Meeting Summary - 04/02/2025 House State Affairs

▶️4 - *HB1606 Metcalf

• Representative Metcalf introduced HB1606 concerning public safety and communication.
• The bill addresses concerns about overgrown vegetation near power lines, which can lead to power outages, fire hazards, and safety issues.
• Constituents reported they frequently don't know whom to contact for vegetation management.
• HB1606 mandates that electric utility providers include information on customer bills about how to request vegetation management.
• This measure is intended to prevent accidents related to overgrown vegetation near transmission or distribution lines.
• The notification process aligns with the existing method for informing customers about critical load status or involuntary load shedding.
• The bill does not impose new regulations or actions on utilities other than informing customers.

▶️Hasib Abdullah - Public Testimony HB1606

• Hasib Abdullah supports HB1606 and thanks Representative Metcalf.
• Abdullah shared a personal story about power outages affecting medical procedures during a hurricane.
• Expressed concern about the lack of penalties or guidance for the utility company's vegetation management failures.
• Highlighted the need for clear procedures on filing complaints with the Public Utility Commission (PUC) and differentiating formal and informal complaints.
• Suggested improving information for constituents on navigating PUC complaint processes.

▶️Representative Raymond to Representative Metcalf - Question on HB1606

• Representative Raymond recalls hearings on vegetation management issues where CenterPoint was unable to remove vegetation on private property, impacting electrical line maintenance.
• HB1606 does not address the issue of vegetation management on private property.
• There is other legislation in the works to address vegetation management needs.
• The aim of HB1606 is to assist homeowners and consumers in dealing with electric reliability issues.
• House Bill 1606 has been left pending without objection.

▶️11 - *HB3044 Darby

• Chairman Darby presented House Bill 3044, addressing inefficiencies in ERCOT's transmission system related to generic transmission constraints (GTCs).
• GTCs are utilized by ERCOT to manage congestion and ensure grid stability by limiting power flow between grid regions.
• Currently, there is a requirement for ERCOT to study and report potential solutions for GTCs, but there is no implementation deadline.
• HB3044 mandates the Public Utility Commission to adopt rules for the elimination of each GTC within ten years of its establishment.
• The bill emphasizes that GTCs should remain a temporary stability mechanism rather than a long-term infrastructure substitute.
• No questions were raised by committee members regarding the bill.
• No testimonies were given for or against the bill.
• Chairman Darby closed on House Bill 3044, which was left pending without objections.

▶️13 - HB3293 González, Mary

• Representative Mary Gonzales explained HB3293, which proposes expanding a discounted electricity rate (Rate 41) to school districts.
• The bill aims to simplify the rate adjustment process for school districts, eliminating the need for legal intervention in every rate case.
• Currently, universities receive a 20% discount on electricity under Rate 41, and the bill seeks to extend this benefit to school districts.

▶️Jim Daniel, El Paso ISD - Public Testimony HB3293

• Jim Daniel, representing El Paso school districts, supports the bill, emphasizing the financial benefit of a 20% discount to reduce expenses for schools and potentially lower property taxes.

▶️Daniel Perez, El Paso Electric - Public Testimony HB3293

• Daniel Perez from El Paso Electric opposes the bill, arguing that it would compromise the utility’s ability to provide affordable and reliable service to all customers.
• Perez raised concerns about the broader implications of offering such discounts and questioned why other sectors, like water and gas, aren't included.
• The financial impact of such discounts was discussed; while universities currently receive a few hundred thousand dollars in discounts, extending it to all schools would cost several million dollars.
• After presenting arguments for and against, the committee left HB3293 pending without objection for further consideration.

▶️14 - *HB3493 King

• Committee substitute to House Bill 3493 was offered.
• The bill addresses the need for reliable backup power during extreme weather and outages.
• An increasing number of Texans are installing residential energy backup systems.
• Current city-specific regulations complicate installation and inspection of these systems.
• HB3493 proposes to override local rules, adhering instead to the national electrical code.
• Aim is to create a clear, consistent standard statewide for backup systems.
• The bill intends to simplify the process, remove red tape, and aid in outage preparedness.

▶️Cyrus Reed, Sierra Club - Public Testimony HB3493

• Cyrus Reed from the Lone Star Chapter of the Sierra Club expressed support for the committee substitute to HB3493.
• The committee substitute addresses concerns related to cities with municipal utilities ensuring backup with interconnection and safety inspection capabilities.
• There are 72 cities in Texas with municipal utilities that would benefit from the committee substitute.
• The text emphasizes the importance of safety measures for linemen during blackouts or power outages.
• The Texas Department of Licensing Regulation has adopted the 2023 National Electric Code, which provides specific regulations for safety in backup systems.
• As long as systems comply with the National Electric Code and utility inspections are possible, the bill is supported.
• The bill is considered beneficial for allowing Texans to use new technologies to enhance home resilience against extreme weather.
• The testimony concluded with support for the bill and no further questions from members.

▶️Matt Boms, TAEBA - Public Testimony HB3493

• Matt Boms represented TAEBA, Texas Advanced Energy Business Alliance.
• Expressed strong support for HB 3493, which aims to eliminate unnecessary red tape in installing residential backup power.
• Current municipal processes for permitting are lengthy, costly, and discourage installation of backup power.
• Unincorporated areas successfully follow the national electrical code without issues, suggesting a standardized process.
• HB3493 proposes to standardize installation processes statewide, making it faster and cheaper while ensuring safety.
• The bill respects municipally owned utilities' regulation of backup power within their areas.
• Benefits include increased energy resilience, reduced grid strain during peak demand, lower costs, and less bureaucracy.
• Installations will still follow national electrical code, state licensing, and utility interconnection requirements.
• HB3493 is described as a common sense bill aligning with Texas' principles of reducing bureaucracy and promoting innovation.
• A call to support HB 3493 to allow Texans to install backup power more efficiently.
• TAEBA represents backup power, distributed energy resources, and clean energy solutions.

▶️Zach Dell, Base Power Company - Public Testimony HB3493

• Dell mentions a waitlist of over 15,000 Texans due to complex permitting processes.
• Permitting is inconsistent across the state, affecting the installation of backup power.
• Unincorporated areas do not require permits for installations, bound by national standards.
• HB3493 aims to streamline the permitting process, maintaining safety standards while reducing wait times.
• Testimony highlights disparity in cities' permitting processes, with some easier than others.
• HB3493 is left pending without objection after the close of testimony.

▶️15 - *HB3809 Darby

• The bill establishes standards for the removal, recycling, and decommissioning of battery energy storage systems (BESS) in Texas.
• Currently, there is no statewide legal framework for handling BESS facilities at the end of their useful life or lease expiration.
• The bill requires the complete removal of battery infrastructure and restoring land to its original condition.
• Viable components must be reused or recycled; hazardous materials must be disposed of properly.
• Financial assurance provisions cover removal and disposal costs to protect landowners from cleanup burdens.
• Emphasizes both short-term and long-term stewardship of energy resources and land use.

▶️David Nash - Public Testimony HB3809

• David Nash from Gillespie County supports HB3809 but has concerns regarding the ten and fifteen year anniversary sections related to estimated cost and financial assurance dates.
• Nash suggests these dates should be prior to commissioning due to potential future technology shifts and issues like those experienced at Moss Landing.
• He mentions Harper BESS, a project near him, which might face potential "infancy failures" due to being a first-time installation by the installer and modular system manufacturer.
• No questions were posed to Mr. Nash after his testimony.

▶️Mark Stover, TSSA - Public Testimony HB3809

• Mark Stover, executive director of the Texas Solar and Storage Association, testified in support of HB 3809.
• HB 3809 aims to establish decommissioning policies for energy storage projects, similar to existing policies for solar and wind power in Texas.
• The bill ensures that project owners are responsible for all decommissioning activities and costs, protecting landowners, counties, and the state from these liabilities.
• It requires project lands to be restored to pre-project conditions upon project removal.
• The bill supports the responsible growth of dispatchable energy technology important for the Texas power grid.

▶️Stephanie Smith, LESA - Public Testimony HB3809

• Stephanie Smith, chair of Lone Star Energy Storage Alliance and COO of Eolian, testified in support of HB3809.
• Expressed gratitude towards Chairman Darby and his staff for crafting a clear and consistent bill beneficial for companies involved in standalone energy storage.
• Acknowledged the bill for codifying best practices for responsible companies in the energy storage space.
• Judd Messer from Advanced Power Alliance also testified in support of the bill with no additional comments.
• David Carter registered to testify but was not present and was noted to be neutral on the bill.
• No further testimonies were presented for or against HB3809.
• Representative Darby closed the discussion on HB3809, leaving it pending with no objections.

▶️16 - *HB3824 King

• House Bill 3824 focuses on the growth of battery energy storage systems (BESS) in Texas.
• Emphasizes the need for safety and regulation of BESS to protect communities.
• Points out the current lack of consistent statewide safety standards.
• Proposes clear statewide fire safety standards for BESS based on recognized codes like UL 9540A and NFPA 855.
• The bill allows for local oversight enhancements, including third-party safety reviews and periodic inspections.
• Mandates emergency response planning and training for first responders.
• Aims to prevent conflicting local rules, ensuring consistency in safety measures.
• Supports the safe construction of BESS projects and preparedness for emergencies.

▶️David Nash - Public Testimony HB3824

• David Nash, an engineer, discussed the ERCOT February 2025 GIS report focusing on section two.
• Out of 984 total planned BESSs, 439 have commercial operation dates (CODs) before 01/01/2027, and 203 already have interconnection agreements.
• Of the 671 standalone BESSs, 319 have CODs before 01/01/2027, and 147 already have interconnection agreements.
• The Harper standalone BESS has a COD of 05/10/2026, and an interconnection agreement of 02/28/2024. Land clearing started recently near the Harper K-12 school.
• The BESS is approximately 550 yards from the school and downwind for nine months of the year. The location is also by the Purnellis River.
• Mr. Nash expressed concerns over the date interpretation and requested keeping BESSs in the ERCOT queue in consideration.

▶️Stephanie Smith, LESA - Public Testimony HB3824

• Stephanie Smith is the chair of Lone Star Energy Storage Alliance and COO of Eolian.
• Standalone storage in Texas is rapidly scaling, improving reliability, and making energy more affordable.
• HB3824 provides regulatory certainty, benefiting companies, regulators, first responders, and Texans.
• Chairman King and staff are appreciated for drafting a bill that standardizes safety practices for battery energy storage systems.
• The bill enhances safety and operational best practices, supporting Texas's economic growth.
• The Lone Star Energy Storage Alliance supports the bill and requests favorable consideration.

▶️Michael O'Brien, APA/TSSA - Public Testimony HB3824

• Michael O'Brien testified in support of House Bill 3824 as a consultant for the Advance Power Alliance and the Texas Solar and Storage Association.
• He is the managing partner of Code Concepts Group, specializing in battery energy storage systems and fire safety.
• His team is recognized for leadership in fire code development and energy storage projects consultation.
• HB3824 is viewed as a balanced measure to support public safety and community engagement while fostering battery energy storage system development in Texas.
• The bill adopts national fire safety standards to ease regulatory processes for developers and enhance first responder support.
• Third-party reviews, recurring inspections, emergency plans, and training are highlighted as key components for improving safety and readiness.
• O'Brien urged support for the bill, stating it aligns with national best practices and equips local officials.
• The bill was left pending with no objections during the meeting.