Relating to fire safety standards and emergency operations plans for the operation of battery energy storage facilities; providing administrative penalties, the official text

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:

(A) nearby residents;

(B) neighboring properties; and

(C) first responders.

(d) The battery operator or municipally owned utility

shall:

(1) before the commercial operations date of the

battery energy storage facility, provide the site-specific

emergency operations plan developed under Subsection (c) to the

local first responder that is responsible for providing fire

protection services in the area in which the facility is located;

and

(2) maintain safety data sheets or comparable

documents and the site-specific emergency operations plan

developed under Subsection (c) at an on-site location accessible to

personnel responsible for the operations and maintenance of the

battery energy storage facility and first responders.

(e) The battery operator or municipally owned utility shall

offer to local first responders, at no cost to the responders,

education and annual training regarding responding to an equipment

failure incident at the battery energy storage facility site,

including:

(1) training on specific characteristics of battery

energy storage technology;

(2) training on protecting first responders during

incident response;

(3) training on hazards commonly associated with

incident response;

(4) training on incident response protocols,

including an overview of the site-specific emergency operations

plan developed under Subsection (c); and

(5) an on-site review of the perimeter, major

equipment, and ingress and egress to the site.

Sec. 187.005. ENFORCEMENT. (a) The commissioner by rule

shall:

(1) delegate to the state fire marshal the authority

to take disciplinary and enforcement actions, including the

imposition of administrative penalties, to enforce this chapter in

the manner provided by Section 417.010, Government Code; and

(2) adopt a schedule of administrative penalties for

violations subject to a penalty under this chapter to ensure that

the amount of an administrative penalty imposed is appropriate to

the violation, in the manner provided by Section 417.010,

Government Code.

(b) Section 417.010, Government Code, applies to the

enforcement of this chapter by the state fire marshal.

SECTION 2. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 3824 was passed by the House on May

15, 2025, by the following vote: Yeas 139, Nays 0, 2 present, not

voting; and that the House concurred in Senate amendments to H.B.

No. 3824 on May 28, 2025, by the following vote: Yeas 135, Nays 2,

2 present, not voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 3824 was passed by the Senate, with

amendments, on May 25, 2025, by the following vote: Yeas 31, Nays

0.

______________________________

Secretary of the Senate

APPROVED: __________________

Date

__________________

Governor