Texas Legislature enacts regulations on electric energy storage installation

House Bill 1378, introduced in Texas on March 11, 2025, aims to regulate the installation of electric energy storage systems by municipalities and counties. The bill specifically targets energy storage intended for wholesale energy sales or ancillary services, establishing a framework for local governance over these installations.

Key provisions of the bill include a mandate that municipalities and counties must prohibit the installation of electric energy storage within 500 yards of properties owned by individuals other than the storage operator, unless written consent is obtained from those property owners. This distance is measured from the nearest point of the storage structure to the property line. Additionally, the bill clarifies that counties cannot impose such regulations within the corporate boundaries of municipalities.

The legislation is set to take effect on September 1, 2025, and requires local governments to adopt the necessary prohibitions by October 1, 2025. However, it does not require the removal of existing energy storage systems that were installed before the new regulations come into force.

The introduction of House Bill 1378 has sparked discussions among stakeholders, particularly regarding its potential impact on the growth of renewable energy infrastructure in Texas. Proponents argue that the bill is essential for protecting property rights and ensuring community consent for energy projects. Critics, however, express concerns that the regulations could hinder the development of necessary energy storage solutions, which are vital for integrating renewable energy sources and enhancing grid reliability.

As Texas continues to expand its renewable energy portfolio, the implications of House Bill 1378 could be significant. Experts suggest that while the bill aims to balance local concerns with energy development, it may also create barriers that could slow down the transition to cleaner energy sources. The ongoing debates surrounding the bill highlight the complexities of energy regulation in a state that is both a leader in energy production and a growing hub for renewable technologies.