HB4363 - Relating to battery energy storage facilities; authorizing fees.

  89R14812 SCR-D     By: Money H.B. No. 4363       A BILL TO BE ENTITLED   AN ACT   relating to battery energy storage facilities; 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 ENERGY STORAGE FACILITY PERMIT           Sec.   35.201.     DEFINITIONS; APPLICABILITY. (a) In this   subchapter:                 (1)     "Battery energy storage facility" includes   lithium ion battery energy storage and a facility or equipment used   to support the operation of lithium ion battery energy storage,   including an underground or aboveground electrical transmission or   communications line, or an electric transformer.                 (2)     "Permit holder" means a person who holds a permit   issued under this subchapter.                 (3)     "Person" includes an electric cooperative and a   municipally owned utility.           (b)     This subchapter applies only to a battery energy storage   facility that is intended to be used to sell energy or ancillary   services at wholesale.           Sec.   35.202.     PERMIT REQUIRED. (a)   A person may not   interconnect a battery energy storage facility to a transmission   facility unless the person holds a permit to operate a battery   energy storage facility issued by the commission under this   subchapter.           (b)     The commission by rule shall require each permitted   battery energy storage facility to comply with the rules adopted by   the state fire marshal under Section 35.203.           (c)     The commission by rule shall adopt a fee to be imposed on   each permit applicant to cover the commission's costs associated   with implementing this subchapter.           (d)  For purposes of this subchapter:                 (1)     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 section,   including an electric cooperative or a municipally owned utility;   and                 (2)     a reference in Chapter 15 to a person includes a   person required to obtain a permit under this section, including an   electric cooperative or a municipally owned utility.           Sec.   35.203.     FIRE SAFETY STANDARDS FOR BATTERY ENERGY   STORAGE FACILITIES.   (a)   The state fire marshal shall adopt and   periodically update fire safety standards for a battery energy   storage facility operating under a permit issued under this   subchapter.   The standards must include:                 (1)     minimum distances between battery energy storage   facilities and buildings and critical infrastructure;                 (2)     requirements for fireproof barriers to protect   other structures and vegetation;                 (3)     minimum standards related to the installation,   design, and maintenance of battery energy storage facilities and   related electrical equipment, including ventilation and cooling;                 (4)     fire hazard management standards, including   standards for emergency shutdown systems;                 (5)     lithium ion battery safety standards, including   standards for specialized fire suppression equipment; and                 (6)     standards for signage near a battery energy   storage facility.           (b)     Each permit holder that owns or operates a permitted   battery energy storage facility shall ensure that the facility   meets the fire safety standards adopted by the state fire marshal   under Subsection (a) at the time of interconnection.           Sec.   35.204.     EMERGENCY OPERATIONS PLANS FOR BATTERY ENERGY   STORAGE FACILITIES. (a)   A permit holder shall collaborate with   local fire departments to develop a site-specific emergency   operations plan for each battery energy storage facility owned or   operated by the permit holder, including emergency response and   communications protocols for an equipment failure incident.           (b)     The permit holder shall offer to local fire departments   training regarding responding to a fire at the battery energy   storage facility, including specialized training for hazards   related to characteristics of lithium ion battery fires and related   to responding to a fire at a battery energy storage facility that is   integrated with a solar power generation facility.           Sec.   35.205.     FIRE DEPARTMENT RESPONSE FUNDING. (a) An   applicant for a permit under this subchapter shall obtain from the   fire department, as defined by Section 419.021, Government Code,   volunteer fire department, fire marshal, or other first responder   entity that may reasonably be expected to be the primary first   responder to a fire at the location of the battery energy storage   facility an estimate of the expenses required for the first   responder entity to adequately prepare to respond to a fire at the   battery energy storage facility during the first year after the   date the facility is installed.           (b)     The estimated amount of expenses under Subsection (a)   may not include expenses the first responder entity would incur   regardless of the existence of the battery energy storage facility.           (c)     The commission shall require the applicant to deposit   with the comptroller under Subsection (d) an amount of money the   commission determines is sufficient to compensate the first   responder entity for expenses required for the first responder   entity to adequately prepare to respond to a fire at the battery   energy storage facility during the first year after the date the   facility is installed. The applicant shall provide the estimate   described by Subsection (a) to the commission, who shall consider   the estimate in determining the amount of money required to be   deposited under Subsection (d).           (d)     The comptroller shall deposit money received from an   applicant for the purposes of this section in a separate suspense   account to be held in trust for the first responder entity. The   suspense account is outside the state treasury and the comptroller   may make a payment authorized by this subchapter without the   necessity of an appropriation.           (e)  After the commission approves the permit application:                 (1)     the commission shall notify the comptroller of the   approval; and                 (2)     the comptroller shall pay to the first responder   entity the amount deposited by the permit applicant for that first   responder entity.           Sec.   35.206.     PUBLIC AWARENESS CAMPAIGN. A permit holder   shall develop a public awareness campaign to educate the public in   the area of the permitted battery energy storage facility about   specific risks and safety measures related to the battery energy   storage facility.          SECTION 2.  The changes in law made by this Act apply only to   a battery energy storage facility interconnected on or after the   effective date of this Act.          SECTION 3.  This Act takes effect September 1, 2025.