Texas 2025 - 89th Regular

Texas Senate Bill SB1478 Compare Versions

Only one version of the bill is available at this time.

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1	1	89R4312 JXC-D
2	2	By: Hall S.B. No. 1478
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the removal of certain power facilities operated on
10	10	leased property.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 301, Utilities Code, is transferred to
13	13	Subtitle B, Title 5, Health and Safety Code, redesignated as
14	14	Chapter 375, Health and Safety Code, and amended to read as follows:
15	15	CHAPTER 375 [301]. [WIND] POWER FACILITY AGREEMENTS AND FINANCIAL
16	16	ASSURANCE
17	17	Sec. 375.0001 [301.0001]. DEFINITIONS. In this chapter:
18	18	(1) "Commission" means the Texas Commission on
19	19	Environmental Quality.
20	20	(2) "Electric energy storage facility agreement"
21	21	means a lease agreement between a grantee and a landowner that
22	22	authorizes the grantee to operate an electric energy storage
23	23	facility on the leased property.
24	24	(3) "Grantee" means a person who[:
25	25	[(A)] leases property from a landowner[; and
26	26	[(B) operates a wind power facility on the
27	27	property].
28	28	(4) "Renewable power facility" means a facility that:
29	29	(A) generates electric energy using a renewable
30	30	energy technology, as defined by Section 39.916, Utilities Code,
31	31	other than a technology that relies exclusively on wind or solar
32	32	energy; and
33	33	(B) is not an electric energy storage facility.
34	34	(5) "Renewable power facility agreement" means a lease
35	35	agreement between a grantee and a landowner that authorizes the
36	36	grantee to operate a renewable power facility on the leased
37	37	property.
38	38	(6) "Solar energy device" has the meaning assigned by
39	39	Section 185.001, Utilities Code.
40	40	(7) "Solar power facility" includes:
41	41	(A) a solar energy device; and
42	42	(B) a facility or equipment, other than a
43	43	facility or equipment owned by an electric utility, as defined by
44	44	Section 31.002, Utilities Code, used to support the operation of a
45	45	solar energy device, including an underground or aboveground
46	46	electrical transmission or communications line, an electric
47	47	transformer, a battery storage facility, an energy storage
48	48	facility, telecommunications equipment, a road, a meteorological
49	49	tower, or a maintenance yard.
50	50	(8) "Solar power facility agreement" means a lease
51	51	agreement between a grantee and a landowner that authorizes the
52	52	grantee to operate a solar power facility on the leased property.
53	53	(9) [(2)] "Wind power facility" includes:
54	54	(A) a wind turbine generator; and
55	55	(B) a facility or equipment used to support the
56	56	operation of a wind turbine generator, including an underground or
57	57	aboveground electrical transmission or communications line, an
58	58	electric transformer, a battery storage facility, an energy storage
59	59	facility, telecommunications equipment, a road, a meteorological
60	60	tower with wind measurement equipment, or a maintenance yard.
61	61	(10) [(3)] "Wind power facility agreement" means a
62	62	lease agreement between a grantee and a landowner that authorizes
63	63	the grantee to operate a wind power facility on the leased property.
64	64	Sec. 375.0002. APPLICABILITY. This chapter applies only to
65	65	an electric energy storage facility, a renewable power facility, a
66	66	solar power facility, or a wind power facility that is intended to
67	67	provide energy or ancillary services at wholesale for a power grid.
68	68	Sec. 375.0003 [301.0002]. WAIVER VOID; REMEDIES. (a) A
69	69	provision of an electric energy storage facility agreement, a
70	70	renewable power facility agreement, a solar power facility
71	71	agreement, or a wind power facility agreement that purports to
72	72	waive a right or exempt a grantee from a liability or duty
73	73	established by this chapter is void.
74	74	(b) A person who is harmed by a violation of this chapter is
75	75	entitled to appropriate injunctive relief to prevent further
76	76	violation of this chapter.
77	77	(c) The provisions of this section are not exclusive. The
78	78	remedies provided in this section are in addition to any other
79	79	procedures or remedies provided by other law.
80	80	Sec. 375.0004 [301.0003]. REQUIRED AGREEMENT PROVISIONS ON
81	81	WIND POWER FACILITY REMOVAL. (a) A wind power facility agreement
82	82	must provide that the grantee is responsible for removing the
83	83	grantee's wind power facilities from the landowner's property and
84	84	that the grantee shall, in accordance with any other applicable
85	85	laws or regulations, safely:
86	86	(1) clear, clean, and remove from the property:
87	87	(A) each wind turbine generator, including
88	88	towers and pad-mount transformers;
89	89	(B) all liquids, greases, or similar substances
90	90	contained in a wind turbine generator;
91	91	(C) each substation; and
92	92	(D) all liquids, greases, or similar substances
93	93	contained in a substation;
94	94	(2) for each tower foundation and pad-mount
95	95	transformer foundation installed in the ground:
96	96	(A) clear, clean, and remove the foundation from
97	97	the ground to a depth of at least three feet below the surface grade
98	98	of the land in which the foundation is installed; and
99	99	(B) ensure that each hole or cavity created in
100	100	the ground by the removal is filled with topsoil of the same type or
101	101	a similar type as the predominant topsoil found on the property;
102	102	(3) for each buried cable, including power,
103	103	fiber-optic, and communications cables, installed in the ground:
104	104	(A) clear, clean, and remove the cable from the
105	105	ground to a depth of at least three feet below the surface grade of
106	106	the land in which the cable is installed; and
107	107	(B) ensure that each hole or cavity created in
108	108	the ground by the removal is filled with topsoil of the same type or
109	109	a similar type as the predominant topsoil found on the property; and
110	110	(4) clear, clean, and remove from the property each
111	111	overhead power or communications line installed by the grantee on
112	112	the property.
113	113	(b) The agreement must provide that, at the request of the
114	114	landowner, the grantee shall:
115	115	(1) clear, clean, and remove each road constructed by
116	116	the grantee on the property; and
117	117	(2) ensure that each hole or cavity created in the
118	118	ground by the removal is filled with topsoil of the same type or a
119	119	similar type as the predominant topsoil found on the property.
120	120	(c) The agreement must provide that, at the request of the
121	121	landowner, if reasonable, the grantee shall:
122	122	(1) remove from the property all rocks over 12 inches
123	123	in diameter excavated during the decommissioning or removal
124	124	process;
125	125	(2) return the property to a tillable state using
126	126	scarification, V-rip, or disc methods, as appropriate; and
127	127	(3) ensure that:
128	128	(A) each hole or cavity created in the ground by
129	129	the removal is filled with topsoil of the same type or a similar
130	130	type as the predominant topsoil found on the property; and
131	131	(B) the surface is returned as near as reasonably
132	132	possible to the same condition as before the grantee dug holes or
133	133	cavities, including by reseeding pastureland with native grasses
134	134	prescribed by an appropriate governmental agency, if any.
135	135	(d) The landowner shall make a request under Subsection (b)
136	136	or (c) not later than the 180th day after the later of:
137	137	(1) the date on which the wind power facility is no
138	138	longer capable of generating electricity in commercial quantities;
139	139	or
140	140	(2) the date the landowner receives written notice of
141	141	intent to decommission the wind power facility from the grantee.
142	142	Sec. 375.0005. REQUIRED AGREEMENT PROVISIONS ON SOLAR POWER
143	143	FACILITY REMOVAL. (a) A solar power facility agreement must
144	144	provide that the grantee is responsible for removing the grantee's
145	145	solar power facilities from the landowner's property and that the
146	146	grantee shall, in accordance with any other applicable laws or
147	147	regulations, safely:
148	148	(1) clear, clean, and remove from the property each
149	149	solar energy device, transformer, and substation;
150	150	(2) for each foundation of a solar energy device,
151	151	transformer, or substation installed in the ground:
152	152	(A) clear, clean, and remove the foundation from
153	153	the ground to a depth of at least three feet below the surface grade
154	154	of the land in which the foundation is installed; and
155	155	(B) ensure that each hole or cavity created in
156	156	the ground by the removal is filled with soil of the same type or a
157	157	similar type as the predominant soil found on the property;
158	158	(3) for each buried cable, including power,
159	159	fiber-optic, and communications cables, installed in the ground:
160	160	(A) clear, clean, and remove the cable from the
161	161	ground to a depth of at least three feet below the surface grade of
162	162	the land in which the cable is installed; and
163	163	(B) ensure that each hole or cavity created in
164	164	the ground by the removal is filled with soil of the same type or a
165	165	similar type as the predominant soil found on the property; and
166	166	(4) clear, clean, and remove from the property each
167	167	overhead power or communications line installed by the grantee on
168	168	the property.
169	169	(b) The agreement must provide that, at the request of the
170	170	landowner, the grantee shall:
171	171	(1) clear, clean, and remove each road constructed by
172	172	the grantee on the property; and
173	173	(2) ensure that each hole or cavity created in the
174	174	ground by the removal is filled with soil of the same type or a
175	175	similar type as the predominant soil found on the property.
176	176	(c) The agreement must provide that, at the request of the
177	177	landowner, if reasonable, the grantee shall:
178	178	(1) remove from the property all rocks over 12 inches
179	179	in diameter excavated during the decommissioning or removal
180	180	process;
181	181	(2) return the property to a tillable state using
182	182	scarification, V-rip, or disc methods, as appropriate; and
183	183	(3) ensure that:
184	184	(A) each hole or cavity created in the ground by
185	185	the removal is filled with soil of the same type or a similar type as
186	186	the predominant soil found on the property; and
187	187	(B) the surface is returned as near as reasonably
188	188	possible to the same condition as before the grantee dug holes or
189	189	cavities, including by reseeding pastureland with native grasses
190	190	prescribed by an appropriate governmental agency, if any.
191	191	(d) The landowner shall make a request under Subsection (b)
192	192	or (c) not later than the 180th day after the later of:
193	193	(1) the date on which the solar power facility is no
194	194	longer capable of generating electricity in commercial quantities;
195	195	or
196	196	(2) the date the landowner receives written notice of
197	197	intent to decommission the solar power facility from the grantee.
198	198	Sec. 375.0006. REQUIRED AGREEMENT PROVISIONS ON ELECTRIC
199	199	ENERGY STORAGE OR RENEWABLE POWER FACILITY REMOVAL. An electric
200	200	energy storage facility agreement or renewable power facility
201	201	agreement must provide that the grantee is responsible for:
202	202	(1) removing the grantee's electric energy storage
203	203	facilities or renewable power facilities, as applicable, from the
204	204	landowner's property; and
205	205	(2) restoring the property to as near as reasonably
206	206	possible the condition of the property as of the date the agreement
207	207	begins.
208	208	Sec. 375.0007 [301.0004]. REQUIRED AGREEMENT PROVISIONS ON
209	209	FINANCIAL ASSURANCE. (a) An electric energy storage facility
210	210	agreement, a renewable power facility agreement, a solar power
211	211	facility agreement, or a [A] wind power facility agreement must
212	212	provide that the grantee shall obtain and deliver to the commission
213	213	[landowner] evidence of financial assurance payable to the
214	214	landowner that conforms to the requirements of this section to
215	215	secure the performance of the grantee's obligation to remove the
216	216	grantee's electric energy storage facilities, renewable power
217	217	facilities, solar power facilities, or wind power facilities
218	218	located on the landowner's property as required by this chapter [as
219	219	described by Section 301.0003]. The [Acceptable forms of]
220	220	financial assurance may be [include a parent company guaranty with
221	221	a minimum investment grade credit rating for the parent company
222	222	issued by a major domestic credit rating agency, a letter of
223	223	credit,] a bond[,] or another form of financial assurance
224	224	acceptable to the landowner.
225	225	(b) The amount of the financial assurance must be at least
226	226	equal to the estimated amount by which the cost of removing the
227	227	[wind power] facilities from the landowner's property and restoring
228	228	the property to as near as reasonably possible the condition of the
229	229	property as of the date the agreement begins exceeds the salvage
230	230	value of the [wind power] facilities, less any portion of the value
231	231	of the [wind power] facilities pledged to secure outstanding debt.
232	232	(c) The agreement must provide that:
233	233	(1) the estimated cost of removing the [wind power]
234	234	facilities from the landowner's property and restoring the property
235	235	to as near as reasonably possible the condition of the property as
236	236	of the date the agreement begins and the estimated salvage value of
237	237	the [wind power] facilities must be determined by an independent,
238	238	third-party professional engineer licensed in this state;
239	239	(2) the grantee must deliver to the landowner and the
240	240	commission an updated estimate, prepared by an independent,
241	241	third-party professional engineer licensed in this state, of the
242	242	cost of removal and the salvage value at least once every five years
243	243	for the remainder of the term of the agreement; and
244	244	(3) the grantee is responsible for ensuring that the
245	245	amount of the financial assurance remains sufficient to cover the
246	246	amount required by Subsection (b), consistent with the estimates
247	247	required by this subsection.
248	248	(d) The grantee is responsible for the costs of obtaining
249	249	financial assurance described by this section and costs of
250	250	determining the estimated removal costs and salvage value.
251	251	(e) The agreement must provide that the grantee shall
252	252	deliver the financial assurance to the commission not later than
253	253	the 30th day after [earlier of:
254	254	[(1)] the date the [wind power facility] agreement
255	255	begins [is terminated; or
256	256	[(2) the 10th anniversary of the commercial operations
257	257	date of the wind power facilities located on the landowner's leased
258	258	property].
259	259	(f) [For purposes of this section, "commercial operations
260	260	date" means the date on which the wind power facilities are approved
261	261	for participation in market operations by a regional transmission
262	262	organization and does not include the generation of electrical
263	263	energy or other operations conducted before that date for purposes
264	264	of maintenance and testing.
265	265	[(g)] The grantee may not cancel financial assurance before
266	266	the date the grantee has completed the grantee's obligation to
267	267	remove the grantee's [wind power] facilities located on the
268	268	landowner's property as required [in the manner provided] by this
269	269	chapter, unless the grantee provides the commission [landowner]
270	270	with replacement financial assurance at the time of or before the
271	271	cancellation. In the event of a transfer of ownership of the
272	272	grantee's [wind power] facilities, the financial security provided
273	273	by the grantee shall remain in place until the date evidence of
274	274	financial security meeting the requirements of this chapter is
275	275	provided to the commission [landowner].
276	276	Sec. 375.0008. RELEASE OF FINANCIAL ASSURANCE TO GRANTEE.
277	277	(a) At any time, a grantee may file an application with the
278	278	commission for the release of all or part of a bond or other
279	279	financial assurance provided to the commission by the grantee for a
280	280	landowner under this chapter.
281	281	(b) The application must be on a form prescribed by the
282	282	commission and, in addition to other information the commission may
283	283	require, must include the type and the approximate date of removal
284	284	and restoration work performed and a description of the results
285	285	achieved.
286	286	(c) The grantee shall provide a copy of the application to
287	287	the landowner not later than the 30th day after the date the grantee
288	288	files the application with the commission.
289	289	(d) Not later than the 45th day after the date the grantee
290	290	files the application, the commission shall conduct an inspection
291	291	and evaluation of the removal and restoration work performed.
292	292	(e) The commission may release all or part of the financial
293	293	assurance if the commission determines that the grantee has
294	294	completed all or part of the grantee's obligations under the
295	295	agreement entered into under Section 375.0004, 375.0005, or
296	296	375.0006, as applicable.
297	297	(f) If the commission disapproves the application for
298	298	release of the financial assurance, the commission shall notify the
299	299	grantee in writing of the reasons for disapproval and recommend
300	300	corrective actions necessary to secure the release of the financial
301	301	assurance.
302	302	Sec. 375.0009. FORFEITURE OF FINANCIAL ASSURANCE TO
303	303	LANDOWNER. (a) A landowner may file an application with the
304	304	commission for the forfeiture of all or part of a bond or other
305	305	financial assurance provided to the commission by a grantee for the
306	306	landowner under this chapter if:
307	307	(1) the grantee has not completed the grantee's
308	308	obligations under the agreement entered into under Section
309	309	375.0004, 375.0005, or 375.0006, as applicable; and
310	310	(2) the facility that is the subject of the agreement
311	311	is no longer being used by the grantee to provide energy or
312	312	ancillary services at wholesale for a power grid in the manner
313	313	provided by the agreement.
314	314	(b) The application must be on a form prescribed by the
315	315	commission.
316	316	(c) The landowner shall provide a copy of the application to
317	317	the grantee not later than the 30th day after the date the landowner
318	318	files the application with the commission.
319	319	(d) Not later than the 45th day after the date the landowner
320	320	files the application, the commission shall conduct an inspection
321	321	and evaluation of the property for which the financial assurance
322	322	was provided.
323	323	(e) The commission may approve the forfeiture of all or part
324	324	of the financial assurance if the commission determines that:
325	325	(1) the facility that is the subject of the agreement
326	326	is no longer being used in the manner described by Subsection
327	327	(a)(2); and
328	328	(2) the forfeiture is necessary to compensate the
329	329	landowner for any remaining removal and restoration work the
330	330	grantee was required to but did not complete under the agreement.
331	331	(f) If the commission disapproves the application for
332	332	forfeiture of the financial assurance, the commission shall notify
333	333	the landowner in writing of the reasons for disapproval.
334	334	Sec. 375.0010. COMMISSION AUTHORITY. (a) The commission
335	335	shall notify the Public Utility Commission of Texas if the
336	336	commission requires forfeiture of financial assurance under
337	337	Section 375.0009. The commission and the Public Utility Commission
338	338	of Texas may not issue to a grantee whose financial assurance was
339	339	forfeited under Section 375.0009 any permit, certificate, or
340	340	registration under other law that authorizes the grantee to operate
341	341	a generation facility to which this chapter applies or renew any
342	342	such permit, certificate, or registration.
343	343	(b) In a suit for receivership, garnishment, or bankruptcy,
344	344	or in any other legal action affecting the assets of a grantee that
345	345	is a party to an agreement subject to this chapter, the commission
346	346	may:
347	347	(1) inform the appropriate court and parties of the
348	348	commission's interest in obtaining notice of the proceedings; and
349	349	(2) within the time prescribed by the applicable
350	350	statutes, rules, and court orders, intervene and participate in any
351	351	proceedings that affect a landowner not joined in the suit who is a
352	352	party to the agreement with the grantee.
353	353	SECTION 2. Section 5.013(a), Water Code, is amended to read
354	354	as follows:
355	355	(a) The commission has general jurisdiction over:
356	356	(1) water and water rights including the issuance of
357	357	water rights permits, water rights adjudication, cancellation of
358	358	water rights, and enforcement of water rights;
359	359	(2) continuing supervision over districts created
360	360	under Article III, Sections 52(b)(1) and (2), and Article XVI,
361	361	Section 59, of the Texas Constitution;
362	362	(3) the state's water quality program including
363	363	issuance of permits, enforcement of water quality rules, standards,
364	364	orders, and permits, and water quality planning;
365	365	(4) the determination of the feasibility of certain
366	366	federal projects;
367	367	(5) the adoption and enforcement of rules and
368	368	performance of other acts relating to the safe construction,
369	369	maintenance, and removal of dams;
370	370	(6) conduct of the state's hazardous spill prevention
371	371	and control program;
372	372	(7) the administration of the state's program relating
373	373	to inactive hazardous substance, pollutant, and contaminant
374	374	disposal facilities;
375	375	(8) the administration of a portion of the state's
376	376	injection well program;
377	377	(9) the administration of the state's programs
378	378	involving underground water and water wells and drilled and mined
379	379	shafts;
380	380	(10) the state's responsibilities relating to regional
381	381	waste disposal;
382	382	(11) the responsibilities assigned to the commission
383	383	by Chapters 361, 363, 375, 382, 401, 505, 506, and 507, Health and
384	384	Safety Code; and
385	385	(12) any other areas assigned to the commission by
386	386	this code and other laws of this state.
387	387	SECTION 3. (a) The heading to Title 6, Utilities Code, is
388	388	repealed.
389	389	(b) Chapter 302, Utilities Code, is repealed.
390	390	SECTION 4. The changes in law made by this Act apply only to
391	391	an electric energy storage facility agreement, a renewable power
392	392	facility agreement, a solar power facility agreement, or a wind
393	393	power facility agreement entered into on or after the effective
394	394	date of this Act. An agreement entered into before the effective
395	395	date of this Act is governed by the law applicable to the agreement
396	396	on the date the agreement was entered into, and that law is
397	397	continued in effect for that purpose.
398	398	SECTION 5. This Act takes effect immediately if it receives
399	399	a vote of two-thirds of all the members elected to each house, as
400	400	provided by Section 39, Article III, Texas Constitution. If this
401	401	Act does not receive the vote necessary for immediate effect, this
402	402	Act takes effect September 1, 2025.