Zaffirini Bill Lets Counties Zone Data Centers, Maybe Substations Too

The text as introduced · 2,211 words

By: Zaffirini
S.B. No. 34

A BILL TO BE ENTITLED

AN ACT

relating to county authority to regulate the development of certain

large electricity users.

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

SECTION 1 Chapter 231, Local Government Code, is amended

by adding Subchapter N to read as follows:

SUBCHAPTER N. COUNTY REGULATION OF LARGE-LOAD ELECTRICITY USERS

Sec. 231.301. DEFINITIONS. In this subchapter:

(1) "Large computational load facility" means a tract

or one or more contiguous or noncontiguous tracts of land under

common ownership or control that are developed or proposed for

development for use by a large computational load.

(2) "County large computational load zoning district"

means a zoning district established under this subchapter.

(3) "Large computational load" means a business that:

(A) is primarily engaged in:

(i) creating, executing, and delivering

software applications and services;

(ii) artificial intelligence training,

deployment, and delivery;

(iii) adding virtual currency transactions

to a distributed ledger; or

(iv) other computational activities at a

data center; and

(B) is a large load under Section 37.0561,

Utilities Code; or

(C) a substation, transmission or distribution

facilities, or other electric infrastructure designed to serve the

facility or project; and

(D) in determining whether a facility or project

meets the requirements of Paragraph (B), the county may aggregate

related facilities, phases, contiguous or noncontiguous tracts,

meters, or projects that are under common ownership or control or

are developed, financed, constructed, or operated as part of a

common plan.

(4) "Project" includes the construction of a new large

computational load or a material expansion, redevelopment, or

change in the use of an existing facility. A material expansion is

an increase in electricity demand of at least 10 megawatts.

Sec. 231.302. APPLICABILITY. This subchapter applies only to

the unincorporated area of a county.

Sec. 231.303. AUTHORITY TO ESTABLISH LARGE COMPUTATIONAL

LOAD ZONING DISTRICTS. (a) To protect the public health, safety,

and welfare, promote the orderly development of the county, and

ensure that county residents benefit from large computational load

development, the commissioners court may establish one or more

county large computational load zoning districts and regulate the

location and development of large computational load and large

computational load within a district consistent with this

subchapter.

(b) A district may include all or part of the unincorporated

area of the county. The boundaries of the district must be

described by metes and bounds or shown on a map adopted as part of

the order establishing the district.

(c) A zoning district or district boundary is not effective

until adopted by the commissioners court after a public hearing.

Before adopting a district or district boundary, the commissioners

court shall provide public notice and hold a public hearing in

accordance with procedures adopted by the court.

(d) After the commissioners court provides notice of a

hearing to establish or amend a county large computational load

zoning district, a person may not begin construction or development

of, or materially expand, redevelop, or materially change the use

of, a county large computational load facility within the area

described in the notice until the commissioners court:

(1) adopts or rejects the proposed district or

amendment; or

(2) fails to take action on the proposed district or

amendment before the 91st day after the date notice is provided.

Sec. 231.304. ZONING REGULATIONS. (a) The commissioners

court may adopt reasonable zoning regulations within a county large

computational load zoning district governing county large

computational load facilities and large computational load,

including regulations addressing:

(1) the location of a county large computational load

facility;

(2) minimum lot size and tract dimensions;

(3) setbacks, buffers, landscaping, screening, and

open-space requirements;

(4) measures reasonably necessary to protect nearby

residential, educational, medical, agricultural, or

environmentally sensitive uses from incompatible development;

(5) access roads, traffic mitigation, emergency

access, and transportation impacts;

(6) noise, vibration, exterior lighting, and other

off-site impacts;

(7) water supply, water conservation, cooling

technology, wastewater service, stormwater management, drainage,

floodplain management, and land subsidence risks, as applicable;

(8) fire protection, emergency response, law

enforcement, and other public safety considerations;

(9) improvements, mitigation measures, capacity

requirements, and service arrangements necessary to address

project-related demands on county roads, bridges, drainage and

flood-mitigation infrastructure, facilities, services, and county

infrastructure capacity;

(10) disclosure of information necessary for the

county to evaluate impacts on public infrastructure, water

resources, emergency services, public safety, and county finances,

subject to Chapter 552, Government Code;

(11) reasonable mitigation measures, road-use

agreements, infrastructure agreements, and cost-sharing agreements

reasonably related to project impacts and necessary to ensure that

project-related county infrastructure, mitigation, remediation,

and service costs are borne by the project rather than county

taxpayers;

(12) performance bonds, closure bonds, site-

restoration commitments, and other financial assurances necessary

to ensure compliance and address abandonment, prolonged

inactivity, decommissioning, demolition, remediation, removal of

equipment or hazardous materials, and final site restoration; and

(13) any other reasonable land-use regulation

directly related to the public health, safety, or welfare or the

orderly development of the county.

(b) A zoning regulation adopted under this section must be

reasonably related to a documented or reasonably foreseeable impact

of a large computational load and may not be arbitrary or unrelated

to a purpose authorized by this subchapter.

(c) The county may determine the amount, form, duration,

issuer, renewal requirements, and conditions for release of a

performance bond, closure bond, letter of credit, or other

financial assurance. The amount must be reasonably related to the

anticipated cost of compliance, mitigation, remediation,

decommissioning, or site restoration.

(d) A county may not adopt regulations that directly

conflict with a regulation adopted by a state agency.

Sec. 231.305. SPECIAL USE PERMIT. (a) The commissioners

court may require a person to obtain a special use permit before

developing, constructing, materially expanding, redeveloping, or

materially changing a county large computational load facility

within a county large computational load zoning district.

(b) An application for a special use permit may require:

(1) submission of site plans and engineering studies;

(2) information regarding traffic, water supply,

wastewater, drainage, floodplain, emergency service, public

safety, and county infrastructure impact analyses;

(3) information regarding anticipated electric

demand, energization schedules, load growth, and electric

infrastructure associated with the project;

(4) identification of any proposed water source and

information regarding the availability of an adequate long-term

water supply;

(5) supporting documentation prepared or certified by

a professional engineer licensed in this state demonstrating that

the proposed electric, water, wastewater, and other utility service

and any required infrastructure improvements are reasonably

capable of serving the projected demand of the project without

impairing existing service;

(6) documentation that the project has been submitted

to any applicable review or interconnection process required by the

Public Utility Commission of Texas or administered by the Electric

Reliability Council of Texas or another entity with jurisdiction;

(7) information reasonably necessary to identify and

evaluate measures to mitigate documented adverse impacts within the

county's authority under this subchapter.

(c) Before acting on a special use permit, the commissioners

court may provide public notice and may hold a public hearing in

accordance with procedures adopted by the court.

(d) The county may determine whether an application is

complete and may require the applicant to submit additional

information reasonably necessary to evaluate the application. A

permit application is not considered filed until the county

determines that the application is complete.

(e) The commissioners court may approve, conditionally

approve, or deny a special use permit based on compliance with this

subchapter and zoning regulations adopted under this subchapter.

The county may make the final decision and any conditions imposed on

the permit available to the public in a manner prescribed by the

commissioners court.

(f) A permit may be denied if the applicant fails to

demonstrate compliance with applicable zoning regulations or fails

to adequately address a documented or reasonably foreseeable impact

within the county's authority under this subchapter.

(g) After notice and an opportunity to cure, the county may

suspend or revoke a special use permit for a material violation of

this subchapter, a zoning regulation, or a condition of the permit.

(h) The county may issue a stop-work order if construction

or development is occurring without a required permit or in

material violation of a zoning regulation or permit condition. The

order remains effective until the violation is corrected or the

order is modified or withdrawn by the county or a court.

(i) The commissioners court may impose reasonable

application, inspection, administrative, and professional-review

fees including the reasonable cost of qualified consultants

retained by the county, in an amount not to exceed the county's

actual costs of administering this subchapter and reviewing the

application.

(j) Information submitted under this section is subject to

Chapter 552, Government Code. A county may not enter into an

agreement requiring the county to withhold information from public

disclosure except to the extent withholding is authorized by that

chapter or other law.

Sec. 231.306. ELECTRIC REGULATION; PROJECT INFORMATION.

(a) This subchapter does not authorize a county to regulate:

(l) electric rates or electric service;

(1-a) water rates or water service;

(2) generation permitting;

(3) transmission or distribution facility siting or

interconnection standards; and

(4) the operations of the Public Utility Commission of

Texas or the Electric Reliability Council of Texas;

(b) In evaluating a project under this subchapter, a county

may request and consider information regarding:

(1) anticipated electric demand;

(2) the timing and scale of load growth;

(3) planned substations, transmission or distribution

facilities, or other electric infrastructure associated with the

project;

(4) the status of the project in any applicable review

or interconnection process required or administered by the Public

Utility Commission of Texas or the Electric Reliability Council of

Texas; and

(5) measures proposed to reduce impacts on county

infrastructure, emergency services, public safety, water supplies,

and neighboring property.

(c) Nothing in this section prohibits a county from

requesting or considering information concerning electric demand,

energization schedules, substations, transmission or distribution

infrastructure, interconnection status, reliability impacts, or

curtailment capability for the purpose of evaluating land use,

roads, drainage, water, emergency services, public safety,

neighboring property, or county financial impacts.

Sec. 231.307. NONCONFORMING USES. (a) A county large

computational load facility lawfully developed, or a large

computational load lawfully operating before the effective date of

a zoning regulation adopted under this subchapter may continue as a

lawful nonconforming use.

(b) Zoning regulations adopted under this subchapter apply

to a material expansion, redevelopment, or change in use of a

nonconforming county large computational load facility or large

computational load. In evaluating an expansion, redevelopment, or

change in use, the county may consider the cumulative impacts of the

existing county large computational load facility or large

computational load and the proposed activity.

(c) A county large computational load facility or large

computational load is not entitled to nonconforming-use status

solely because land has been purchased, a project has been

announced, utility service has been requested, or a preliminary

application has been submitted.

Sec. 231.308. ENFORCEMENT. (a) A county may bring an

action for injunctive relief to prevent or restrain a violation of

this subchapter, a zoning regulation adopted under this subchapter,

or a special use permit issued under this subchapter.

(b) A person who violates this subchapter, a zoning

regulation adopted under this subchapter, or a special use permit

issued under this subchapter is liable to the county for a civil

penalty of not less than $500 or more than $10,000 for each

violation for each day the violation continues.

(c) The county attorney or district attorney may bring an

action under this section in a district court in the county.

(d) A county that prevails in an enforcement action under

this section may recover reasonable attorney's fees, court costs,

investigative costs, and expert-witness fees.

Sec. 231.309. CONSTRUCTION OF SUBCHAPTER. (a) This

subchapter shall be liberally construed to accomplish its purposes

of protecting the public health, safety, and welfare; promoting the

orderly development of each county; and protecting neighboring

property and public infrastructure;

(b) This subchapter may not be construed to authorize a

county to regulate electric rates, electric service, wholesale

electric markets, electric reliability standards, or a matter

assigned by state or federal law to the Public Utility Commission of

Texas, the Electric Reliability Council of Texas, or a federal

agency.

Sec. 231.310. COORDINATION WITH COUNTY SUBDIVISION

REGULATION. (a) Notwithstanding Section 232.001(h), a county may

require an applicant for a plat or replat of property located within

a large computational load zoning district to submit information,

analyses, studies, plans, agreements, and financial assurances

authorized by this subchapter or regulations adopted under this

subchapter.

(b) Notwithstanding Section 232.0025, an application for a

plat or replat of property located within a county large

computational load zoning district is not considered complete, and

the period within which the commissioners court or county authority

must approve, conditionally approve, or disapprove the application

does not begin, until:

(1) the county determines that the application

includes the information required under this subchapter,

regulations adopted under this subchapter, and Chapter 232; and

(2) any special use permit required for the

development proposed in the application has been finally approved;

(c) The denial of a special use permit required for

development proposed in a plat or replat application constitutes

grounds for disapproval of the plat or replat application.

SECTION 2. This Act takes effect September 1, 2027.