Shown verbatim: the complete text as captured from the official page posted by the Texas Legislature, fetched 2026-08-29. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the enrolled version. The official bill page.
H.B. No. 3228 AN ACT relating to the inclusion of certain provisions in lease agreements for wind or solar power facilities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 301.0001, Utilities Code, is amended by adding Subdivision (1-a) and amending Subdivision (2) to read as follows: (1-a) "Recycle" means the processing of an item to recover a usable product. (2) "Wind power facility" includes: (A) a wind turbine generator and any related components of the wind turbine, including a nacelle, a rotor hub, blades, and a gearbox assembly; and (B) a facility or equipment used to support the operation of a wind turbine generator, including an underground or aboveground electrical transmission or communications line, an electric transformer, a battery energy storage facility or other[, an] energy storage facility, telecommunications equipment, a road, a meteorological tower with wind measurement equipment, or a maintenance yard. SECTION 2. Section 301.0003, Utilities Code, is amended by adding Subsection (a-1) to read as follows: (a-1) A wind power facility agreement must provide that the grantee is responsible for: (1) collecting and reusing or recycling, or shipping for reuse or recycling, all components of the wind power facility practicably capable of being reused or recycled, including the wind turbine blades, in accordance with any other applicable laws or regulations; and (2) disposing of all components of the wind power facility not practicably capable of being reused or recycled: (A) at a facility authorized under state and federal law to dispose of hazardous substances for a component considered hazardous under those laws; or (B) for nonhazardous components, at a municipal solid waste landfill or other appropriate waste disposal facility authorized under state and federal law to dispose of that type of component. SECTION 3. Sections 301.0004(a), (b), (c), and (d), Utilities Code, are amended to read as follows: (a) A wind power 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 obligations under [obligation to remove the grantee's wind power facilities located on the landowner's property as described by] Section 301.0003. 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 wind power facilities from the landowner's property, recycling or disposing of all the components of the wind power facilities, 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 wind power facilities, less any portion of the value of the wind power facilities pledged to secure outstanding debt. (c) The agreement must provide that: (1) the estimated cost of removing the wind power facilities from the landowner's property, recycling or disposing of all the components of the wind power facilities, 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 wind power 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 recycling or disposal of the wind power facilities 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, recycling, and disposal costs and salvage value. SECTION 4. Section 302.0001, Utilities Code, is amended by adding Subdivision (1-a) and amending Subdivision (3) to read as follows: (1-a) "Recycle" means the processing of an item to recover a usable product. (3) "Solar power facility" includes: (A) a solar energy device; and (B) 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 a solar energy device, including an underground or aboveground electrical transmission or communications line, an electric transformer, a battery energy storage facility or other[, an] energy storage facility, telecommunications equipment, a road, a meteorological tower, or a maintenance yard. SECTION 5. Section 302.0004, Utilities Code, is amended by adding Subsection (a-1) to read as follows: (a-1) A solar power facility agreement must provide that the grantee is responsible for: (1) collecting and reusing or recycling, or shipping for reuse or recycling, all components of the solar power facility practicably capable of being reused or recycled, including the photovoltaic modules, in accordance with any other applicable laws or regulations; and (2) disposing of all components of the solar power facility not practicably capable of being reused or recycled: (A) at a facility authorized under state and federal law to dispose of hazardous substances for a component considered hazardous under those laws; or (B) for nonhazardous components, at a municipal solid waste landfill or other appropriate waste disposal facility authorized under state and federal law to dispose of that type of component. SECTION 6. Sections 302.0005(a), (b), (c), and (d), Utilities Code, are amended to read as follows: (a) A solar power 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 obligations under [obligation to remove the grantee's solar power facilities located on the landowner's property as described by] Section 302.0004. 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 reasonably 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 solar power facilities from the landowner's property, recycling or disposing of all the components of the solar power facilities, 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 solar power facilities, less any portion of the value of the solar power facilities pledged to secure outstanding debt. (c) The agreement must provide that: (1) the estimated cost of removing the solar power facilities from the landowner's property, recycling or disposing of all the components of the solar power facilities, 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 solar power 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 recycling or disposal of the solar power facilities and the salvage value: (A) on or before the 10th anniversary of the commercial operations date of the solar power facilities; and (B) at least once every five years after the commercial operations date of the solar power facilities 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, recycling, and disposal costs and salvage value. SECTION 7. Chapters 301 and 302, Utilities Code, as amended by this Act, apply only to a wind or solar power facility agreement entered into on or after the effective date of this Act. A wind or solar power 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 8. This Act takes effect September 1, 2025. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 3228 was passed by the House on April 25, 2025, by the following vote: Yeas 120, Nays 0, 1 present, not voting; and that the House concurred in Senate amendments to H.B. No. 3228 on May 23, 2025, by the following vote: Yeas 137, Nays 0, 1 present, not voting. ______________________________ Chief Clerk of the House I certify that H.B. No. 3228 was passed by the Senate, with amendments, on May 19, 2025, by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate APPROVED: __________________ Date __________________ Governor
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