| 1 | 1 | | By: Murr H.B. No. 4971 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the permitting of battery storage system facilities by |
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| 7 | 7 | | the Public Utility Commission of Texas; authorizing fees. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Chapter 35, Utilities Code, is amended by adding |
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| 10 | 10 | | Subchapter F to read as follows: |
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| 11 | 11 | | SUBCHAPTER F. BATTERY STORAGE SYSTEM FACILITY PERMIT |
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| 12 | 12 | | Sec. 35.201. DEFINITIONS; APPLICABILITY. (a) In this |
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| 13 | 13 | | subchapter: |
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| 14 | 14 | | (1) "Permit holder" means a person who holds a permit |
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| 15 | 15 | | issued under this subchapter. |
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| 16 | 16 | | (2) "Person" includes an electric cooperative and a |
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| 17 | 17 | | municipally owned utility. |
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| 18 | 18 | | (3) "Battery storage system facility" means any system |
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| 19 | 19 | | or network containing batteries or similar devices that are |
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| 20 | 20 | | connected to an energy generation source and intended to receive |
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| 21 | 21 | | and store any portion of energy being produced with the intent or |
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| 22 | 22 | | purpose of later transmitting or distributing any or all stored |
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| 23 | 23 | | energy for sale or consumption in any part of a transmission grid |
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| 24 | 24 | | that is located, in whole or in part, in the state. |
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| 25 | 25 | | Sec. 35.202. PERMIT REQUIRED; APPLICATION. (a) A person |
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| 26 | 26 | | may not operate a battery storage system facility in this state |
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| 27 | 27 | | unless the person holds a permit issued by the commission under this |
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| 28 | 28 | | subchapter. A person may not construct or operate a battery storage |
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| 29 | 29 | | system facility in this state unless: |
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| 30 | 30 | | (1) the person holds a permit to operate a battery |
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| 31 | 31 | | storage system facility issued by the commission under this |
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| 32 | 32 | | subchapter; or |
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| 33 | 33 | | (2) the commission by order approves the construction. |
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| 34 | 34 | | (b) A person may apply for a permit to operate a battery |
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| 35 | 35 | | storage system facility by filing with the commission: |
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| 36 | 36 | | (1) a description of the location of the facility; |
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| 37 | 37 | | (2) a description of the type of facility; |
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| 38 | 38 | | (3) an affirmative statement identifying the fire |
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| 39 | 39 | | department, volunteer fire department, fire marshal or other first |
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| 40 | 40 | | responder who may reasonably be expected to the primary first |
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| 41 | 41 | | responder to any threat, incident or disaster at the location of the |
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| 42 | 42 | | facility |
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| 43 | 43 | | (4) an affirmative statement that the person has |
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| 44 | 44 | | provided written notice to the party or parties identified in |
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| 45 | 45 | | subparagraph (3) above of the person's intent to construct and |
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| 46 | 46 | | operate a battery storage system facility. |
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| 47 | 47 | | (5) any other information required by commission rule, |
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| 48 | 48 | | including location restrictions or requirements. |
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| 49 | 49 | | Sec. 35.203. NOTICE AND HEARING ON APPLICATION. (a) When |
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| 50 | 50 | | an application for a permit is filed under Section 35.202, or when |
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| 51 | 51 | | an application for a permit amendment is filed, the commission |
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| 52 | 52 | | shall give notice of the application to the county judge of the |
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| 53 | 53 | | county in which all or a majority of the battery storage system |
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| 54 | 54 | | facility is located or intended to be located. |
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| 55 | 55 | | (b) The commission may determine to hold a hearing on the |
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| 56 | 56 | | application. The commission shall hold a hearing on the |
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| 57 | 57 | | application if the person has failed to provide all information |
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| 58 | 58 | | pursuant to Section 35.202. |
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| 59 | 59 | | Sec. 35.204. APPROVAL OR DENIAL OF APPLICATION. (a) The |
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| 60 | 60 | | commission may approve an application if the commission finds that |
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| 61 | 61 | | issuance or amendment of the permit would not violate state or |
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| 62 | 62 | | federal law or rule and meets the requirements set forth in this |
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| 63 | 63 | | chapter. |
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| 64 | 64 | | Sec. 35.205. CONDITIONS OF PERMIT. (a) For each permit, |
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| 65 | 65 | | the commission shall prescribe the conditions under which it is |
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| 66 | 66 | | issued. |
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| 67 | 67 | | (b) The commission, on its own motion after reasonable |
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| 68 | 68 | | notice and hearing, may require a permit holder to conform to new or |
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| 69 | 69 | | additional conditions to comply with this subchapter or rules |
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| 70 | 70 | | adopted under this subchapter. |
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| 71 | 71 | | Sec. 35.206. FEE. (a) A fee is imposed on each permit |
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| 72 | 72 | | holder, the amount of which shall be determined by the commission. |
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| 73 | 73 | | Sec. 35.207. POWER TO REGULATE AND SUPERVISE. (a) For |
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| 74 | 74 | | purposes of this subchapter, a provision of Subchapter B or E, |
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| 75 | 75 | | Chapter 14, that authorizes the commission to regulate a public |
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| 76 | 76 | | utility also applies to a person required to obtain a permit under |
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| 77 | 77 | | this subchapter, including an electric cooperative and a |
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| 78 | 78 | | municipally owned utility. |
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| 79 | 79 | | (b) The commission may adopt and enforce rules reasonably |
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| 80 | 80 | | required in the exercise of its powers under this subchapter. |
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| 81 | 81 | | Sec. 35.208. ENFORCEMENT AND PENALTIES. For the purposes |
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| 82 | 82 | | of enforcing this subchapter, a reference in Chapter 15 to a person |
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| 83 | 83 | | includes any person required to obtain a permit under this |
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| 84 | 84 | | subchapter, including an electric cooperative and a municipally |
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| 85 | 85 | | owned utility. |
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| 86 | 86 | | SECTION 3. (a) Except as otherwise provided by rules |
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| 87 | 87 | | adopted by the Public Utility Commission of Texas under Subsection |
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| 88 | 88 | | (b) of this section, Subchapter F, Chapter 35, Utilities Code, as |
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| 89 | 89 | | added by this Act, applies to all battery storage system facilities |
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| 90 | 90 | | in this state, including: |
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| 91 | 91 | | (1) battery storage system facilities that: |
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| 92 | 92 | | (A) in use or operation before the effective date |
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| 93 | 93 | | of this Act; or |
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| 94 | 94 | | (B) are interconnected to a transmission |
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| 95 | 95 | | facility before the effective date of this Act; and |
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| 96 | 96 | | (2) battery storage system facilities the |
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| 97 | 97 | | construction of which began before the effective date of this Act. |
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| 98 | 98 | | (b) The Public Utility Commission of Texas by rule shall |
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| 99 | 99 | | authorize a person who operates or constructs a facility described |
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| 100 | 100 | | by Subsection (a)(1) or (2) of this section to continue to operate |
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| 101 | 101 | | or construct the facility after the effective date of this Act while |
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| 102 | 102 | | the person applies for a permit for the facility as required under |
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| 103 | 103 | | Subchapter F, Chapter 35, Utilities Code, as added by this Act. The |
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| 104 | 104 | | rules may require a person who operates or constructs a facility |
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| 105 | 105 | | described by Subsection (a)(1) or (2) of this section to apply for a |
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| 106 | 106 | | permit for the facility as required under Subchapter F, Chapter 35, |
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| 107 | 107 | | Utilities Code, as added by this Act, by a certain date. |
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| 108 | 108 | | SECTION 4. This Act takes effect September 1, 2023. |
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