By: Middleton, CreightonKolkhorst
 
      KolkhorstS.B. No. 1303S.B. No. 1303
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the issuance of a permit by the commissioner of the
  General Land Office for a wind power facility on coastal public
  land; authorizing a fee; providing a civil penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 33, Natural Resources Code, is amended
  by adding Subchapter J to read as follows:
  SUBCHAPTER J. COASTAL WIND POWER FACILITY PERMIT
         Sec. 33.801.  DEFINITIONS. In this subchapter:
               (1)  "Permittee" means the holder of a permit issued
  under this subchapter.
               (2)  "Wind power facility" includes:
                     (A)  a wind turbine generator; and
                     (B)  a facility or equipment used to support the
  operation of a wind turbine generator, including an electrical
  transmission or communications line, an electric transformer, a
  battery storage facility, an energy storage facility, or
  telecommunications equipment.
         Sec. 33.802.  PERMIT REQUIRED. (a) A person may not install
  or operate a wind power facility on coastal public land unless the
  person obtains a permit from the commissioner under this
  subchapter.
         (b)  The commissioner by rule shall:
               (1)  in collaboration with the Texas Department of
  Insurance and the Public Utility Commission of Texas, require that
  a permittee construct and maintain the permitted wind power
  facility to withstand:
                     (A)  a storm that would cause a flood in any area
  that is:
                           (i)  located less than 40 miles from the
  location of the proposed wind power facility; and
                           (ii)  subject to inundation by a flood that
  has a 0.1 percent or greater chance of occurring in any given year,
  as determined from maps or other data from the Federal Emergency
  Management Agency; and
                     (B)  a Category 5 hurricane on the Saffir-Simpson
  Hurricane Wind Scale;
               (2)  prohibit a permittee from constructing or
  maintaining the permitted wind power facility in a manner that uses
  cables to secure the facility to coastal public land;
               (3)  prohibit a permittee from connecting the permitted
  wind power facility to a transmission line that provides
  electricity to a location outside the ERCOT power region;
               (4)  in collaboration with the Public Utility
  Commission of Texas, require the permittee to submit to the
  commissioner regular maintenance evaluations of the permitted wind
  power facility; and
               (5)  require that a permittee guarantee that the
  facility carries sufficient thermal nonintermittent base load
  backup generation to ensure that the facility is generating power
  at 100 percent of installed capacity.
         (c)  If a wind power facility permitted under this subchapter
  generates less than the installed capacity as required under
  Subsection (b)(5), the Public Utility Commission of Texas shall
  levy a per kilowatt hour intermittency penalty, which shall be the
  equivalent of the federal per kilowatt hour subsidy or tax credit
  for wind power described in Section 33.808.
         (d)  The Texas Department of Insurance and the Public Utility
  Commission of Texas may adopt rules as needed to implement this
  subchapter.
         Sec. 33.803.  APPLICATION FOR PERMIT. (a) An application
  for a permit under this subchapter must be made on a form prescribed
  by the commissioner.
         (b)  An application for a permit under this subchapter must
  include:
               (1)  a study on the potential environmental impacts of
  the proposed wind power facility on migratory birds, oceanic life,
  and soil and water in this state;
               (2)  based on the study required by Subdivision (1):
                     (A)  an analysis created by the Texas Commission
  on Environmental Quality of potential negative impacts of the wind
  power facility on this state and, if any, recommendations for
  mitigation of those impacts;
                     (B)  an analysis created by the Parks and Wildlife
  Department of potential negative impacts of the wind power facility
  on this state and, if any, recommendations for mitigation of those
  impacts; and
                     (C)  an analysis created by the Public Utility
  Commission of Texas of potential negative impacts of the wind power
  facility on this state and, if any, recommendations for mitigation
  of those impacts;
               (3)  a study on the potential economic impacts of the
  proposed wind power facility on commercial and recreational
  fishing, water tourism, the workforce, and ports in this state;
               (4)  based on the study required by Subdivision (3):
                     (A)  an analysis created by the Texas Commission
  on Environmental Quality of potential negative impacts of the wind
  power facility on this state and, if any, recommendations for
  mitigation of those impacts;
                     (B)  an analysis created by the Parks and Wildlife
  Department of potential negative impacts of the wind power facility
  on this state and, if any, recommendations for mitigation of those
  impacts; and
                     (C)  an analysis created by the comptroller of
  public accounts of potential negative impacts of the wind power
  facility on this state and, if any, recommendations for mitigation
  of those impacts;
               (5)  a study on the potential impacts of the proposed
  wind power facility on navigation and shipping lanes in this state;
               (6)  based on the study required by Subdivision (5), an
  analysis created by the Texas Department of Transportation of
  potential negative impacts of the wind power facility on this state
  and, if any, recommendations for mitigation of those impacts;
               (7)  a study on the potential impacts of the proposed
  wind power facility on infrastructure in this state associated with
  oil and gas pipelines, offshore production of oil and natural gas,
  roads, and bridges;
               (8)  based on the study required by Subdivision (7):
                     (A)  an analysis created by the Texas Department
  of Transportation of potential negative impacts of the wind power
  facility on this state and, if any, recommendations for mitigation
  of those impacts; and
                     (B)  an analysis created by the Railroad
  Commission of Texas of potential negative impacts of the wind power
  facility on this state and, if any, recommendations for mitigation
  of those impacts;
               (9)  an estimate of the electrical energy anticipated
  to be produced by the proposed wind power facility and provided to
  this state;
               (10)  a copy of each notice provided by the applicant
  under Section 33.805; and
               (11)  any additional information required by the
  commissioner.
         (c)  The commissioner by rule shall adopt a process for an
  applicant to request the state agency analyses required by
  Subsection (b). A state agency named in Subsection (b) shall
  provide a requested analysis to the requestor in a reasonable time.
         Sec. 33.804.  PERMIT APPROVAL CONDITIONS. (a) The
  commissioner may not approve an application for a permit under this
  subchapter unless the commissioner determines that the application
  complies with Sections 33.802 and 33.803.
         (b)  Before approving an application for a permit under this
  subchapter, the commissioner must require the applicant to mitigate
  or plan to mitigate any negative impacts of the proposed wind power
  facility on this state based on the recommendations issued by state
  agencies under Section 33.803.
         (c)  The commissioner shall deny a permit application if the
  commissioner determines, based on the application, that any
  negative impacts of the proposed wind power facility on this state
  cannot be mitigated.
         Sec. 33.805.  NOTICE TO STATE AND LOCAL OFFICIALS;
  OBJECTION. (a) A person intending to apply for a permit under this
  subchapter shall mail notice of intent to obtain the permit to:
               (1)  the governor and the attorney general;
               (2)  each state senator and representative who
  represents an area located less than 40 miles from the location of
  the proposed wind power facility;
               (3)  the mayor of each municipality located less than
  40 miles from the location of the proposed wind power facility;
               (4)  the commissioners court of each county located
  less than 40 miles from the location of the proposed wind power
  facility; and
               (5)  the board of each port authority or navigation
  district located less than 40 miles from the location of the
  proposed wind power facility.
         (b)  A person who receives notice under Subsection (a) may
  submit a letter to the commissioner and the applicant notifying the
  commissioner and the applicant that the person objects to the
  approval of the permit. The letter must be submitted to the
  commissioner and the applicant not later than the 30th day after the
  date the person receives the notice.
         (c)  If the commissioner determines that an objection
  received under Subsection (b) is based on a reasonable potential
  negative impact of the proposed wind power facility to this state,
  the commissioner may not grant the permit unless the applicant
  mitigates or plans to mitigate the potential negative impact.
         Sec. 33.806.  AUTHORITY OF COMMISSIONER. (a) The
  commissioner:
               (1)  as a condition of issuing a permit, may impose an
  application fee to recover the costs of administering this
  subchapter;
               (2)  may require a permittee to provide to the
  commissioner copies of maps, plats, reports, data, and any other
  information in the possession of the permittee that relates to a
  permit; and
               (3)  may make any rules relating to permits or
  permittees the commissioner considers appropriate.
         (b)  If a permittee violates a rule of the commissioner or a
  term of a permit, the commissioner may cancel the permit.
         (c)  If the commissioner acquires information under
  Subsection (a), the commissioner shall consider the information to
  be confidential and may not disclose it, except by authority of a
  court order, to the public or any other agency of this state.
         Sec. 33.807.  UNPERMITTED WIND POWER FACILITIES. A state
  agency or political subdivision may not:
               (1)  approve a permit related to a wind power facility
  for which a permit is required under this subchapter unless the
  commissioner has issued the permit under this subchapter; or
               (2)  unless required by federal law, contract with or
  in any other manner provide assistance to a federal agency or
  official with respect to the construction of a wind power facility
  for which a permit is required under this subchapter unless the
  commissioner has issued the permit.
         Sec. 33.808.  MARKET DISTORTION RESPONSE. (a) The Public
  Utility Commission of Texas and the ERCOT independent system
  operator shall adopt rules, operating procedures, and protocols to
  eliminate or compensate for any distortion in electricity pricing
  in the ERCOT power region caused by a federal tax credit provided
  under 26 U.S.C. Section 45 to a permittee.
         (b)  Rules, operating procedures, and protocols adopted
  under this section must ensure that costs imposed on the system by
  the sale of electricity by a permittee that is eligible for a
  federal tax credit provided under 26 U.S.C. Section 45, including
  costs of maintaining sufficient capacity to serve load at peak
  demand caused by the loss of new investment from below-market
  prices, are paid by the parties that impose the costs.
         Sec. 33.809.  ENFORCEMENT. (a) If a person violates or is
  threatening to violate this subchapter, a rule adopted under this
  subchapter, or a permit issued under this subchapter, the
  commissioner may have a civil suit brought in a district court for
  injunctive relief, for assessment and recovery of a civil penalty
  of $10,000 for each act of violation, or for both injunctive relief
  and a civil penalty. Each day of a continuing violation is a
  separate violation.
         (b)  The attorney general shall bring a suit under this
  subchapter in the name of the commissioner.
         (c)  In addition to the relief authorized under Subsection
  (a), the court may award reasonable attorney's fees, which must be
  used to reimburse the operating fund or account from which the
  expenditure occurred.
         SECTION 2.  This Act takes effect September 1, 2023.