HB 3824 adds Chapter 187 to the Texas Utilities Code to establish standardized fire safety and emergency operations requirements for battery energy storage facilities (BESFs) across the state. The bill applies only to BESFs with a capacity of one megawatt hour or greater that are installed on or after January 1, 2027. The legislation defines a BESF broadly, including both the electrochemical storage units themselves and associated operational equipment, excluding facilities owned by traditional electric utilities.
The bill directs the Commissioner of Insurance to adopt safety standards based on nationally recognized codes, specifically UL Solutions' UL 9540A testing and the National Fire Protection Association's NFPA 855 standard. These standards will apply to the design, installation, and operation of BESFs. BESF operators must ensure compliance with these standards at the time of submitting a building permit application. To prevent regulatory inconsistency, the bill prohibits local governments from enforcing ordinances that conflict with the commissioner’s standards.
A key provision allows municipalities or counties to request, at the BESF operator’s expense, a third-party engineering evaluation of the facility’s design and installation. This evaluation must confirm compliance with safety standards and provide a written report, including any deficiencies and recommended corrections. The bill also requires operators to furnish key documents such as site layouts, fire protection plans, and emergency operations plans to local authorities upon request.
HB 3824 introduces administrative penalties for violations and requires updates to facility inspections every five years, reinforcing an ongoing regulatory structure for BESFs. Overall, the bill reflects a state-level effort to harmonize BESF safety practices while centralizing oversight authority under the Department of Insurance.
The originally filed version of HB 3824 designated the State Fire Marshal as the primary regulatory authority to adopt and enforce fire safety standards for battery energy storage systems (BESS). In contrast, the Committee Substitute version shifts this authority to the Commissioner of Insurance, a more centralized and politically accountable office within the Texas Department of Insurance. This change may reflect a policy decision to place technical oversight within a broader regulatory structure rather than under a specialized agency.
Another notable change is the expansion of applicability definitions and scope. The original bill limited regulation to facilities considered “generation assets” under the Utilities Code and operated inside or outside the ERCOT region. The committee substitute broadens the scope to any BESF with a capacity of one megawatt hour or greater, thereby including non-ERCOT and potentially distributed systems that are not necessarily classified as generation assets under current law.
The inspection frequency was reduced in the substitute version. The originally filed bill required fire safety inspections at least once every three years, while the substitute increases that interval to once every five years. This adjustment likely aims to reduce compliance costs and administrative burdens on facility operators.
Additionally, the substitute version clarifies and strengthens preemption language, stating that counties and municipalities may not adopt inconsistent safety regulations unless expressly authorized by other statutes. The substitute adds a reporting structure for third-party evaluations and increases the specificity of documentation that must be provided to local authorities, such as UL 9540A reports, site layouts, hazard mitigation analyses, and emergency response plans.
Finally, the emergency operations planning requirements remain largely similar but with slightly updated language for clarity and enforceability. Both versions require BESS operators to submit site-specific emergency response plans to local first responders and to offer training. However, the substitute bill refines some of the procedural obligations and timelines, including clearer descriptions of the training content and documentation protocols.
Overall, the Committee Substitute reflects refinements in regulatory scope, oversight structure, and practical implementation while maintaining the original bill’s core purpose of standardizing fire safety for battery energy storage systems.
Contact the Author
Rep. Ken King
