Bill > SB1824

This bill establishes a comprehensive legal framework for battery energy storage facility agreements in Texas, requiring detailed provisions for facility removal and financial assurance. The legislation defines key terms such as "battery energy storage facility" and "grantee," and mandates that lease agreements include specific requirements for facility decommissioning. These requirements include completely removing battery storage resources, transformers, foundations, buried cables, and overhead lines to at least three feet below ground surface, ensuring proper soil replacement, and responsibly handling equipment recycling or disposal. The bill also requires grantees to obtain financial assurance (such as a parent company guaranty, letter of credit, or bond) to cover the estimated costs of facility removal and land restoration, with the amount determined by an independent professional engineer. The financial assurance must be delivered no later than the 15th anniversary of the facility's commercial operations date, and the grantee is responsible for maintaining sufficient coverage throughout the agreement's term. The legislation applies only to battery energy storage facility agreements entered into on or after its effective date, which is September 1, 2025, and aims to protect landowners by ensuring comprehensive and responsible decommissioning of battery energy storage facilities.

Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1824