Kolkhorst Bill Makes Wind And Solar Projects Apply To Connect

The text as introduced · 2,334 words

89R5788 SCR/CJC-F

By: Kolkhorst, et al.
S.B. No. 819

A BILL TO BE ENTITLED

AN ACT

relating to renewable energy generation facilities; authorizing

fees.

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

SECTION 1. 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; APPLICABILITY. (a) In this

subchapter:

(1) "Permit holder" means a person who holds a permit

issued under this subchapter.

(2) "Person" includes an electric cooperative and a

municipally owned utility.

(3) "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.

(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.

(c) This subchapter does not apply to a solar power facility

located in the corporate boundaries of a home-rule municipality.

Sec. 35.202. LEGISLATIVE POLICY AND PURPOSE. The

conservation and development of all the natural resources of this

state are declared to be public rights and duties. It is also

declared that balancing private property rights, the need to

increase electric generation, and the need to mitigate unreasonable

impacts of renewable energy generation facilities on wildlife,

water, and land in this state is in the public interest. In the

exercise of the police power of this state, it is necessary and

desirable to provide additional means so that the installation and

removal of renewable energy generation facilities is placed under

the authority and direction of the commission.

Sec. 35.203. PERMIT REQUIRED; APPLICATION. (a) A person

may not interconnect a renewable energy generation facility with a

capacity of 10 megawatts or more to a transmission facility unless:

(1) the person holds a permit to operate a renewable

energy generation facility issued by the commission under this

subchapter; or

(2) the commission by order approves the construction

of the generation facility.

(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) a copy of any information filed with the Federal

Energy Regulatory Commission in connection with registration with

that commission;

(4) any assumed business or professional name of the

applicant filed under Chapter 71, Business & Commerce Code;

(5) an environmental impact review conducted by the

Parks and Wildlife Department under Section 12.0012, Parks and

Wildlife Code;

(6) any wind power facility agreement or solar power

facility agreement applicable to the facility entered into under

Chapter 301 or 302 by the applicant;

(7) the address of an Internet website that provides

information about the proposed facility; and

(8) any other information required by commission rule,

provided that in requiring that information the commission shall

protect the competitive process in a manner that ensures the

confidentiality of competitively sensitive information.

(c) Notwithstanding Subsection (a), a person who

interconnected a renewable energy generation facility to a

transmission facility before September 1, 2025, must apply for a

permit under this subchapter only if the person:

(1) increases the amount of electricity generated by

the facility by five megawatts or more; or

(2) materially changes the placement of the renewable

energy generation facility.

Sec. 35.204. NOTICE AND MEETING. (a) The commission by rule

shall require an applicant for a permit or a permit amendment to:

(1) provide notice of the application to the county

judge of each county located within 25 miles of the boundary of the

renewable energy generation facility that is the subject of the

permit;

(2) hold a public meeting to obtain public input on the

proposed permit or permit amendment; and

(3) after applying for the permit or permit amendment,

publish for at least two consecutive publications in a newspaper of

general circulation in each county in which the renewable energy

generation facility that is the subject of the permit will be or is

located a notice that includes:

(A) the time and place of the public meeting; and

(B) a link to a publicly accessible Internet

website that provides information about the facility and

information regarding the public meeting.

(b) A public meeting held under this section must be held in

a location that is:

(1) not more than 25 miles from the boundary of the

renewable energy generation facility that is the subject of the

permit; or

(2) if a suitable meeting place is not available in a

location described by Subdivision (1), in the nearest suitable

meeting location.

(c) The commission may not approve or deny an application

for a permit or permit amendment before the 30th day after the date

the applicant conducts the public meeting required by this section.

(d) Notwithstanding any other provision of this subchapter,

the commission may approve an application to amend a permit without

requiring a public meeting if:

(1) the applicant is not applying to:

(A) significantly increase the amount of

electricity generated under the permit; or

(B) materially change the placement of the

renewable energy generation facility;

(2) the commission determines that the applicant's

compliance history raises no issues regarding the applicant's

ability to comply with a material term of the permit; and

(3) the commission:

(A) gives notice of the application to the county

judge of each county and the governing body of each municipality in

which the facility is located at least 30 days before the date of

the commission's approval of the application; and

(B) allows the county judges and governing bodies

to present information to the commission on the application.

Sec. 35.205. APPROVAL OR DENIAL OF APPLICATION. (a) The

commission may approve an application only if the commission finds

that issuance or amendment of the permit would not violate state or

federal law or rule and would not interfere with the purpose of this

subchapter.

(b) In considering an application for the issuance or

amendment of a permit, the commission shall consider the compliance

history of the applicant.

(c) A permit holder does not have a vested right in a permit.

Sec. 35.206. CONDITIONS OF PERMIT. (a) For each permit,

the commission shall prescribe the conditions under which it is

issued, including:

(1) the boundary of the permitted facility location;

(2) the maximum number of renewable energy generation

facilities authorized by the permit; and

(3) any monitoring and reporting requirements

prescribed by the commission for the permit holder.

(b) The commission, on its own motion after reasonable

notice and hearing, may require a permit holder to conform to new or

additional conditions to comply with this subchapter or rules

adopted under this subchapter.

(c) A permit holder shall:

(1) for a solar power facility, ensure that all

permitted facility equipment is located at least:

(A) 100 feet from any property line, unless the

permit holder has obtained a written waiver from each owner of

property located less than 100 feet from the permitted facility;

and

(B) 200 feet from any habitable structure, unless

the permit holder has obtained a written waiver from each owner of

the habitable structure;

(2) for a wind power facility, ensure that all

permitted facility equipment is located at least 3,000 feet from

the property line of each property that borders the property on

which the permitted facility is located, unless the permit holder

has obtained a written waiver from each owner of property located

less than 3,000 feet from the permitted facility;

(3) provide a publicly accessible Internet website

that displays:

(A) a map of the boundaries of the permitted

facility;

(B) any interconnection request numbers assigned

to the permitted facility;

(C) the name of the owner of the permitted

facility; and

(D) any other information required by the

commission; and

(4) provide evidence to the commission that the permit

holder has complied with Chapter 301 or 302, as applicable, by

providing financial assurance in the form of a bond.

(d) The distance from the property line required by

Subsection (c)(2) must be measured as a straight line from the

vertical centerline of the wind turbine to the nearest point on the

property line.

Sec. 35.207. MONITORING AND REPORTING. The commission by

rule may, in coordination with the Parks and Wildlife Department,

require a permit holder to:

(1) monitor, record, and report on environmental

impacts created by the permitted facility;

(2) conduct wildlife assessments around the permitted

facility and provide assessment results to the Parks and Wildlife

Department in a form and according to deadlines required by the

department;

(3) adapt operations based on information obtained

under Subdivisions (1) and (2) to minimize facility effects on

bats, birds, and other wildlife; and

(4) provide to the commission and the Parks and

Wildlife Department other information about the operation of the

permitted facility.

Sec. 35.208. RENEWABLE ENERGY GENERATION FACILITY CLEANUP

FUND. (a) The renewable energy generation facility cleanup fund is

a dedicated account in the general revenue fund.

(b) The fund consists of:

(1) environmental impact fees collected under Section

35.209;

(2) gifts, grants, and donations; and

(3) legislative appropriations.

(c) Money in the fund may be used only by the commission to

implement this subchapter.

Sec. 35.209. ENVIRONMENTAL IMPACT FEE. (a) An annual

environmental impact fee is imposed on each permit holder.

(b) Environmental impact fees must be deposited in the

renewable energy generation facility cleanup fund.

(c) The fee for each year is imposed on each permit in effect

during any part of the year. The commission may establish reduced

fees for inactive permits.

(d) The commission by rule shall adopt a fee schedule for

determining the amount of the fee to be charged. In determining the

amount of a fee under this section, the commission may consider:

(1) the efficiency of the renewable energy generation

facility;

(2) the area and size of the renewable energy

generation facility;

(3) the renewable energy generation facility's

environmental impact score provided under Section 12.0012, Parks

and Wildlife Code; and

(4) expenses necessary to implement this subchapter.

Sec. 35.210. FEDERAL FUNDS. The commission may execute

agreements with the United States Environmental Protection Agency

or any other federal agency that administers programs providing

federal cooperation, assistance, grants, or loans for research,

development, investigation, training, planning, studies,

programming, or construction related to methods, procedures,

mitigation, and facilities for the removal of renewable energy

generation facilities. The commission may accept federal funds for

these purposes and for other purposes consistent with the

objectives of this subchapter and may use the funds as prescribed by

law or as provided by agreement.

Sec. 35.211. 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. 35.212. 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 2. Subchapter A, Chapter 12, Parks and Wildlife

Code, is amended by adding Section 12.0012 to read as follows:

Sec. 12.0012. ENVIRONMENTAL IMPACT REVIEW FOR RENEWABLE

ENERGY GENERATION FACILITIES. The commission by rule shall adopt a

system for providing an environmental impact review in a format

established by the commission to an applicant for a renewable

energy generation facility permit under Section 35.203, Utilities

Code, based on materials provided by the applicant. The system must

establish:

(1) a process for a person to apply for and receive

from the department an environmental impact review;

(2) criteria for the department to evaluate the

environmental impact of a proposed renewable energy generation

facility, including:

(A) the facility's prioritization of natural

resource conservation, wildlife conservation management, and

agricultural use of land;

(B) use of the land on which the facility is

located for agricultural purposes;

(C) the applicant's commitment to and planned

implementation of avoidance and minimization measures to conserve

natural resources; and

(D) agricultural best practices developed by the

department in coordination with the Texas A&M AgriLife Extension

Service;

(3) a method for the department to provide an

environmental impact score for a renewable energy generation

facility, based on the criteria described by Subdivision (2);

(4) fees for providing the environmental impact

reviews, in an amount sufficient to cover the department's costs of

implementing this section; and

(5) guidelines for the department's use of any map

applications necessary for the implementation of this section,

including the applicant's mapping of specific areas and other

aspects required by the department to produce an effective and

timely review.

SECTION 3. Subchapter A, Chapter 312, Tax Code, is amended

by adding Section 312.0022 to read as follows:

Sec. 312.0022. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN

RENEWABLE ENERGY GENERATION FACILITY PROPERTY. (a) In this

section, "renewable energy generation facility" has the meaning

assigned by Section 35.201, Utilities Code.

(b) This section applies only to a renewable energy

generation facility that has or will have a generation capacity of

10 megawatts or more.

(c) The governing body of a taxing unit may not enter into an

agreement under this chapter to exempt from taxation a portion of

the value of real property on which a renewable energy generation

facility is located or is planned to be located during the term of

the agreement, or of tangible personal property that is located or

is planned to be located on the real property during that term.

SECTION 4. Section 312.0022, Tax Code, as added by this Act,

applies only to an agreement entered into under Chapter 312, Tax

Code, on or after the effective date of this Act.

SECTION 5. This Act takes effect September 1, 2025.