On March 27, 2025, the Texas Senate Business and Commerce Committee heard testimony on a proposed bill that would place additional fees, permitting restrictions and regulatory requirements on utility-scale renewable energy generation facilities in Texas, including existing and developing wind and solar facilities. Senate Bill 819 was voted out of committee on April 3, and, if passed by both the Senate and the House, would be effective Sept. 1, 2025.
The bill would require renewable energy projects with at least 10 megawatts (MW) of generation capacity to obtain a permit from the Public Utilities Commission of Texas (PUCT) in order to interconnect with transmission facilities. Existing facilities interconnected prior to Sept. 1 would be exempt from the permitting requirement unless the facility increases electricity generation by 5 MW or more or significantly changes its structure.
All permit applicants would be required to submit environmental impact reviews conducted by the Texas Parks and Wildlife Department and disclose details about the facility, such as location and type. The bill would require that all permitted facility equipment (i) be at least 100 feet from property lines and 200 feet from habitable structures in the case of solar projects and (ii) be at least 3,000 feet from the property line of each property that borders the property on which the facility is located, in the case of wind projects, provided the permit holder may obtain a written waiver from property owners as to both (i) and (ii).
Additionally, the bill would create notice and meeting requirements. The permit applicant would need to (i) provide notice of the application to the county judge of each county located within 25 miles of the boundary of the facility that is the subject of the permit, (ii) hold a public meeting to obtain public input, and (iii) publish at least two consecutive publications in a newspaper of general circulation in each county in which the facility will be located announcing the time and place of the public meeting and providing a link to a publicly accessible website that provides information about the facility and information regarding the public meeting.
In considering an application, the PUCT should consider the applicant’s compliance history, the applicant’s vested rights in the permit and whether issuing the permit would violate state or federal law. Of concern, the bill provides no objective criteria for the PUCT to determine whether a facility must be issued a permit.
Once a permit has been granted, the bill would require permitted facilities to monitor and report environmental impacts, conduct wildlife assessments and adapt facility operations accordingly to mitigate harm to wildlife, and require permit holders to pay an environmental impact fee, to be deposited into a dedicated “Renewable Energy Generation Facility Cleanup Fund” to support cleanup efforts and other regulatory activities.
Lastly, the bill would amend Chapter 312 of the State Tax Code, affecting economic development tools localities currently can use at their discretion under the code. The bill would prohibit taxing authorities from entering into agreements that grant property tax abatements to renewable energy projects with a generation capacity of 10 MW or more.