Texas Senate Bill SB1478

Texas 2025 - 89th Regular

• Filed: 2/20/25

Caption

Relating to the removal of certain power facilities operated on leased property.

Impact

The bill transfers authority over these agreements from the Utilities Code to the Health and Safety Code, which suggests a more stringent oversight mechanism. Key provisions include requirements for operators (grantees) to provide financial assurance to landowners, ensuring that adequate funds are available for the removal of facilities and restoration of the land. This financial assurance must meet specific criteria, protecting landowners from potential costs associated with facility decommissioning. The legislation's focus on financial responsibility represents a significant shift in how such agreements are structured and enforced in Texas.

Summary

Senate Bill 1478 (SB1478) addresses the regulations surrounding the removal of certain power generation facilities that operate on leased land. The legislation aims to establish clear responsibilities for both landowners and facility operators, particularly regarding the decommissioning of electric energy storage facilities, renewable power facilities, solar power facilities, and wind power facilities. This initiative is part of a broader effort to ensure that when such facilities are no longer operational, the land is restored to its original condition or as close as practicable, thus minimizing environmental impact.

Contention

A notable point of contention in the discussions surrounding SB1478 is the balance between protecting landowners' rights and ensuring the feasibility of renewable energy projects. Proponents argue that ensuring landowners can hold facility operators accountable for land restoration is essential for responsible development of renewable resources. Opponents warn that if financial burdens and strict obligations are placed on operators, it could discourage investment in renewable energy infrastructure. Thus, the flexibility in agreements and the adequacy of financial assurances under this bill have become focal points for stakeholders in the energy sector.

Texas Constitutional Statutes Affected

Water Code

• Chapter 5. Texas Commission On Environmental Quality
  • Section: 013

Utilities Code

• Chapter 302. Solar Power Facility Agreements
  • Section: New Section