Texas 2025 - 89th Regular

Texas Senate Bill SB1979 Compare Versions

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1	1	By: Hall S.B. No. 1979
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to renewable energy generation facilities; authorizing
9	9	fees.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter C, Chapter 15, Utilities Code, is
12	12	amended by adding Section 15.053 to read as follows:
13	13	Sec. 15.053. COMPLAINT REGARDING RENEWABLE ENERGY
14	14	GENERATION FACILITIES. (a) An affected person may complain to the
15	15	commission in writing setting forth an act or omission by an owner
16	16	or operator of renewable generation in violation or claimed
17	17	violation of Subchapter F, Chapter 35.
18	18	(b) The commission shall keep for a reasonable period an
19	19	information file about each complaint filed with the commission
20	20	relating to an owner or operator of battery energy storage.
21	21	(c) The commission, at least quarterly and until final
22	22	disposition of the written complaint, shall notify the parties to
23	23	the complaint of the status of the complaint unless the notice would
24	24	jeopardize an undercover investigation.
25	25	SECTION 2. Chapter 35, Utilities Code, is amended by adding
26	26	Subchapter F to read as follows:
27	27	SUBCHAPTER F. RENEWABLE ENERGY GENERATION FACILITY PERMIT
28	28	Sec. 35.201. DEFINITIONS; APPLICABILITY. (a) In this
29	29	subchapter:
30	30	(1) "Battery energy storage facility" includes a
31	31	facility or equipment used to support the operation of battery
32	32	energy storage, including an underground or aboveground electrical
33	33	transmission or communications line, an electric transformer,
34	34	telecommunications equipment, a road, a meteorological tower, or a
35	35	maintenance yard.
36	36	(2) "Battery energy storage facility agreement" means
37	37	a lease agreement between a grantee and a landowner that authorizes
38	38	the grantee to operate a battery energy storage facility on the
39	39	leased property.
40	40	(3) "Grantee" means a person who:
41	41	(A) leases property from a landowner; and
42	42	(B) operates a battery energy storage facility on
43	43	the property.
44	44	(4) "Permit holder" means a person who holds a permit
45	45	issued under this subchapter.
46	46	(5) "Person" includes an electric cooperative and a
47	47	municipally owned utility.
48	48	(6) "Renewable energy generation facility" for
49	49	purposes of this chapter means:
50	50	(A) a wind power facility as defined by Section
51	51	301.0001;
52	52	(B) a solar power facility as defined by Section
53	53	302.0001;
54	54	(C) a battery energy storage facility; or
55	55	(D) a facility that generates electric energy
56	56	using a renewable energy technology, as defined by Section 39.916,
57	57	Utilities Code, other than a technology that relies exclusively on
58	58	wind or solar energy.
59	59	(b) The permit requirements of this subchapter apply to a
60	60	renewable energy generation facility regardless of whether the
61	61	facility is the subject of a facility agreement entered into under
62	62	Chapter 301 or 302 or this subchapter.
63	63	(c) This subchapter applies only to a renewable energy
64	64	generation facility that is intended to be used to sell energy or
65	65	ancillary services at wholesale.
66	66	Sec. 35.202. PERMIT REQUIRED. (a) A person may not
67	67	interconnect a renewable energy generation facility to a
68	68	transmission facility unless the person holds a permit to operate a
69	69	renewable energy generation facility issued by the commission under
70	70	this subchapter.
71	71	(b) The commission by rule shall require each permitted
72	72	renewable energy generation facility to be installed only in a
73	73	location that:
74	74	(1) for a solar power facility, is at least:
75	75	(A) 500 feet from any property line, unless the
76	76	permit holder has obtained a written waiver from each owner of
77	77	property located less than 500 feet from the permitted facility;
78	78	and
79	79	(B) 500 feet from any habitable structure, unless
80	80	the permit holder has obtained a written waiver from each owner of
81	81	the habitable structure;
82	82	(2) for a wind power facility, is at least twice the
83	83	height of the wind turbine, including the blades of the turbine,
84	84	from the property line of each property that borders the property on
85	85	which the permitted facility is located, unless the permit holder
86	86	has obtained a written waiver from each owner of property located in
87	87	the applicable area; and
88	88	(3) for a battery energy storage facility, is at
89	89	least:
90	90	(A) 500 feet from any property line, unless the
91	91	permit holder has obtained a written waiver from each owner of
92	92	property located less than 500 feet from the permitted facility;
93	93	and
94	94	(B) 500 feet from:
95	95	(i) public ways;
96	96	(ii) buildings;
97	97	(iii) stored combustible materials;
98	98	(iv) hazardous materials;
99	99	(v) high-piled stock; and
100	100	(vi) other exposure hazards not associated
101	101	with electrical grid infrastructure.
102	102	(c) The commission by rule shall require each permitted
103	103	renewable energy generation facility to be installed only in a
104	104	location that, in the event of an emergency at the site of the
105	105	permitted renewable energy generation facility, will not block the
106	106	only access point to a residential area. If an emergency could block
107	107	access to a residential area, a different access point to the
108	108	facility must be constructed.
109	109	(d) A person may apply for a permit under this subchapter by
110	110	filing with the commission:
111	111	(1) a description of the proposed location of the
112	112	renewable energy generation facility;
113	113	(2) a description of the type of renewable energy
114	114	generation facility;
115	115	(3) a statement identifying the fire department, as
116	116	defined by Section 419.021, Government Code, volunteer fire
117	117	department, fire marshal, or other first responder entity that may
118	118	reasonably be expected to be the primary first responder to a fire
119	119	at the location of the renewable energy generation facility;
120	120	(4) a statement that the person has provided written
121	121	notice to the entity identified in Subdivision (3) of the
122	122	applicant's intent to install a renewable energy generation
123	123	facility;
124	124	(5) evidence of insurance coverage sufficient to
125	125	insure against losses arising from the operation of the renewable
126	126	energy generation facility; and
127	127	(6) any other information required by commission rule.
128	128	(e) When an application for a permit, or an amendment to a
129	129	permit issued under this section, is filed, the commission shall
130	130	give notice of the application to the county judge of the county in
131	131	which all or a majority of the renewable energy generation facility
132	132	is proposed to be located. The county shall publish the notice on
133	133	their website in perpetuity and, in accordance with Chapter 2051,
134	134	Government Code, in a newspaper for a minimum of three consecutive
135	135	days.
136	136	(f) The commission may hold one or more public meetings on a
137	137	permit application in the county in which the renewable energy
138	138	generation facility is proposed to be located. The commission
139	139	shall hold a public meeting:
140	140	(1) on the request of a member of the legislature who
141	141	represents the area in which the renewable energy generation
142	142	facility is proposed to be located; or
143	143	(2) if the commission determines there is substantial
144	144	public interest in the proposed permit.
145	145	(g) The commission by order or rule may delegate to the
146	146	executive director or another commission employee the authority to
147	147	hold a public meeting under this section.
148	148	(h) The commission may approve an application for a permit
149	149	only if the commission finds that:
150	150	(1) issuance of the permit would not violate state or
151	151	federal law; and
152	152	(2) the location of the proposed renewable energy
153	153	generation facility complies with rules adopted under Subsections
154	154	(b) and (c).
155	155	(i) The commission by rule shall adopt a fee to be imposed on
156	156	each permit applicant to cover costs associated with implementing
157	157	this section.
158	158	(j) For purposes of this subchapter:
159	159	(1) a provision of Subchapter B or E, Chapter 14, that
160	160	authorizes the commission to regulate a public utility also applies
161	161	to a person required to obtain a permit under this section,
162	162	including an electric cooperative or a municipally owned utility;
163	163	and
164	164	(2) a reference in Chapter 15 to a person includes a
165	165	person required to obtain a permit under this section, including an
166	166	electric cooperative or a municipally owned utility.
167	167	Sec. 35.203. FIRE SAFETY STANDARDS FOR BATTERY ENERGY
168	168	STORAGE. (a) The commission shall adopt and periodically update
169	169	fire safety standards and testing requirements for battery energy
170	170	storage operating under a permit issued under this subchapter. The
171	171	standards and requirements must be based on:
172	172	(1) model code requirements for battery energy storage
173	173	established by UL Solutions, such as UL 9540 and UL 9540A
174	174	performance criteria;
175	175	(2) minimum standards related to the installation,
176	176	design, and maintenance of stationary energy storage systems and
177	177	electrical equipment established by the National Fire Protection
178	178	Association, such as NFPA 70 and NFPA 855;
179	179	(3) fire hazard management standards, such as the
180	180	International Fire Code and NFPA 1;
181	181	(4) explosion prevention and mitigation standards,
182	182	such as NFPA 68 and NFPA 69;
183	183	(5) fire and explosion prevention standards for
184	184	battery energy storage that is integrated with a photovoltaic
185	185	energy system, such as NFPA 585;
186	186	(6) lithium ion battery safety standards, such as UL
187	187	1642; and
188	188	(7) industry best practices for security fencing and
189	189	signage near battery energy storage.
190	190	(b) Each permit holder that owns or operates permitted
191	191	battery energy storage shall ensure that the storage meets the fire
192	192	safety standards and testing requirements adopted by the commission
193	193	under Subsection (a) at the time of interconnection.
194	194	(c) On request by a municipality in which the battery energy
195	195	storage is located, or a county in which the battery energy storage
196	196	is located if the storage is in an unincorporated area, the permit
197	197	holder shall contract at the permit holder's expense with an
198	198	independent, third-party engineer licensed in this state to:
199	199	(1) evaluate the design, safety, and installation of
200	200	the battery energy storage to ensure compliance with the
201	201	requirements of this section;
202	202	(2) produce a written report on the evaluation; and
203	203	(3) provide the written report described by
204	204	Subdivision (2) to the requesting municipality or county.
205	205	Sec. 35.204. EMERGENCY OPERATIONS PLANS FOR RENEWABLE
206	206	ENERGY GENERATION FACILITIES. (a) This section applies to a permit
207	207	holder that owns or operates a renewable energy generation
208	208	facility.
209	209	(b) A permit holder to which this section applies shall file
210	210	with the commission a site-specific emergency operations plan for
211	211	each facility owned or operated by the permit holder, including
212	212	emergency response and communications protocols for an equipment
213	213	failure incident.
214	214	(c) The permit holder shall offer to local fire departments
215	215	training regarding responding to a fire at the facility.
216	216	Sec. 35.205. EVIDENCE OF COMPLIANCE WITH STANDARDS.
217	217	Evidence of compliance with state or local regulations is not
218	218	sufficient to support a finding by a trier of fact that an owner or
219	219	operator of renewable generation equipment or facilities was not
220	220	negligent in an action arising out of a malfunction of or mitigation
221	221	of a fire caused by renewable generation equipment or facilities.
222	222	Sec. 35.206. WAIVER VOID; REMEDIES. (a) A provision of a
223	223	renewable generation facility agreement that purports to waive a
224	224	right or exempt a grantee from a liability or duty established by
225	225	Section 35.207 or 35.208 is void.
226	226	(b) A person who is harmed by a violation of Section 35.207
227	227	or 35.208 is entitled to appropriate injunctive relief to prevent
228	228	further violation of Section 35.207 or 35.208.
229	229	(c) The provisions of this section are not exclusive. The
230	230	remedies provided in this section are in addition to any other
231	231	procedures or remedies provided by other law.
232	232	Sec. 35.207. REQUIRED AGREEMENT PROVISIONS ON FACILITY
233	233	REMOVAL. (a) A renewable generation facility agreement must
234	234	provide that the grantee is responsible for removing the grantee's
235	235	renewable generation facilities from the landowner's property and
236	236	that the grantee shall, in accordance with any other applicable
237	237	laws or regulations, safely:
238	238	(1) clear, clean, and remove from the property each
239	239	piece of renewable generation equipment, including any
240	240	transformers or substations;
241	241	(2) for each foundation of renewable generation
242	242	equipment, including a transformer or substation installed in the
243	243	ground:
244	244	(A) clear, clean, and remove the foundation from
245	245	the ground to a depth of at least three feet below the surface grade
246	246	of the land in which the foundation is installed; and
247	247	(B) ensure that each hole or cavity created in
248	248	the ground by the removal is filled with topsoil of the same type or
249	249	a similar type as the predominant topsoil found on the property;
250	250	(3) for each buried cable, including power,
251	251	fiber-optic, and communications cables, installed in the ground:
252	252	(A) clear, clean, and remove the cable from the
253	253	ground to a depth of at least three feet below the surface grade of
254	254	the land in which the cable is installed; and
255	255	(B) ensure that each hole or cavity created in
256	256	the ground by the removal is filled with topsoil of the same type or
257	257	a similar type as the predominant topsoil found on the property; and
258	258	(4) clear, clean, and remove from the property each
259	259	overhead power or communications line installed by the grantee on
260	260	the property.
261	261	(b) The agreement must provide that, at the request of the
262	262	landowner, the grantee shall:
263	263	(1) clear, clean, and remove each road constructed by
264	264	the grantee on the property; and
265	265	(2) ensure that each hole or cavity created in the
266	266	ground by the removal is filled with topsoil of the same type or a
267	267	similar type as the predominant topsoil found on the property.
268	268	(c) The agreement must provide that, at the request of the
269	269	landowner, if reasonable, the grantee shall:
270	270	(1) remove from the property all rocks over 12 inches
271	271	in diameter excavated during the decommissioning or removal
272	272	process;
273	273	(2) return the property to a tillable state using
274	274	scarification, V-rip, or disc methods, as appropriate; and
275	275	(3) ensure that:
276	276	(A) each hole or cavity created in the ground by
277	277	the removal is filled with topsoil of the same type or a similar
278	278	type as the predominant topsoil found on the property; and
279	279	(B) the surface is returned as near as reasonably
280	280	possible to the same condition as before the grantee dug holes or
281	281	cavities, including by reseeding pastureland with native grasses
282	282	prescribed by an appropriate governmental agency, if any.
283	283	(d) The landowner shall make a request under Subsection (b)
284	284	or (c) not later than the 180th day after the later of:
285	285	(1) the date on which the renewable generation
286	286	facility is no longer capable of generating or storing electricity
287	287	in commercial quantities; or
288	288	(2) the date the landowner receives written notice of
289	289	intent to decommission the renewable generation facility from the
290	290	grantee.
291	291	Sec. 35.208. REQUIRED AGREEMENT PROVISIONS ON FINANCIAL
292	292	ASSURANCE. (a) A renewable generation facility agreement must
293	293	provide that the grantee shall obtain and deliver to the commission
294	294	evidence of financial assurance payable to the landowner that
295	295	conforms to the requirements of this section to secure the
296	296	performance of the grantee's obligation to remove the grantee's
297	297	renewable generation facilities located on the landowner's
298	298	property as described by Section 35.207. The financial assurance
299	299	may be a bond or another form of financial assurance acceptable to
300	300	the landowner.
301	301	(b) The amount of the financial assurance must be at least
302	302	equal to the estimated amount by which the cost of removing the
303	303	renewable generation facilities from the landowner's property and
304	304	restoring the property to as near as reasonably possible the
305	305	condition of the property as of the date the agreement begins
306	306	exceeds the salvage value of the renewable generation facilities,
307	307	less any portion of the value of the renewable generation
308	308	facilities pledged to secure outstanding debt.
309	309	(c) The agreement must provide that:
310	310	(1) the estimated cost of removing the renewable
311	311	generation facilities from the landowner's property and restoring
312	312	the property to as near as reasonably possible the condition of the
313	313	property as of the date the agreement begins, and the estimated
314	314	salvage value of the renewable generation facilities must be
315	315	determined by an independent, third-party professional engineer
316	316	licensed in this state;
317	317	(2) the grantee must deliver to the landowner and the
318	318	commission an updated estimate, prepared by an independent,
319	319	third-party professional engineer licensed in this state, of the
320	320	cost of removal and the salvage value at least once every five years
321	321	for the remainder of the term of the agreement; and
322	322	(3) the grantee is responsible for ensuring that the
323	323	amount of the financial assurance remains sufficient to cover the
324	324	amount required by Subsection (b), consistent with the estimates
325	325	required by this subsection.
326	326	(d) The grantee is responsible for the costs of obtaining
327	327	financial assurance described by this section and costs of
328	328	determining the estimated removal costs and salvage value.
329	329	(e) The agreement must provide that the grantee shall
330	330	deliver the financial assurance to the commission not later than
331	331	the 30th day after the date the agreement begins, or the permit may
332	332	be denied or revoked.
333	333	(f) The grantee may not cancel financial assurance before
334	334	the date the grantee has completed the grantee's obligation to
335	335	remove the grantee's renewable generation facilities located on the
336	336	landowner's property as required by this chapter, unless the
337	337	grantee provides the commission with replacement financial
338	338	assurance at the time of or before the cancellation. In the event
339	339	of a transfer of ownership of the grantee's renewable generation
340	340	facilities, the financial security provided by the grantee shall
341	341	remain in place until the date evidence of financial security
342	342	meeting the requirements of this chapter is provided to the
343	343	commission.
344	344	Sec. 35.209. RELEASE OF FINANCIAL ASSURANCE TO GRANTEE.
345	345	(a) At any time, a grantee may file an application with the
346	346	commission for the release of all or part of a bond or other
347	347	financial assurance provided to the commission by the grantee for a
348	348	landowner under this subchapter.
349	349	(b) The application must be on a form prescribed by the
350	350	commission and, in addition to other information the commission may
351	351	require, must include the type and the approximate date of removal
352	352	and restoration work performed and a description of the results
353	353	achieved.
354	354	(c) The grantee shall provide a copy of the application to
355	355	the landowner not later than the 30th day after the date the grantee
356	356	files the application with the commission.
357	357	(d) Not later than the 45th day after the date the grantee
358	358	files the application, the commission shall conduct an inspection
359	359	and evaluation of the removal and restoration work performed.
360	360	(e) The commission may release all or part of the financial
361	361	assurance if the commission determines that the grantee has
362	362	completed all or part of the grantee's obligations under the
363	363	agreement entered into under this subchapter. All of the financial
364	364	assurance shall be released if all of the grantee's obligations are
365	365	completed.
366	366	(f) If the commission disapproves the application for
367	367	release of the financial assurance, the commission shall notify the
368	368	grantee in writing of the reasons for disapproval and recommend
369	369	corrective actions necessary to secure the release of the financial
370	370	assurance.
371	371	Sec. 35.210. FORFEITURE OF FINANCIAL ASSURANCE TO
372	372	LANDOWNER. (a) A landowner may file an application with the
373	373	commission for the forfeiture of all or part of a bond or other
374	374	financial assurance provided to the commission by a grantee for the
375	375	landowner under this subchapter if:
376	376	(1) the grantee has not completed the grantee's
377	377	obligations under the agreement entered into under this subchapter;
378	378	and
379	379	(2) the facility that is the subject of the agreement
380	380	is no longer being used by the grantee to provide energy or
381	381	ancillary services at wholesale for a power grid in the manner
382	382	provided by the agreement.
383	383	(b) The application must be on a form prescribed by the
384	384	commission.
385	385	(c) The landowner shall provide a copy of the application to
386	386	the grantee not later than the 30th day after the date the landowner
387	387	files the application with the commission.
388	388	(d) Not later than the 45th day after the date the landowner
389	389	files the application, the commission shall conduct an inspection
390	390	and evaluation of the property for which the financial assurance
391	391	was provided.
392	392	(e) The commission may approve the forfeiture of all or part
393	393	of the financial assurance if the commission determines that:
394	394	(1) the facility that is the subject of the agreement
395	395	is no longer being used in the manner described by Subsection
396	396	(a)(2); and
397	397	(2) the forfeiture is necessary to compensate the
398	398	landowner for any remaining removal and restoration work the
399	399	grantee was required to but did not complete under the agreement.
400	400	(f) If the commission disapproves the application for
401	401	forfeiture of the financial assurance, the commission shall notify
402	402	the landowner in writing of the reasons for disapproval.
403	403	Sec. 35.211. COMMISSION AUTHORITY. (a) The commission may
404	404	not issue to a grantee whose financial assurance was forfeited
405	405	under Section 35.210 any permit, certificate, or registration under
406	406	other law that authorizes the grantee to operate a generation
407	407	facility to which this subchapter applies or renew any such permit,
408	408	certificate, or registration.
409	409	(b) In a suit for receivership, garnishment, or bankruptcy,
410	410	or in any other legal action affecting the assets of a grantee that
411	411	is a party to an agreement subject to this subchapter, the
412	412	commission may:
413	413	(1) inform the appropriate court and parties of the
414	414	commission's interest in obtaining notice of the proceedings; and
415	415	(2) within the time prescribed by the applicable
416	416	statutes, rules, and court orders, intervene and participate in any
417	417	proceedings that affect a landowner not joined in the suit who is a
418	418	party to the agreement with the grantee.
419	419	SECTION 3. The changes in law made by this Act apply only to
420	420	a renewable generation facility agreement entered into on or after
421	421	the effective date of this Act. An agreement entered into before
422	422	the effective date of this Act is governed by the law applicable to
423	423	the agreement on the date the agreement was entered into, and that
424	424	law is continued in effect for that purpose.
425	425	SECTION 4. As soon as practicable after the effective date
426	426	of this Act, the Public Utility Commission of Texas shall adopt
427	427	rules to effectuate the changes in law made by this Act.
428	428	SECTION 5. This Act takes effect immediately if it receives
429	429	a vote of two-thirds of all the members elected to each house, as
430	430	provided by Section 39, Article III, Texas Constitution. If this
431	431	Act does not receive the vote necessary for immediate effect, this
432	432	Act takes effect September 1, 2025.