The bill, titled "Battery Energy Storage Facility Agreements," introduces Chapter 303 to the Utilities Code, establishing regulations for battery energy storage facilities in Texas. It defines key terms such as "battery energy storage facility," "grantee," and "commercial operations date," and outlines the responsibilities of grantees in operating and decommissioning these facilities. Notably, the bill mandates that agreements must include provisions for the removal of battery energy storage facilities, including the safe disposal and recycling of components, and the restoration of the land to its original condition.

Additionally, the bill requires grantees to provide financial assurance to landowners to cover the costs associated with the removal and restoration process. This financial assurance must be based on estimates from a licensed professional engineer and must remain sufficient throughout the agreement's duration. The provisions also specify that any waivers of rights or liabilities in the agreements are void, ensuring that landowners are protected. The new regulations will apply only to agreements entered into after the bill's effective date of September 1, 2025.

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