BESS Decommissioning – Texas House Bill 3809 and the German Context

Decommissioning is often one of the hidden risks in Battery Energy Storage System (BESS) projects—especially in Germany, where there is still no unified regulation addressing it clearly. As an investor or station owner, you eventually reach the end of life (EOL) of your project—so what comes next? What must be done with the site? What obligations does a successor have to clear the land and potentially repurpose it? These are not just technical but also financial questions, often deferred to the future, yet capable of undermining the project's economic assumptions if not handled properly.

In Germany, you usually prepay for the recycling of the batteries in accordance with the Battery Act (BattG). But a BESS station is much more than just its batteries—it includes containers, inverters, transformers, foundations, and underground infrastructure. This is why I was very pleased to see House Bill 3809 from Texas, which tackles the topic of decommissioning comprehensively and pragmatically.

The Texas Model: House Bill 3809

Signed in May 2025 and set to take effect in September 2025 , Texas House Bill 3809 establishes a clear statutory framework for BESS decommissioning. It fills a regulatory gap and brings long-term certainty to landowners, developers, and investors alike. https://legiscan.com/TX/text/HB3809/id/3153646

Key Provisions:

Mandatory Lease Clauses
: All non-utility BESS leases must contain enforceable decommissioning terms.
Infrastructure Removal
: Operators must dismantle the full station—batteries, inverters, transformers, overhead lines, and foundations down to 3 feet.
Site Restoration
: Landowners may request removal of access roads, backfilling of trenches, reseeding, and removal of large rocks.
Financial Assurance
: Operators must post financial guarantees (e.g., bonds or letters of credit) sized to decommissioning costs minus salvage value, and update them every 5 years.
Legal Remedies
: Landowners have the right to pursue injunctive relief in case of non-compliance.

The German Context: Permit-Driven and Baulast-Based Approach

Germany has no national statute equivalent to HB 3809. Instead, decommissioning is addressed through a patchwork of permit conditions and legal instruments—some public, some contractual.

Key Mechanisms:

Permit Conditions (Baugenehmigung)
: Local building authorities may impose site restoration and dismantling requirements when granting construction permits.
Baulast Registration
: A Baulast is a publicly enforceable obligation recorded in the Baulastenverzeichnis . It binds all successors in title and can cover dismantling and land restoration duties.
Battery Act (BattG)
: Ensures proper recycling and disposal of battery cells at EOL—but does not cover broader infrastructure.
Private Contractual Provisions
: Lease and easement agreements may impose dismantling obligations, but enforceability depends on the parties involved.

Why Germany Should Learn from HB 3809

I believe that HB 3809 offers valuable lessons for Germany’s BESS permitting and planning process. First, it provides early clarity —setting expectations before the building permit is even issued. This avoids ambiguity and gives developers and landowners a shared understanding of post-EOL obligations.

Second, the five-year re-evaluation of decommissioning costs is a brilliant idea. While most institutional investors already monitor their decommissioning provisions, it’s easy to overlook this if not required by regulation. Codifying the process increases transparency and protects both the landowner and the project sponsor. Furthermore, HB 3809 provides a comprehensive assurance framework to calculate and manage decommissioning costs.

Another important point is the integration of the Battery Passport (as required by the EU Battery Regulation 2023/1542) into the decommissioning plan. This would enable a data-driven, transparent EOL and recycling process —linking digital traceability with circular economy objectives.

With storage demand rising (as Der Spiegel noted, “a BESS tsunami” ), now is the time to streamline permitting and establish a dedicated Leistungsbild under HOAI to define the scope of planning, execution, and EOL procedures for BESS infrastructure—just as we already have for power plants or substations.

Originally published on LinkedIn Pulse. Open the original →