By: Darby H.B. No. 5576

A BILL TO BE ENTITLED

AN ACT

relating to certain best management practices and to certain requirements for the design, construction, and operation of certain wind and solar power facilities in this state.

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

SECTION 1. Title 6, Utilities Code, is amended by adding Chapter 303 to read as follows:

CHAPTER 303. BEST MANAGEMENT PRACTICES FOR CERTAIN WIND AND SOLAR

POWER FACILITIES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 303.001. APPLICABILITY. (a) This chapter applies only to a utility-scale wind or solar power facility located in this state that is not developed or operated by an electric utility as defined by Section 31.002.

(b) This chapter applies to a battery energy storage facility only if it is co-located with a utility-scale wind or solar power facility located in this state.

Sec. 303.002. PURPOSE. (a) This chapter encourages responsible practices by developers of utility-scale wind and solar power facilities for the design, construction, and operation of those facilities that appropriately balance the need for abundant, affordable, domestic electricity in this state, as part of a diverse portfolio of resources, with the need to conserve sensitive habitat, working lands, and wildlife; avoid undue impacts on neighboring landowners; and protect the rights of private landowners to responsibly develop their own property. The legislature recognizes that delegating subjective decision-making authority to a governmental entity or any other bureaucratic entity would substitute the judgment of government officials for that of private landowners as to the highest and best use of their private property. Such an approach is inconsistent with principles of limited government and the manner in which the development of other energy resources is regulated in this state.

(b) The legislature finds that establishing, in this chapter, clear responsibilities for developers of utility-scale wind and solar power facilities will ensure responsible development and reduce undue impacts on neighboring landowners, communities, and associated wildlife habitats and populations.

(c) The legislature finds that development practices for stand-alone battery energy storage facilities that are not co-located with a utility-scale wind or solar power facility present considerations that are entirely different from those presented by a utility-scale wind or solar power facility, and that, accordingly, best practices for development of stand-alone battery energy storage projects, if addressed by law, should be separately addressed.

(d) This chapter:

(1) ensures that appropriate project best management practices are considered when designing, constructing, and operating utility-scale wind or solar power facilities; and

(2) provides appropriate practices to reduce potential impacts on adjoining landowners while protecting the rights of private landowners to develop their property in the manner that they consider appropriate.

Sec. 303.003. DEFINITIONS. In this chapter:

(1) "Developer" means a person or entity that possesses the legal right to develop, construct, or operate a utility-scale wind or solar power facility.

(2) "Disturbance zone" includes:

(A) the area within the site of a utility-scale solar power facility or a utility-scale wind power facility that is directly impacted by construction or operation of the facility; and

(B) the area within the project site within 50 feet of the boundary of the directly impacted area described by Paragraph (A).

(3) "Electric Reliability Council of Texas" means the independent organization certified under Section 39.151 for the ERCOT power region.

(4) "ERCOT power region" means the area in Texas served by electric utilities as defined by Section 31.002, municipally owned utilities as defined by Section 11.003, and electric cooperatives as defined by Section 11.003 that is not synchronously interconnected with electric utilities outside this state.

(5) "Intact native prairie" means grassland dominated by native prairie vegetation with a diversity of forbs that has never been plowed or significantly disturbed, with few or no trees.

(6) "Sensitive areas" include:

(A) jurisdictional waters of the United States under Section 404 of the Clean Water Act (33 U.S.C. 1344) or Section 10 of the Rivers and Harbors Act (33 U.S.C. 403);

(B) areas occupied by rare, threatened, or endangered species, and critical habitats for those species;

(C) intact native prairie; and

(D) areas with cultural, historic, or archaeological significance.

(7) "Solar power facility" means a site that includes solar energy devices used to generate electricity and the onsite roads and equipment used to construct, operate and support the facility's solar energy devices.

(8) "Transmission service provider" means an electric utility as defined by Section 31.002, a municipally owned utility as defined by Section 11.003, or an electric cooperative as defined by Section 11.003 that owns or operates facilities used for the transmission of electricity.

(9) "Utility-scale wind or solar power facility" means a solar power facility or wind power facility that is interconnected to a transmission service provider's system at or above 60 kilovolts (kV) and is located behind one or more unique points of interconnection.

(10) "Wind power facility" means a site that includes wind turbine generators used to generate electricity and the onsite roads and equipment used to construct, operate and support the facility's wind turbine generators.

Sec. 303.004. PERMIT NOT REQUIRED. It is the policy of this state that no state or local entity or grid operator shall be allowed to require a permit to:

(1) construct or operate a utility-scale wind or solar power facility; or

(2) interconnect a utility-scale wind or solar power facility with a transmission service provider.

SUBCHAPTER B. COMMUNITY AND GOOD NEIGHBOR BEST PRACTICES

Sec. 303.051. PURPOSE OF BEST MANAGEMENT PRACTICES UNDER THIS SUBCHAPTER. This subchapter is designed to inform nearby landowners and communities about a proposed utility-scale wind or solar power facility and minimize the project's impact on adjoining landowners.

Sec. 303.052. DISCLOSURE OF CERTAIN INFORMATION. This subchapter does not require the disclosure of:

(1) proprietary or otherwise sensitive business information;

(2) information protected from disclosure under other state or federal law or regulation; or

(3) specific engineering, vulnerability, or detailed design information about proposed or existing critical infrastructure, whether physical or virtual, that:

(A) relates details about the production, generation, transmission, or distribution of energy;

(B) could be useful to a person planning an attack on critical infrastructure; or

(C) gives strategic information beyond the location of the critical infrastructure.

Sec. 303.053. PROJECT WEBSITE. The developer of a utility-scale wind or solar power facility must maintain a project website available to the public and published not later than 30 days after execution of a signed interconnection agreement. The website must include, as available:

(1) the name of the facility;

(2) the developer for the facility;

(3) technologies operating at the site of the facility as defined in the interconnection agreement;

(4) expected installed capacity of the facility, expressed in megawatts, and contextual information including how many homes can be powered by the energy that the facility is expected to generate;

(5) the cities, unincorporated areas, and counties in which the utility-scale solar or wind power facility is located;

(6) the estimated project timeline;

(7) projected community benefits of the construction and operation of the facility; and

(8) business contact information for relevant members of the project team in charge of matters including project development and community engagement.

Sec. 303.054. REQUIRED SIGNAGE. The developer of a utility-scale wind or solar power facility shall post signs at designated entry and exit points of the facility that can be easily read from outside the facility that include the name of the facility, the name of the developer, and an emergency contact number. The signs must be posted before construction and maintained for the duration of the operation of the facility.

Sec. 303.055. LIGHTING REQUIREMENTS. To minimize the impact of lights during construction and operations, utility-scale wind and solar power facilities must implement the following measures to the extent allowed by law:

(1) service and security lighting must be directed downward and shielded;

(2) service lighting must be manual and used only as needed to conduct nighttime repairs;

(3) security lighting must be motion-activated unless otherwise required for physical security of the facility as required under federal or state law or regulation or applicable national standards; and

(4) all service and security lighting shall be located to avoid known nesting sites of federal or state-listed threatened or endangered bird species identified during the on-site reconnaissance survey.

Sec. 303.056. WIND TURBINE LIGHT POLLUTION MITIGATION. (a) This section applies only to a utility-scale wind power facility that:

(1) is required by the Federal Aviation Administration to use aviation obstruction lighting; and

(2) sells at wholesale electric energy produced by a wind turbine generator.

(b) The Public Utility Commission of Texas by rule shall require the developer to apply to the Federal Aviation Administration, or another applicable federal entity, for authorization to install and operate technology to mitigate light pollution from the wind turbine generator using a light mitigation technology system.

(c) The rules adopted under Subsection (b) must require a developer that:

(1) installs a wind turbine generator on or after December 31, 2026, to:

(A) submit an application for approval of light mitigation technology to the Federal Aviation Administration or other applicable federal entity not later than 180 days before the commercial operations date for the wind turbine generator;

(B) install light mitigation technology on all wind turbine generators not later than 18 months after receiving approval of the technology from the Federal Aviation Administration or other applicable federal entity, unless:

(i) the governing body of the city or county in which the utility-scale wind power facility is or will be located has adopted a formal resolution opposing the installation of a light mitigation technology system; or

(ii) the Federal Aviation Administration, the United States Department of Defense, or other applicable federal entity approves the use of light mitigation technology for thirty percent or less of the proposed wind turbines within a utility-scale wind power generation facility; and

(C) if installation of the light mitigation technology is delayed due to forces outside of the control of the developer, make a quarterly report to the Public Utility Commission of Texas detailing the reasons for the delay; and

(2) installs a wind turbine generator before December 31, 2026, to:

(A) on repowering, or not later than the 180th day after the execution of a newly signed long-term power purchase agreement with a term of 10 years or more, submit an application for approval of light mitigation technology to the Federal Aviation Administration or other applicable federal entity;

(B) install light mitigation technology on all wind turbine generators to which this subdivision applies not later than 18 months after receiving approval of the technology from the Federal Aviation Administration or other applicable federal entity, unless:

(i) the governing body of the city or county in which the utility-scale wind power facility is or will be located has adopted a formal resolution opposing the installation of a light mitigation technology system; or

(ii) the Federal Aviation Administration, the United States Department of Defense, or other applicable federal entity approves the use of light mitigation technology for thirty percent or less of the proposed wind turbines within a utility-scale wind power generation facility; and

(C) if installation of the light mitigation technology is delayed due to forces outside of the control of the developer, make a quarterly report to the Public Utility Commission of Texas detailing the reasons for the delay.

(d) Subsection (c)(2) applies only to a wind turbine generator with a commercial operations date that occurred after December 31, 2008.

(e) The Public Utility Commission of Texas may assess an administrative penalty against a developer that violates this section for reasons that were within its control. The total amount of the administrative penalty assessed for the violation, including a violation that continues or occurs on separate days, may not exceed $1 million.

SUBCHAPTER C. FOUNDATIONAL BEST MANAGEMENT PRACTICES

Sec. 303.101. REQUIRED PROVISION IN FACILITY CONSTRUCTION CONTRACTS. (a) A contract for the construction of a utility-scale wind or solar power facility must require the contractor and any subcontractors to follow any applicable:

(1) requirements of this subchapter; and

(2) best management practices identified in this subchapter in the manner specified by this subchapter.

(b) A provision of a utility-scale wind or solar power facility construction contract that exempts a contractor or subcontractor from a duty established by this chapter is void.

Sec. 303.102. BEST DESIGN PRACTICES. (a) The overall design, construction and operation of a utility-scale wind or solar power facility should seek to efficiently achieve the facility's intended capacity and safe operation while minimizing the impact of the facility on land and avoiding or minimizing the impact of the facility on natural resources.

(b) Developers should attempt to:

(1) use existing trails and roads, provided they are suitable for construction operations;

(2) avoid unnecessary access roads; and

(3) avoid unnecessary staging areas.

(c) Developers should avoid developing utility-scale solar power facilities on slopes with a grade of fifteen percent or more, where possible, and additional stormwater management features should be in place for steeper grades.

(d) The utility-scale wind or solar power facility siting process should avoid or minimize:

(1) impacts to wetlands, streams and watercourses;

(2) the removal of native mature trees that have not been planted for harvest; and

(3) impact to intact native prairie.

Sec. 303.103. BEST PRACTICES BEFORE CONSTRUCTION: SOLAR POWER FACILITY. (a) Before starting construction of a utility-scale solar power facility, the developer must develop a vegetation and soil management plan. The plan must describe short and long-term vegetation and soil management practices to maintain native, naturalized, or non-invasive perennial vegetation.

(b) The project plan must show where suitable features have been identified and designated for the appropriate maintenance regimes. Project plans must clearly delineate sensitive areas, if present, and project boundaries and direct contractors and subcontractors to avoid encroaching outside of areas of temporary disturbance during construction.

(c) The project plan must also include the following sections:

(1) an inventory of current land use, existing vegetation types and soils;

(2) goals and objectives;

(3) conservation practices;

(4) site-specific planning; and

(5) implementation and maintenance.

(d) Before starting construction, the developer must ensure that topsoil is clearly delineated in the disturbance zone on the project site.

SUBCHAPTER D. ATTESTATION OF COMPLIANCE

Sec. 303.151. REQUIRED ATTESTATION. (a) Prior to interconnecting, an authorized representative of the developer of a utility-scale wind or solar facility shall file as specified in this section a signed attestation that:

(1) the developer has complied with all applicable requirements of this chapter in the construction of the facility; and

(2) all federal or state environmental permits required for the construction and operation of the facility have been applied for or received by the developer.

(b) The attestation must meet the requirements of this subchapter and be signed by a representative of the facility authorized to bind the developer.

(c) The attestation must include the following required information:

(1) the name of the facility and project legal entity;

(2) the name and contact information for the developer, including address, email, and phone number;

(3) the facility's street address or another description of the facility location that can easily be determined on a map, the location of the project by latitude and longitude, and the city or county in which the facility is located;

(4) a link to the project website required under Section 303.103; and

(5) a brief description of the facility.

(d) The developer of the facility shall submit the attestation to:

(1) the Electric Reliability Council of Texas, if the facility is located in the ERCOT power region; or

(2) the Public Utility Commission of Texas, if the facility is not located in the ERCOT power region.

(e) The requirements of this subchapter apply:

(1) to a utility-scale wind or solar power facility located in the ERCOT power region that enters into a Standard Generation Interconnection Agreement with a transmission service provider on or after January 1, 2028; and

(2) to a utility-scale wind or solar power facility that is not required to enter into a Standard Generation Interconnection Agreement with a transmission service provider before beginning commercial operations that begins commercial operations on or after January 1, 2031.

(f) The requirements of this subchapter do not apply solely because a Standard Generation Interconnection Agreement for an existing facility is amended.

SECTION 2. (a) An interim study committee is established consisting of an academic expert with expertise that includes locating utility-scale wind and solar power facilities, appointed by the governor, and the chairs of the House Committee on Culture, Recreation, and Tourism, the House Committee on State Affairs, the Senate Committee on Natural Resources, and the Senate Committee on Business and Commerce.

(b) Not later than December 15, 2026, the interim study committee shall make written recommendations to the legislature regarding an appropriate distance from a state or national park or federally designated wild or scenic river at which a proposed utility-scale wind or solar power facility that the developer of the facility should be required to consult with the Parks and Wildlife Department regarding voluntary measures the developer should consider to minimize the proposed facility's impact on those areas without unduly impeding the development of this state's energy resources or restricting the private property rights of landowners in this state.

SECTION 3. This Act takes effect September 1, 2025.