Texas 2025 - 89th Regular

Texas House Bill HB3809 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		89R13843 SCR-D
2		-	By: Darby~~, Gerdes, Anchía, et al.~~ H.B. No. 3809
	2	+	By: Darby H.B. No. 3809
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7	7		A BILL TO BE ENTITLED
8	8		AN ACT
9	9		relating to the removal of battery energy storage facilities.
10	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11		SECTION 1. Title 6, Utilities Code, is amended by adding
12	12		Chapter 303 to read as follows:
13	13		CHAPTER 303. BATTERY ENERGY STORAGE FACILITY AGREEMENTS
14	14		Sec. 303.0001. DEFINITIONS. In this chapter:
15	15		(1) "Battery energy storage facility" includes:
16	16		(A) a battery energy storage resource; and
17	17		(B) a facility or equipment, other than a
18	18		facility or equipment owned by an electric utility, as defined by
19	19		Section 31.002, used to support the operation of a battery energy
20	20		storage resource, including an underground or aboveground
21	21		electrical transmission or communications line, an electric
22	22		transformer, a power conversion system, a battery management
23	23		system, a heating, ventilation, and air conditioning system,
24	24		telecommunications equipment, a road, or a maintenance yard.
25	25		(2) "Battery energy storage facility agreement" means
26	26		a lease agreement between a grantee and a landowner that authorizes
27	27		the grantee to operate a battery energy storage facility on the
28	28		leased property.
29	29		(3) "Battery energy storage resource" means a battery
30	30		energy storage system, whether connected at the transmission or
31	31		distribution level, that is used to provide energy or ancillary
32	32		services at wholesale and is not registered with the independent
33	33		organization certified under Section 39.151 for the ERCOT power
34	34		region as a self-generator.
35	35		(4) "Commercial operations date" means the date on
36	36		which the battery energy storage resource is approved for
37	37		participation in market operations by a regional transmission
38	38		organization and does not include the generation of electrical
39	39		energy or other operations conducted before that date for purposes
40	40		of maintenance and testing.
41	41		(5) "Grantee" means a person, other than an electric
42	42		utility, as defined by Section 31.002, who:
43	43		(A) leases property from a landowner; and
44	44		(B) operates a battery energy storage facility on
45	45		the property.
46	46		(6) "Recycle" means the processing, including
47	47		disassembling, dismantling, and shredding of battery energy
48	48		storage cells, modules or other equipment, or their components, to
49	49		recover a usable product.
50	50		Sec. 303.0002. APPLICABILITY. An agreement that authorizes
51	51		the grantee to operate a battery energy storage facility:
52	52		(1) in the same modeled generation station and
53	53		interconnected at the same point of interconnection as a wind power
54	54		facility is subject to Chapter 301 and this chapter; or
55	55		(2) in the same modeled generation station and
56	56		interconnected at the same point of interconnection as a solar
57	57		power facility is subject to Chapter 302 and this chapter.
58	58		Sec. 303.0003. WAIVER VOID; REMEDIES. (a) A provision of a
59	59		battery energy storage facility agreement that purports to waive a
60	60		right or exempt a grantee from a liability or duty established by
61	61		this chapter is void.
62	62		(b) A person who is harmed by a violation of this chapter is
63	63		entitled to appropriate injunctive relief to prevent further
64	64		violation of this chapter.
65	65		(c) The provisions of this section are not exclusive. The
66	66		remedies provided in this section are in addition to any other
67	67		procedures or remedies provided by other law.
68	68		Sec. 303.0004. REQUIRED AGREEMENT PROVISIONS ON FACILITY
69	69		REMOVAL. (a) A battery energy storage facility agreement must
70	70		provide that the grantee is responsible for removing the battery
71	71		energy storage facility from the landowner's property and that the
72	72		grantee shall, in accordance with any other applicable laws or
73	73		regulations, safely:
74	74		(1) clear, clean, and remove from the property each
75	75		battery energy storage resource, transformer, and substation;
76	76		(2) for each foundation of a battery energy storage
77	77		resource, transformer, or substation installed in the ground:
78	78		(A) clear, clean, and remove the foundation from
79	79		the ground to a depth of at least three feet below the surface grade
80	80		of the land in which the foundation is installed; and
81	81		(B) ensure that each hole or cavity created in
82	82		the ground by the removal is filled with soil of the same type or a
83	83		similar type as the predominant soil found on the property;
84	84		(3) for each buried cable, including power,
85	85		fiber-optic, and communications cables, installed in the ground:
86	86		(A) clear, clean, and remove the cable from the
87	87		ground to a depth of at least three feet below the surface grade of
88	88		the land in which the cable is installed; and
89	89		(B) ensure that each hole or cavity created in
90	90		the ground by the removal is filled with soil of the same type or a
91	91		similar type as the predominant soil found on the property; and
92	92		(4) clear, clean, and remove from the property each
93	93		overhead power or communications line installed by the grantee on
94	94		the property.
95	95		(b) The agreement must provide that the grantee is
96	96		responsible for:
97	97		(1) collecting and reusing or recycling, or shipping
98	98		for reuse or recycling, all components of the battery energy
99	99		storage facility practicably capable of being reused or recycled,
100	100		in accordance with any other applicable laws or regulations; and
101	101		(2) properly disposing of components of the battery
102	102		energy storage facility not practicably capable of being reused or
103	103		recycled:
104	104		(A) at a facility authorized under state and
105	105		federal law to dispose of hazardous substances for a component
106	106		considered hazardous under those laws; or
107	107		(B) for nonhazardous components, at a municipal
108	108		solid waste landfill or other appropriate waste disposal facility
109	109		authorized under state and federal law to dispose of that type of
110	110		component.
111	111		(c) The agreement must provide that, at the request of the
112	112		landowner, the grantee shall:
113	113		(1) clear, clean, and remove each road constructed by
114	114		the grantee on the property; and
115	115		(2) ensure that each hole or cavity created in the
116	116		ground by the removal is filled with soil of the same type or a
117	117		similar type as the predominant soil found on the property.
118	118		(d) The agreement must provide that, at the request of the
119	119		landowner, if reasonable, the grantee shall:
120	120		(1) remove from the property all rocks over 12 inches
121	121		in diameter excavated during the decommissioning or removal
122	122		process;
123	123		(2) return the property to a tillable state using
124	124		scarification, V-rip, or disc methods, as appropriate; and
125	125		(3) ensure that:
126	126		(A) each hole or cavity created in the ground by
127	127		the removal is filled with soil of the same type or a similar type as
128	128		the predominant soil found on the property; and
129	129		(B) the surface is returned as near as reasonably
130	130		possible to the same condition as before the grantee dug holes or
131	131		cavities, including by reseeding pastureland with native grasses
132	132		prescribed by an appropriate governmental agency, if any.
133	133		(e) The landowner shall make a request under Subsection (c)
134	134		or (d) not later than the 180th day after the later of:
135	135		(1) the date on which the battery energy storage
136	136		resource is no longer capable of generating electricity in
137	137		commercial quantities; or
138	138		(2) the date the landowner receives written notice of
139	139		intent to decommission the battery energy storage facility from the
140	140		grantee.
141	141		Sec. 303.0005. REQUIRED AGREEMENT PROVISIONS ON FINANCIAL
142	142		ASSURANCE. (a) A battery energy storage facility agreement must
143	143		provide that the grantee shall obtain and deliver to the landowner
144	144		evidence of financial assurance that conforms to the requirements
145	145		of this section to secure the performance of the grantee's
146	146		obligations under Section 303.0004. Acceptable forms of financial
147	147		assurance include a parent company guaranty with a minimum
148	148		investment grade credit rating for the parent company issued by a
149	149		major domestic credit rating agency, a letter of credit, a bond, or
150	150		another form of financial assurance reasonably acceptable to the
151	151		landowner.
152	152		(b) The amount of financial assurance must be at least equal
153	153		to the estimated amount by which the cost of removing the battery
154	154		energy storage facilities from the landowner's property, recycling
155	155		or disposing of all the components of the battery energy storage
156	156		facilities, and restoring the property to as near as reasonably
157	157		possible the condition of the property as of the date the agreement
158	158		begins, as described by Section 303.0004, exceeds the salvage value
159	159		of the battery energy storage facilities, less any portion of the
160	160		value of the battery energy storage facilities pledged to secure
161	161		outstanding debt.
162	162		(c) The agreement must provide that:
163	163		(1) the estimated cost of removing the battery energy
164	164		storage facilities from the landowner's property, recycling or
165	165		disposing of all the components of the battery energy storage
166	166		facilities, and restoring the property to as near as reasonably
167	167		possible the condition of the property as of the date the agreement
168	168		begins, as described by Section 303.0004, and the estimated salvage
169	169		value of the battery energy storage facilities must be determined
170	170		by an independent, third-party professional engineer licensed in
171	171		this state;
172	172		(2) the grantee must deliver to the landowner the
173	173		estimated cost of removal and recycling or disposal of the battery
174	174		energy storage facilities and the salvage value on or before the
175	175		10th anniversary of the commercial operations date of the battery
176	176		energy storage facilities; and
177	177		(3) the grantee must deliver an updated estimate of
178	178		the cost and salvage value described by Subdivision (2) at least
179	179		once every five years after the initial estimate for the remainder
180	180		of the term of the agreement.
181	181		(d) The grantee is responsible for the costs of obtaining
182	182		financial assurance described by this section and determining the
183	183		estimated removal, recycling, and disposal costs and salvage value.
184	184		(e) The agreement must provide that the grantee shall
185	185		deliver financial assurance not later than the earlier of:
186	186		(1) the date the battery energy storage facility
187	187		agreement is terminated; or
188	188		(2) the 15th anniversary of the commercial operations
189	189		date of the battery energy storage facilities located on the
190	190		landowner's leased property.
191	191		(f) The grantee is responsible for ensuring that the amount
192	192		of financial assurance remains sufficient to cover the amount
193	193		required by Subsection (b), consistent with the estimates required
194	194		by this section.
195	195		(g) The grantee may not cancel financial assurance before
196	196		the date the grantee has completed the grantee's obligation to
197	197		remove the grantee's battery energy storage facilities located on
198	198		the landowner's property in the manner provided by this chapter,
199	199		unless the grantee provides the landowner with replacement
200	200		financial assurance at the time of or before the cancellation. In
201	201		the event of a transfer of ownership of the grantee's battery energy
202	202		storage facilities, financial assurance provided by the grantee
203	203		shall remain in place until the date evidence of financial
204	204		assurance meeting the requirements of this chapter is provided to
205	205		the landowner.
206	206		SECTION 2. Chapter 303, Utilities Code, as added by this
207	207		Act, applies only to a battery energy storage facility agreement
208	208		entered into on or after the effective date of this Act.
209	209		SECTION 3. This Act takes effect September 1, 2025.