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ARTICLE · 24 SEPTEMBER 2025

New Requirements For Wind, Solar, And Storage Facility Leases In Texas

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On May 29, 2025, Texas Governor Greg Abbott signed House Bill No. 3809 into law, adding new provisions to the Texas Utilities Code that impose decommissioning and financial assurance requirements...

United StatesEnergy and Natural Resources
Justus Britt
Justus Britt
Casey L. Glasser
Casey L. Glasser
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This article is a follow-up to a previous article on a similar topic: "House Bill 3809 Adds Obligations to Battery Energy Storage Lessees in Texas."

On May 29, 2025, Texas Governor Greg Abbott signed House Bill No. 3809 into law, adding new provisions to the Texas Utilities Code that impose decommissioning and financial assurance requirements for certain battery energy storage facility agreements in the state [H.B. 3809]. Shortly thereafter, on June 20, 2025, Governor Abbott signed House Bill No. 3228 into law, creating similar decommissioning and financial assurance obligations for wind and solar facility leases [H.B. 3228].

Both bills took effect on September 1, 2025, and apply only to agreements entered into on or after that date [Section 3 of H.B. 3809; Section 8 of H.B. 3228]. Solar, wind, and energy storage developers operating in Texas should ensure that their lease forms reflect these new obligations.

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