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  S.B. No. 760
 
 
 
 
AN ACT
  relating to the removal of solar power facilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Title 6, Utilities Code, is
  amended to read as follows:
  TITLE 6. PRIVATE [WIND] POWER AGREEMENTS
         SECTION 2.  Title 6, Utilities Code, is amended by adding
  Chapter 302 to read as follows:
  CHAPTER 302. SOLAR POWER FACILITY AGREEMENTS
         Sec. 302.0001.  DEFINITIONS. In this chapter:
               (1)  "Grantee" means a person, other than an electric
  utility, as defined by Section 31.002, who:
                     (A)  leases property from a landowner; and
                     (B)  operates a solar power facility on the
  property.
               (2)  "Solar energy device" has the meaning assigned by
  Section 185.001.
               (3)  "Solar power facility" includes:
                     (A)  a solar energy device; and
                     (B)  a facility or equipment, other than a
  facility or equipment owned by an electric utility, as defined by
  Section 31.002, used to support the operation of a solar energy
  device, including an underground or aboveground electrical
  transmission or communications line, an electric transformer, a
  battery storage facility, an energy storage facility,
  telecommunications equipment, a road, a meteorological tower, or a
  maintenance yard.
               (4)  "Solar power facility agreement" means a lease
  agreement between a grantee and a landowner that authorizes the
  grantee to operate a solar power facility on the leased property.
         Sec. 302.0002.  APPLICABILITY. This chapter applies only to
  a solar power facility that is a generation asset as defined by
  Section 39.251.
         Sec. 302.0003.  WAIVER VOID; REMEDIES. (a) A provision of a
  solar power facility agreement that purports to waive a right or
  exempt a grantee from a liability or duty established by this
  chapter is void.
         (b)  A person who is harmed by a violation of this chapter is
  entitled to appropriate injunctive relief to prevent further
  violation of this chapter.
         (c)  The provisions of this section are not exclusive. The
  remedies provided in this section are in addition to any other
  procedures or remedies provided by other law.
         Sec. 302.0004.  REQUIRED AGREEMENT PROVISIONS ON FACILITY
  REMOVAL. (a) A solar power facility agreement must provide that
  the grantee is responsible for removing the grantee's solar power
  facilities from the landowner's property and that the grantee
  shall, in accordance with any other applicable laws or regulations,
  safely:
               (1)  clear, clean, and remove from the property each
  solar energy device, transformer, and substation;
               (2)  for each foundation of a solar energy device,
  transformer, or substation installed in the ground:
                     (A)  clear, clean, and remove the foundation from
  the ground to a depth of at least three feet below the surface grade
  of the land in which the foundation is installed; and
                     (B)  ensure that each hole or cavity created in
  the ground by the removal is filled with soil of the same type or a
  similar type as the predominant soil found on the property;
               (3)  for each buried cable, including power,
  fiber-optic, and communications cables, installed in the ground:
                     (A)  clear, clean, and remove the cable from the
  ground to a depth of at least three feet below the surface grade of
  the land in which the cable is installed; and
                     (B)  ensure that each hole or cavity created in
  the ground by the removal is filled with soil of the same type or a
  similar type as the predominant soil found on the property; and
               (4)  clear, clean, and remove from the property each
  overhead power or communications line installed by the grantee on
  the property.
         (b)  The agreement must provide that, at the request of the
  landowner, the grantee shall:
               (1)  clear, clean, and remove each road constructed by
  the grantee on the property; and
               (2)  ensure that each hole or cavity created in the
  ground by the removal is filled with soil of the same type or a
  similar type as the predominant soil found on the property.
         (c)  The agreement must provide that, at the request of the
  landowner, if reasonable, the grantee shall:
               (1)  remove from the property all rocks over 12 inches
  in diameter excavated during the decommissioning or removal
  process;
               (2)  return the property to a tillable state using
  scarification, V-rip, or disc methods, as appropriate; and
               (3)  ensure that:
                     (A)  each hole or cavity created in the ground by
  the removal is filled with soil of the same type or a similar type as
  the predominant soil found on the property; and
                     (B)  the surface is returned as near as reasonably
  possible to the same condition as before the grantee dug holes or
  cavities, including by reseeding pastureland with native grasses
  prescribed by an appropriate governmental agency, if any.
         (d)  The landowner shall make a request under Subsection (b)
  or (c) not later than the 180th day after the later of:
               (1)  the date on which the solar power facility is no
  longer capable of generating electricity in commercial quantities;
  or
               (2)  the date the landowner receives written notice of
  intent to decommission the solar power facility from the grantee.
         Sec. 302.0005.  REQUIRED AGREEMENT PROVISIONS ON FINANCIAL
  ASSURANCE. (a)  A solar power facility agreement must provide that
  the grantee shall obtain and deliver to the landowner evidence of
  financial assurance that conforms to the requirements of this
  section to secure the performance of the grantee's obligation to
  remove the grantee's solar power facilities located on the
  landowner's property as described by Section 302.0004. Acceptable
  forms of financial assurance include a parent company guaranty with
  a minimum investment grade credit rating for the parent company
  issued by a major domestic credit rating agency, a letter of credit,
  a bond, or another form of financial assurance reasonably
  acceptable to the landowner.
         (b)  The amount of the financial assurance must be at least
  equal to the estimated amount by which the cost of removing the
  solar power facilities from the landowner's property and restoring
  the property to as near as reasonably possible the condition of the
  property as of the date the agreement begins exceeds the salvage
  value of the solar power facilities, less any portion of the value
  of the solar power facilities pledged to secure outstanding debt.
         (c)  The agreement must provide that:
               (1)  the estimated cost of removing the solar power
  facilities from the landowner's property and restoring the property
  to as near as reasonably possible the condition of the property as
  of the date the agreement begins and the estimated salvage value of
  the solar power facilities must be determined by an independent,
  third-party professional engineer licensed in this state;
               (2)  the grantee must deliver to the landowner an
  updated estimate, prepared by an independent, third-party
  professional engineer licensed in this state, of the cost of
  removal and the salvage value:
                     (A)  on or before the 10th anniversary of the
  commercial operations date of the solar power facilities; and
                     (B)  at least once every five years after the
  commercial operations date of the solar power facilities for the
  remainder of the term of the agreement; and
               (3)  the grantee is responsible for ensuring that the
  amount of the financial assurance remains sufficient to cover the
  amount required by Subsection (b), consistent with the estimates
  required by this subsection.
         (d)  The grantee is responsible for the costs of obtaining
  financial assurance described by this section and costs of
  determining the estimated removal costs and salvage value.
         (e)  The agreement must provide that the grantee shall
  deliver the financial assurance not later than the earlier of:
               (1)  the date the solar power facility agreement is
  terminated; or
               (2)  the 20th anniversary of the commercial operations
  date of the solar power facilities located on the landowner's
  leased property. 
         (f)  For purposes of this section, "commercial operations
  date" means the date on which the solar power facilities are
  approved for participation in market operations by a regional
  transmission organization and does not include the generation of
  electrical energy or other operations conducted before that date
  for purposes of maintenance and testing.
         (g)  The grantee may not cancel financial assurance before
  the date the grantee has completed the grantee's obligation to
  remove the grantee's solar power facilities located on the
  landowner's property in the manner provided by this chapter, unless
  the grantee provides the landowner with replacement financial
  assurance at the time of or before the cancellation. In the event
  of a transfer of ownership of the grantee's solar power facilities,
  the financial security provided by the grantee shall remain in
  place until the date evidence of financial security meeting the
  requirements of this chapter is provided to the landowner.
         SECTION 3.  Chapter 302, Utilities Code, as added by this
  Act, applies only to a solar power facility agreement entered into
  on or after the effective date of this Act. A solar power facility
  agreement entered into before the effective date of this Act is
  governed by the law as it existed immediately before that date, and
  that law is continued in effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2021.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 760 passed the Senate on
  April 14, 2021, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendment on May 27, 2021, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 760 passed the House, with
  amendment, on May 19, 2021, by the following vote: Yeas 144,
  Nays 0, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor