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A BILL TO BE ENTITLED
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AN ACT
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relating to the removal of wind power facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The Utilities Code is amended by adding Title 6 |
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to read as follows: |
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TITLE 6. WIND POWER |
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CHAPTER 301. WIND POWER FACILITY AGREEMENTS |
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Sec. 301.0001. DEFINITIONS. In this chapter: |
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(1) "Grantee" means a person who: |
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(A) leases property from a landowner; and |
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(B) operates a wind power facility on the |
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property. |
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(2) "Wind power facility" includes: |
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(A) a wind turbine generator; and |
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(B) a facility or equipment used to support the |
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operation of a wind turbine generator, including an underground or |
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aboveground electrical transmission or communications line, an |
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electric transformer, a battery storage facility, an energy storage |
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facility, telecommunications equipment, a road, a meteorological |
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tower with wind measurement equipment, or a maintenance yard. |
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(3) "Wind 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 wind power facility on the leased property. |
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Sec. 301.0002. WAIVER VOID; REMEDIES. (a) A provision of a |
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wind 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. 301.0003. REQUIRED AGREEMENT PROVISIONS ON FACILITY |
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REMOVAL. (a) A wind power facility agreement must provide that the |
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grantee is responsible for removing the grantee's wind 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: |
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(A) each wind turbine generator, including |
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towers and pad-mount transformers; |
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(B) all liquids, greases, or similar substances |
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contained in a wind turbine generator; |
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(C) each substation; and |
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(D) all liquids, greases, or similar substances |
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contained in a substation; |
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(2) for each tower foundation and pad-mount |
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transformer foundation installed in the ground: |
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(A) clear, clean, and remove the foundation from |
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the ground at least three feet from the grade of the land affected |
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by the foundation; 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 topsoil of the same type or |
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a similar type as the predominant topsoil 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 at least three feet below the grade of the land affected by |
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the cable; 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 topsoil of the same type or |
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a similar type as the predominant topsoil 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 topsoil of the same type or a |
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similar type as the predominant topsoil 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 topsoil of the same type or a similar |
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type as the predominant topsoil 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 agreement may not authorize the landowner to make a |
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request under Subsection (b) or (c) after the first anniversary of |
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the date on which the wind power facility is no longer capable of |
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generating electricity in commercial quantities. |
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Sec. 301.0004. REQUIRED AGREEMENT PROVISIONS ON REMOVAL |
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BOND. (a) A wind power facility agreement must provide that the |
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grantee shall obtain and deliver to the landowner a bond or other |
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form of financial assurance, such as a letter of credit, an escrow |
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account, or other form of financial assurance acceptable to the |
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landowner, that conforms to the requirements of this section to |
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secure the performance of the grantee's obligation to remove the |
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grantee's wind power facilities located on the landowner's property |
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as described by Section 301.0003. |
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(b) The amount of the bond or other financial assurance must |
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be at least equal to the estimated amount by which the cost of |
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removing the wind power facilities from the landowner's property |
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and restoring the property to as near as reasonably possible the |
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condition of the property as of the date the agreement begins |
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exceeds the salvage value of the wind power facilities, less any |
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portion of the value of the wind power facilities pledged to secure |
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outstanding debt. |
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(c) The agreement must provide that: |
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(1) the estimated cost of removing the wind 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 wind 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 at least once every five years 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 bond or other financial assurance remains sufficient |
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to cover the amount required by Subsection (b), consistent with the |
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estimates required by this subsection. |
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(d) The grantee is responsible for the costs of obtaining a |
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bond or other financial assurance described by this section and |
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costs of 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 bond or other financial assurance not later than the |
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earlier of: |
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(1) the date the wind power facility agreement is |
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terminated; or |
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(2) the 10th anniversary of the commercial operations |
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date of the wind power facilities located on the landowner's leased |
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property. |
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(f) For purposes of this section, "commercial operations |
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date" means the date on which the wind power facilities are approved |
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for participation in market operations by a regional transmission |
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organization and does not include the generation of electrical |
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energy or other operations conducted before that date for purposes |
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of maintenance and testing. |
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(g) The grantee may not cancel a bond or other financial |
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assurance before the date the grantee has completed the grantee's |
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obligation to remove the grantee's wind power facilities located on |
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the landowner's property in the manner provided by this chapter, |
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unless the grantee provides the landowner with a replacement bond |
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or replacement financial assurance at the time of or before the |
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cancellation. In the event of a transfer of ownership of the |
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grantee's wind power facilities, the financial security provided by |
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the grantee shall remain in place until the date evidence of |
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financial security meeting the requirements of this chapter is |
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provided to the landowner. |
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SECTION 2. Chapter 301, Utilities Code, as added by this |
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Act, applies only to a wind power facility agreement entered into on |
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or after the effective date of this Act. A wind 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 3. This Act takes effect September 1, 2019. |