Texas 2025 - 89th Regular

Texas House Bill HB4363 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R14812 SCR-D
2	2	By: Money H.B. No. 4363
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to battery energy storage facilities; authorizing fees.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Chapter 35, Utilities Code, is amended by adding
12	12	Subchapter F to read as follows:
13	13	SUBCHAPTER F. BATTERY ENERGY STORAGE FACILITY PERMIT
14	14	Sec. 35.201. DEFINITIONS; APPLICABILITY. (a) In this
15	15	subchapter:
16	16	(1) "Battery energy storage facility" includes
17	17	lithium ion battery energy storage and a facility or equipment used
18	18	to support the operation of lithium ion battery energy storage,
19	19	including an underground or aboveground electrical transmission or
20	20	communications line, or an electric transformer.
21	21	(2) "Permit holder" means a person who holds a permit
22	22	issued under this subchapter.
23	23	(3) "Person" includes an electric cooperative and a
24	24	municipally owned utility.
25	25	(b) This subchapter applies only to a battery energy storage
26	26	facility that is intended to be used to sell energy or ancillary
27	27	services at wholesale.
28	28	Sec. 35.202. PERMIT REQUIRED. (a) A person may not
29	29	interconnect a battery energy storage facility to a transmission
30	30	facility unless the person holds a permit to operate a battery
31	31	energy storage facility issued by the commission under this
32	32	subchapter.
33	33	(b) The commission by rule shall require each permitted
34	34	battery energy storage facility to comply with the rules adopted by
35	35	the state fire marshal under Section 35.203.
36	36	(c) The commission by rule shall adopt a fee to be imposed on
37	37	each permit applicant to cover the commission's costs associated
38	38	with implementing this subchapter.
39	39	(d) For purposes of this subchapter:
40	40	(1) a provision of Subchapter B or E, Chapter 14, that
41	41	authorizes the commission to regulate a public utility also applies
42	42	to a person required to obtain a permit under this section,
43	43	including an electric cooperative or a municipally owned utility;
44	44	and
45	45	(2) a reference in Chapter 15 to a person includes a
46	46	person required to obtain a permit under this section, including an
47	47	electric cooperative or a municipally owned utility.
48	48	Sec. 35.203. FIRE SAFETY STANDARDS FOR BATTERY ENERGY
49	49	STORAGE FACILITIES. (a) The state fire marshal shall adopt and
50	50	periodically update fire safety standards for a battery energy
51	51	storage facility operating under a permit issued under this
52	52	subchapter. The standards must include:
53	53	(1) minimum distances between battery energy storage
54	54	facilities and buildings and critical infrastructure;
55	55	(2) requirements for fireproof barriers to protect
56	56	other structures and vegetation;
57	57	(3) minimum standards related to the installation,
58	58	design, and maintenance of battery energy storage facilities and
59	59	related electrical equipment, including ventilation and cooling;
60	60	(4) fire hazard management standards, including
61	61	standards for emergency shutdown systems;
62	62	(5) lithium ion battery safety standards, including
63	63	standards for specialized fire suppression equipment; and
64	64	(6) standards for signage near a battery energy
65	65	storage facility.
66	66	(b) Each permit holder that owns or operates a permitted
67	67	battery energy storage facility shall ensure that the facility
68	68	meets the fire safety standards adopted by the state fire marshal
69	69	under Subsection (a) at the time of interconnection.
70	70	Sec. 35.204. EMERGENCY OPERATIONS PLANS FOR BATTERY ENERGY
71	71	STORAGE FACILITIES. (a) A permit holder shall collaborate with
72	72	local fire departments to develop a site-specific emergency
73	73	operations plan for each battery energy storage facility owned or
74	74	operated by the permit holder, including emergency response and
75	75	communications protocols for an equipment failure incident.
76	76	(b) The permit holder shall offer to local fire departments
77	77	training regarding responding to a fire at the battery energy
78	78	storage facility, including specialized training for hazards
79	79	related to characteristics of lithium ion battery fires and related
80	80	to responding to a fire at a battery energy storage facility that is
81	81	integrated with a solar power generation facility.
82	82	Sec. 35.205. FIRE DEPARTMENT RESPONSE FUNDING. (a) An
83	83	applicant for a permit under this subchapter shall obtain from the
84	84	fire department, as defined by Section 419.021, Government Code,
85	85	volunteer fire department, fire marshal, or other first responder
86	86	entity that may reasonably be expected to be the primary first
87	87	responder to a fire at the location of the battery energy storage
88	88	facility an estimate of the expenses required for the first
89	89	responder entity to adequately prepare to respond to a fire at the
90	90	battery energy storage facility during the first year after the
91	91	date the facility is installed.
92	92	(b) The estimated amount of expenses under Subsection (a)
93	93	may not include expenses the first responder entity would incur
94	94	regardless of the existence of the battery energy storage facility.
95	95	(c) The commission shall require the applicant to deposit
96	96	with the comptroller under Subsection (d) an amount of money the
97	97	commission determines is sufficient to compensate the first
98	98	responder entity for expenses required for the first responder
99	99	entity to adequately prepare to respond to a fire at the battery
100	100	energy storage facility during the first year after the date the
101	101	facility is installed. The applicant shall provide the estimate
102	102	described by Subsection (a) to the commission, who shall consider
103	103	the estimate in determining the amount of money required to be
104	104	deposited under Subsection (d).
105	105	(d) The comptroller shall deposit money received from an
106	106	applicant for the purposes of this section in a separate suspense
107	107	account to be held in trust for the first responder entity. The
108	108	suspense account is outside the state treasury and the comptroller
109	109	may make a payment authorized by this subchapter without the
110	110	necessity of an appropriation.
111	111	(e) After the commission approves the permit application:
112	112	(1) the commission shall notify the comptroller of the
113	113	approval; and
114	114	(2) the comptroller shall pay to the first responder
115	115	entity the amount deposited by the permit applicant for that first
116	116	responder entity.
117	117	Sec. 35.206. PUBLIC AWARENESS CAMPAIGN. A permit holder
118	118	shall develop a public awareness campaign to educate the public in
119	119	the area of the permitted battery energy storage facility about
120	120	specific risks and safety measures related to the battery energy
121	121	storage facility.
122	122	SECTION 2. The changes in law made by this Act apply only to
123	123	a battery energy storage facility interconnected on or after the
124	124	effective date of this Act.
125	125	SECTION 3. This Act takes effect September 1, 2025.