Texas 2025 - 89th Regular

Texas House Bill HB553 Compare Versions

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11 89R580 JXC-F
22 By: Patterson H.B. No. 553
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77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to the permitting of renewable energy generation
1010 facilities by the Public Utility Commission of Texas; authorizing
1111 fees.
1212 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1313 SECTION 1. Chapter 35, Utilities Code, is amended by adding
1414 Subchapter F to read as follows:
1515 SUBCHAPTER F. RENEWABLE ENERGY GENERATION FACILITY PERMIT
1616 Sec. 35.201. DEFINITIONS; APPLICABILITY. (a) In this
1717 subchapter:
1818 (1) "Permit holder" means a person who holds a permit
1919 issued under this subchapter.
2020 (2) "Person" includes an electric cooperative and a
2121 municipally owned utility.
2222 (3) "Renewable energy generation facility" means:
2323 (A) a wind power facility as defined by Section
2424 301.0001; or
2525 (B) a solar power facility as defined by Section
2626 302.0001.
2727 (b) This subchapter applies to a renewable energy
2828 generation facility regardless of whether the facility is the
2929 subject of a wind power facility agreement or solar power facility
3030 agreement entered into under Chapter 301 or 302.
3131 Sec. 35.202. LEGISLATIVE POLICY AND PURPOSE. The
3232 conservation and development of all the natural resources of this
3333 state are declared to be public rights and duties. It is also
3434 declared that the protection of the wildlife, water, and land of
3535 this state against the impacts of renewable energy generation
3636 facilities is in the public interest. In the exercise of the police
3737 power of this state, it is necessary and desirable to provide
3838 additional means so that the installation and removal of renewable
3939 energy generation facilities is placed under the authority and
4040 direction of the commission.
4141 Sec. 35.203. PERMIT REQUIRED; APPLICATION. (a) A person
4242 may not operate a renewable energy generation facility in this
4343 state unless the person holds a permit issued by the commission
4444 under this subchapter. A person may not construct a renewable
4545 energy generation facility in this state unless:
4646 (1) the person holds a permit to operate a renewable
4747 energy generation facility issued by the commission under this
4848 subchapter; or
4949 (2) the commission by order approves the construction.
5050 (b) A person may apply for a permit to operate a renewable
5151 energy generation facility by filing with the commission:
5252 (1) a description of the location of the facility;
5353 (2) a description of the type of facility;
5454 (3) a copy of any information filed with the Federal
5555 Energy Regulatory Commission in connection with registration with
5656 that commission;
5757 (4) any assumed business or professional name of the
5858 applicant filed under Chapter 71, Business & Commerce Code;
5959 (5) an environmental impact statement produced by the
6060 Parks and Wildlife Department under Section 11.006, Parks and
6161 Wildlife Code;
6262 (6) any wind power facility agreement or solar power
6363 facility agreement applicable to the facility entered into under
6464 Chapter 301 or 302 by the applicant;
6565 (7) the address of an Internet website that provides
6666 information about the proposed facility;
6767 (8) an affidavit that lists the names and addresses of
6868 the persons who may be affected by the application and includes the
6969 source of the list; and
7070 (9) any other information required by commission rule,
7171 provided the commission protects the competitive process in a
7272 manner that ensures the confidentiality of competitively sensitive
7373 information.
7474 Sec. 35.204. NOTICE AND HEARING ON APPLICATION. (a) When
7575 an application for a permit is filed under Section 35.203, or when
7676 an application for a permit amendment is filed, the commission
7777 shall:
7878 (1) give notice of the application to affected
7979 parties, including any owner of property located within 25 miles of
8080 the boundary of the facility; and
8181 (2) if requested:
8282 (A) set a time and place for a hearing; and
8383 (B) give notice of the hearing to affected
8484 parties, including any owner of property located within 25 miles of
8585 the boundary of the facility.
8686 (b) For any application involving a generation capacity of
8787 15 megawatts or more, the notice must be given to the county judge
8888 of each county located within 25 miles of the boundary of the
8989 facility who has requested in writing that the commission give that
9090 notice.
9191 (c) The commission may not act on an application before the
9292 30th day after the date the commission gives notice of the
9393 application under Subsections (a) and (b), as applicable,
9494 regardless of whether a hearing is requested.
9595 (d) Notwithstanding any other provision of this subchapter,
9696 the commission may approve an application to amend a permit without
9797 holding a hearing if:
9898 (1) the applicant is not applying to:
9999 (A) significantly increase the amount of
100100 electricity generated under the permit; or
101101 (B) materially change the placement of the
102102 renewable energy generation facility;
103103 (2) the commission determines that the applicant's
104104 compliance history raises no issues regarding the applicant's
105105 ability to comply with a material term of the permit; and
106106 (3) the commission:
107107 (A) gives notice of the application to the county
108108 judge of each county and the governing body of each municipality in
109109 which the facility is located at least 30 days before the date of
110110 the commission's approval of the application; and
111111 (B) allows the county judges and governing bodies
112112 to present information to the commission on the application.
113113 Sec. 35.205. APPROVAL OR DENIAL OF APPLICATION. (a) The
114114 commission may approve an application only if the commission finds
115115 that issuance or amendment of the permit would not violate state or
116116 federal law or rule and would not interfere with the purpose of this
117117 subchapter.
118118 (b) In considering an application for the issuance or
119119 amendment of a permit, the commission shall consider the compliance
120120 history of the applicant.
121121 (c) A permit holder does not have a vested right in a permit.
122122 Sec. 35.206. CONDITIONS OF PERMIT. (a) For each permit,
123123 the commission shall prescribe the conditions under which it is
124124 issued, including:
125125 (1) the boundary of the permitted facility location;
126126 (2) the maximum number of renewable energy generation
127127 facilities authorized by the permit; and
128128 (3) any monitoring and reporting requirements
129129 prescribed by the commission for the permit holder.
130130 (b) The commission, on its own motion after reasonable
131131 notice and hearing, may require a permit holder to conform to new or
132132 additional conditions to comply with this subchapter or rules
133133 adopted under this subchapter.
134134 (c) A permit holder shall:
135135 (1) ensure that the permitted facility is located at
136136 least:
137137 (A) 500 feet from any property line, unless the
138138 permit holder has obtained a written waiver from each owner of
139139 property located less than 500 feet from the permitted facility;
140140 and
141141 (B) 1,000 feet from any habitable structure,
142142 unless the permit holder has obtained a written waiver from each
143143 owner of the habitable structure;
144144 (2) provide a publicly accessible Internet website
145145 that displays:
146146 (A) a map of the boundaries of the permitted
147147 facility;
148148 (B) any interconnection request numbers assigned
149149 to the permitted facility;
150150 (C) the name of the owner of the permitted
151151 facility; and
152152 (D) any other information the commission
153153 requires; and
154154 (3) post at each entrance to the permitted facility a
155155 sign that:
156156 (A) includes:
157157 (i) the name of the facility;
158158 (ii) the name of the owner of the facility;
159159 (iii) the name, business address, and
160160 telephone number of the operator of the facility;
161161 (iv) a general description of the property
162162 on which the facility is located, including the boundaries of the
163163 property; and
164164 (v) emergency contact information for the
165165 facility;
166166 (B) uses contrasting colors with block letters at
167167 least one inch in height; and
168168 (C) is displayed in a conspicuous manner clearly
169169 visible to the public.
170170 Sec. 35.207. MONITORING AND REPORTING. The commission by
171171 rule may, in coordination with the Parks and Wildlife Department,
172172 require a permit holder to:
173173 (1) monitor, record, and report on environmental
174174 impacts created by the permitted facility;
175175 (2) conduct wildlife assessments around the permitted
176176 facility; and
177177 (3) provide to the commission other information about
178178 the operation of the permitted facility.
179179 Sec. 35.208. FACILITY REMOVAL BY COMMISSION. (a) The
180180 commission may determine after reasonable notice and hearing that a
181181 permit holder has not removed a renewable energy generation
182182 facility according to the requirements of an applicable wind power
183183 facility agreement or solar power facility agreement entered into
184184 under Chapter 301 or 302 and that the permit holder has not
185185 delivered financial assurance required under Chapter 301 or 302, as
186186 applicable. After making the determination, the commission may:
187187 (1) order the permit holder to comply with the wind
188188 power facility agreement or solar power facility agreement; or
189189 (2) fulfill the requirements of the wind power
190190 facility agreement or solar power facility agreement if the permit
191191 holder cannot be found or does not have assets with which to comply
192192 with the wind power facility agreement or solar power facility
193193 agreement.
194194 (b) The commission or its employees or agents, on proper
195195 identification, may enter the land of another for the purpose of
196196 implementing Subsection (a)(2).
197197 (c) The commission's removal of a renewable energy
198198 generation facility under this section does not prevent the
199199 commission from seeking penalties or other relief provided by law
200200 from the permit holder.
201201 (d) The commission and its employees and agents are not
202202 liable for any damages arising from an act or omission if the act or
203203 omission is part of a good-faith effort to carry out this section.
204204 (e) If the commission removes a renewable energy generation
205205 facility under this section, the commission may recover from the
206206 permit holder all costs the commission incurs. The commission by
207207 order may require the permit holder to reimburse the commission for
208208 those costs or may request the attorney general to file suit against
209209 the permit holder to recover those costs. At the request of the
210210 commission, the attorney general may file suit to enforce an order
211211 the commission issues under this subsection. A suit under this
212212 subsection may be filed in Travis County. Costs recovered under
213213 this subsection shall be deposited to the renewable energy
214214 generation facility cleanup fund.
215215 Sec. 35.209. RENEWABLE ENERGY GENERATION FACILITY CLEANUP
216216 FUND. (a) The renewable energy generation facility cleanup fund is
217217 a dedicated account in the general revenue fund.
218218 (b) The fund consists of:
219219 (1) environmental impact fees collected under Section
220220 35.210;
221221 (2) private contributions; and
222222 (3) legislative appropriations.
223223 (c) Money in the fund may be used only by the commission to
224224 implement this subchapter.
225225 Sec. 35.210. ENVIRONMENTAL IMPACT FEE. (a) An annual
226226 environmental impact fee is imposed on each permit holder.
227227 (b) Except as provided by Subsection (c), environmental
228228 impact fees must be deposited in the renewable energy generation
229229 facility cleanup fund.
230230 (c) The commission shall designate 20 percent of the revenue
231231 collected from environmental impact fees to be deposited in the
232232 renewable energy generation facility cleanup fund and used only for
233233 the removal of renewable energy generation facilities under Section
234234 35.208. If the commission determines that the renewable energy
235235 generation facility cleanup fund has a sufficient amount of money
236236 to fund removal of renewable energy generation facilities under
237237 Section 35.208, the commission may instead deposit 20 percent of
238238 the revenue from environmental impact fees in the county and road
239239 district highway fund.
240240 (d) The fee for each year is imposed on each permit in effect
241241 during any part of the year. The commission may establish reduced
242242 fees for inactive permits.
243243 (e) The commission by rule shall adopt a fee schedule for
244244 determining the amount of the fee to be charged. In determining the
245245 fee amount under this section, the commission may consider:
246246 (1) the efficiency of the renewable energy generation
247247 facility;
248248 (2) the area and size of the renewable energy
249249 generation facility;
250250 (3) the renewable energy generation facility's
251251 environmental impact score provided under Section 11.006, Parks and
252252 Wildlife Code; and
253253 (4) expenses necessary to implement this subchapter.
254254 Sec. 35.211. FEDERAL FUNDS. The commission may execute
255255 agreements with the United States Environmental Protection Agency
256256 or any other federal agency that administers programs providing
257257 federal cooperation, assistance, grants, or loans for research,
258258 development, investigation, training, planning, studies,
259259 programming, or construction related to methods, procedures,
260260 mitigation, and facilities for the removal of renewable energy
261261 generation facilities. The commission may accept federal funds for
262262 these purposes and for other purposes consistent with the
263263 objectives of this subchapter and may use the funds as prescribed by
264264 law or as provided by agreement.
265265 Sec. 35.212. POWER TO REGULATE AND SUPERVISE. (a) For
266266 purposes of this subchapter, a provision of Subchapter B or E,
267267 Chapter 14, that authorizes the commission to regulate a public
268268 utility also applies to a person required to obtain a permit under
269269 this subchapter, including an electric cooperative and a
270270 municipally owned utility.
271271 (b) The commission may adopt and enforce rules reasonably
272272 required in the exercise of its powers under this subchapter.
273273 Sec. 35.213. ENFORCEMENT AND PENALTIES. For the purposes
274274 of enforcing this subchapter, a reference in Chapter 15 to a person
275275 includes any person required to obtain a permit under this
276276 subchapter, including an electric cooperative and a municipally
277277 owned utility.
278278 SECTION 2. Subchapter A, Chapter 11, Parks and Wildlife
279279 Code, is amended by adding Section 11.006 to read as follows:
280280 Sec. 11.006. ENVIRONMENTAL IMPACT STATEMENTS FOR RENEWABLE
281281 ENERGY GENERATION FACILITIES. The commission by rule shall adopt a
282282 system for providing an environmental impact statement to an
283283 applicant for a renewable energy generation facility permit under
284284 Section 35.203, Utilities Code. The system must establish:
285285 (1) a process for a person to apply for and receive
286286 from the department an environmental impact statement;
287287 (2) criteria for the department to evaluate the
288288 environmental impact of a proposed renewable energy generation
289289 facility, including:
290290 (A) conservation of natural resources;
291291 (B) continuous use of the land on which a
292292 facility is located for agricultural and wildlife purposes; and
293293 (C) in coordination with the Texas A&M AgriLife
294294 Extension Service, agricultural best practices;
295295 (3) a method for the department to provide an
296296 environmental impact score for a renewable energy generation
297297 facility, based on the criteria described by Subdivision (2);
298298 (4) fees for providing the environmental impact
299299 statements, in an amount sufficient to cover the department's costs
300300 of implementing this section; and
301301 (5) guidelines for the department's use of any map
302302 applications necessary for the implementation of this section.
303303 SECTION 3. (a) Except as otherwise provided by rules
304304 adopted by the Public Utility Commission of Texas under Subsection
305305 (b) of this section, Subchapter F, Chapter 35, Utilities Code, as
306306 added by this Act, applies to all renewable energy generation
307307 facilities in this state, including:
308308 (1) renewable energy generation facilities that:
309309 (A) generate renewable energy before the
310310 effective date of this Act; or
311311 (B) are interconnected to a transmission
312312 facility before the effective date of this Act; and
313313 (2) renewable energy generation facilities the
314314 construction of which began before the effective date of this Act.
315315 (b) The Public Utility Commission of Texas by rule shall
316316 authorize a person who operates or constructs a facility described
317317 by Subsection (a)(1) or (2) of this section to continue to operate
318318 or construct the facility after the effective date of this Act while
319319 the person applies for a permit for the facility as required under
320320 Subchapter F, Chapter 35, Utilities Code, as added by this Act. The
321321 rules may require a person who operates or constructs a facility
322322 described by Subsection (a)(1) or (2) of this section to apply for a
323323 permit for the facility as required under Subchapter F, Chapter 35,
324324 Utilities Code, as added by this Act, by a certain date.
325325 SECTION 4. This Act takes effect September 1, 2025.