Overview of Recent Texas Legislation on Wind and Solar Reliability
AI Perplexity and Gerald Ratzer
May 13, 2005
Texas has recently advanced significant legislation aimed at increasing the reliability and regulatory oversight of wind and solar energy providers. The primary legislative actions include new permitting requirements, reliability standards, and operational constraints that specifically target renewable energy projects.
Key Legislative Measures
Senate Bill 819 (SB 819): New Permitting and Siting Requirements
● Applicability: SB 819 targets new or expanded wind and solar projects with a generating capacity of at least 10 megawatts that connect to the ERCOT grid on or after September 1, 20251345.
● Permitting Process: Projects must obtain a permit from the Public Utility Commission of Texas (PUCT) before interconnection. The PUCT can deny permits to projects that do not meet new criteria or are deemed to cause more harm than benefit134.
● Siting and Environmental Reviews:
○ Developers must submit site plans showing compliance with setback rules.
○ Environmental impact reviews are required, conducted by the Texas Parks and Wildlife Department.
○ Fire mitigation plans must be prepared.
○ County judges within 25 miles of a project must be notified, and public hearings must be held145.
● Setback Requirements: All solar equipment must be at least 100 feet from property lines and 200 feet from habitable structures unless a waiver is obtained. Wind projects must be at least 3,000 feet from the nearest property, with possible waivers from property owners45.
● Public Disclosure: Project contracts must be filed with the PUCT to demonstrate compliance with surety bond and decommissioning obligations, and these documents may become public1.
● Environmental Impact Fee: An annual fee will be assessed to fund environmental monitoring and cleanup45.
Retroactive Reliability Standards (SB 715 / HB 3356):
● Expansion of Reliability Requirements: These bills propose to apply reliability standards not only to new generators but also retroactively to all existing generators, moving up the compliance deadline and requiring all generators to secure their own reserves36.
● Potential Impact: Critics argue this could impose significant costs, create operational complexity, and disrupt existing investments made under previous rules36.
● Rationale: Proponents claim uniform standards are necessary to ensure grid reliability and prevent wind and solar volatility from increasing system uncertainty36.
Existing Law: HB 1500 (2023) – “Firming” Requirement
● Firming Obligation: Wind and solar projects commencing commercial operation on or after January 1, 2027, must secure dispatchable backup capacity (on-site or via contract) to meet performance standards during periods of highest reliability risk6.
● Performance-Based Compliance: Operators must annually demonstrate to the PUCT that their portfolios can deliver reliable output during critical periods, with flexibility in how they achieve this (e.g., battery storage, contracts with gas plants)6.
● Penalties and Incentives: Financial penalties are imposed for non-compliance, while incentives are offered for exceeding standards6.
● Rulemaking Status: The PUCT is currently developing detailed rules for implementation, with a deadline for completion by December 1, 20276.
Industry and Stakeholder Reactions
● Renewable Energy Sector: Industry groups argue these measures introduce onerous, discriminatory requirements that do not apply to fossil fuel projects, risk slowing renewable deployment,
raise costs for consumers, and infringe on property rights345.
● Supporters: Proponents, including some policymakers and think tanks, argue the legislation is necessary to address reliability risks posed by intermittent resources and to level the playing field among energy sources36.
Summary Table: Key Provisions of Recent Texas Renewable Energy Legislation
Provision SB 819 (2025) SB 715 / HB 3356 (2025) HB 1500 (2023, in effect 2027)
Applies to New/expanded wind & solar ≥10 MW All generators (retroactive) New wind/solar from Jan 1, 2027
Permit required Yes, via PUCT N/A N/A
Environmental review Yes, by Parks & Wildlife N/A N/A
Setbacks 100 ft (solar), 3,000 ft (wind) N/A N/A
Public hearings Yes N/A N/A
Reliability standard Indirect, via permitting Yes, all generators Yes, new wind/solar
Backup/firming required No (direct) Yes Yes
Environmental impact fee Yes N/A N/A
Conclusion
Texas is moving toward a stricter regulatory regime for wind and solar energy providers, with new permitting, siting, and reliability requirements aimed at addressing grid reliability concerns. These measures are expected to slow renewable energy development and have sparked significant debate
about their impact on energy costs, property rights, and the future of the Texas grid13456.
Citations:
1. https://www.projectfinance.law/publications/2025/april/texaslegislature-debates-electricity/
2. https://www.texastribune.org/2025/04/16/texas-ercot-energydemand-legislature/
3. https://www.utilitydive.com/news/renewable-energy-texaslegislation-wind-solar-sb715-sb819/746436/
4. https://www.pv-magazine.com/2025/04/17/texas-senate-passesanti-solar-wind-bill/
5. https://www.texastribune.org/2025/04/08/renewable-energytexas-new-regulations/
6. https://www.heritage.org/energy/report/restoring-reliability-thetexas-electric-grid
7. https://solarstoragextra.com/texas-passes-bill-to-restrict-solarand-wind-development/
8. https://www.utilitydive.com/news/texas-renewables-billelectricity-price-reliability-aurora/747121/
9. https://www.texaspolicy.com/wp-content/uploads/2025/03/202503-LP-Reliability-Standards-to-Reduce-the-Cost-of-Wind-andSolar-Volatility-in-Texas-ReedBennett.pdf
10. https://www.yahoo.com/news/renewable-energy-companiesface-little-100000915.html
11. https://www.velaw.com/insights/texas-renewables-roundup-2025texas-legislature-update/
12.https://www.nytimes.com/2025/05/14/us/politics/renewableenergy-republicans.html
13.https://poweralliance.org/2025/03/21/texas-clean-energy-boomfaces-onslaught-of-anti-renewable-bills/
14.https://www.houstonchronicle.com/business/energy/article/texassolar-wind-damaging-bill-20303387.php
15.https://www.ercot.com/gridinfo/generation
16.https://seia.org/news/solar-industry-statement-on-texas-senatepassing-bill-that-will-harm-needed-energy-generation/
17.https://seia.org/research-resources/2025-a-new-strategy-for-solarenergy-policy-in-texas/
18. https://reason.com/2025/05/02/texas-lawmakers-want-touse-police-power-of-the-state-to-halt-renewable-energy-projects/
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