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A BILL TO BE ENTITLED
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AN ACT
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relating to the inclusion of recycling or disposal provisions in |
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certain lease agreements of wind or solar power facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 301.0001, Utilities Code, is amended by |
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adding Subdivision (1-a) and amending Subdivision (2) to read as |
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follows: |
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(1-a) "Recycle" means the processing of an item to |
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recover a usable product. |
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(2) "Wind power facility" includes: |
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(A) a wind turbine generator and any related |
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components of the wind turbine, including a nacelle, a rotor hub, |
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blades, and a gearbox assembly; 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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SECTION 2. Section 301.0003, Utilities Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) A wind power facility agreement must provide that the |
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grantee is responsible for: |
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(1) collecting and reusing or recycling, or shipping |
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for reuse or recycling, all components of the wind power facility |
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practicably capable of being reused or recycled, including the wind |
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turbine blades, in accordance with any other applicable laws or |
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regulations; and |
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(2) disposing of all components of the wind power |
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facility not practicably capable of being reused or recycled: |
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(A) at a facility authorized under state and |
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federal law to dispose of hazardous substances for a component |
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considered hazardous under those laws; or |
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(B) for nonhazardous components, at a municipal |
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solid waste landfill or other appropriate waste disposal facility |
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authorized under state and federal law to dispose of that type of |
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component. |
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SECTION 3. Sections 301.0004(a), (b), (c), and (d), |
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Utilities Code, are amended to read as follows: |
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(a) A wind power facility agreement must provide that the |
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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 obligations |
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under [obligation to remove the grantee's wind power facilities |
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located on the landowner's property as described by] Section |
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301.0003. Acceptable forms of financial assurance include a parent |
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company guaranty with a minimum investment grade credit rating for |
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the parent company issued by a major domestic credit rating agency, |
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a letter of credit, a bond, or another form of financial assurance |
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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 wind |
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power facilities from the landowner's property, recycling or |
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disposing of all the components of the wind power facilities, and |
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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, recycling or disposing of |
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all the components of the wind power facilities, and restoring the |
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property to as near as reasonably possible the condition of the |
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property as of the date the agreement begins and the estimated |
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salvage value of the wind power facilities must be determined by an |
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independent, third-party professional engineer licensed in this |
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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 recycling or disposal of the wind power facilities and |
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the salvage value at least once every five years for the remainder |
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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, recycling, and disposal costs |
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and salvage value. |
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SECTION 4. Section 302.0001, Utilities Code, is amended by |
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adding Subdivision (1-a) to read as follows: |
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(1-a) "Recycle" means the processing of an item to |
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recover a usable product. |
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SECTION 5. Section 302.0004, Utilities Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) A solar power facility agreement must provide that the |
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grantee is responsible for: |
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(1) collecting and reusing or recycling, or shipping |
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for reuse or recycling, all components of the solar power facility |
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practicably capable of being reused or recycled, including the |
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photovoltaic modules, in accordance with any other applicable laws |
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or regulations; and |
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(2) disposing of all components of the solar power |
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facility not practicably capable of being reused or recycled: |
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(A) at a facility authorized under state and |
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federal law to dispose of hazardous substances for a component |
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considered hazardous under those laws; or |
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(B) for nonhazardous components, at a municipal |
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solid waste landfill or other appropriate waste disposal facility |
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authorized under state and federal law to dispose of that type of |
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component. |
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SECTION 6. Sections 302.0005(a), (b), (c), and (d), |
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Utilities Code, are amended to read as follows: |
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(a) A solar power facility agreement must provide that the |
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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 obligations |
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under [obligation to remove the grantee's solar power facilities |
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|
located on the landowner's property as described by] Section |
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302.0004. Acceptable forms of financial assurance include a parent |
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company guaranty with a minimum investment grade credit rating for |
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the parent company issued by a major domestic credit rating agency, |
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a letter of credit, a bond, or another form of financial assurance |
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reasonably 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, recycling or |
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disposing of all the components of the solar power facilities, and |
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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 solar power facilities, less any |
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portion of the value of the solar 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 solar power |
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facilities from the landowner's property, recycling or disposing of |
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all the components of the solar power facilities, and restoring the |
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property to as near as reasonably possible the condition of the |
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property as of the date the agreement begins and the estimated |
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salvage value of the solar power facilities must be determined by an |
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independent, third-party professional engineer licensed in this |
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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 recycling or disposal of the solar power facilities and |
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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, recycling, and disposal costs |
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and salvage value. |
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SECTION 7. Chapters 301 and 302, Utilities Code, as amended |
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by this Act, apply only to a wind or solar power facility agreement |
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entered into on or after the effective date of this Act. A wind or |
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solar power facility agreement entered into before the effective |
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date of this Act is governed by the law as it existed immediately |
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before that date, and that law is continued in effect for that |
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purpose. |
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SECTION 8. This Act takes effect September 1, 2025. |