| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
| |
|
|
relating to the removal of solar power facilities. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. The heading to Title 6, Utilities Code, is |
|
|
amended to read as follows: |
|
|
TITLE 6. PRIVATE [WIND] POWER AGREEMENTS |
|
|
SECTION 2. Title 6, Utilities Code, is amended by adding |
|
|
Chapter 302 to read as follows: |
|
|
CHAPTER 302. SOLAR POWER FACILITY AGREEMENTS |
|
|
Sec. 302.0001. DEFINITIONS. In this chapter: |
|
|
(1) "Grantee" means a person who: |
|
|
(A) leases property from a landowner; and |
|
|
(B) operates a solar power facility on the |
|
|
property. |
|
|
(2) "Solar energy device" has the meaning assigned by |
|
|
Section 185.001. |
|
|
(3) "Solar power facility" includes: |
|
|
(A) a solar energy device; and |
|
|
(B) a facility or equipment used to support the |
|
|
operation of a solar energy device, 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, or a maintenance yard. |
|
|
(4) "Solar power facility agreement" means a lease |
|
|
agreement between a grantee and a landowner that authorizes the |
|
|
grantee to operate a solar power facility on the leased property. |
|
|
Sec. 302.0002. WAIVER VOID; REMEDIES. (a) A provision of a |
|
|
solar power facility agreement that purports to waive a right or |
|
|
exempt a grantee from a liability or duty established by this |
|
|
chapter is void. |
|
|
(b) A person who is harmed by a violation of this chapter is |
|
|
entitled to appropriate injunctive relief to prevent further |
|
|
violation of this chapter. |
|
|
(c) The provisions of this section are not exclusive. The |
|
|
remedies provided in this section are in addition to any other |
|
|
procedures or remedies provided by other law. |
|
|
Sec. 302.0003. REQUIRED AGREEMENT PROVISIONS ON FACILITY |
|
|
REMOVAL. (a) A solar power facility agreement must provide that |
|
|
the grantee is responsible for removing the grantee's solar power |
|
|
facilities from the landowner's property and that the grantee |
|
|
shall, in accordance with any other applicable laws or regulations, |
|
|
safely: |
|
|
(1) clear, clean, and remove from the property each |
|
|
solar energy device, transformer, and substation; |
|
|
(2) for each foundation of a solar energy device, |
|
|
transformer, or substation installed in the ground: |
|
|
(A) clear, clean, and remove the foundation from |
|
|
the ground to a depth of at least three feet below the surface grade |
|
|
of the land in which the foundation is installed; and |
|
|
(B) ensure that each hole or cavity created in |
|
|
the ground by the removal is filled with topsoil of the same type or |
|
|
a similar type as the predominant topsoil found on the property; |
|
|
(3) for each buried cable, including power, |
|
|
fiber-optic, and communications cables, installed in the ground: |
|
|
(A) clear, clean, and remove the cable from the |
|
|
ground to a depth of at least three feet below the surface grade of |
|
|
the land in which the cable is installed; and |
|
|
(B) ensure that each hole or cavity created in |
|
|
the ground by the removal is filled with topsoil of the same type or |
|
|
a similar type as the predominant topsoil found on the property; and |
|
|
(4) clear, clean, and remove from the property each |
|
|
overhead power or communications line installed by the grantee on |
|
|
the property. |
|
|
(b) The agreement must provide that, at the request of the |
|
|
landowner, the grantee shall: |
|
|
(1) clear, clean, and remove each road constructed by |
|
|
the grantee on the property; and |
|
|
(2) ensure that each hole or cavity created in the |
|
|
ground by the removal is filled with topsoil of the same type or a |
|
|
similar type as the predominant topsoil found on the property. |
|
|
(c) The agreement must provide that, at the request of the |
|
|
landowner, if reasonable, the grantee shall: |
|
|
(1) remove from the property all rocks over 12 inches |
|
|
in diameter excavated during the decommissioning or removal |
|
|
process; |
|
|
(2) return the property to a tillable state using |
|
|
scarification, V-rip, or disc methods, as appropriate; and |
|
|
(3) ensure that: |
|
|
(A) each hole or cavity created in the ground by |
|
|
the removal is filled with topsoil of the same type or a similar |
|
|
type as the predominant topsoil found on the property; and |
|
|
(B) the surface is returned as near as reasonably |
|
|
possible to the same condition as before the grantee dug holes or |
|
|
cavities, including by reseeding pastureland with native grasses |
|
|
prescribed by an appropriate governmental agency, if any. |
|
|
(d) The landowner shall make a request under Subsection (b) |
|
|
or (c) not later than the 180th day after the later of: |
|
|
(1) the date on which the solar power facility is no |
|
|
longer capable of generating electricity in commercial quantities; |
|
|
or |
|
|
(2) the date the landowner receives written notice of |
|
|
intent to decommission the solar power facility from the grantee. |
|
|
Sec. 302.0004. REQUIRED AGREEMENT PROVISIONS ON FINANCIAL |
|
|
ASSURANCE. (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 obligation to |
|
|
remove the grantee's solar power facilities located on the |
|
|
landowner's property as described by Section 302.0003. 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 |
|
|
solar power facilities from the landowner's property 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 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 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 costs and salvage value. |
|
|
(e) The agreement must provide that the grantee shall |
|
|
deliver the financial assurance not later than the earlier of: |
|
|
(1) the date the solar power facility agreement is |
|
|
terminated; or |
|
|
(2) the 10th anniversary of the commercial operations |
|
|
date of the solar power facilities located on the landowner's |
|
|
leased property. |
|
|
(f) For purposes of this section, "commercial operations |
|
|
date" means the date on which the solar power facilities are |
|
|
approved for participation in market operations by a regional |
|
|
transmission organization and does not include the generation of |
|
|
electrical energy or other operations conducted before that date |
|
|
for purposes of maintenance and testing. |
|
|
(g) The grantee may not cancel financial assurance before |
|
|
the date the grantee has completed the grantee's obligation to |
|
|
remove the grantee's solar power facilities located on the |
|
|
landowner's property in the manner provided by this chapter, unless |
|
|
the grantee provides the landowner with replacement financial |
|
|
assurance at the time of or before the cancellation. In the event |
|
|
of a transfer of ownership of the grantee's solar power facilities, |
|
|
the financial security provided by the grantee shall remain in |
|
|
place until the date evidence of financial security meeting the |
|
|
requirements of this chapter is provided to the landowner. |
|
|
SECTION 3. Chapter 302, Utilities Code, as added by this |
|
|
Act, applies only to a solar power facility agreement entered into |
|
|
on or after the effective date of this Act. A 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 4. This Act takes effect September 1, 2021. |
|
|
|
|
|
* * * * * |