Bill Text: TX SB2213 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the removal of electric energy storage facilities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (N/A - Dead) 2021-04-20 - Left pending in committee [SB2213 Detail]
Download: Texas-2021-SB2213-Introduced.html
By: Springer | S.B. No. 2213 | |
|
||
|
||
relating to the removal of electric energy storage facilities. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Title 6, Utilities Code, is amended by adding | ||
Chapter 303 to read as follows: | ||
CHAPTER 303. ELECTRIC ENERGY STORAGE FACILITY AGREEMENTS | ||
Sec. 303.0001. DEFINITIONS. In this chapter: | ||
(1) "Electric energy storage facility" includes a | ||
facility or equipment, other than a facility or equipment owned by | ||
an electric utility, as defined by Section 31.002, used to support | ||
the operation of electric energy storage, including an underground | ||
or aboveground electrical transmission or communications line, an | ||
electric transformer, telecommunications equipment, a road, a | ||
meteorological tower, or a maintenance yard. | ||
(2) "Electric energy storage facility agreement" | ||
means a lease agreement between a grantee and a landowner that | ||
authorizes the grantee to operate an electric energy storage | ||
facility on the leased property. | ||
(3) "Grantee" means a person, other than an electric | ||
utility, as defined by Section 31.002, who: | ||
(A) leases property from a landowner; and | ||
(B) operates an electric energy storage facility | ||
on the property. | ||
Sec. 303.0002. APPLICABILITY. This chapter applies only to | ||
electric energy storage that is a generation asset as defined by | ||
Section 39.251. | ||
Sec. 303.0003. WAIVER VOID; REMEDIES. (a) A provision of | ||
an electric energy storage facility agreement that purports to | ||
waive a right or exempt a grantee from a liability or duty | ||
established by this chapter is void. | ||
(b) A person who is harmed by a violation of this chapter is | ||
entitled to appropriate injunctive relief to prevent further | ||
violation of this chapter. | ||
(c) The provisions of this section are not exclusive. The | ||
remedies provided in this section are in addition to any other | ||
procedures or remedies provided by other law. | ||
Sec. 303.0004. REQUIRED AGREEMENT PROVISIONS ON FACILITY | ||
REMOVAL. (a) An electric energy storage facility agreement must | ||
provide that the grantee is responsible for removing the grantee's | ||
electric energy storage facilities from the landowner's property | ||
and that the grantee shall, in accordance with any other applicable | ||
laws or regulations, safely: | ||
(1) clear, clean, and remove from the property each | ||
piece of electric energy storage equipment, including any | ||
transformers or substations; | ||
(2) for each foundation of electric energy storage | ||
equipment, including a transformer or substation installed in the | ||
ground: | ||
(A) clear, clean, and remove the foundation from | ||
the ground to a depth of at least three feet below the surface grade | ||
of the land in which the foundation is installed; and | ||
(B) ensure that each hole or cavity created in | ||
the ground by the removal is filled with topsoil of the same type or | ||
a similar type as the predominant topsoil found on the property; | ||
(3) for each buried cable, including power, | ||
fiber-optic, and communications cables, installed in the ground: | ||
(A) clear, clean, and remove the cable from the | ||
ground to a depth of at least three feet below the surface grade of | ||
the land in which the cable is installed; and | ||
(B) ensure that each hole or cavity created in | ||
the ground by the removal is filled with topsoil of the same type or | ||
a similar type as the predominant topsoil found on the property; and | ||
(4) clear, clean, and remove from the property each | ||
overhead power or communications line installed by the grantee on | ||
the property. | ||
(b) The agreement must provide that, at the request of the | ||
landowner, the grantee shall: | ||
(1) clear, clean, and remove each road constructed by | ||
the grantee on the property; and | ||
(2) ensure that each hole or cavity created in the | ||
ground by the removal is filled with topsoil of the same type or a | ||
similar type as the predominant topsoil found on the property. | ||
(c) The agreement must provide that, at the request of the | ||
landowner, if reasonable, the grantee shall: | ||
(1) remove from the property all rocks over 12 inches | ||
in diameter excavated during the decommissioning or removal | ||
process; | ||
(2) return the property to a tillable state using | ||
scarification, V-rip, or disc methods, as appropriate; and | ||
(3) ensure that: | ||
(A) each hole or cavity created in the ground by | ||
the removal is filled with topsoil of the same type or a similar | ||
type as the predominant topsoil found on the property; and | ||
(B) the surface is returned as near as reasonably | ||
possible to the same condition as before the grantee dug holes or | ||
cavities, including by reseeding pastureland with native grasses | ||
prescribed by an appropriate governmental agency, if any. | ||
(d) The landowner shall make a request under Subsection (b) | ||
or (c) not later than the 180th day after the later of: | ||
(1) the date on which the electric energy storage | ||
facility is no longer capable of storing electricity in commercial | ||
quantities; or | ||
(2) the date the landowner receives written notice of | ||
intent to decommission the electric energy storage facility from | ||
the grantee. | ||
Sec. 303.0005. REQUIRED AGREEMENT PROVISIONS ON FINANCIAL | ||
ASSURANCE. (a) An electric energy storage 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 | ||
obligation to remove the grantee's electric energy storage | ||
facilities located on the landowner's property as described by | ||
Section 303.0004. 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 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 | ||
electric energy storage facilities from the landowner's property | ||
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 electric energy storage | ||
facilities, less any portion of the value of the electric energy | ||
storage facilities pledged to secure outstanding debt. | ||
(c) The agreement must provide that: | ||
(1) the estimated cost of removing the electric energy | ||
storage facilities from the landowner's property 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 electric energy storage 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 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 costs and salvage value. | ||
(e) The agreement must provide that the grantee shall | ||
deliver the financial assurance not later than the earlier of: | ||
(1) the date the electric energy storage facility | ||
agreement is terminated; or | ||
(2) the 10th anniversary of the commercial operations | ||
date of the electric energy storage facilities located on the | ||
landowner's leased property. | ||
(f) For purposes of this section, "commercial operations | ||
date" means the date on which the electric energy storage | ||
facilities are approved for participation in market operations by a | ||
regional transmission organization and does not include the | ||
generation of electrical energy or other operations conducted | ||
before that date for purposes of maintenance and testing. | ||
(g) The grantee may not cancel financial assurance before | ||
the date the grantee has completed the grantee's obligation to | ||
remove the grantee's electric energy storage facilities located on | ||
the landowner's property in the manner provided by this chapter, | ||
unless the grantee provides the landowner with replacement | ||
financial assurance at the time of or before the cancellation. In | ||
the event of a transfer of ownership of the grantee's electric | ||
energy storage facilities, the financial security provided by the | ||
grantee shall remain in place until the date evidence of financial | ||
security meeting the requirements of this chapter is provided to | ||
the landowner. | ||
SECTION 2. Chapter 303, Utilities Code, as added by this | ||
Act, applies only to an electric energy storage facility agreement | ||
entered into on or after the effective date of this Act. An | ||
electric energy storage 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 3. This Act takes effect September 1, 2021. |