HB 1343

relating to the issuance by the Public Utility Commission of Texas
of a permit for the installation of certain electric energy storage
equipment or facilities; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter E, Chapter 35, Utilities Code, is
amended by adding Section 35.154 to read as follows:
Sec. 35.154.  LOCATION PERMIT.  (a)  In this section,
"person" includes an electric cooperative and a municipally owned
(b)  A person may not install electric energy storage
equipment or facilities intended for use in selling energy or
ancillary services at wholesale in the ERCOT power region  unless
the person holds a permit issued under this section.
(c)  The commission by rule shall require each permitted
electric energy storage equipment or facility to be installed only
(1)  is a sufficient distance from any other electric
energy storage equipment or facility to reasonably mitigate the
risk of a fire at the permitted electric energy storage equipment or
facility spreading to other electric energy storage equipment or
(2)  in the event of a fire at the site of the permitted
electric energy storage equipment or facility, is reasonably
unlikely to block the only access point to a residential area.
(d)  A person may apply for a permit under this section by
(1)  a description of the proposed location of the
electric energy storage equipment or facilities;
(2)  a description of the type of electric energy
storage equipment or facilities;
(3)  a statement identifying 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 electric energy storage equipment or
(4)  a statement that the person has provided written
notice to the entity identified in Subdivision (3) of the
applicant's intent to install electric energy storage equipment or
(5)  any other information required by commission rule.
(e)  When an application for a permit, or an amendment to a
permit issued under this section, 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 electric energy storage equipment or
facilities are proposed to be located.
(f)  The commission may hold one or more public meetings on a
permit application in the county in which the electric energy
storage equipment or facilities are proposed to be located.  The
commission shall hold a public meeting:
(1)  on the request of a member of the legislature who
represents the area in which the electric energy storage equipment
or facilities are proposed to be located; or
(2)  if the commission determines there is substantial
public interest in the proposed permit.
(g)  The commission by order or rule may delegate to the
executive director or another commission employee the authority to
hold a public meeting under this section.
(h)  The commission may approve an application for a permit
only if the commission finds that:
(1)  issuance of the permit would not violate state or
(2)  the location of the proposed electric energy
storage equipment or facilities complies with rules adopted under
(i)  The commission by rule shall adopt a fee to be imposed on
each permit applicant to cover costs associated with implementing
(j)  For purposes of this section:
(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;
(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.
SECTION 2.  Section 35.154, Utilities Code, as added by this
Act, applies only to electric energy storage equipment or
facilities interconnected to a transmission facility on or after
the effective date of this Act.
SECTION 3.  This Act takes effect September 1, 2025.