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A BILL TO BE ENTITLED
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AN ACT
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relating to battery energy storage facilities; authorizing fees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 35, Utilities Code, is amended by adding |
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Subchapter F to read as follows: |
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SUBCHAPTER F. BATTERY ENERGY STORAGE FACILITY PERMIT |
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Sec. 35.201. DEFINITIONS; APPLICABILITY. (a) In this |
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subchapter: |
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(1) "Battery energy storage facility" includes |
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lithium ion battery energy storage and a facility or equipment used |
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to support the operation of lithium ion battery energy storage, |
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including an underground or aboveground electrical transmission or |
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communications line, or an electric transformer. |
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(2) "Permit holder" means a person who holds a permit |
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issued under this subchapter. |
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(3) "Person" includes an electric cooperative and a |
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municipally owned utility. |
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(b) This subchapter applies only to a battery energy storage |
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facility that is intended to be used to sell energy or ancillary |
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services at wholesale. |
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Sec. 35.202. PERMIT REQUIRED. (a) A person may not |
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interconnect a battery energy storage facility to a transmission |
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facility unless the person holds a permit to operate a battery |
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energy storage facility issued by the commission under this |
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subchapter. |
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(b) The commission by rule shall require each permitted |
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battery energy storage facility to comply with the rules adopted by |
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the state fire marshal under Section 35.203. |
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(c) The commission by rule shall adopt a fee to be imposed on |
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each permit applicant to cover the commission's costs associated |
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with implementing this subchapter. |
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(d) For purposes of this subchapter: |
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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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Sec. 35.203. FIRE SAFETY STANDARDS FOR BATTERY ENERGY |
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STORAGE FACILITIES. (a) The state fire marshal shall adopt and |
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periodically update fire safety standards for a battery energy |
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storage facility operating under a permit issued under this |
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subchapter. The standards must include: |
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(1) minimum distances between battery energy storage |
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facilities and buildings and critical infrastructure; |
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(2) requirements for fireproof barriers to protect |
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other structures and vegetation; |
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(3) minimum standards related to the installation, |
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design, and maintenance of battery energy storage facilities and |
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related electrical equipment, including ventilation and cooling; |
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(4) fire hazard management standards, including |
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standards for emergency shutdown systems; |
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(5) lithium ion battery safety standards, including |
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standards for specialized fire suppression equipment; and |
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(6) standards for signage near a battery energy |
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storage facility. |
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(b) Each permit holder that owns or operates a permitted |
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battery energy storage facility shall ensure that the facility |
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meets the fire safety standards adopted by the state fire marshal |
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under Subsection (a) at the time of interconnection. |
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Sec. 35.204. EMERGENCY OPERATIONS PLANS FOR BATTERY ENERGY |
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STORAGE FACILITIES. (a) A permit holder shall collaborate with |
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local fire departments to develop a site-specific emergency |
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operations plan for each battery energy storage facility owned or |
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operated by the permit holder, including emergency response and |
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communications protocols for an equipment failure incident. |
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(b) The permit holder shall offer to local fire departments |
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training regarding responding to a fire at the battery energy |
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storage facility, including specialized training for hazards |
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related to characteristics of lithium ion battery fires and related |
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to responding to a fire at a battery energy storage facility that is |
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integrated with a solar power generation facility. |
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Sec. 35.205. FIRE DEPARTMENT RESPONSE FUNDING. (a) An |
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applicant for a permit under this subchapter shall obtain from the |
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fire department, as defined by Section 419.021, Government Code, |
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volunteer fire department, fire marshal, or other first responder |
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entity that may reasonably be expected to be the primary first |
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responder to a fire at the location of the battery energy storage |
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facility an estimate of the expenses required for the first |
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responder entity to adequately prepare to respond to a fire at the |
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battery energy storage facility during the first year after the |
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date the facility is installed. |
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(b) The estimated amount of expenses under Subsection (a) |
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may not include expenses the first responder entity would incur |
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regardless of the existence of the battery energy storage facility. |
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(c) The commission shall require the applicant to deposit |
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with the comptroller under Subsection (d) an amount of money the |
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commission determines is sufficient to compensate the first |
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responder entity for expenses required for the first responder |
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entity to adequately prepare to respond to a fire at the battery |
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energy storage facility during the first year after the date the |
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facility is installed. The applicant shall provide the estimate |
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described by Subsection (a) to the commission, who shall consider |
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the estimate in determining the amount of money required to be |
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deposited under Subsection (d). |
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(d) The comptroller shall deposit money received from an |
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applicant for the purposes of this section in a separate suspense |
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account to be held in trust for the first responder entity. The |
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suspense account is outside the state treasury and the comptroller |
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may make a payment authorized by this subchapter without the |
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necessity of an appropriation. |
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(e) After the commission approves the permit application: |
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(1) the commission shall notify the comptroller of the |
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approval; and |
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(2) the comptroller shall pay to the first responder |
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entity the amount deposited by the permit applicant for that first |
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responder entity. |
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Sec. 35.206. PUBLIC AWARENESS CAMPAIGN. A permit holder |
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shall develop a public awareness campaign to educate the public in |
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the area of the permitted battery energy storage facility about |
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specific risks and safety measures related to the battery energy |
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storage facility. |
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SECTION 2. The changes in law made by this Act apply only to |
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a battery energy storage facility interconnected on or after the |
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effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2025. |