Relating to recycling of certain renewable energy components; authorizing an administrative penalty, the official text

H.B. No. 3229

AN ACT

relating to recycling of certain renewable energy components;

authorizing an administrative penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle B, Title 5, Health and Safety Code, is

amended by adding Chapter 376 to read as follows:

CHAPTER 376. RENEWABLE ENERGY COMPONENT RECYCLING FACILITIES

Sec. 376.001. DEFINITION. In this chapter, "commission"

means the Texas Commission on Environmental Quality.

Sec. 376.002. APPLICABILITY. This chapter applies only to

a recycling facility that accepts, processes, and repurposes

components to recover valuable materials from:

(1) a wind turbine generator, including turbine

blades, nacelles, nacelle covers, towers, drivetrains, generators,

magnets, power electronics, and cables;

(2) a solar energy device, as defined by Section

185.001, Utilities Code, including solar modules, junction boxes,

transformers, inverters, racks or trackers, and cables; or

(3) a battery energy storage system, including battery

cells, racks, containers, inverters, battery management systems,

cooling and fire suppression systems, and cables.

Sec. 376.003. REPORT. (a) The owner of a recycling facility

shall submit a report to the commission not later than January 15 of

each year that includes:

(1) an inventory of all components of a wind turbine

generator, solar energy device, or battery energy storage system

accepted by the facility for recycling that have not yet been

recycled, including any components the facility has taken title to

or assumed control of regardless of whether the components are

located at the facility;

(2) an estimated timeline for recycling or disposing

of the components described by Subdivision (1); and

(3) a cost estimate for recycling or disposing of the

components described by Subdivision (1) prepared by an independent,

third-party professional engineer licensed in this state.

(b) The owner of the recycling facility shall:

(1) submit with the facility's first report submitted

under Subsection (a) evidence of financial assurance in an amount

equal to 100 percent of the cost estimated under Subsection (a)(3);

and

(2) submit with each subsequent report any additional

financial assurance necessary to ensure that the amount of

financial assurance the owner has on file with the commission for

the facility is at least equal to 100 percent of the cost estimated

under Subsection (a)(3) in the subsequent report.

(c) Acceptable forms of financial assurance for purposes of

this section include:

(1) a parent company guaranty with a minimum

investment grade credit rating for the parent company issued by a

major domestic credit rating agency;

(2) a letter of credit; or

(3) a bond.

Sec. 376.004. INTERNET POSTING. The commission shall

maintain on its Internet website a list of recycling facilities in

this state that are in compliance with this chapter.

Sec. 376.005. ADMINISTRATIVE PENALTY. (a) A person may not

accept, process, or repurpose components as described by Section

376.002 for compensation unless the person complies with the

requirements of this chapter.

(b) The commission may impose an administrative penalty on

an owner or operator of a recycling facility to which this section

applies in accordance with Section 7.052(b-5), Water Code.

SECTION 2. Section 5.013(a), Water Code, is amended to read

as follows:

(a) The commission has general jurisdiction over:

(1) water and water rights including the issuance of

water rights permits, water rights adjudication, cancellation of

water rights, and enforcement of water rights;

(2) continuing supervision over districts created

under Article III, Sections 52(b)(1) and (2), and Article XVI,

Section 59, of the Texas Constitution;

(3) the state's water quality program including

issuance of permits, enforcement of water quality rules, standards,

orders, and permits, and water quality planning;

(4) the determination of the feasibility of certain

federal projects;

(5) the adoption and enforcement of rules and

performance of other acts relating to the safe construction,

maintenance, and removal of dams;

(6) conduct of the state's hazardous spill prevention

and control program;

(7) the administration of the state's program relating

to inactive hazardous substance, pollutant, and contaminant

disposal facilities;

(8) the administration of a portion of the state's

injection well program;

(9) the administration of the state's programs

involving underground water and water wells and drilled and mined

shafts;

(10) the state's responsibilities relating to regional

waste disposal;

(11) the responsibilities assigned to the commission

by Chapters 361, 363, 376, 382, 401, 505, 506, and 507, Health and

Safety Code; and

(12) any other areas assigned to the commission by

this code and other laws of this state.

SECTION 3. Section 7.052, Water Code, is amended by adding

Subsection (b-5) to read as follows:

(b-5) The amount of the penalty for a violation of Chapter

376, Health and Safety Code, may not exceed $500 a day for each

violation.

SECTION 4. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 3229 was passed by the House on April

29, 2025, by the following vote: Yeas 145, Nays 0, 1 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 3229 was passed by the Senate on May

19, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor