Relating to recycling of certain renewable energy components; authorizing an administrative penalty.

Contracts

• Upstream (Generators/Decommissioners): Master Service Agreements (MSAs) must be renegotiated to adjust tipping fees. Your pricing must now account for the carrying cost of the required financial assurance and the cost of the annual Professional Engineer (PE) study.
• Lenders/Sureties: You must engage with your bank or surety broker immediately to establish a Letter of Credit or Surety Bond facility. Ensure this new liability does not breach covenants in your existing operating lines of credit.

Hiring/Training

• External Vendor Required: You must retain an independent, third-party Professional Engineer (PE) licensed in Texas. This cannot be done by in-house staff.
• Internal Operations: Staff must be trained on strict inventory tracking that distinguishes between components physically on-site and components to which you have taken title but have not yet received.

Reporting & Record-Keeping

• Inventory Tracking: Implement a system to track the "recycling timeline" for every specific component in your possession.
• Annual Filing: You must submit a report to the TCEQ by January 15 annually containing:
• 1. Inventory of unrecycled components.
• 2. Timeline for processing.
• 3. The PE-certified cost estimate.
• 4. Proof of Financial Assurance.

Fees & Costs

• Financial Assurance: You must secure a bond or letter of credit equal to 100% of the estimated disposal cost. This will tie up liquidity.
• Administrative Penalties: Violations for failure to report or bond carry a penalty of up to $500 per day, per violation.
• Professional Fees: Budget for the annual engagement of the third-party PE to conduct the cost estimate study.