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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB3824

Regular Session

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

Government Affairs & Regulatory Compliance Analysis

HB3824: Government Affairs Overview

HB3824 establishes a strict, state-mandated safety and inspection regime for Battery Energy Storage Facilities (BESF) with a capacity of 1 MWh or greater. While the law targets facilities beginning operations on or after January 1, 2027, developers and operators must immediately align current engineering and procurement contracts with these standards to avoid future permitting denials or costly retrofits. The Texas Department of Insurance and State Fire Marshal now hold primary regulatory authority over BESF fire safety.

Rep. Ken King·House Bill·Regular Session

Moderate
Medium Cost
Effective:2025-06-20
Enforcing Agencies

Commissioner of Insurance • Counties (via building permit/ordinance consistency) • Municipalities (via building permit/ordinance consistency) • State Fire Marshal

Business Impact

Who HB3824 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-06-20). Consider how these changes may affect your operations.

⚡

Energy

Affected business types:

  • Power generators
  • Electric utilities
  • Renewable energy developers
  • Battery storage operators
View all energy legislation
🏥

Healthcare

Affected business types:

  • Hospitals
  • Healthcare systems
  • Medical practices
  • Health insurance providers
View all healthcare legislation

Key Operational Considerations

  • 1O&M Agreements: Revise agreements to clearly allocate the cost and responsibility for the mandatory five-year third-party engineering inspection and the annual first responder training.
  • 2Consulting MSAs: Establish Master Services Agreements with licensed Texas engineers who are "independent" (not your design firm) to conduct the required statutory reviews.
  • 3First Responder Liaison: Designate a specific point of contact responsible for scheduling and funding annual, no-cost training for local fire departments and first responders.

Estimated Cost Impact

mediumModerate costs expected for implementation.

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HB3824
Relating to fire safety standards and emergency operations plans for the operation of battery energy storage facilities; providing administrative pena...
Moderate Urgency
Unanimous Passage
House Vote139 - 0
YEA
100% in favor139 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
Cost Impact
Medium
Effective
2025-06-20
Enforcing Agencies
Commissioner of InsuranceCountiesMunicipalitiesState Fire Marshal
Primary Author: Rep. Ken King
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025 (Immediate effect).
  • Compliance Deadline: January 1, 2027. (Applies to facilities with a Commercial Operations Date [COD] on or after this date. Projects currently in design with a 2027 COD must comply *now*).
  • Agency Rulemaking: The Commissioner of Insurance must adopt fire safety standards and a penalty schedule prior to January 1, 2027. Expect a critical comment period in late 2025 or 2026 to define "Commercial Operations Date."

Immediate Action Plan

  • 1. Audit Pipeline: Identify all projects with a projected COD of Q3 2026 or later to account for potential schedule slippage into the 2027 compliance window.
  • 2. Update Specs: Immediately revise equipment specifications to require UL 9540A testing reports and NFPA 855 (2023) compliance for all identified projects.
  • 3. Secure Reviewers: Pre-qualify independent engineering firms now to ensure availability for pre-COD reviews in late 2026.
  • 4. Monitor Rulemaking: Assign counsel to track Texas Department of Insurance dockets to influence the definition of COD and the penalty schedule.

Operational Changes Required

Contracts

  • EPC Agreements: You must amend Engineering, Procurement, and Construction contracts to mandate compliance with NFPA 855 (2023 edition or later) and UL 9540A testing standards. Require the delivery of technical site layouts and fire protection specs as a condition of Substantial Completion.
  • O&M Agreements: Revise agreements to clearly allocate the cost and responsibility for the mandatory five-year third-party engineering inspection and the annual first responder training.
  • Consulting MSAs: Establish Master Services Agreements with licensed Texas engineers who are "independent" (not your design firm) to conduct the required statutory reviews.

Hiring/Training

  • First Responder Liaison: Designate a specific point of contact responsible for scheduling and funding annual, no-cost training for local fire departments and first responders.
  • Drill Coordination: Operational teams must schedule and document regular emergency drills as part of the Site-Specific Emergency Operations Plan.

Reporting & Record-Keeping

  • Pre-COD Filings: You must submit a Third-Party Engineering Report and a Site-Specific Emergency Operations Plan to the municipality or county *before* commercial operations begin.
  • Recurring Audits: A new Third-Party Fire Safety Inspection Report must be filed with the local government every five years.
  • On-Site Docs: The Emergency Operations Plan, Safety Data Sheets (SDS), and drill logs must be physically maintained on-site.

Fees & Costs

  • Engineering Review Costs: The operator bears the full cost of the third-party engineering review. This is a variable market rate fee that must be budgeted for pre-commissioning and every five years thereafter.
  • Retrofit Risk: Failure to design to NFPA 855 (2023) now for a 2027 project will result in significant capital expenditure to retrofit before the facility can legally operate.

Strategic Ambiguities & Considerations

  • Definition of "Commercial Operations Date" (COD): The statute leaves the specific criteria for determining COD to the Commissioner. Projects scheduled for late 2026 are at high risk; if delays push COD into January 2027, the facility falls under this law.
  • "Independent" Engineer: The law requires an "independent" third party but does not define the degree of separation. It is unclear if a separate division of a prime contractor qualifies or if a distinct corporate entity is required.
  • Penalty Schedule: The Commissioner has broad authority to set administrative penalties. The specific dollar amounts per violation are currently unknown and will be set during rulemaking.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 5, 2025
Passed House
May 15, 2025
Passed Senate
May 25, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsCity GovernmentCity Government--generalCity Government--utilitiesCounty GovernmentCounty Government--generalDisaster Preparedness & ReliefEnergyEnergy--fuel StorageHealthHealth--emergency Services & PersonnelSafetyUtilitiesUtilities--electricUtilities--generalFire MarshalFire Safety & PreventionStaff Development & TrainingInsurance, Commissioner of
03

House Authors

Rep. Ken KingRepublican · Primary Author
Joint Authors
Coauthors (10)

Senate Sponsors

Sen. Charles SchwertnerRepublican · Primary Sponsor
Cosponsors (1)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Rep. Ken King

View all bills by Rep. Ken King

Related by Topic

View more City Government legislation
Quick Reference

Frequently Asked Questions

Common questions about HB3824

Q

What does Texas HB3824 do?

HB3824 establishes a strict, state-mandated safety and inspection regime for Battery Energy Storage Facilities (BESF) with a capacity of 1 MWh or greater. While the law targets facilities beginning operations on or after January 1, 2027, developers and operators must immediately align current engineering and procurement contracts with these standards to avoid future permitting denials or costly retrofits. The Texas Department of Insurance and State Fire Marshal now hold primary regulatory authority over BESF fire safety.

Q

Who authored HB3824?

HB3824 was authored by Texas Representative Ken King during the Regular Session.

Q

When was HB3824 signed into law?

HB3824 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB3824?

HB3824 is enforced by Commissioner of Insurance, Counties (via building permit/ordinance consistency), Municipalities (via building permit/ordinance consistency) and State Fire Marshal.

Q

How significant are the changes in HB3824?

The regulatory priority for HB3824 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB3824?

The cost impact of HB3824 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does HB3824 address?

HB3824 addresses topics including city government, city government--general, city government--utilities, county government and county government--general.

Q

What are the key dates for HB3824?

Key dates for HB3824: Effective date is 2025-06-20. Rulemaking: Adopt fire safety standards and testing requirements based on UL 9540A and NFPA 855 (2023 edition or later). (Prior to January 1, 2027); Delegate enforcement authority to the State Fire Marshal and adopt a schedule of administrative penalties. (Prior to January 1, 2027). Consult with legal counsel regarding applicability.

Q

What are the penalties under HB3824?

HB3824 establishes the following penalties: administrative penalty of To be determined by rulemaking schedule for Violation of Chapter 187 safety standards, reporting requirements, or emergency planning mandates.. Consult with legal counsel for specific applicability to your situation.

Q

Which Texas businesses are affected by HB3824?

HB3824 primarily affects utility companies and energy providers, energy companies and power generators, healthcare providers and medical facilities. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026