Bill Text: TX SB1610 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to decommissioning requirements for certain solar facilities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-14 - Referred to Business & Commerce [SB1610 Detail]
Download: Texas-2019-SB1610-Introduced.html
| 86R12692 JXC/TJB-D | ||
| By: Hall | S.B. No. 1610 | |
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| relating to decommissioning requirements for certain solar | ||
| facilities. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter A, Chapter 312, Tax Code, is amended | ||
| by adding Section 312.0022 to read as follows: | ||
| Sec. 312.0022. LIMITATION ON ABATEMENT OF TAXES ON SOLAR | ||
| FACILITY PROPERTY. (a) In this section, "solar facility" has the | ||
| meaning assigned by Section 35.201, Utilities Code. | ||
| (b) 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 solar 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, unless the owner of | ||
| the property has, if required, executed an agreement under Section | ||
| 35.202, Utilities Code, applicable to the property. | ||
| SECTION 2. Section 313.024, Tax Code, is amended by adding | ||
| Subsection (b-2) to read as follows: | ||
| (b-2) In this subsection, "solar facility" has the meaning | ||
| assigned by Section 35.201, Utilities Code. The owner of real | ||
| property on which a solar facility is located or is planned to be | ||
| located during the term of an agreement entered into under this | ||
| subchapter, or of tangible personal property that is located or is | ||
| planned to be located on the real property during that term, may not | ||
| receive a limitation on appraised value under this subchapter | ||
| unless the owner has, if required, executed an agreement under | ||
| Section 35.202, Utilities Code, applicable to the property. | ||
| SECTION 3. Chapter 35, Utilities Code, is amended by adding | ||
| Subchapter F to read as follows: | ||
| SUBCHAPTER F. DECOMMISSIONING SOLAR FACILITIES | ||
| Sec. 35.201. DEFINITIONS. In this subchapter, "solar | ||
| facility" means a facility designed and used primarily for the | ||
| purpose of collecting, generating, transferring, or storing solar | ||
| energy. The term does not include a facility installed solely on a | ||
| building. | ||
| Sec. 35.202. DECOMMISSIONING SOLAR FACILITIES. (a) The | ||
| commission may not authorize a person who operates a solar facility | ||
| to interconnect the facility to the ERCOT transmission grid unless | ||
| the person demonstrates to the commission that the owner of the land | ||
| on which the facility is located has entered into an agreement with | ||
| the county in which the facility is located that provides that: | ||
| (1) the landowner is responsible for: | ||
| (A) decommissioning the solar facility, | ||
| including restoring, through soil stabilization and revegetation, | ||
| the first three feet of depth of the soil on any land disturbed by | ||
| the facility; or | ||
| (B) ensuring that the requirements of Paragraph | ||
| (A) are met; and | ||
| (2) the landowner will provide to the county financial | ||
| assurance in the form of certified funds, cash escrow, a bond, a | ||
| letter of credit, or a parent guarantee, payable to the county, | ||
| sufficient to cover the cost of the activities required by | ||
| Subdivision (1). | ||
| (b) The cost described by Subsection (a)(2) must be based on | ||
| an estimate of a qualified independent engineer, engaged by the | ||
| landowner and approved by the county, who has experience in | ||
| preparing decommissioning estimates. The estimate may not exceed | ||
| the sum of: | ||
| (1) the projected cost of decommissioning, including | ||
| accounting for the net salvage value of the solar facility and | ||
| associated equipment; | ||
| (2) a reasonable allowance for estimated | ||
| administrative costs related to a default of the operator; and | ||
| (3) an annual inflation factor. | ||
| (c) Notwithstanding Subsection (a), the commission may | ||
| authorize a person who operates a solar facility to interconnect a | ||
| facility to the ERCOT transmission grid without an agreement if the | ||
| county in which the facility is to be located waives the | ||
| requirements of this section. | ||
| 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. Section 313.024, Tax Code, as amended by this | ||
| Act, applies only to an agreement entered into under Chapter 313, | ||
| Tax Code, on or after the effective date of this Act. | ||
| SECTION 6. This Act takes effect September 1, 2019. | ||
