McLaughlin Bill Ends Tax Breaks For Wind And Solar Plants

The text as introduced · 982 words

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.