Texas Utilities Code
§ 301.0004 — REQUIRED AGREEMENT PROVISIONS ON FINANCIAL ASSURANCE
UT § 301.0004Title 6. PRIVATE POWER AGREEMENTS · Ch. 301. WIND POWER FACILITY AGREEMENTS
Statute text
View on source(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 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.
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Legislative history
Acts 2025, 89th Leg., R.S., Ch. 434 (H.B. 3228), Sec. 3, eff. September 1, 2025.