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.