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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance by the Public Utility Commission of Texas |
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of a permit for the installation of certain electric energy storage |
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equipment or facilities; authorizing a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter E, Chapter 35, Utilities Code, is |
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amended by adding Section 35.154 to read as follows: |
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Sec. 35.154. LOCATION PERMIT. (a) In this section, |
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"person" includes an electric cooperative and a municipally owned |
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utility. |
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(b) A person may not install electric energy storage |
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equipment or facilities intended for use in selling energy or |
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ancillary services at wholesale in the ERCOT power region unless |
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the person holds a permit issued under this section. |
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(c) The commission by rule shall require each permitted |
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electric energy storage equipment or facility to be installed only |
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in a location that: |
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(1) is a sufficient distance from any other electric |
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energy storage equipment or facility to reasonably mitigate the |
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risk of a fire at the permitted electric energy storage equipment or |
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facility spreading to other electric energy storage equipment or |
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facilities; and |
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(2) in the event of a fire at the site of the permitted |
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electric energy storage equipment or facility, is reasonably |
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unlikely to block the only access point to a residential area. |
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(d) A person may apply for a permit under this section by |
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filing with the commission: |
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(1) a description of the proposed location of the |
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electric energy storage equipment or facilities; |
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(2) a description of the type of electric energy |
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storage equipment or facilities; |
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(3) a statement identifying the fire department, as |
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defined by Section 419.021, Government Code, volunteer fire |
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department, fire marshal, or other first responder entity that may |
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reasonably be expected to be the primary first responder to a fire |
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at the location of the electric energy storage equipment or |
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facilities; |
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(4) a statement that the person has provided written |
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notice to the entity identified in Subdivision (3) of the |
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applicant's intent to install electric energy storage equipment or |
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facilities; and |
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(5) any other information required by commission rule. |
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(e) When an application for a permit, or an amendment to a |
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permit issued under this section, is filed, the commission shall |
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give notice of the application to the county judge of the county in |
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which all or a majority of the electric energy storage equipment or |
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facilities are proposed to be located. |
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(f) The commission may hold one or more public meetings on a |
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permit application in the county in which the electric energy |
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storage equipment or facilities are proposed to be located. The |
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commission shall hold a public meeting: |
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(1) on the request of a member of the legislature who |
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represents the area in which the electric energy storage equipment |
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or facilities are proposed to be located; or |
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(2) if the commission determines there is substantial |
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public interest in the proposed permit. |
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(g) The commission by order or rule may delegate to the |
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executive director or another commission employee the authority to |
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hold a public meeting under this section. |
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(h) The commission may approve an application for a permit |
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only if the commission finds that: |
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(1) issuance of the permit would not violate state or |
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federal law; and |
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(2) the location of the proposed electric energy |
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storage equipment or facilities complies with rules adopted under |
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Subsection (c). |
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(i) The commission by rule shall adopt a fee to be imposed on |
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each permit applicant to cover costs associated with implementing |
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this section. |
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(j) For purposes of this section: |
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(1) a provision of Subchapter B or E, Chapter 14, that |
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authorizes the commission to regulate a public utility also applies |
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to a person required to obtain a permit under this section, |
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including an electric cooperative or a municipally owned utility; |
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and |
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(2) a reference in Chapter 15 to a person includes a |
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person required to obtain a permit under this section, including an |
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electric cooperative or a municipally owned utility. |
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SECTION 2. Section 35.154, Utilities Code, as added by this |
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Act, applies only to electric energy storage equipment or |
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facilities interconnected to a transmission facility on or after |
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the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2025. |