitle F, Title 10, Government Code, is |
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12 | 12 | | amended by adding Chapter 2278 to read as follows: |
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13 | 13 | | CHAPTER 2278. PROHIBITION ON GRANTING OF INCENTIVES FOR RENEWABLE |
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14 | 14 | | ENERGY GENERATION FACILITIES |
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15 | 15 | | Sec. 2278.001. DEFINITIONS. In this chapter: |
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16 | 16 | | (1) "Economic incentive" means a rebate, refund, or |
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17 | 17 | | other monetary incentive offered by this state or a political |
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18 | 18 | | subdivision of this state. |
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19 | 19 | | (2) "Renewable energy generation facility" means a |
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20 | 20 | | renewable energy generation facility to which Subchapter F, Chapter |
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21 | 21 | | 35, Utilities Code, applies. |
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22 | 22 | | (3) "Tax incentive" means an abatement, credit, |
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23 | 23 | | discount, exclusion, exemption, limitation on taxable value, |
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24 | 24 | | refund, special valuation, special accounting treatment, special |
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25 | 25 | | appraisal method or provision, special rate, or special method of |
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26 | 26 | | reporting authorized by state law or the state constitution that |
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27 | 27 | | relates to a tax imposed by this state or a political subdivision of |
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28 | 28 | | this state. |
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29 | 29 | | Sec. 2278.002. PROHIBITION ON INCENTIVES AND RENEWAL OF |
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30 | 30 | | INCENTIVES. (a) Except as otherwise provided by this chapter, |
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31 | 31 | | neither this state nor a political subdivision of this state may |
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32 | 32 | | provide an economic incentive or a tax incentive to a person for the |
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33 | 33 | | construction, maintenance, or operation of a renewable energy |
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34 | 34 | | generation facility. |
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35 | 35 | | (b) An economic incentive or a tax incentive for the |
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36 | 36 | | construction, maintenance, or operation of a renewable energy |
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37 | 37 | | generation facility that was granted to a person before the date the |
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38 | 38 | | incentive became disallowed under Subsection (a) may not be renewed |
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39 | 39 | | after that date. |
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40 | 40 | | Sec. 2278.003. EXCEPTION: PREVIOUSLY GRANTED INCENTIVES. |
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41 | 41 | | Subject to Section 2278.002(b), a person who is receiving an |
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42 | 42 | | economic incentive or a tax incentive from this state or a political |
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43 | 43 | | subdivision of this state for the construction, maintenance, or |
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44 | 44 | | operation of a renewable energy generation facility under an |
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45 | 45 | | agreement that was executed before the date the incentive becomes |
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46 | 46 | | disallowed under Section 2278.002(a) may continue to receive the |
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47 | 47 | | incentive as provided under the terms of that agreement. |
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48 | 48 | | SECTION 2. Chapter 35, Utilities Code, is amended by adding |
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49 | 49 | | Subchapter F to read as follows: |
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50 | 50 | | SUBCHAPTER F. RENEWABLE ENERGY GENERATION FACILITY PERMIT |
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51 | 51 | | Sec. 35.201. DEFINITIONS. In this subchapter: |
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52 | 52 | | (1) "Person" includes an electric cooperative and a |
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53 | 53 | | municipally owned utility. |
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54 | 54 | | (2) "Renewable energy generation facility" means: |
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55 | 55 | | (A) a wind power facility as defined by Section |
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56 | 56 | | 301.0001; or |
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57 | 57 | | (B) a solar power facility as defined by Section |
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58 | 58 | | 302.0001. |
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59 | 59 | | Sec. 35.202. APPLICABILITY. (a) This subchapter applies |
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60 | 60 | | only to a renewable energy generation facility that is intended to |
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61 | 61 | | be used to sell energy or ancillary services at wholesale. |
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62 | 62 | | (b) This subchapter applies to a renewable energy |
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63 | 63 | | generation facility regardless of whether the facility is the |
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64 | 64 | | subject of a wind power facility agreement or solar power facility |
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65 | 65 | | agreement entered into under Chapter 301 or 302. |
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66 | 66 | | Sec. 35.203. PERMIT REQUIRED; APPLICATION. (a) A person |
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67 | 67 | | may not interconnect a renewable energy generation facility to a |
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68 | 68 | | transmission facility unless the person holds a permit to operate a |
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69 | 69 | | renewable energy generation facility issued by the commission under |
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70 | 70 | | this subchapter. |
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71 | 71 | | (b) A person may apply for a permit to operate a renewable |
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72 | 72 | | energy generation facility by filing with the commission: |
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73 | 73 | | (1) a description of the location of the facility; |
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74 | 74 | | (2) a description of the type of facility; |
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75 | 75 | | (3) any assumed business or professional name of the |
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76 | 76 | | applicant filed under Chapter 71, Business & Commerce Code; |
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77 | 77 | | (4) an impact review described by Subsection (c); and |
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78 | 78 | | (5) any other information required by commission rule. |
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79 | 79 | | (c) A person who applies for a permit under this subchapter |
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80 | 80 | | must conduct an impact review of the facility to be permitted. The |
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81 | 81 | | impact review must evaluate the potential effects of the facility |
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82 | 82 | | relating to the following: |
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83 | 83 | | (1) the land in the area of the facility, including the |
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84 | 84 | | potential for degradation, potential for soil contamination, and |
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85 | 85 | | subsequent possibility for the land to be used for agricultural |
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86 | 86 | | purposes; |
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87 | 87 | | (2) local water resources, including potential |
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88 | 88 | | groundwater depletion, harmful runoff, and chemical contamination; |
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89 | 89 | | (3) local wildlife, including potential habitat |
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90 | 90 | | destruction and long-term effects on biodiversity; and |
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91 | 91 | | (4) the local community and economy, including |
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92 | 92 | | property values and infrastructure. |
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93 | 93 | | (d) The commission shall publish each permit application |
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94 | 94 | | received under this section, including the impact review, on the |
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95 | 95 | | commission's Internet website at least 60 days before the |
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96 | 96 | | commission approves or denies the permit. |
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97 | 97 | | Sec. 35.204. APPROVAL OR DENIAL OF APPLICATION. The |
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98 | 98 | | commission may approve an application only if: |
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99 | 99 | | (1) the commissioners court of the county in which the |
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100 | 100 | | renewable energy generation facility is located consents; and |
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101 | 101 | | (2) the commission finds that issuance of the permit |
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102 | 102 | | would not violate state law. |
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103 | 103 | | Sec. 35.205. POWER TO REGULATE AND SUPERVISE. (a) For |
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104 | 104 | | purposes of this subchapter, a provision of Subchapter B or E, |
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105 | 105 | | Chapter 14, that authorizes the commission to regulate a public |
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106 | 106 | | utility also applies to a person required to obtain a permit under |
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107 | 107 | | this subchapter, including an electric cooperative and a |
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108 | 108 | | municipally owned utility. |
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109 | 109 | | (b) The commission may adopt and enforce rules reasonably |
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110 | 110 | | required in the exercise of its powers under this subchapter. |
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111 | 111 | | Sec. 35.206. ENFORCEMENT AND PENALTIES. For the purposes |
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112 | 112 | | of enforcing this subchapter, a reference in Chapter 15 to a person |
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113 | 113 | | includes any person required to obtain a permit under this |
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114 | 114 | | subchapter, including an electric cooperative and a municipally |
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115 | 115 | | owned utility. |
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116 | 116 | | SECTION 3. Chapter 2278, Government Code, as added by this |
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117 | 117 | | Act, applies to an economic incentive or a tax incentive received by |
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118 | 118 | | a person regardless of the date the person first began receiving the |
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119 | 119 | | incentive and irrespective of whether the incentive is the subject |
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120 | 120 | | of an agreement between the person and this state or a political |
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121 | 121 | | subdivision of this state. |
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122 | 122 | | SECTION 4. This Act takes effect immediately if it receives |
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123 | 123 | | a vote of two-thirds of all the members elected to each house, as |
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124 | 124 | | provided by Section 39, Article III, Texas Constitution. If this |
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125 | 125 | | Act does not receive the vote necessary for immediate effect, this |
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126 | 126 | | Act takes effect September 1, 2025. |
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