88R2852 JXC-F
	By: Patterson	H.B. No. 3707

	A BILL TO BE ENTITLED
	AN ACT
	relating to the permitting of renewable energy generation
	facilities by the Public Utility Commission of Texas; 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.
	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 the protection of the wildlife, water, and land of
	this state against the impacts of renewable energy generation
	facilities 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 operate a renewable energy generation facility in this
	state unless the person holds a permit issued by the commission
	under this subchapter. A person may not construct a renewable
	energy generation facility in this state 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.
	(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 statement produced by the
	Parks and Wildlife Department under Section 11.006, 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;
	(8)  an affidavit that lists the names and addresses of
	the persons who may be affected by the application and includes the
	source of the list; and
	(9)  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.
	Sec. 35.204.  NOTICE AND HEARING ON APPLICATION. (a) When
	an application for a permit is filed under Section 35.203, or when
	an application for a permit amendment is filed, the commission
	shall:
	(1)  give notice of the application to affected
	parties, including any property owner within 25 miles of the
	boundary of the facility; and
	(2)  if requested:
	(A)  set a time and place for a hearing; and
	(B)  give notice of the hearing to affected
	parties, including any property owner within 25 miles of the
	boundary of the facility.
	(b)  For any application involving a capacity of 15 megawatts
	or more, the notice must be given to the county judge of each county
	located within 25 miles of the boundary of the facility who has
	requested in writing that the commission give that notice.
	(c)  The commission may not act on an application before the
	30th day after the date the commission gives notice of the
	application under Subsections (a) and (b), as applicable,
	regardless of whether a hearing is requested.
	(d)  Notwithstanding any other provision of this subchapter,
	the commission may approve an application to amend a permit without
	holding a hearing 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)  ensure that the permitted facility is located at
	least:
	(A)  500 feet from any property line, unless the
	permit holder has obtained a written waiver from each owner of
	property located less than 500 feet from the permitted facility;
	and
	(B)  1,000 feet from any habitable structure,
	unless the permit holder has obtained a written waiver from each
	owner of the habitable structure;
	(2)  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
	(3)  post at each entrance to the permitted facility a
	sign that:
	(A)  includes:
	(i)  the name of the facility;
	(ii)  the name of the owner of the facility;
	(iii)  the name, business address, and
	telephone number of the operator of the facility;
	(iv)  a general description of the property
	on which the facility is located, including the boundaries of the
	property; and
	(v)  emergency contact information for the
	facility; and
	(B)  uses contrasting colors with block letters at
	least one inch in height; and
	(C)  is displayed in a conspicuous manner clearly
	visible to the public.
	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
	(3)  provide to the commission other information about
	the operation of the permitted facility.
	Sec. 35.208.  FACILITY REMOVAL BY COMMISSION. (a) The
	commission may determine after reasonable notice and hearing that a
	permit holder has not removed a renewable energy generation
	facility according to the requirements of an applicable wind power
	facility agreement or solar power facility agreement entered into
	under Chapter 301 or 302 and that the permit holder has not
	delivered financial assurance required under Chapter 301 or 302, as
	applicable. After making the determination, the commission may:
	(1)  order the permit holder to comply with the wind
	power facility agreement or solar power facility agreement; or
	(2)  fulfill the requirements of the wind power
	facility agreement or solar power facility agreement if the permit
	holder cannot be found or does not have assets with which to comply
	with the wind power facility agreement or solar power facility
	agreement.
	(b)  The commission or its employees or agents, on proper
	identification, may enter the land of another for the purpose of
	implementing Subsection (a)(2).
	(c)  Removal of a renewable energy generation facility by the
	commission under this section does not prevent the commission from
	seeking penalties or other relief provided by law from the permit
	holder.
	(d)  The commission and its employees and agents are not
	liable for any damages arising from an act or omission if the act or
	omission is part of a good-faith effort to carry out this section.
	(e)  If the commission removes a renewable energy generation
	facility under this section, the commission may recover all costs
	incurred by the commission from the permit holder. The commission
	by order may require the permit holder to reimburse the commission
	for those costs or may request the attorney general to file suit
	against the permit holder to recover those costs. At the request of
	the commission, the attorney general may file suit to enforce an
	order issued by the commission under this subsection. A suit under
	this subsection may be filed in Travis County. Costs recovered
	under this subsection shall be deposited to the renewable energy
	generation facility cleanup fund.
	Sec. 35.209.  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
	35.210;
	(2)  private contributions; and
	(3)  legislative appropriations.
	(c)  Money in the fund may be used only by the commission to
	implement this subchapter.
	Sec. 35.210.  ENVIRONMENTAL IMPACT FEE. (a) An annual
	environmental impact fee is imposed on each permit holder.
	(b)  Except as provided by Subsection (c), environmental
	impact fees must be deposited in the renewable energy generation
	facility cleanup fund.
	(c)  The commission shall designate 20 percent of the revenue
	collected from environmental impact fees to be deposited in the
	renewable energy generation facility cleanup fund and used only for
	the removal of renewable energy generation facilities under Section
	35.208. If the commission determines that the renewable energy
	generation facility cleanup fund has a sufficient amount of money
	to fund removal of renewable energy generation facilities under
	Section 35.208, the commission may instead deposit 20 percent of
	the revenue from environmental impact fees in the county and road
	district highway fund.
	(d)  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.
	(e)  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 11.006, Parks and
	Wildlife Code; and
	(4)  expenses necessary to implement this subchapter.
	Sec. 35.211.  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. 35.212.  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. 35.213.  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 11, Parks and Wildlife
	Code, is amended by adding Section 11.006 to read as follows:
	Sec. 11.006.  ENVIRONMENTAL IMPACT STATEMENTS FOR RENEWABLE
	ENERGY GENERATION FACILITIES. The commission by rule shall adopt a
	system for providing an environmental impact statement to an
	applicant for a renewable energy generation facility permit under
	Section 35.203, Utilities Code. The system must establish:
	(1)  a process for a person to apply for and receive
	from the department an environmental impact statement;
	(2)  criteria for the department to evaluate the
	environmental impact of a proposed renewable energy generation
	facility, including:
	(A)  conservation of natural resources;
	(B)  continuous use of the land on which a
	facility is located for agricultural and wildlife purposes; and
	(C)  in coordination with the Texas A&M AgriLife
	Extension Service, agricultural best practices;
	(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
	statements, 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.
	SECTION 3.  (a) Except as otherwise provided by rules
	adopted by the Public Utility Commission of Texas under Subsection
	(b) of this section, Subchapter F, Chapter 35, Utilities Code, as
	added by this Act, applies to all renewable energy generation
	facilities in this state, including:
	(1)  renewable energy generation facilities that:
	(A)  generate renewable energy before the
	effective date of this Act; or
	(B)  are interconnected to a transmission
	facility before the effective date of this Act; and
	(2)  renewable energy generation facilities the
	construction of which began before the effective date of this Act.
	(b)  The Public Utility Commission of Texas by rule shall
	authorize a person who operates or constructs a facility described
	by Subsection (a)(1) or (2) of this section to continue to operate
	or construct the facility after the effective date of this Act while
	the person applies for a permit for the facility as required under
	Subchapter F, Chapter 35, Utilities Code, as added by this Act. The
	rules may require a person who operates or constructs a facility
	described by Subsection (a)(1) or (2) of this section to apply for a
	permit for the facility as required under Subchapter F, Chapter 35,
	Utilities Code, as added by this Act, by a certain date.
	SECTION 4.  This Act takes effect September 1, 2023.