Bill Text: TX SB34 | 2027-2028 | 90th Legislature Regular Session | Introduced

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Bill Title: Relating to county authority to regulate the development of certain large electricity users.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced) 2026-11-09 - Filed [SB34 Detail]

Download: Texas-2027-SB34-Introduced.html

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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.