89R3533 RDR-F
By: Perry S.B. No. 2657
A BILL TO BE ENTITLED
AN ACT
relating to the inclusion of recycling or disposal provisions in
certain lease agreements of wind or solar power facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 301.0001, Utilities Code, is amended by
adding Subdivision (1-a) and amending Subdivision (2) to read as
follows:
(1-a) "Recycle" means the processing of an item to
recover a usable product.
(2) "Wind power facility" includes:
(A) a wind turbine generator and any related
components of the wind turbine, including a nacelle, a rotor hub,
blades, and a gearbox assembly; and
(B) a facility or equipment used to support the
operation of a wind turbine generator, including an underground or
aboveground electrical transmission or communications line, an
electric transformer, a battery storage facility, an energy storage
facility, telecommunications equipment, a road, a meteorological
tower with wind measurement equipment, or a maintenance yard.
SECTION 2. Section 301.0003, Utilities Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) A wind power facility agreement must provide that the
grantee is responsible for:
(1) collecting and reusing or recycling, or shipping
for reuse or recycling, all components of the wind power facility
practicably capable of being reused or recycled, including the wind
turbine blades, in accordance with any other applicable laws or
regulations; and
(2) disposing of all components of the wind power
facility not practicably capable of being reused or recycled:
(A) at a facility authorized under state and
federal law to dispose of hazardous substances for a component
considered hazardous under those laws; or
(B) for nonhazardous components, at a municipal
solid waste landfill or other appropriate waste disposal facility
authorized under state and federal law to dispose of that type of
component.
SECTION 3. Sections 301.0004(a), (b), (c), and (d),
Utilities Code, are amended to read as follows:
(a) A wind power facility agreement must provide that the
grantee shall obtain and deliver to the landowner evidence of
financial assurance that conforms to the requirements of this
section to secure the performance of the grantee's obligations
under [obligation to remove the grantee's wind power facilities
located on the landowner's property as described by] Section
301.0003. Acceptable forms of financial assurance include a parent
company guaranty with a minimum investment grade credit rating for
the parent company issued by a major domestic credit rating agency,
a letter of credit, a bond, or another form of financial assurance
acceptable to the landowner.
(b) The amount of the financial assurance must be at least
equal to the estimated amount by which the cost of removing the wind
power facilities from the landowner's property, recycling or
disposing of all the components of the wind power facilities, and
restoring the property to as near as reasonably possible the
condition of the property as of the date the agreement begins
exceeds the salvage value of the wind power facilities, less any
portion of the value of the wind power facilities pledged to secure
outstanding debt.
(c) The agreement must provide that:
(1) the estimated cost of removing the wind power
facilities from the landowner's property, recycling or disposing of
all the components of the wind power facilities, and restoring the
property to as near as reasonably possible the condition of the
property as of the date the agreement begins and the estimated
salvage value of the wind power facilities must be determined by an
independent, third-party professional engineer licensed in this
state;
(2) the grantee must deliver to the landowner an
updated estimate, prepared by an independent, third-party
professional engineer licensed in this state, of the cost of
removal and recycling or disposal of the wind power facilities and
the salvage value at least once every five years for the remainder
of the term of the agreement; and
(3) the grantee is responsible for ensuring that the
amount of the financial assurance remains sufficient to cover the
amount required by Subsection (b), consistent with the estimates
required by this subsection.
(d) The grantee is responsible for the costs of obtaining
financial assurance described by this section and costs of
determining the estimated removal, recycling, and disposal costs
and salvage value.
SECTION 4. Section 302.0001, Utilities Code, is amended by
adding Subdivision (1-a) to read as follows:
(1-a) "Recycle" means the processing of an item to
recover a usable product.
SECTION 5. Section 302.0004, Utilities Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) A solar power facility agreement must provide that the
grantee is responsible for:
(1) collecting and reusing or recycling, or shipping
for reuse or recycling, all components of the solar power facility
practicably capable of being reused or recycled, including the
photovoltaic modules, in accordance with any other applicable laws
or regulations; and
(2) disposing of all components of the solar power
facility not practicably capable of being reused or recycled:
(A) at a facility authorized under state and
federal law to dispose of hazardous substances for a component
considered hazardous under those laws; or
(B) for nonhazardous components, at a municipal
solid waste landfill or other appropriate waste disposal facility
authorized under state and federal law to dispose of that type of
component.
SECTION 6. Sections 302.0005(a), (b), (c), and (d),
Utilities Code, are amended to read as follows:
(a) A solar power facility agreement must provide that the
grantee shall obtain and deliver to the landowner evidence of
financial assurance that conforms to the requirements of this
section to secure the performance of the grantee's obligations
under [obligation to remove the grantee's solar power facilities
located on the landowner's property as described by] Section
302.0004. Acceptable forms of financial assurance include a parent
company guaranty with a minimum investment grade credit rating for
the parent company issued by a major domestic credit rating agency,
a letter of credit, a bond, or another form of financial assurance
reasonably acceptable to the landowner.
(b) The amount of the financial assurance must be at least
equal to the estimated amount by which the cost of removing the
solar power facilities from the landowner's property, recycling or
disposing of all the components of the solar power facilities, and
restoring the property to as near as reasonably possible the
condition of the property as of the date the agreement begins
exceeds the salvage value of the solar power facilities, less any
portion of the value of the solar power facilities pledged to secure
outstanding debt.
(c) The agreement must provide that:
(1) the estimated cost of removing the solar power
facilities from the landowner's property, recycling or disposing of
all the components of the solar power facilities, and restoring the
property to as near as reasonably possible the condition of the
property as of the date the agreement begins and the estimated
salvage value of the solar power facilities must be determined by an
independent, third-party professional engineer licensed in this
state;
(2) the grantee must deliver to the landowner an
updated estimate, prepared by an independent, third-party
professional engineer licensed in this state, of the cost of
removal and recycling or disposal of the solar power facilities and
the salvage value:
(A) on or before the 10th anniversary of the
commercial operations date of the solar power facilities; and
(B) at least once every five years after the
commercial operations date of the solar power facilities for the
remainder of the term of the agreement; and
(3) the grantee is responsible for ensuring that the
amount of the financial assurance remains sufficient to cover the
amount required by Subsection (b), consistent with the estimates
required by this subsection.
(d) The grantee is responsible for the costs of obtaining
financial assurance described by this section and costs of
determining the estimated removal, recycling, and disposal costs
and salvage value.
SECTION 7. Chapters 301 and 302, Utilities Code, as amended
by this Act, apply only to a wind or solar power facility agreement
entered into on or after the effective date of this Act. A wind or
solar power facility agreement entered into before the effective
date of this Act is governed by the law as it existed immediately
before that date, and that law is continued in effect for that
purpose.
SECTION 8. This Act takes effect September 1, 2025.