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A BILL TO BE ENTITLED
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AN ACT
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relating to the removal of solar power facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Title 6, Utilities Code, is |
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amended to read as follows: |
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TITLE 6. PRIVATE [WIND] POWER AGREEMENTS |
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SECTION 2. Title 6, Utilities Code, is amended by adding |
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Chapter 302 to read as follows: |
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CHAPTER 302. SOLAR POWER FACILITY AGREEMENTS |
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Sec. 302.0001. DEFINITIONS. In this chapter: |
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(1) "Grantee" means a person, other than an electric |
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utility, as defined by Section 31.002, who: |
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(A) leases property from a landowner; and |
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(B) operates a solar power facility on the |
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property. |
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(2) "Solar energy device" has the meaning assigned by |
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Section 185.001. |
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(3) "Solar power facility" includes: |
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(A) a solar energy device; and |
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(B) a facility or equipment, other than a |
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facility or equipment owned by an electric utility, as defined by |
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Section 31.002, used to support the operation of a solar energy |
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device, including an underground or aboveground electrical |
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transmission or communications line, an electric transformer, a |
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battery storage facility, an energy storage facility, |
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telecommunications equipment, a road, a meteorological tower, or a |
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maintenance yard. |
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(4) "Solar power facility agreement" means a lease |
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agreement between a grantee and a landowner that authorizes the |
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grantee to operate a solar power facility on the leased property. |
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Sec. 302.0002. APPLICABILITY. This chapter applies only to |
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a solar power facility that is a generation asset as defined by |
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Section 39.251. |
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Sec. 302.0003. WAIVER VOID; REMEDIES. (a) A provision of a |
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solar power facility agreement that purports to waive a right or |
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exempt a grantee from a liability or duty established by this |
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chapter is void. |
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(b) A person who is harmed by a violation of this chapter is |
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entitled to appropriate injunctive relief to prevent further |
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violation of this chapter. |
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(c) The provisions of this section are not exclusive. The |
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remedies provided in this section are in addition to any other |
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procedures or remedies provided by other law. |
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Sec. 302.0004. REQUIRED AGREEMENT PROVISIONS ON FACILITY |
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REMOVAL. (a) A solar power facility agreement must provide that |
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the grantee is responsible for removing the grantee's solar power |
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facilities from the landowner's property and that the grantee |
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shall, in accordance with any other applicable laws or regulations, |
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safely: |
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(1) clear, clean, and remove from the property each |
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solar energy device, transformer, and substation; |
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(2) for each foundation of a solar energy device, |
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transformer, or substation installed in the ground: |
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(A) clear, clean, and remove the foundation from |
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the ground to a depth of at least three feet below the surface grade |
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of the land in which the foundation is installed; and |
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(B) ensure that each hole or cavity created in |
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the ground by the removal is filled with soil of the same type or a |
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similar type as the predominant soil found on the property; |
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(3) for each buried cable, including power, |
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fiber-optic, and communications cables, installed in the ground: |
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(A) clear, clean, and remove the cable from the |
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ground to a depth of at least three feet below the surface grade of |
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the land in which the cable is installed; and |
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(B) ensure that each hole or cavity created in |
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the ground by the removal is filled with soil of the same type or a |
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similar type as the predominant soil found on the property; and |
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(4) clear, clean, and remove from the property each |
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overhead power or communications line installed by the grantee on |
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the property. |
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(b) The agreement must provide that, at the request of the |
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landowner, the grantee shall: |
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(1) clear, clean, and remove each road constructed by |
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the grantee on the property; and |
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(2) ensure that each hole or cavity created in the |
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ground by the removal is filled with soil of the same type or a |
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similar type as the predominant soil found on the property. |
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(c) The agreement must provide that, at the request of the |
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landowner, if reasonable, the grantee shall: |
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(1) remove from the property all rocks over 12 inches |
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in diameter excavated during the decommissioning or removal |
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process; |
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(2) return the property to a tillable state using |
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scarification, V-rip, or disc methods, as appropriate; and |
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(3) ensure that: |
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(A) each hole or cavity created in the ground by |
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the removal is filled with soil of the same type or a similar type as |
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the predominant soil found on the property; and |
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(B) the surface is returned as near as reasonably |
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possible to the same condition as before the grantee dug holes or |
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cavities, including by reseeding pastureland with native grasses |
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prescribed by an appropriate governmental agency, if any. |
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(d) The landowner shall make a request under Subsection (b) |
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or (c) not later than the 180th day after the later of: |
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(1) the date on which the solar power facility is no |
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longer capable of generating electricity in commercial quantities; |
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or |
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(2) the date the landowner receives written notice of |
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intent to decommission the solar power facility from the grantee. |
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Sec. 302.0005. REQUIRED AGREEMENT PROVISIONS ON FINANCIAL |
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ASSURANCE. (a) A solar power facility agreement must provide that |
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the grantee shall obtain and deliver to the landowner evidence of |
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financial assurance that conforms to the requirements of this |
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section to secure the performance of the grantee's obligation to |
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remove the grantee's solar power facilities located on the |
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landowner's property as described by Section 302.0004. Acceptable |
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forms of financial assurance include a parent company guaranty with |
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a minimum investment grade credit rating for the parent company |
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issued by a major domestic credit rating agency, a letter of credit, |
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a bond, or another form of financial assurance reasonably |
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acceptable to the landowner. |
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(b) The amount of the financial assurance must be at least |
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equal to the estimated amount by which the cost of removing the |
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solar power facilities from the landowner's property and restoring |
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the property to as near as reasonably possible the condition of the |
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property as of the date the agreement begins exceeds the salvage |
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value of the solar power facilities, less any portion of the value |
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of the solar power facilities pledged to secure outstanding debt. |
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(c) The agreement must provide that: |
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(1) the estimated cost of removing the solar power |
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facilities from the landowner's property and restoring the property |
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to as near as reasonably possible the condition of the property as |
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of the date the agreement begins and the estimated salvage value of |
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the solar power facilities must be determined by an independent, |
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third-party professional engineer licensed in this state; |
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(2) the grantee must deliver to the landowner an |
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updated estimate, prepared by an independent, third-party |
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professional engineer licensed in this state, of the cost of |
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removal and the salvage value: |
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(A) on or before the 10th anniversary of the |
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commercial operations date of the solar power facilities; and |
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(B) at least once every five years after the |
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commercial operations date of the solar power facilities for the |
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remainder of the term of the agreement; and |
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(3) the grantee is responsible for ensuring that the |
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amount of the financial assurance remains sufficient to cover the |
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amount required by Subsection (b), consistent with the estimates |
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required by this subsection. |
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(d) The grantee is responsible for the costs of obtaining |
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financial assurance described by this section and costs of |
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determining the estimated removal costs and salvage value. |
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(e) The agreement must provide that the grantee shall |
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deliver the financial assurance not later than the earlier of: |
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(1) the date the solar power facility agreement is |
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terminated; or |
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(2) the 20th anniversary of the commercial operations |
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date of the solar power facilities located on the landowner's |
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leased property. |
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(f) For purposes of this section, "commercial operations |
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date" means the date on which the solar power facilities are |
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approved for participation in market operations by a regional |
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transmission organization and does not include the generation of |
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electrical energy or other operations conducted before that date |
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for purposes of maintenance and testing. |
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(g) The grantee may not cancel financial assurance before |
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the date the grantee has completed the grantee's obligation to |
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remove the grantee's solar power facilities located on the |
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landowner's property in the manner provided by this chapter, unless |
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the grantee provides the landowner with replacement financial |
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assurance at the time of or before the cancellation. In the event |
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of a transfer of ownership of the grantee's solar power facilities, |
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the financial security provided by the grantee shall remain in |
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place until the date evidence of financial security meeting the |
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requirements of this chapter is provided to the landowner. |
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SECTION 3. Chapter 302, Utilities Code, as added by this |
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Act, applies only to a solar power facility agreement entered into |
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on or after the effective date of this Act. A solar power facility |
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agreement entered into before the effective date of this Act is |
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governed by the law as it existed immediately before that date, and |
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that law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2021. |