HB3824 - Relating to fire safety standards and emergency operations plans for the operation of battery energy storage facilities; providing administrative penalties.

      H.B. No. 3824         AN ACT   relating to fire safety standards and emergency operations plans   for the operation of battery energy storage facilities; providing   administrative penalties.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle B, Title 4, Utilities Code, is amended   by adding Chapter 187 to read as follows:   CHAPTER 187. BATTERY ENERGY STORAGE FACILITY SAFETY           Sec. 187.001.  DEFINITIONS. In this chapter:                 (1)  "Battery energy storage facility" includes:                       (A)  a battery energy storage resource; and                       (B)     any facility or equipment necessary to   support the operation of the battery energy storage resource, other   than a facility or equipment owned by an electric utility, as   defined by Section 31.002.                 (2)     "Battery energy storage resource" means an   electrochemical device, whether connected at the transmission or   distribution level, that charges from the grid or a co-located   generation resource and discharges that energy at a later time.                 (3)     "Battery operator"   means an electric cooperative,   an electric utility, a power generation company, a self-generator,   or another person that owns or operates a battery energy storage   facility.                 (4)     "Commissioner"   means the commissioner of   insurance.                 (5)     "Electric cooperative" and "municipally owned   utility" have the meanings assigned by Section 11.003.                 (6)     "Electric utility" and "power generation company"   have the meanings assigned by Section 31.002.           Sec.   187.002.     APPLICABILITY.   This chapter applies only to   a battery energy storage facility with a capacity of one megawatt   hour or greater and a commercial operations date, determined   according to criteria adopted by the commissioner, that occurs on   or after January 1, 2027.           Sec.   187.003.     FIRE SAFETY STANDARDS FOR BATTERY ENERGY   STORAGE FACILITIES. (a) The commissioner by rule shall adopt fire   safety standards and testing requirements for the design,   installation, operation, and safety of battery energy storage   facilities based solely on:                 (1)     nationally recognized standards for battery   energy storage equipment or facilities established by UL Solutions,   such as UL 9540A testing standards; and                 (2)     minimum standards related to stationary energy   storage facilities established by the National Fire Protection   Association, such as the 2023 edition of NFPA 855 or a later   edition.           (b)     The commissioner may periodically update the standards   and requirements adopted under Subsection (a) as necessary to   reflect changes in the nationally recognized standards and the   National Fire Protection Association standards on which the   commissioner's standards are based.           (c)     Each battery operator or municipally owned utility that   owns or operates a battery energy storage facility shall ensure   that the facility meets the standards for design, installation,   operation, and safety adopted by the commissioner under Subsection   (a) in effect at the time the operator or utility first submits an   application for a building permit or other similar authorization   from the relevant political subdivision to install the facility.           (d)     Unless expressly authorized by another statute, a   municipality or county may not adopt, enforce, or maintain an   ordinance, order, or rule regulating conduct in a field of   regulation that is inconsistent with the standards for design,   installation, operation, and safety adopted by the commissioner   under Subsection (a).           (e)     Before the commercial operations date of a battery   energy storage facility, on request by a municipality in which the   facility is located, or a county in which the facility is located if   the facility is in an unincorporated area, a battery operator that   owns or operates the facility shall, at the battery operator's   expense, select and contract with an independent, third-party   engineer licensed in this state or other consultant with   appropriate expertise to:                 (1)     evaluate the design, safety, and installation of   the facility to ensure compliance with the requirements of this   section;                 (2)  produce a written report that:                       (A)  includes the evaluation;                       (B)     identifies any noted deficiencies in   compliance with the standards adopted under this section; and                       (C)     recommends appropriate actions to correct   deficiencies; and                 (3)     provide the written report described by   Subdivision (2) to the requesting municipality or county.           (f)     The battery operator must make available to the engineer   or consultant and the requesting municipality or county the   following documents if held or created by the battery operator:                 (1)     at the time the operator first submits an   application for a building permit or other similar authorization   from the relevant political subdivision to install the battery   energy storage facility:                       (A)  documents relating to the site layout;                       (B)     any manufacturer specifications for the   facility;                       (C)     a UL 9540A report and any UL listings and   associated documentation for the facility;                       (D)     National Fire Protection Association   standards, including any associated documentation, for the   facility;                       (E)  electrical drawings for the facility;                       (F)  monitoring procedures for the facility; and                       (G)     fire protection system documentation for the   facility; and                 (2)  at the commencement of installation:                       (A)     the emergency operations plan described by   Section 187.004; and                       (B)     a hazard mitigation analysis for the battery   energy storage facility.           (g)     At least once every five years, each battery operator   shall select and contract with, at the battery operator's expense,   an independent, third-party engineer licensed in this state or   other consultant with appropriate expertise to produce a fire   safety inspection report for the battery operator's battery energy   storage facility and provide the report to the municipality in   which the facility is located or to the county in which the facility   is located if the facility is in an unincorporated area.   The report   must:                 (1)  include an evaluation of:                       (A)     the structural integrity and weatherproofing   of any enclosure containing a battery energy storage resource at   the site of the facility against design specifications;                       (B)     the maintenance schedule and any associated   documentation for the facility;                       (C)     the emergency operations plan described by   Section 187.004;                       (D)     any hazard mitigation analysis for the   facility;                       (E)     any monitoring procedures and gas or fire   safety alarm activation history for the facility;                       (F)     fire protection system inspection and   testing records for the facility; and                       (G)     the ventilation equipment of the facility or   other safety equipment with the same or a similar function; and                 (2)     identify any noted deficiencies and recommend   appropriate actions to correct deficiencies.           Sec.   187.004.     EMERGENCY OPERATIONS PLANS FOR BATTERY ENERGY   STORAGE FACILITIES. (a)   In this section, "first responder" has the   meaning assigned by Section 78B.001, Civil Practice and Remedies   Code.           (b)     The commissioner by rule may prescribe procedures or   requirements as necessary for the purposes of this section.           (c)     A battery operator or a municipally owned utility shall   produce a site-specific emergency operations plan for each battery   energy storage facility site owned or operated by the battery   operator or utility.   The site-specific emergency operations plan   must include:                 (1)     an identification of potential risks and hazards   specific to the site, including an assessment of any potential   environmental effects resulting from an equipment failure;                 (2)  a hazard mitigation analysis;                 (3)     procedures for the safe shutdown, de-energizing,   or isolation of equipment and facilities under emergency   conditions, including emergency procedures to be followed in case   of fire;                 (4)     procedures for handling equipment damaged in a   fire or other emergency event;                 (5)     procedures and schedules for conducting drills   using the procedures listed under this subsection and documentation   related to the performance of the drills;                 (6)     procedures for communication between the operator   or utility and first responders, including procedures that   facilitate communication between first responders and emergency   contacts designated by the operator or utility; and                 (7)     emergency operations protocols to ensure safety   during critical events, including protocols that provide for the   safety of:       & [Text truncated for display. Full text available on Congress.gov.]