89R14038 SCR/CJC-D

By: McLaughlin H.B. No. 3580

A BILL TO BE ENTITLED

AN ACT

relating to renewable energy generation facilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle F, Title 10, Government Code, is amended by adding Chapter 2278 to read as follows:

CHAPTER 2278. PROHIBITION ON GRANTING OF INCENTIVES FOR RENEWABLE

ENERGY GENERATION FACILITIES

Sec. 2278.001. DEFINITIONS. In this chapter:

(1) "Economic incentive" means a rebate, refund, or other monetary incentive offered by this state or a political subdivision of this state.

(2) "Renewable energy generation facility" means a renewable energy generation facility to which Subchapter F, Chapter 35, Utilities Code, applies.

(3) "Tax incentive" means an abatement, credit, discount, exclusion, exemption, limitation on taxable value, refund, special valuation, special accounting treatment, special appraisal method or provision, special rate, or special method of reporting authorized by state law or the state constitution that relates to a tax imposed by this state or a political subdivision of this state.

Sec. 2278.002. PROHIBITION ON INCENTIVES AND RENEWAL OF INCENTIVES. (a) Except as otherwise provided by this chapter, neither this state nor a political subdivision of this state may provide an economic incentive or a tax incentive to a person for the construction, maintenance, or operation of a renewable energy generation facility.

(b) An economic incentive or a tax incentive for the construction, maintenance, or operation of a renewable energy generation facility that was granted to a person before the date the incentive became disallowed under Subsection (a) may not be renewed after that date.

Sec. 2278.003. EXCEPTION: PREVIOUSLY GRANTED INCENTIVES. Subject to Section 2278.002(b), a person who is receiving an economic incentive or a tax incentive from this state or a political subdivision of this state for the construction, maintenance, or operation of a renewable energy generation facility under an agreement that was executed before the date the incentive becomes disallowed under Section 2278.002(a) may continue to receive the incentive as provided under the terms of that agreement.

SECTION 2. Chapter 35, Utilities Code, is amended by adding Subchapter F to read as follows:

SUBCHAPTER F. RENEWABLE ENERGY GENERATION FACILITY PERMIT

Sec. 35.201. DEFINITIONS. In this subchapter:

(1) "Person" includes an electric cooperative and a municipally owned utility.

(2) "Renewable energy generation facility" means:

(A) a wind power facility as defined by Section 301.0001; or

(B) a solar power facility as defined by Section 302.0001.

Sec. 35.202. APPLICABILITY. (a) This subchapter applies only to a renewable energy generation facility that is intended to be used to sell energy or ancillary services at wholesale.

(b) This subchapter applies to a renewable energy generation facility regardless of whether the facility is the subject of a wind power facility agreement or solar power facility agreement entered into under Chapter 301 or 302.

Sec. 35.203. PERMIT REQUIRED; APPLICATION. (a) A person may not interconnect a renewable energy generation facility to a transmission facility unless the person holds a permit to operate a renewable energy generation facility issued by the commission under this subchapter.

(b) A person may apply for a permit to operate a renewable energy generation facility by filing with the commission:

(1) a description of the location of the facility;

(2) a description of the type of facility;

(3) any assumed business or professional name of the applicant filed under Chapter 71, Business & Commerce Code;

(4) an impact review described by Subsection (c); and

(5) any other information required by commission rule.

(c) A person who applies for a permit under this subchapter must conduct an impact review of the facility to be permitted. The impact review must evaluate the potential effects of the facility relating to the following:

(1) the land in the area of the facility, including the potential for degradation, potential for soil contamination, and subsequent possibility for the land to be used for agricultural purposes;

(2) local water resources, including potential groundwater depletion, harmful runoff, and chemical contamination;

(3) local wildlife, including potential habitat destruction and long-term effects on biodiversity; and

(4) the local community and economy, including property values and infrastructure.

(d) The commission shall publish each permit application received under this section, including the impact review, on the commission's Internet website at least 60 days before the commission approves or denies the permit.

Sec. 35.204. APPROVAL OR DENIAL OF APPLICATION. The commission may approve an application only if:

(1) the commissioners court of the county in which the renewable energy generation facility is located consents; and

(2) the commission finds that issuance of the permit would not violate state law.

Sec. 35.205. POWER TO REGULATE AND SUPERVISE. (a) For purposes of this subchapter, a provision of Subchapter B or E, Chapter 14, that authorizes the commission to regulate a public utility also applies to a person required to obtain a permit under this subchapter, including an electric cooperative and a municipally owned utility.

(b) The commission may adopt and enforce rules reasonably required in the exercise of its powers under this subchapter.

Sec. 35.206. ENFORCEMENT AND PENALTIES. For the purposes of enforcing this subchapter, a reference in Chapter 15 to a person includes any person required to obtain a permit under this subchapter, including an electric cooperative and a municipally owned utility.

SECTION 3. Chapter 2278, Government Code, as added by this Act, applies to an economic incentive or a tax incentive received by a person regardless of the date the person first began receiving the incentive and irrespective of whether the incentive is the subject of an agreement between the person and this state or a political subdivision of this state.

SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.