HB3228 - Relating to the inclusion of certain provisions in lease agreements for wind or solar power facilities.

      H.B. No. 3228         AN ACT   relating to the inclusion of certain provisions in lease agreements   for wind or solar power facilities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 301.0001, Utilities Code, is amended by   adding Subdivision (1-a) and amending Subdivision (2) to read as   follows:                 (1-a)     "Recycle" means the processing of an item to   recover a usable product.                (2)  "Wind power facility" includes:                      (A)  a wind turbine generator and any related   components of the wind turbine, including a nacelle, a rotor hub,   blades, and a gearbox assembly ; and                      (B)  a facility or equipment used to support the   operation of a wind turbine generator, including an underground or   aboveground electrical transmission or communications line, an   electric transformer, a battery energy  storage facility or other [ ,   an ] energy storage facility, telecommunications equipment, a road,   a meteorological tower with wind measurement equipment, or a   maintenance yard.          SECTION 2.  Section 301.0003, Utilities Code, is amended by   adding Subsection (a-1) to read as follows:           (a-1)     A wind power facility agreement must provide that the   grantee is responsible for:                 (1)     collecting and reusing or recycling, or shipping   for reuse or recycling, all components of the wind power facility   practicably capable of being reused or recycled, including the wind   turbine blades, in accordance with any other applicable laws or   regulations; and                 (2)     disposing of all components of the wind power   facility not practicably capable of being reused or recycled:                       (A)     at a facility authorized under state and   federal law to dispose of hazardous substances for a component   considered hazardous under those laws; or                       (B)     for nonhazardous components, at a municipal   solid waste landfill or other appropriate waste disposal facility   authorized under state and federal law to dispose of that type of   component.          SECTION 3.  Sections 301.0004(a), (b), (c), and (d),   Utilities Code, are amended to read as follows:          (a)  A wind 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 obligations   under [ obligation to remove the grantee's wind power facilities   located on the landowner's property as described by ] Section   301.0003.  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   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 wind   power facilities from the landowner's property , recycling or   disposing of all the components of the wind power facilities, 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 wind power facilities, less any   portion of the value of the wind power facilities pledged to secure   outstanding debt.          (c)  The agreement must provide that:                (1)  the estimated cost of removing the wind power   facilities from the landowner's property , recycling or disposing of   all the components of the wind power facilities, 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 wind 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 recycling or disposal of the wind power facilities and   the salvage value at least once every five years 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 , recycling, and disposal costs   and salvage value.          SECTION 4.  Section 302.0001, Utilities Code, is amended by   adding Subdivision (1-a) and amending Subdivision (3) to read as   follows:                 (1-a) "Recycle" means the processing of an item to   recover a usable product.                (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 energy storage facility or other [ , an ] energy storage   facility, telecommunications equipment, a road, a meteorological   tower, or a maintenance yard.          SECTION 5.  Section 302.0004, Utilities Code, is amended by   adding Subsection (a-1) to read as follows:           (a-1)     A solar power facility agreement must provide that the   grantee is responsible for:                 (1)     collecting and reusing or recycling, or shipping   for reuse or recycling, all components of the solar power facility   practicably capable of being reused or recycled, including the   photovoltaic modules, in accordance with any other applicable laws   or regulations; and                 (2)     disposing of all components of the solar power   facility not practicably capable of being reused or recycled:                       (A)     at a facility authorized under state and   federal law to dispose of hazardous substances for a component   considered hazardous under those laws; or                       (B)     for nonhazardous components, at a municipal   solid waste landfill or other appropriate waste disposal facility   authorized under state and federal law to dispose of that type of   component.          SECTION 6.  Sections 302.0005(a), (b), (c), and (d),   Utilities Code, are amended to read as follows:          (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 obligations   under [ 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 , recycling or   disposing of all the components of the solar power facilities, 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 , recycling or disposing of   all the components of the solar power facilities, 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 recycling or disposal of the solar power facilities 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 , recycling, and disposal costs   and salvage value.          SECTION 7.  Chapters 301 and 302, Utilities Code, as amended   by this Act, apply only to a wind or solar power facility agreement   entered into on or after the effective date of this Act.  A wind or   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 8.  This Act takes effect September 1, 2025.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 3228 was passed by the House on April   25, 2025, by the following vote:  Yeas 120, Nays 0, 1 present, not   voting; and that the House concurred in Senate amendments to H.B.   No. 3228 on May 23, 2025, by the following vote:  Yeas 137, Nays 0,   1 present, not voting.     ______________________________   Chief Clerk of the House               I certify that H.B. No. 3228 was passed by the Senate, with   amendments, on May 19, 2025, by the following vote:  Yeas 31, Nays   0. &# [Text truncated for display. Full text available on Congress.gov.]