Meeting Summary - 03/27/2025 Senate Business & Commerce - SB1824 and SB1825

▶️ SB1824 Schwertner

• SB1824 establishes requirements for decommissioning battery energy storage facilities.
• Aims to protect landowners who lease to battery facility operators.
• Highlights lack of statutory requirements for battery facilities unlike wind and solar.
• Aligns decommissioning requirements with existing standards for wind and solar facilities.
• Requires agreements to define operators' responsibilities for removal, recycling, disposal, and site restoration.
• Mandates operators to provide financial assurances backing their obligations.
• Prohibits agreements from exempting operators from liability.
• Goal is to prevent leaving landowners with cleanup costs of battery farms.
• No questions from the panel on the bill.

SB1824 Public Testimony

▶️Nancy White - Public Testimony

• Nancy White, a resident of Vanzant County, supports the bill discussed.
• Emphasized concerns about decommissioning liabilities left to landowners.
• Noted that LLCs often abandon sites, causing cleanup issues like in Sweetwater, Texas.
• Mentioned high costs of remediation exceeding income, citing Walter West's input.
• Remediation challenges include persistent trace minerals and heavy metals in the earth.
• Closed LLCs lead to local governments bearing cleanup responsibilities as superfund sites.
• Stressed importance of considering location for decommissioning projects, especially near farmland and water sources.
• Pointed out the impossibility of fixing damaged aquifers.
• Advocates for local government input on project locations due to their land knowledge.
• Open to questions and thanked for attention to the testimony.

▶️ Senator Kolkhorst to Nancy White, SB1824 - Questions

• Concerns were raised about siting and leaching chemicals.
• Questions about the bill's strength and whether it is tough enough.
• Several bills are lined up for discussion, and the current one is seen as a starting point.
• A specific point of interest is the requirement of a tenth anniversary policy for hundred megawatt projects.
• Discussion about the proximity of projects to sensitive locations such as reservoirs and the lack of emergency services in certain areas.
• Acknowledgement that the bill and others may help fill existing regulatory gaps.

▶️Brent Bennett, TPPF - Public Testimony

• Brent Bennett from the Texas Public Policy Foundation testified in support of Senate Bill 1824.
• The bill addresses concerns of property owners about energy storage systems, particularly end-of-life issues.
• There is an anticipated exponential increase in battery materials that need recycling or disposal.
• Recycling of certain materials, like lithium, is possible but challenging, leading to disposal issues.
• Batteries classified as universal waste cannot be disposed of in municipal landfills.
• It is standard for energy producers to be responsible for their waste management.
• There are regulatory precedents in Texas for managing waste from coal and oil and gas industries.
• The bill ensures some financial accountability for the end-of-life issues of batteries.
• Given the expected increase in waste from new energy resources, proactive measures are necessary.
• Brent Bennett urges the committee to vote favorably for SB 1824.

▶️Senator Kolkhorst to Brent Bennett - Financial Assurance of the Bill

• Discussion on financial assurance aspects of SB1824, which is said to include adequate measures.
• The bill requires financial responsibility and offers options like bonds, letters of credit, or forms of financial assurance acceptable to landowners.
• Concerns raised about potential future liabilities and ensuring that Texas doesn't end up with neglected or 'brown' sites.
• They're looking at ensuring that landowners are fully aware of contracts they sign related to such projects.
• There's a comparison with previous solar and wind financial assurance provisions.
• Support shown for SB1824's strong landowner protection regarding financial assurances.

▶️Judd Messer, APA - Public Testimony

• Judd Messer represented the Advanced Power Alliance (APA) in support of Bill 1824.
• APA consists of about 60 companies involved in wind, solar, and storage, with $140 billion invested in Texas.
• The industry has collaborated with the legislature to establish strong decommissioning standards for utility-scale solar and wind.
• These standards focus on protecting private landowners and are seen as a model for other states.
• APA advocates for extending these decommissioning standards to include battery energy storage facilities.
• The organization also supports legislation considering recycling and disposal costs, aiming to prevent future incidents.
• Judd Messer expressed gratitude for the support of the legislative bills related to energy and reliability.

▶️Mark Stover, TSSA - Public Testimony

• TSSA members have installed approximately 25,000 megawatts of solar and energy storage capacity in the ERCOT market.
• There are roughly 70,000 megawatts of new capacity currently being developed.
• Support was expressed for Senate Bill 1824, which aims to create decommissioning laws for energy storage, similar to existing laws for solar and wind power.
• The bill targets the decommissioning policy for both standalone and co-located storage projects with separate interconnection points.
• SB 1824 ensures that project owners are solely responsible for the decommissioning costs, protecting landowners, counties, and the state.
• The bill is viewed positively for Texas landowners and communities.
• Appreciation was extended to Chairman Schwarner and his staff for their work on the legislation.

▶️Polly Shaw, LSESA - Public Testimony

• Polly Shaw is the chief external relations officer for Plus Power and is representing the Lone Star Energy Storage Alliance.
• The testimony supports Senate Bill 1824, focusing on clarifying decommissioning requirements for standalone battery storage systems in Texas.
• The storage systems are energy agnostic, working with various energy sources to stabilize and reinforce the Texas electric grid.
• The bill aims to create a clear regulatory structure for decommissioning battery storage systems aligning with chapters 301 and 302 of the utilities code.
• It provides clarity on decommissioning obligations, timing, and financial assurance in line with industry best practices.
• The Lone Star Energy Storage Alliance thanks Chairman Schwertner for his commitment and requests the committee to support SB 1824.
• The chair requested any questions or further testimony on the bill before closing public testimony and leaving the bill pending.

▶️SB1825 Schwertner

• Senator Schwertner explained SB1825, which sets fire safety standards and emergency plans for battery energy storage systems in Texas.
• The bill mandates the state fire marshal to periodically update fire safety standards based on UL 9540A and NFPA 855 standards.
• Allows municipalities or counties to request third-party engineer evaluations of facility safety compliance before operations begin and every three years thereafter.
• Operators must produce updated reports on facility compliance, structural integrity, maintenance, and emergency plans.
• Requires battery facility operators to submit site-specific emergency operations plans to local first responders.
• SB1825 aims to promote safe development, support local responders, and maintain resilient energy systems in Texas.

SB1825 Public Testimony

▶️Nancy White - Public Testimony

• Nancy White supports the bill discussed.
• Current lack of codes is acknowledged.
• Mention of section detailing notification of first responders.
• Suggestion to include local government officials and fire marshals in notifications.
• Concerns about the state fire marshal having too much power over local fire marshals.
• Recognition of NFPA 855's role in energy storage systems.
• Importance of empowering fire marshals in Texas for code enforcement.
• Highlight of the lack of labeling for flammable and toxic materials during transport.
• Reference to House Representative Rodell Haswell's experience with transport and issues.

▶️Dave Bennett - Public Testimony

• Dave Bennett supports 1825 with an amendment and speaks as an individual from Houston.
• Mentioned the installation or planning of around 10 gigawatts of Battery Energy Storage Systems (BESS) near Houston.
• Dave Bennett is an electrical engineer with expertise in automated control systems and cybersecurity from New Oil and Gas.
• Recommended amending 1825 to provide a centralized location for all written reports regarding BESS in Texas.
• Highlighted the importance of investigation and recommendations post any BESS fire incident.
• Stressed that centralized reports would help identify deficiencies and provide better future recommendations to the legislature.
• Emphasized the need for electronic accessibility to ensure the quality of third-party evaluations of BESS.
• Argued that the amendment would contribute to reducing public risk from BESS incidents and is an incremental change to the original text.

▶️ Polly Shaw, LSESA - Public Testimony

• Introduction by Polly Shaw from the Lone Star Energy Storage Alliance.
• Acknowledgment to Chairman Shorten and staff for creating a standard for battery storage systems.
• Support for SB 1825, which implements best safety practices for battery systems.
• SB 1825 aligns with industry standards like NFPA 855 for stationary storage system installations.
• Importance of fail safes in battery systems and robust monitoring and alarm systems.
• Bill mandates state fire marshal to adopt NFPA 55 and UL codes, ensuring industry reliance on national standards.
• Three-year review tied to local permitting authority ensures developers have certainty before finalizing designs and procuring equipment.
• Requirement for developers to train local first responders on the emergency response plan.
• Engaging third-party fire safety experts is required to review system designs and confirm adherence to codes.
• Lone Star Energy Storage Alliance supports SB 1825 by Chairman Schwertner and seeks the committee's favorable consideration.

▶️Nick Warner, ESRG - Public Testimony

• Nick Warner testified in favor of SB1825, which focuses on energy storage safety.
• SB1825 aims to establish uniform fire safety standards based on recognized benchmarks.
• Inconsistencies in local regulations create challenges for industry stakeholders and first responders.
• Standardizing requirements across Texas will improve public safety and streamline permitting.
• Warner emphasized the importance of third-party safety evaluations and periodic inspections.
• Mandatory emergency response planning and first responder training are critical components.
• Texas aims to remain a leader in energy innovation and grid reliability through SB1825.
• The bill helps ensure progress in energy storage safety is implemented uniformly.

▶️Senator Kolkhorst to Chairman Schwertner, SB1825 - Battery Siting Requirements

• No specific siting requirements in the bill to protect schools or residents from batteries.
• The bill includes emergency operation protocols on safety and pollution mitigation but doesn't cover siting.
• Concern expressed about lack of local control over battery farm placement, especially near neighborhoods and schools.
• Discussion on the need for renewables in urban centers and suggesting preemption of city restrictions for siting.
• Appreciation expressed for the efforts and continuation of bills on battery issues.
• Open to amendments, including preempting cities from restricting renewables.
• Concerns from rural areas like Fayette, Lee, and Victoria Counties regarding the rapid development of battery farms.
• The desire to involve more conversations and collaboration with urban partners.

▶️Alexander Hernandez - Public Testimony

• Alexander Ross Hernandez testified as a representative of Fayette County residents.
• Concern was expressed over battery energy storage systems being proposed near schools and churches in Fayette County.
• Specific locations mentioned included a site near Warda, Texas, and across from Flatonia Independent School District.
• Hernandez highlighted issues with transparency and lack of information from entities involved in the storage projects.
• The local county commissioner involved in these projects had a conflict of interest, as they were a property owner benefitting from the lease.
• Hernandez supported a bill with amendments to prevent such projects near schools and churches.
• He emphasized the need for equal protection for Fayette County residents, similar to what other regions like Houston and Westlake receive.

▶️Don Brown, Secure The Grid Coalition - Public Testimony

• Supports the bill regarding battery storage center recalls.
• Recommends an amendment for an electronic database to track battery failures and facilitate recalls.
• Highlights three main issues: recall processes, initial inspections, ongoing operations, and the failure modes associated with them.