89th Legislature Regular Session

HB 4511

Overall Vote Recommendation
Yes
Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
Limited Government
Individual Liberty
Digest

HB 4511 creates new statutory provisions under Chapter 303 of the Texas Utilities Code to govern the legal treatment of wind energy agreements between surface estate owners and wind energy developers. The bill defines a "wind energy agreement" as any lease, easement, license, or similar contract that permits the installation of wind-powered energy generation equipment on a landowner’s property. It clarifies that the right to capture and use wind energy is an inherent and non-severable component of the surface estate, effectively prohibiting the sale or separation of wind rights from land ownership.

The legislation codifies that wind energy agreements are to be treated as real property instruments, subject to the same legal standards and enforceability. A significant administrative provision requires that, upon the expiration or termination of such agreements, the wind energy developer must file a release with the county clerk in the county where the land is located. This formal record ensures that clouded titles or lingering encumbrances do not affect future transactions involving the property.

Further, if the developer fails to file the required release, the surface estate owner can request this action in writing. If the developer no longer holds the agreement, they must notify the owner of the successor. The bill outlines procedural requirements for these communications and the form of the release. Finally, it affirms that parties to wind energy agreements retain the right to transfer their interests, including the right to payments under the agreement, without restriction.

The Committee Substitute introduces key changes from the originally filed version that significantly alter how wind energy rights are treated under Texas law. One of the most notable shifts is the elimination of the concept of a "severable" wind energy right. In the filed version, wind energy rights could be separated from surface ownership and independently transferred or encumbered, similar to mineral rights. The substitute version reverses this approach, declaring that the right to capture wind energy is inherently tied to the surface estate and cannot be severed. This change reinforces traditional property principles and avoids the creation of a new class of real property interest.

Additionally, the Committee Substitute removes the enforcement mechanism present in the filed bill that imposed civil liability on wind energy developers who failed to properly record a release after the termination or expiration of an agreement. The originally filed bill created a cause of action for damages against developers and any unrecorded transferees. The substitute eliminates this liability section, opting instead for a compliance-focused model that emphasizes notice and procedural obligations without introducing new legal risks or penalties.

Finally, the Committee Substitute simplifies the bill’s structure and language. It eliminates specialized definitions such as “wind energy right” and “wind energy developer of record,” and avoids complex record-keeping burdens related to successive ownership of wind agreements. These revisions streamline the administrative process, reduce ambiguity, and make compliance easier for both landowners and developers. Overall, the substitute version shifts the bill's emphasis from expansive property rights and liability enforcement toward clarity, consistency, and protection of surface estate integrity.

Author
John Smithee
Fiscal Notes

According to the Legislative Budget Board (LBB), HB 4511 is not expected to generate any significant costs to the state. Any administrative or procedural duties triggered by the bill—such as the requirement for wind energy developers to file releases of expired agreements or the indexing responsibilities of county clerks—are anticipated to be manageable within existing agency resources​.

Specifically, the bill does not mandate the creation of new programs, regulatory bodies, or enforcement mechanisms that would require additional state funding. Its core functions relate to recording and managing wind energy agreements and releases, which align with existing duties performed by local county clerks and do not introduce substantial new administrative burdens.

Similarly, for local governments, including county clerk offices that handle recording and indexing of property instruments, the bill is expected to have no meaningful fiscal impact. These offices already manage similar filings for other real property agreements, and the bill merely extends existing practices to include wind energy agreements. Therefore, the legislation is designed to improve legal clarity and transparency without imposing new fiscal burdens on state or local entities.


Vote Recommendation Notes

HB 4511 should be supported as a measured and beneficial clarification of property rights in the context of wind energy development in Texas. It addresses legal ambiguity that has persisted due to the lack of statutory guidance on whether wind rights are severable from the surface estate. By confirming that the right to capture and employ wind energy is an inherent—and non-severable—right of the surface estate owner, the bill reinforces property rights and brings much-needed certainty to landowners and developers alike​.

Importantly, the bill does not grow the size or scope of government. It creates no new state agencies, does not expand regulatory authority, and confers no additional rulemaking power. All procedural duties—such as recording the release of expired wind energy agreements—are routed through the existing responsibilities of county clerks, meaning no new governmental infrastructure or oversight mechanisms are introduced​.

There is also no increase in the burden on taxpayers. The Legislative Budget Board has determined that the bill will have no significant fiscal implication for the state or local governments, as any administrative costs can be absorbed using existing resources​.

Finally, the bill avoids imposing significant regulatory burdens on private individuals or businesses. It requires only that wind energy developers record the termination of agreements—a common and low-cost real property practice that ensures landowners have clear title. The substitute version of the bill notably removes any civil liability provisions present in the introduced version, further easing the burden on developers while still protecting property owners through notice-based procedures​.

In sum, HB 4511 supports the principles of limited government, private property rights, and responsible land use without expanding bureaucracy or regulatory scope. It delivers legal clarity without imposing new costs and is deserving of a “Yes” vote. Texas Policy Research recommends that lawmakers vote YES on HB 4511.

  • Individual Liberty: The bill affirms that landowners inherently have the right to harness wind energy on their own property. By codifying this right as part of the surface estate and ensuring it cannot be severed or sold off separately, the legislation protects individual autonomy over private land use. This helps ensure Texans are not unknowingly stripped of future economic opportunities tied to renewable energy development on their property.

  • Personal Responsibility: HB 4511 requires wind energy developers to act responsibly by formally recording the termination of expired or canceled wind energy agreements. If requested, they must either file a release or provide documentation showing who now owns the agreement. This fosters accountability in contractual relationships and helps prevent title disputes and legal confusion, promoting a culture of good-faith dealings.

  • Free Enterprise: The bill does not restrict or interfere with the ability of landowners and developers to enter into voluntary agreements for wind energy development. Instead, it provides legal clarity and certainty, which can help support market confidence. Developers benefit from a more standardized framework, and landowners have greater assurance that their rights are protected—conditions that can foster greater investment and economic activity in Texas’ growing renewable energy sector.

  • Private Property Rights: By declaring that wind rights cannot be severed from the surface estate, the bill ensures that landowners retain full control over this important resource. It also requires developers to formally release their claim to those rights when agreements end, helping to keep land records clear and enforceable. These protections uphold the integrity of private property and reduce the risk of third-party interference or hidden encumbrances.

  • Limited Government: HB 4511 does not create any new government programs, regulatory bodies, or enforcement mechanisms. All procedures—such as document recording—are handled through existing county clerk offices. The bill promotes legal clarity and accountability without increasing state control, mandates, or spending. It supports the principle that law should serve as a framework for fair dealings, not a tool for expanding bureaucratic reach.

View Bill Text and Status