# Texas Solar and Battery Storage Projects: Decommissioning Security, Road Bonds and Fire Rules URL: https://mycontractorsinsurancequote.com/projects/solar-and-battery-storage/texas Updated: 2026-10-29 · Reviewed by the Principal, Gleason Insurance Brokers, LLC Publisher: My Contractors Insurance Quote, a website of Gleason Insurance Brokers, LLC In Texas, decommissioning security for utility-scale solar and battery storage runs to the landowner under the lease, not to a permit authority: Utilities Code chapters 302 and 303 require the agreement to call for a bond, letter of credit, parent guaranty or another acceptable form, sized from a Texas-licensed engineer's estimate and updated at least every five years. None of these statutes sets an insurance requirement, so liability terms come from the lease and the project contracts. Counties can add their own road-use security, and a 2025 law sets fire-safety standards for battery facilities that start commercial operations on or after January 1, 2027. ## Key Decision Points - Utilities Code chapter 302 regulates the solar lease or easement with the landowner, so the decommissioning security is owed to the landowner, not to a state or county permit office. - Accepted forms listed in the statutes are a parent company guaranty with an investment-grade rating, a letter of credit, a bond or another form acceptable to the landowner. - HB 3228 (2025) sizes the security at removal, recycling, disposal and restoration costs, less salvage value and less value pledged to outstanding debt, with engineer estimates by year 10 and at least every five years after. - HB 3809 (2025) created chapter 303 for standalone battery storage leases, with security due by the earlier of termination or the 15th anniversary of the battery operation date. - None of chapters 301, 302 or 303 sets an insurance requirement; any additional insured or limit comes from the lease or contract. - HB 3824 (2025) created chapter 187 fire-safety duties for battery facilities of 1 megawatt hour or more that reach commercial operations on or after January 1, 2027. ## Decommissioning Security Runs to the Landowner Texas handles solar decommissioning through the landowner agreement rather than a public permit. SB 760, enacted in 2021 as Utilities Code chapter 302, says it "applies only to a solar power facility that is a generation asset as defined by Section 39.251." It governs the lease or easement between the project company and the landowner for agreements entered into on or after September 1, 2021. The security is delivered to the landowner and held under the lease. No state agency or county holds it, and none of these statutes gives a county the power to set its amount. The enrolled SB 760 text sets a removal standard: foundations, transformers and buried cable come out "from the ground to a depth of at least three feet below the surface grade," and the landowner has 180 days to ask for roads and rock to be removed and the surface restored. The agreement must require the grantee to deliver evidence of financial assurance in one of the listed forms: a parent company guaranty with an investment-grade rating, a letter of credit, a bond or another form reasonably acceptable to the landowner. As enacted in 2021, the delivery deadline was "not later than the earlier of" termination or "the 20th anniversary of the commercial operations date." The security also stays in place through a transfer of the project until the new owner delivers replacement evidence. HB 3228 amended subsections (a) through (d) of the chapter in 2025, and the enrolled bill we read does not restate the deadline, so confirm in the current codified text whether the 20-year date still applies to your agreement. For how Texas compares with California, Nevada and federal land projects, see [solar and battery storage project requirements by state](https://mycontractorsinsurancequote.com/projects/solar-and-battery-storage). ## What HB 3228 Changed for Solar and Wind Leases HB 3228 of the 89th Legislature amended Utilities Code chapters 301 and 302. We read it as the enrolled bill text on the Legislature's site; the codified statute could not be read, so confirm the current text before relying on any wording. The amendments apply to agreements entered into on or after September 1, 2025, so older leases keep the terms they were signed under. For solar, the security must now cover removal plus recycling and disposal plus restoration, less salvage value and less any value pledged to outstanding debt. The estimate comes from an independent, third-party professional engineer licensed in Texas, due "on or before the 10th anniversary of the commercial operations date of the solar power facilities" and then at least every five years. Removal now calls for reuse or recycling "including the photovoltaic modules," and batteries and other storage are added to solar support equipment, which matters for hybrid solar and storage sites. For wind leases under chapter 301, the form must be "acceptable to the landowner," where the solar chapter says "reasonably acceptable." The forms and the net-of-salvage formula match the solar rules, a Texas engineer updates the estimate at least once every five years and recycling now reaches turbine blades. Neither chapter, as amended, sets a liability limit, an additional insured requirement or any other insurance term. Sponsor-level program design across land, construction and operation is covered in [insurance and bonds for developers](https://mycontractorsinsurancequote.com/who-we-serve/developers-subdividers). ### Illustrative scenario: A Hybrid Solar and Storage Project Plans Its Security Caliche Ridge Energy, a developer, signs a lease in 2026 for a 200 megawatt solar project with co-located batteries in a rural Texas county. Because the lease postdates HB 3228, its counsel sizes the decommissioning security on removal, recycling and restoration net of salvage and debt-pledged value, and schedules the first engineer estimate before the 10th anniversary. The landowner accepts a bond, so the developer asks its surety about a long-term decommissioning bond that can be resized every five years, and the surety asks for corporate indemnity. The county asks for a road use agreement with a letter of credit, which the developer funds from its bank line. The battery design follows NFPA 855 for the chapter 187 standards, and the builders risk carrier asks for UL 9540A data before quoting. These details are hypothetical, and a real program depends on the landowner and county, the surety or carriers and the firm's own risk. ## Standalone Battery Storage Under Chapter 303 HB 3809 created Utilities Code chapter 303, "Battery Energy Storage Facility Agreements," for standalone storage leases that do not fall under the wind or solar chapters. It applies to agreements entered into on or after September 1, 2025. Under the enrolled text, "the grantee is responsible for removing the battery energy storage facility from the landowner's property," with foundations and cable removed to three feet and reuse or recycling where practicable. The forms of security match the solar chapter: a parent guaranty, a letter of credit, a bond or another form the landowner reasonably accepts. The amount is at least the removal cost over salvage value, net of value pledged to debt, and it "must be determined by an independent, third-party professional engineer licensed in this state." The first estimate is due by the 10th anniversary, with updates every five years. The timing differs from solar. Storage security is due "not later than the earlier of" termination or the 15th anniversary of the battery operation date, five years sooner than the 20-year date SB 760 set for solar. A storage developer planning a bond or letter of credit should budget for it earlier in the project's life. HB 3809 contains no insurance provisions. Builders risk underwriting for large electrical and equipment-heavy builds is discussed in [builders risk for industrial and data center projects](https://mycontractorsinsurancequote.com/builders-risk-insurance/industrial-and-data-center-projects). ## Battery Fire Safety Under Chapter 187 HB 3824, "Relating to fire safety standards and emergency operations plans for the operation of battery energy storage facilities," was signed June 20, 2025, and took effect September 1, 2025, as Utilities Code chapter 187. It reaches facilities with "a capacity of one megawatt hour or greater" whose commercial operations date falls on or after January 1, 2027. The commissioner of insurance adopts the standards, based on UL 9540A and "the 2023 edition of NFPA 855 or a later edition." Local governments generally cannot adopt conflicting rules, and the state fire marshal enforces the chapter with administrative penalties. The operator must prepare a site-specific emergency operations plan, including "procedures for communication between the operator or utility and first responders," give it to the local fire responder before commercial operations and offer annual training at no charge. If a city or county asks, the operator pays for an independent evaluation before commercial operations. A third-party fire safety inspection report is required "At least once every five years." The bill states no rulemaking deadline, and we did not confirm whether the Texas Department of Insurance has adopted the standards, so check the current rules before design is fixed. Builders risk and property underwriters typically ask for UL 9540A test data, the NFPA 855 design basis and the emergency plan, and terms for battery projects can vary by carrier guidelines and programs. Course of construction coverage, testing and commissioning terms are explained in [builders risk insurance](https://mycontractorsinsurancequote.com/builders-risk-insurance). ## County Road-Use Security Is Set Agreement by Agreement Construction traffic on county roads is where Texas counties most often ask for security, and each county sets its own terms. In Fort Bend County, a 2021 amendment to the Roadway Use and Maintenance Agreement with AP Solar 2, LLC for the Fighting Jays solar project, signed by the developer August 30, 2021, and on the commissioners court agenda September 14, 2021, requires the company to "Pay a bond in the amount of $3,000,000 to cover any costs of repairing the entire County Roads subject to this Agreement." The same amendment calls for personnel or signage at 15 intersections during construction deliveries. In Comanche County, the commissioners court approved a Road Use and Repair Agreement with Mustang Creek Solar, LLC on September 22, 2025. The minutes record that "Mustang Creek Solar, LLC will issue a Letter of Credit to Comanche County in the amount of $500,000." The same minutes note that the county gives no abatements to solar farms but can require a road use agreement. These are two agreements for two projects, not county-wide rules or a statewide standard. Other counties may ask for a different amount, a different form or nothing at all. Civil and haul contractors should read the road agreement before pricing, since delivery routes, intersection control and repair duties can flow down from the project company through the EPC contract. Other bond and permit rules in that county are covered in [Fort Bend County development requirements](https://mycontractorsinsurancequote.com/texas/metros/houston/fort-bend-county). ## What These Rules Mean for Bonds and Insurance A decommissioning bond is a surety obligation, not insurance. It can stay in force for decades and be resized every five years as engineer estimates change, which typically makes sureties look closely at the sponsor's balance sheet and ask for corporate indemnity and sometimes collateral. Whether a surety will write one, and on what terms, is subject to underwriting. A letter of credit uses bank capacity instead, and a parent guaranty uses the parent's rating, so the choice among the forms the statutes allow is often a financing question as much as a surety question. Road-use bonds and letters of credit are shorter but can be large, as the Fort Bend agreement shows. They sit alongside the EPC contractor's performance and payment bonds and use the same surety capacity. On the insurance side, the statutes leave limits and additional insured terms to the lease, the road agreement and the construction contracts. Most programs still need builders risk with delay in startup for long-lead equipment, liability for construction and operation and pollution coverage for site work and battery releases, subject to underwriting and the terms of the bonds and policies issued. Surety underwriting, capacity and bond types are explained in [construction surety bonds](https://mycontractorsinsurancequote.com/construction-surety-bonds). ## Before You Ask for a Quote ### What to Gather - The signed lease or easement, with its date, decommissioning clause and any insurance exhibit - The engineer's decommissioning estimate and its update schedule - Any county road use agreement and its security terms - UL 9540A test data and the NFPA 855 design basis for battery equipment - The draft emergency operations plan for the local fire responder - Sponsor financial statements for surety underwriting ### What to Ask the Insurer or Surety - Was the lease signed before or after September 1, 2025? - Which form of security will the landowner accept? - When is the first decommissioning security due under our lease? - Does the county require road use security, and in what form? - Has the Texas Department of Insurance adopted the chapter 187 standards yet? - Which insurance terms does the lease require, since the statute sets none? ## Broker Notes **Quick Answer:** Texas requires decommissioning security for utility-scale solar and standalone battery storage through the landowner agreement under Utilities Code chapters 302 and 303, in the form of a bond, letter of credit, parent guaranty or other acceptable form, with no statutory insurance requirement. **Common Mistake:** Treating the decommissioning security as a county or state permit bond. Under chapters 302 and 303 it is owed to the landowner under the lease, and the lease date decides which version of the rules applies. **Broker Perspective:** Long-term decommissioning bonds and county road security typically draw on the same surety capacity as the EPC bonds, so it helps to map all of them before choosing among a bond, a letter of credit and a parent guaranty. **Coverage Impact:** Because the statutes set no insurance terms, limits, additional insureds and pollution coverage come from the lease, road agreement and contracts, while battery design data typically shapes builders risk terms. ## Questions Buyers Ask ### Who holds solar decommissioning security in Texas? The landowner. Utilities Code chapter 302 regulates the lease or easement, so the security is delivered under that agreement rather than to a state agency or county. ### What forms of decommissioning security does Texas accept? The statutes list a parent company guaranty with an investment-grade rating, a letter of credit, a bond or another form acceptable to the landowner. ### When is decommissioning security due for a standalone battery project? Under chapter 303 from HB 3809, by the earlier of termination or the 15th anniversary of the battery operation date, for agreements entered into on or after September 1, 2025. ### Does Texas law require insurance for solar or battery leases? No. Chapters 301, 302 and 303 set no liability limit or additional insured requirement. Those terms come from the lease and project contracts. ### Do Texas counties require road bonds for solar projects? Some do, by agreement. Fort Bend County's 2021 agreement on one project called for a $3,000,000 bond, and Comanche County's 2025 agreement on another called for a $500,000 letter of credit. Each county sets its own terms. ## Official Sources 1. [SB 760, 87th Legislature, enrolled bill text (Utilities Code chapter 302)](https://capitol.texas.gov/tlodocs/87R/billtext/html/SB00760F.htm), Texas Legislature. Chapter 302 applies to solar generation assets; three-foot removal; 180-day landowner request; forms of financial assurance; delivery by the earlier of termination or the 20th anniversary; security stays in place through transfer Verified 2026-10-26. 2. [HB 3228, 89th Legislature, enrolled bill text (Utilities Code chapters 301 and 302)](https://capitol.texas.gov/tlodocs/89R/billtext/html/HB03228F.htm), Texas Legislature. Amount covers removal, recycling, disposal and restoration net of salvage and debt-pledged value; Texas engineer estimates by year 10 and every five years; module and blade recycling; batteries added to support equipment; effective September 1, 2025 Verified 2026-10-26. 3. [HB 3809, 89th Legislature, enrolled bill text (Utilities Code chapter 303)](https://capitol.texas.gov/tlodocs/89R/billtext/html/HB03809F.htm), Texas Legislature. Standalone battery storage agreements; removal duty; forms and amount of financial assurance; engineer estimate; security due by the earlier of termination or the 15th anniversary; no insurance provisions Verified 2026-10-26. 4. [HB 3824, 89th Legislature, enrolled bill text (Utilities Code chapter 187)](https://capitol.texas.gov/tlodocs/89R/billtext/html/HB03824F.htm), Texas Legislature. Facilities of 1 megawatt hour or more with commercial operations on or after January 1, 2027; UL 9540A and NFPA 855 (2023) standards; emergency operations plan; independent evaluation on request; inspection at least every five years Verified 2026-10-26. 5. [HB 3824 bill history](https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3824), Texas Legislature. Signed June 20, 2025; effective September 1, 2025; bill caption Verified 2026-10-26. 6. [Amendment to Roadway Use and Maintenance Agreement, AP Solar 2, LLC (Fighting Jays), commissioners court agenda September 14, 2021](https://agendalink.fortbendcountytx.gov/docs/2021/CCTR/20210914_3545/47272%5F1%2E%5FAgreement%2DAP%2DSolar%2D2%2DLLC%2DFighting%2DJays%2Epdf), Fort Bend County. $3,000,000 bond to cover repair of county roads; personnel or signage at 15 intersections during deliveries Verified 2026-10-26. 7. [Commissioners court minutes, September 22, 2025](https://www.comanchecountytx.gov/AgendaCenter/ViewFile/Minutes/_09222025-99), Comanche County. Road Use and Repair Agreement with Mustang Creek Solar, LLC; $500,000 letter of credit; no abatements for solar farms Verified 2026-10-26. ## Related Decisions - [solar and battery storage projects](https://mycontractorsinsurancequote.com/projects/solar-and-battery-storage) - [Texas construction insurance and bond requirements](https://mycontractorsinsurancequote.com/texas) - [contractors pollution liability insurance](https://mycontractorsinsurancequote.com/contractors-pollution-liability-insurance) - [insurance and bonds for civil contractors](https://mycontractorsinsurancequote.com/who-we-serve/civil-underground-utilities) - [California solar and battery storage requirements](https://mycontractorsinsurancequote.com/projects/solar-and-battery-storage/california) --- Start a quote request: https://mycontractorsinsurancequote.com/get-a-quote · Call 844-978-7283 Contract and insurance reviews are a courtesy service that may be available at times, depending on our workload and on the size, timing and complexity of the project. 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