Texas Utilities Code
§ 302.0005 — REQUIRED AGREEMENT PROVISIONS ON FINANCIAL ASSURANCE
UT § 302.0005Title 6. PRIVATE POWER AGREEMENTS · Ch. 302. SOLAR POWER FACILITY AGREEMENTS
Statute text
View on source(a)A solar 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 302.0004. 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 reasonably 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 solar power facilities from the landowner's property, recycling or disposing of all the components of the solar 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 solar power facilities, less any portion of the value of the solar power facilities pledged to secure outstanding debt.
(c)The agreement must provide that:
(1)the estimated cost of removing the solar power facilities from the landowner's property, recycling or disposing of all the components of the solar 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 solar 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 solar power facilities and the salvage value:
(A)on or before the 10th anniversary of the commercial operations date of the solar power facilities; and
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Legislative history
Acts 2025, 89th Leg., R.S., Ch. 434 (H.B. 3228), Sec. 6, eff. September 1, 2025.