HB 3580

relating to renewable energy generation facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subtitle F, Title 10, Government Code, is
amended by adding Chapter 2278 to read as follows:
CHAPTER 2278. PROHIBITION ON GRANTING OF INCENTIVES FOR RENEWABLE
Sec. 2278.001.  DEFINITIONS.  In this chapter:
(1)  "Economic incentive" means a rebate, refund, or
other monetary incentive offered by this state or a political
(2)  "Renewable energy generation facility" means a
renewable energy generation facility to which Subchapter F, Chapter
(3)  "Tax incentive" means an abatement, credit,
discount, exclusion, exemption, limitation on taxable value,
refund, special valuation, special accounting treatment, special
appraisal method or provision, special rate, or special method of
reporting authorized by state law or the state constitution that
relates to a tax imposed by this state or a political subdivision of
Sec. 2278.002.  PROHIBITION ON INCENTIVES AND RENEWAL OF
INCENTIVES.  (a)  Except as otherwise provided by this chapter,
neither this state nor a political subdivision of this state may
provide an economic incentive or a tax incentive to a person for the
construction, maintenance, or operation of a renewable energy
(b)  An economic incentive or a tax incentive for the
construction, maintenance, or operation of a renewable energy
generation facility that was granted to a person before the date the
incentive became disallowed under Subsection (a) may not be renewed
Sec. 2278.003.  EXCEPTION: PREVIOUSLY GRANTED INCENTIVES.
Subject to Section 2278.002(b), a person who is receiving an
economic incentive or a tax incentive from this state or a political
subdivision of this state for the construction, maintenance, or
operation of a renewable energy generation facility under an
agreement that was executed before the date the incentive becomes
disallowed under Section 2278.002(a) may continue to receive the
incentive as provided under the terms of that agreement.
SECTION 2.  Chapter 35, Utilities Code, is amended by adding
Subchapter F to read as follows:
SUBCHAPTER F.  RENEWABLE ENERGY GENERATION FACILITY PERMIT
Sec. 35.201.  DEFINITIONS.  In this subchapter:
(1)  "Person" includes an electric cooperative and a
(2)  "Renewable energy generation facility" means:
(A)  a wind power facility as defined by Section
(B)  a solar power facility as defined by Section
Sec. 35.202.  APPLICABILITY.  (a)  This subchapter applies
only to a renewable energy generation facility that is intended to
be used to sell energy or ancillary services at wholesale.
(b)  This subchapter applies to a renewable energy
generation facility regardless of whether the facility is the
subject of a wind power facility agreement or solar power facility
agreement entered into under Chapter 301 or 302.
Sec. 35.203.  PERMIT REQUIRED; APPLICATION.  (a)  A person
may not interconnect a renewable energy generation facility to a
transmission facility unless the person holds a permit to operate a
renewable energy generation facility issued by the commission under
(b)  A person may apply for a permit to operate a renewable
energy generation facility by filing with the commission:
(1)  a description of the location of the facility;
(2)  a description of the type of facility;
(3)  any assumed business or professional name of the
applicant filed under Chapter 71, Business & Commerce Code;
(4)  an impact review described by Subsection (c); and
(5)  any other information required by commission rule.
(c)  A person who applies for a permit under this subchapter
must conduct an impact review of the facility to be permitted.  The
impact review must evaluate the potential effects of the facility
(1)  the land in the area of the facility, including the
potential for degradation, potential for soil contamination, and
subsequent possibility for the land to be used for agricultural
(2)  local water resources, including potential
groundwater depletion, harmful runoff, and chemical contamination;
(3)  local wildlife, including potential habitat
destruction and long-term effects on biodiversity; and
(4)  the local community and economy, including
property values and infrastructure.
(d)  The commission shall publish each permit application
received under this section, including the impact review, on the
commission's Internet website at least 60 days before the
commission approves or denies the permit.
Sec. 35.204.  APPROVAL OR DENIAL OF APPLICATION.  The
commission may approve an application only if:
(1)  the commissioners court of the county in which the
renewable energy generation facility is located consents; and
(2)  the commission finds that issuance of the permit
Sec. 35.205.  POWER TO REGULATE AND SUPERVISE.  (a)  For
purposes of this subchapter, a provision of Subchapter B or E,
Chapter 14, that authorizes the commission to regulate a public
utility also applies to a person required to obtain a permit under
this subchapter, including an electric cooperative and a
(b)  The commission may adopt and enforce rules reasonably
required in the exercise of its powers under this subchapter.
Sec. 35.206.  ENFORCEMENT AND PENALTIES.  For the purposes
of enforcing this subchapter, a reference in Chapter 15 to a person
includes any person required to obtain a permit under this
subchapter, including an electric cooperative and a municipally
SECTION 3.  Chapter 2278, Government Code, as added by this
Act, applies to an economic incentive or a tax incentive received by
a person regardless of the date the person first began receiving the
incentive and irrespective of whether the incentive is the subject
of an agreement between the person and this state or a political
SECTION 4.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.