bill putting recycling duties in wind and solar leases

The text as introduced · 1,396 words

89R3533 RDR-F

By: Perry
S.B. No. 2657

A BILL TO BE ENTITLED

AN ACT

relating to the inclusion of recycling or disposal provisions in

certain lease agreements of 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 storage facility, 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) to read as follows:

(1-a) "Recycle" means the processing of an item to

recover a usable product.

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.