By: Goldman H.B. No. 4573       A BILL TO BE ENTITLED   AN ACT   relating to the issuance of a permit by the commissioner of the   General Land Office for a wind power facility on coastal public   land; authorizing a fee; providing a civil penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 33, Natural Resources Code, is amended   by adding Subchapter J to read as follows:   SUBCHAPTER J. COASTAL WIND POWER FACILITY PERMIT          Sec. 33.801.  DEFINITIONS. In this subchapter:                 (1)  "Permittee" means the holder of a permit issued   under this subchapter.                (2)  "Wind power facility" includes:                      (A)  a wind turbine generator; and                      (B)  a facility or equipment used to support the   operation of a wind turbine generator, including an electrical   transmission or communications line, an electric transformer, a   battery storage facility, an energy storage facility, or   telecommunications equipment.          Sec. 33.802.  PERMIT REQUIRED. (a) A person may not install   or operate a wind power facility on coastal public land unless the   person obtains a permit from the commissioner under this   subchapter.          (b)  The commissioner by rule shall:                (1)  in collaboration with the Texas Department of   Insurance and the Public Utility Commission of Texas, require that   a permittee construct and maintain the permitted wind power   facility to withstand:                      (A)  a storm that would cause a flood in any area   that is:                            (i)  located less than 40 miles from the   location of the proposed wind power facility; and                            (ii)  subject to inundation by a flood that   has a 0.1 percent or greater chance of occurring in any given year,   as determined from maps or other data from the Federal Emergency   Management Agency; and                      (B)  a Category 5 hurricane on the Saffir-Simpson   Hurricane Wind Scale;                (2)  prohibit a permittee from constructing or   maintaining the permitted wind power facility in a manner that uses   cables to secure the facility to coastal public land;                (3)  prohibit a permittee from connecting the permitted   wind power facility to a transmission line that provides   electricity to a location outside the ERCOT power region;                (4)  in collaboration with the Public Utility   Commission of Texas, require the permittee to submit to the   commissioner regular maintenance evaluations of the permitted wind   power facility; and                (5)  require that a permittee guarantee that the   facility carries sufficient thermal nonintermittent base load   backup generation to ensure that the facility is generating power   at 100 percent of installed capacity.          (c)  If a wind power facility permitted under this subchapter   generates less than the installed capacity as required under   Subsection (b)(5), the Public Utility Commission of Texas shall   levy a per kilowatt hour intermittency penalty, which shall be the   equivalent of the federal per kilowatt hour subsidy or tax credit   for wind power described in Section 33.808.          (d)  The Texas Department of Insurance and the Public Utility   Commission of Texas may adopt rules as needed to implement this   subchapter.          Sec. 33.803.  APPLICATION FOR PERMIT. (a) An application   for a permit under this subchapter must be made on a form prescribed   by the commissioner.          (b)  An application for a permit under this subchapter must   include:                (1)  a study on the potential environmental impacts of   the proposed wind power facility on migratory birds, oceanic life,   and soil and water in this state;                (2)  based on the study required by Subdivision (1):                      (A)  an analysis created by the Texas Commission   on Environmental Quality of potential negative impacts of the wind   power facility on this state and, if any, recommendations for   mitigation of those impacts;                      (B)  an analysis created by the Parks and Wildlife   Department of potential negative impacts of the wind power facility   on this state and, if any, recommendations for mitigation of those   impacts; and                      (C)  an analysis created by the Public Utility   Commission of Texas of potential negative impacts of the wind power   facility on this state and, if any, recommendations for mitigation   of those impacts;                (3)  a study on the potential economic impacts of the   proposed wind power facility on commercial and recreational   fishing, water tourism, the workforce, and ports in this state;                (4)  based on the study required by Subdivision (3):                      (A)  an analysis created by the Texas Commission   on Environmental Quality of potential negative impacts of the wind   power facility on this state and, if any, recommendations for   mitigation of those impacts;                      (B)  an analysis created by the Parks and Wildlife   Department of potential negative impacts of the wind power facility   on this state and, if any, recommendations for mitigation of those   impacts; and                      (C)  an analysis created by the comptroller of   public accounts of potential negative impacts of the wind power   facility on this state and, if any, recommendations for mitigation   of those impacts;                (5)  a study on the potential impacts of the proposed   wind power facility on navigation and shipping lanes in this state;                (6)  based on the study required by Subdivision (5), an   analysis created by the Texas Department of Transportation of   potential negative impacts of the wind power facility on this state   and, if any, recommendations for mitigation of those impacts;                (7)  a study on the potential impacts of the proposed   wind power facility on infrastructure in this state associated with   oil and gas pipelines, offshore production of oil and natural gas,   roads, and bridges;                (8)  based on the study required by Subdivision (7):                      (A)  an analysis created by the Texas Department   of Transportation of potential negative impacts of the wind power   facility on this state and, if any, recommendations for mitigation   of those impacts; and                      (B)  an analysis created by the Railroad   Commission of Texas of potential negative impacts of the wind power   facility on this state and, if any, recommendations for mitigation   of those impacts;                (9)  an estimate of the electrical energy anticipated   to be produced by the proposed wind power facility and provided to   this state;                (10)  a copy of each notice provided by the applicant   under Section 33.805; and                (11)  any additional information required by the   commissioner.          (c)  The commissioner by rule shall adopt a process for an   applicant to request the state agency analyses required by   Subsection (b). A state agency named in Subsection (b) shall   provide a requested analysis to the requestor in a reasonable time.          Sec. 33.804.  PERMIT APPROVAL CONDITIONS. (a) The   commissioner may not approve an application for a permit under this   subchapter unless the commissioner determines that the application   complies with Sections 33.802 and 33.803.          (b)  Before approving an application for a permit under this   subchapter, the commissioner must require the applicant to mitigate   or plan to mitigate any negative impacts of the proposed wind power   facility on this state based on the recommendations issued by state   agencies under Section 33.803.          (c)  The commissioner shall deny a permit application if the   commissioner determines, based on the application, that any   negative impacts of the proposed wind power facility on this state   cannot be mitigated.          Sec. 33.805.  NOTICE TO STATE AND LOCAL OFFICIALS;   OBJECTION. (a) A person intending to apply for a permit under this   subchapter shall mail notice of intent to obtain the permit to:                (1)  the governor and the attorney general;                (2)  each state senator and representative who   represents an area located less than 40 miles from the location of   the proposed wind power facility;                (3)  the mayor of each municipality located less than   40 miles from the location of the proposed wind power facility;                (4)  the commissioners court of each county located   less than 40 miles from the location of the proposed wind power   facility; and                (5)  the board of each port authority or navigation   district located less than 40 miles from the location of the   proposed wind power facility.          (b)  A person who receives notice under Subsection (a) may   submit a letter to the commissioner and the applicant notifying the   commissioner and the applicant that the person objects to the   approval of the permit. The letter must be submitted to the   commissioner and the applicant not later than the 30th day after the   date the person receives the notice.          (c)  If the commissioner determines that an objection   received under Subsection (b) is based on a reasonable potential   negative impact of the proposed wind power facility to this state,   the commissioner may not grant the permit unless the applicant   mitigates or plans to mitigate the potential negative impact.          Sec. 33.806.  AUTHORITY OF COMMISSIONER. (a) The   commissioner:                (1)  as a condition of issuing a permit, may impose an   application fee to recover the costs of administering this   subchapter;                (2)  may require a permittee to provide to the   commissioner copies of maps, plats, reports, data, and any other   information in the possession of the permittee that relates to a   permit; and                (3)  may make any rules relating to permits or   permittees the commissioner considers appropriate.          (b)  If a permittee violates a rule of the commissioner or a   term of a permit, the commissioner may cancel the permit.          (c)  If the commissioner acquires information under   Subsection (a), the commissioner shall consider the information to   be confidential and may not disclose it, except by authority of a   court order, to the public or any other agency of this state.          Sec. 33.807.  UNPERMITTED WIND POWER FACILITIES. A state   agency or political subdivision may not:                 (1)  approve a permit related to a wind power facility   for which a permit is required under this subchapter unless the   commissioner has issued the permit under this subchapter; or                (2)  unless required by federal law, contract with or   in any other manner provide assistance to a federal agency or   official with respect to the construction of a wind power facility   for which a permit is required under this subchapter unless the   commissioner has issued the permit.          Sec. 33.808.  MARKET DISTORTION RESPONSE. (a) The Public   Utility Commission of Texas and the ERCOT independent system   operator shall adopt rules, operating procedures, and protocols to   eliminate or compensate for any distortion in electricity pricing   in the ERCOT power region caused by a federal tax credit provided   under 26 U.S.C. Section 45 to a permittee.          (b)  Rules, operating procedures, and protocols adopted   under this section must ensure that costs imposed on the system by   the sale of electricity by a permittee that is eligible for a   federal tax credit provided under 26 U.S.C. Section 45, including   costs of maintaining sufficient capacity to serve load at peak   demand caused by the loss of new investment from below-market   prices, are paid by the parties that impose the costs.          Sec. 33.809.  ENFORCEMENT. (a) If a person violates or is   threatening to violate this subchapter, a rule adopted under this   subchapter, or a permit issued under this subchapter, the   commissioner may have a civil suit brought in a district court for   injunctive relief, for assessment and recovery of a civil penalty   of $10,000 for each act of violation, or for both injunctive relief   and a civil penalty. Each day of a continuing violation is a   separate violation.          (b)  The attorney general shall bring a suit under this   subchapter in the name of the commissioner.          (c)  In addition to the relief authorized under Subsection   (a), the court may award reasonable attorney's fees, which must be   used to reimburse the operating fund or account from which the   expenditure occurred.          SECTION 2.  This Act takes effect September 1, 2023.