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A BILL TO BE ENTITLED
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AN ACT
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relating to decommissioning requirements for certain solar |
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facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 312, Tax Code, is amended |
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by adding Section 312.0022 to read as follows: |
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Sec. 312.0022. LIMITATION ON ABATEMENT OF TAXES ON SOLAR |
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FACILITY PROPERTY. (a) In this section, "solar facility" has the |
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meaning assigned by Section 35.201, Utilities Code. |
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(b) The governing body of a taxing unit may not enter into an |
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agreement under this chapter to exempt from taxation a portion of |
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the value of real property on which a solar facility is located or |
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is planned to be located during the term of the agreement, or of |
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tangible personal property that is located or is planned to be |
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located on the real property during that term. |
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SECTION 2. Section 313.024, Tax Code, is amended by adding |
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Subsection (b-2) to read as follows: |
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(b-2) In this subsection, "solar facility" has the meaning |
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assigned by Section 35.201, Utilities Code. The owner of real |
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property on which a solar facility is located or is planned to be |
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located during the term of an agreement entered into under this |
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subchapter, or of tangible personal property that is located or is |
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planned to be located on the real property during that term, may not |
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receive a limitation on appraised value. |
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SECTION 3. Chapter 35, Utilities Code, is amended by adding |
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Subchapter F to read as follows: |
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SUBCHAPTER F. DECOMMISSIONING SOLAR FACILITIES |
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Sec. 35.201. DEFINITION. In this subchapter, "solar |
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facility" means a facility designed and used primarily for the |
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purpose of collecting, generating, transferring, or storing solar |
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energy. The term does not include a facility installed solely on a |
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building. |
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Sec. 35.202. DECOMMISSIONING SOLAR FACILITIES. (a) The |
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commission may not authorize a person who operates a solar facility |
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to interconnect the facility to the ERCOT transmission grid unless |
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the person demonstrates to the commission that the operator has |
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entered into an agreement with the county in which the facility is |
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located that provides that: |
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(1) the operator is responsible for: |
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(A) decommissioning the solar facility, |
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including restoring, through soil stabilization and revegetation, |
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the first three feet of depth of the soil on any land disturbed by |
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the facility; or |
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(B) ensuring that the requirements of Paragraph |
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(A) are met; and |
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(2) the operator will provide to the county financial |
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assurance in the form of certified funds, cash escrow, a bond, a |
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letter of credit, or a parent guarantee, payable to the county, |
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sufficient to cover the cost of the activities required by |
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Subdivision (1). |
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(b) The cost described by Subsection (a)(2) must be based on |
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an estimate of a qualified independent engineer, engaged by the |
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operator and approved by the county, who has experience in |
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preparing decommissioning estimates. The estimate may not exceed |
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the sum of: |
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(1) the projected cost of decommissioning, including |
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accounting for the net salvage value of the solar facility and |
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associated equipment; |
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(2) a reasonable allowance for estimated |
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administrative costs related to a default of the operator; and |
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(3) an annual inflation factor. |
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SECTION 4. Section 312.0022, Tax Code, as added by this Act, |
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applies only to an agreement entered into under Chapter 312, Tax |
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Code, on or after the effective date of this Act. |
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SECTION 5. Section 313.024, Tax Code, as amended by this |
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Act, applies only to an agreement entered into under Chapter 313, |
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Tax Code, on or after the effective date of this Act. |
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SECTION 6. This Act takes effect September 1, 2021. |