Explanation of Texas Battery Energy Storage Facilities Bill (S.B. 1824)
Texas Bill S.B. 1824 Explained in Simple Terms
This bill is about battery energy storage facilities—these are systems that store electrical energy in large batteries and help manage power on the electric grid.
What the Bill Does
This bill sets rules for how companies (called grantees) lease property from landowners to operate these battery storage facilities and what happens when those facilities are removed.
Key Points in Plain Language
- Definitions: It explains important terms like what counts as a battery energy storage facility (not just the batteries themselves but also related equipment like transformers, cables, communication lines, and maintenance yards).
- Agreement Requirements: The lease agreement between the company and the landowner must specify that the company is responsible for removing the battery facility when it’s no longer in use.
- Removal Process: The company must safely remove all equipment including batteries, transformers, substations, cables buried underground (at least 3 feet deep), and power lines.
- Restoring the Land: Foundations must be excavated properly, holes filled with similar soil, and, if the landowner requests, roads built for the facility must be removed as well. The land should be returned as close as possible to its original state, which can include reseeding grasses and removing large rocks.
- Recycling and Disposal: The company must try to recycle or reuse as much of the equipment as possible. Hazardous materials must be disposed of safely at authorized facilities.
- Financial Security: The company must provide financial assurance (like a bond or letter of credit) to cover the cost of removing the facility and restoring the land. This protects the landowner in case the company can’t pay later.
- Regular Cost Estimates: Every 5 to 10 years, an independent engineer must estimate the cost to remove and recycle the equipment, helping adjust the financial assurance amount if needed.
- Legal Protections: The bill says any contract clause that tries to waive these rights or responsibilities is void. If someone is harmed by a violation of these rules, they can seek legal action.
When Does This Apply?
This law only applies to lease agreements made on or after its effective date, which is September 1, 2025.
Why This Matters
The growth of battery energy storage is important for Texas’ power grid, but it’s also important to protect landowners and the environment. This bill makes sure companies clean up properly and have the money set aside to do it. It helps ensure land isn’t damaged or left full of junk when these facilities are no longer used.