By: Murr H.B. No. 4971
A BILL TO BE ENTITLED
AN ACT
relating to the permitting of battery storage system facilities by
the Public Utility Commission of Texas; authorizing fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 35, Utilities Code, is amended by adding
Subchapter F to read as follows:
SUBCHAPTER F. BATTERY STORAGE SYSTEM FACILITY PERMIT
Sec. 35.201. DEFINITIONS; APPLICABILITY. (a) In this
subchapter:
(1) "Permit holder" means a person who holds a permit
issued under this subchapter.
(2) "Person" includes an electric cooperative and a
municipally owned utility.
(3) "Battery storage system facility" means any system
or network containing batteries or similar devices that are
connected to an energy generation source and intended to receive
and store any portion of energy being produced with the intent or
purpose of later transmitting or distributing any or all stored
energy for sale or consumption in any part of a transmission grid
that is located, in whole or in part, in the state.
Sec. 35.202. PERMIT REQUIRED; APPLICATION. (a) A person
may not operate a battery storage system facility in this state
unless the person holds a permit issued by the commission under this
subchapter. A person may not construct or operate a battery storage
system facility in this state unless:
(1) the person holds a permit to operate a battery
storage system facility issued by the commission under this
subchapter; or
(2) the commission by order approves the construction.
(b) A person may apply for a permit to operate a battery
storage system facility by filing with the commission:
(1) a description of the location of the facility;
(2) a description of the type of facility;
(3) an affirmative statement identifying the fire
department, volunteer fire department, fire marshal or other first
responder who may reasonably be expected to the primary first
responder to any threat, incident or disaster at the location of the
facility
(4) an affirmative statement that the person has
provided written notice to the party or parties identified in
subparagraph (3) above of the person's intent to construct and
operate a battery storage system facility.
(5) any other information required by commission rule,
including location restrictions or requirements.
Sec. 35.203. NOTICE AND HEARING ON APPLICATION. (a) When
an application for a permit is filed under Section 35.202, or when
an application for a permit amendment is filed, the commission
shall give notice of the application to the county judge of the
county in which all or a majority of the battery storage system
facility is located or intended to be located.
(b) The commission may determine to hold a hearing on the
application. The commission shall hold a hearing on the
application if the person has failed to provide all information
pursuant to Section 35.202.
Sec. 35.204. APPROVAL OR DENIAL OF APPLICATION. (a) The
commission may approve an application if the commission finds that
issuance or amendment of the permit would not violate state or
federal law or rule and meets the requirements set forth in this
chapter.
Sec. 35.205. CONDITIONS OF PERMIT. (a) For each permit,
the commission shall prescribe the conditions under which it is
issued.
(b) The commission, on its own motion after reasonable
notice and hearing, may require a permit holder to conform to new or
additional conditions to comply with this subchapter or rules
adopted under this subchapter.
Sec. 35.206. FEE. (a) A fee is imposed on each permit
holder, the amount of which shall be determined by the commission.
Sec. 35.207. POWER TO REGULATE AND SUPERVISE. (a) For
purposes of this subchapter, a provision of Subchapter B or E,
Chapter 14, that authorizes the commission to regulate a public
utility also applies to a person required to obtain a permit under
this subchapter, including an electric cooperative and a
municipally owned utility.
(b) The commission may adopt and enforce rules reasonably
required in the exercise of its powers under this subchapter.
Sec. 35.208. ENFORCEMENT AND PENALTIES. For the purposes
of enforcing this subchapter, a reference in Chapter 15 to a person
includes any person required to obtain a permit under this
subchapter, including an electric cooperative and a municipally
owned utility.
SECTION 3. (a) Except as otherwise provided by rules
adopted by the Public Utility Commission of Texas under Subsection
(b) of this section, Subchapter F, Chapter 35, Utilities Code, as
added by this Act, applies to all battery storage system facilities
in this state, including:
(1) battery storage system facilities that:
(A) in use or operation before the effective date
of this Act; or
(B) are interconnected to a transmission
facility before the effective date of this Act; and
(2) battery storage system facilities the
construction of which began before the effective date of this Act.
(b) The Public Utility Commission of Texas by rule shall
authorize a person who operates or constructs a facility described
by Subsection (a)(1) or (2) of this section to continue to operate
or construct the facility after the effective date of this Act while
the person applies for a permit for the facility as required under
Subchapter F, Chapter 35, Utilities Code, as added by this Act. The
rules may require a person who operates or constructs a facility
described by Subsection (a)(1) or (2) of this section to apply for a
permit for the facility as required under Subchapter F, Chapter 35,
Utilities Code, as added by this Act, by a certain date.
SECTION 4. This Act takes effect September 1, 2023.