Texas Implements New Decommissioning Procedures for Battery Energy Storage Systems

Texas Governor Signs Law for BESS Decommissioning Procedures
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Texas Governor Greg Abbott has enacted a law that establishes decommissioning procedures for battery energy storage system (BESS) facilities at the end of their operational life. House Bill No. 3809 (HB 3809) was signed into law on May 29 and is set to take effect on September 1. This law specifically applies to BESS projects that are not owned by electric utilities.

### Key Provisions of HB 3809

The legislation is modeled after existing laws in Texas that govern the decommissioning of wind and solar facilities. HB 3809 includes two primary mandates:

1. **Decommissioning Requirements**: BESS facilities, including standalone projects and those co-located with solar or wind, must be decommissioned at the end of their lifecycle unless they are repowered. Current regulations apply only to projects that share an interconnection point, while HB 3809 extends to projects without such shared connections. Project owners must remove all battery storage equipment, transformers, substations, buried cables, and power lines. Foundations must be excavated to a depth of at least three feet. Additionally, landowners can request the removal of roads, large rocks, and the reseeding of pastureland with native grasses, ensuring the land is restored to a tillable condition and that all recyclable materials are properly handled.

2. **Financial Assurance for Decommissioning Costs**: HB 3809 mandates that BESS lessees who are not electric utilities must provide financial assurance to ensure compliance with decommissioning obligations. Project owners are required to secure funds to cover the estimated costs of equipment removal, land restoration, and recycling, minus any salvage value. These cost estimates must be prepared by a licensed, independent third-party engineer in Texas and updated regularly. Financial assurance must be in place before the termination of the facility lease or the facility’s 15th anniversary.

### Related Legislative Developments in Texas

During the 89th Legislative Session, several other bills concerning energy storage and clean energy have been proposed in Texas. However, HB 3809 is the only one that Governor Abbott has signed into law to date. Other introduced bills include:

– **Senate Bill 388 (SB 388)**: This bill aims to require that, starting January 1, 2026, 50% of the generating capacity installed in the Electric Reliability Council of Texas (ERCOT) service area must come from dispatchable generation, excluding battery energy storage. The bill has been referred to State Affairs and currently awaits further action.

– **Senate Bill 715 (SB 715)** and its companion **House Bill 3356**: These bills would retroactively enforce firming requirements on renewable energy facilities, potentially leading to unsustainable market conditions and the early retirement of up to 5 GW of wind generation capacity by 2026. An analysis from Aurora Energy Research suggests that this could raise consumer electricity costs and undermine system reliability. This bill has also been set aside without a scheduled date for further discussion.

– **Senate Bill 819 (SB 819)**: This bill requires wind and solar projects to obtain a permit from the Public Utility Commission (PUC), a requirement not imposed on coal, gas, or nuclear energy projects. The Solar Energy Industries Association (SEIA) has expressed concerns that this legislation could hinder the state’s ability to meet rising energy demands by complicating and increasing the costs associated with new clean energy projects, ultimately affecting rural communities reliant on income from these ventures. This bill is also currently on hold.

### Upcoming Events

– **UK Solar Summit 2025**: Scheduled for July 1, 2025, in London, UK, this summit will explore the role of solar energy in the current energy mix and its future alignment with net-zero goals.

– **Wind Power Finance & Investment Summit**: Taking place on July 1, 2025, at the Leonardo Royal Hotel London Tower Bridge.

– **Battery Asset Management Summit 2025**: Set for November 11, 2025, in San Diego, USA, this summit will include innovative features and networking opportunities.

– **Energy Storage Summit 2026**: Scheduled for February 24, 2026, in London, UK, this event promises to be an immersive experience with workshops, discussions, and keynotes aimed at fostering innovation in the energy storage sector.