Coastal lawmakers have filed at least six bills that would require emergency generators on site for senior facilities. Photo by Brandon Bell/Getty Images

When a storm hits the Texas coast during the summer hurricane season, state Sen. Borris Miles knows among the first calls he’ll get is from a constituent letting him know power is down at an independent living complex, shutting off air conditioning for older Texans.

“‘Senator! You got these people here,’“ he said, recalling a plea from a caller when Hurricane Beryl knocked out power to an assisted living facility last summer. “‘What are we going to do?’’’

Miles, D-Houston, is thankful for residents like these. But as the number of storms have increased, so has the frustration for southeast Texas lawmakers who want better solutions.

That’s why Miles and four other coastal lawmakers have filed at least six bills that would require nursing homes, assisted living facilities and even some apartments that market to the 55 and older set, to have emergency generators on site. In Texas, there are 1,193 nursing homes serving more than 86,000 patients and 2,004 assisted living facilities housing 49,574 residents.

Miles’ House Bill 732 would require certain low-income housing for seniors living independently to have backup power. In recent years, Miles has seen more of these facilities being built in Houston. Often living in multistory apartment buildings, residents of this type of housing do not receive care, so little information, including on their health conditions, are collected. But after a storm knocks out power, the vulnerable conditions of these residents surface, as some in wheelchairs and walkers become trapped in elevators that are inoperable, Miles said.

“We need to take care of people,” he said.

SB 481 from state Sen. Carol Alvarado, D-Houston, would require emergency plans at nursing homes and assisted living facilities to include generators. Nursing homes, which as the name suggests, offer more intense medical support to patients compared to assisted living facilities, which are senior apartments that provide meals and some assistance to its residents. HB 1199 by Rep. Christian Manuel, D-Beaumont, calls for emergency generators that have the capacity to run for a minimum of 72 hours in such facilities.

“Texans know firsthand the impact of being without power, particularly in elder care facilities where the stakes are incredibly high,” Manuel said in a statement.

Rep. Suleman Lalani, D-Sugar Land, has filed HB 1467 that would require nursing homes, assisted living and independent housing for seniors to have generators. Another one of his bills, HB 863, would create a shared database of where senior independent living communities are and include each complex’s emergency plan, which is required by the state for assisted living and nursing homes. The database would be accessible to emergency response officials.

“Things happen and then people make noise and then people go quiet,” he said, remarking on past failed attempts to get a generator bill passed. “I think I have a unique opportunity and responsibility being a physician…I cannot go back and say ‘Oh,’ I will let it go.”

History of generator bills and pushback

In this century alone, Texans have seen damage and death from hurricanes Rita in 2005, Ike in 2008, Harvey in 2017 and last July’s Beryl, not to mention more freak storms like Uri’s freeze in 2021 and last year’s wildfires in the Panhandle and a windstorm in the Houston area. All have taken the power down for hours, days and in the case of Beryl, weeks.

Former state Rep. Ed Thompson of Pearland became a champion for senior facility residents following a simple spring storm in 2018 that caused a power outage in his district.

After arriving to check on a nearby senior facility, he was stunned to find an ill-prepared staff. Residents had been in a hot and dark facility for hours. When he asked a worker about the facility’s emergency plan, he was incensed that it relied mostly on calling families to pick up their relatives or for those who had no family, just sending them to the local emergency rooms.

“That lit a fire in me,” he told the Tribune last week.

Calls for generators to be required equipment, particularly at assisted living facilities, are nothing new, but bills in the last two legislative sessions have died, including Thompson’s in 2023. His legislation stalled in committee after facing opposition from the nursing care and assisted living industries, which raised concerns, mostly about generator’ costs, which is estimated to be at least $200,000 or more for a facility.

That’s why this session, Rep. Ana Hernandez, D-Houston, has filed HB 2224 which would require backup power for elevators for 48 hours after a power loss. “A significant reduction in cost,” she said. Past bills that have failed, she said, have focused on keeping the entire facility powered.

“It is inhumane to leave an elderly person abandoned without electricity in temperatures over 100 degrees for days, or even weeks,” Hernandez said. “Not having at least one elevator poses a high safety risk of elderly people being trapped on upper-level floors, prohibiting residents from escaping a fire or seeking medical care.”

It’s not clear whether the smaller price tag on such a requirement will get the buy-in of the influential long-term care industry.

The Texas Health Care Association, now headed by former state Sen. Travis Clardy, represents most of the state’s nursing homes and he says his members already have generators but any blanket requirement for equipment that has to be purchased and maintained, perhaps once every few years, is a costly state mandate.

“I think our membership would prefer to be able to see that channeled into higher quality care,” Clardy said.

Requirements during a storm

When a storm heads for Texas, the state Health and Human Services Commission sends out emergency alerts to providers, putting them on notice that their emergency plans should be ready for use in case of a loss of power. The agency also contacts the facilities directly to check on the health and safety status of residents.

Last year, some 80 long-term care facilities were without power three days after Hurricane Beryl made landfall on July 8. According to the agency, both assisted living facilities and nursing homes are always responsible for the safety of residents including during a storm.

Emergency preparedness plans, which all assisted living and nursing home facilities must have, include a list of contacts workers will call in the event of a power outage and how they will evacuate residents if they need to do so.

Since 1996, state law has required all new nursing homes to have an emergency generator that powers safety features such as emergency lighting and exit signs, fire alarm systems, nurse call systems, telephones and medication and life-saving equipment. Assisted living facilities are not required to have a generator.

That said many assisted living facilities have some type of power back up to keep food or medications refrigerated. But cooling and heating all living areas is not something that has been explicitly required for assisted living facilities or nursing homes.

Since 2016, federal law requires generators in nursing homes in new and replacement nursing homes or for all nursing homes that have indicated in their emergency plans they would rely on emergency power to provide heating and cooling or other critical systems.

However, the agency does not regulate other types of housing such as independent, senior, or congregant living facilities. These entities do not hold a state license and are not required to report any information to the state health agency.

Carmen Tilton, vice president of public policy for the Texas Assisted Living Association said her industry has been a willing collaborative partner with lawmakers on the issue of requiring generators.

After Hurricane Harvey, her organization worked with the state to to hammer out a regulation that requires facilities to keep temperatures inside no colder than 68 degrees and no hotter than 82.

“The state doesn’t say you have to check a box,” she said.

The agency leaves it to industry to determine how they will meet that standard. It could be cooling one room inside a facility with fans and portable generators and bringing residents into that one room or if assisted living facilities wanted to purchase and maintain a larger generator, they can do so without the state determining the size, or how much fuel to keep on hand at all times.

That flexibility is what the assisted living industry wants to keep in place, Tilton said.

“We recognize that everyone’s set-up is a little bit different,” she said. “We’re not fighting these bills. We’re trying to find out how to make them work under our existing regulations.”

AARP Texas, which is advocating for generators in assisted living facilities, wants more clarity in law, not just in the administrative code. The code is too often and too easily changed, said Andrea Earl, an associate state director of advocacy and outreach at AARP Texas.

“There’s no assurances in law that healthy temperatures will be maintained at all times in the residential spaces of Texas’ long-term care facilities,” she said.

Some local governments are not waiting on the legislature to act. Earlier this month, Harris County announced it was incorporating into its fire code a requirement for generators for all nursing homes and assisted living facilities located in unincorporated areas.

There’s already been pushback.

“The new mandate is problematic in many ways and would needlessly require communities to reconfigure existing systems,” said Diana Martinez, the assisted living association’s president and CEO, in a statement. “Generators are not a one-time expenditure nor are they a panacea. Generators do fail.”

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This story was originally published by The Texas Tribune and distributed through a partnership with The Associated Press.

The company, based in Tomball, has developed a mobile, scalable energy source that can be used anywhere, anytime. Image via kaizencleanenergy.com

Houston mobile hydrogen generator company gets PE backing to expand its business

fueling the future

An innovative Houston-area company is on a mission to make using hydrogen energy easier and cheaper.

A recently announced partnership with investment firm, Balcor Companies, will help make this a reality as Kaizen Clean Energy looks to make hydrogen energy more accessible, reliable and affordable. Announced July 6, Balcor now has an ownership stake in Kaizen. The terms of the deal were not disclosed.

The company, based in Tomball, has developed a “micro grid” hydrogen power station — a mobile, scalable energy source that can be used anywhere, anytime.

Balcor Companies Founder and Director Chris Balat says his company is looking at their stake in KCE as an investment in shaping a more sustainable world.

“We are thrilled to make our first foray into the energy sector with Kaizen Energy as our trusted partner,” he says in a statement. "Our association with Kaizen is a testament to our commitment towards a sustainable future, driving positive change in the world while delivering value to our stakeholders.”

Kaizen's mission is to succeed where electric grids fail. One fallback source to help strained electric grids has typically been diesel generators. However, diesel generators increase local emissions which produce a significant amount of air pollution and health concerns. Kaizen’s hydrogen generators can be used to power buildings, homes, hospitals, data centers, events, and farm equipment. They are portable, which means it does not require any excessive infrastructure.

“Our system allows customers the ability to have renewable energy anywhere in the world in a very short time frame,” said Eric Smith, co-founder of KCE. “For EV charging, for power generation, to replace a diesel generator.”

Smith tells EnergyCapitalhtx the concept is very attractive to corporations who lease buildings as building out a permanent infrastructure could be costly and time consuming.

Robert Meaney, a Texas Tech engineering graduate, founded Kaizen Clean Energy in 2020, along with Eric Smith and Craig Klaasmeyer. Meaney designed the technology using a mixture of methanol and water to create hydrogen. A 330-gallon tank of the mixture produces about 150 kilograms of hydrogen — or 1.6 megawatt-hours of energy. The mixture lowers the risks of many of the drawbacks of hydrogen usage. For example, it can be stored for longer periods and transported long distances safely.

The microgrid fits into a small container and can be dropped on site at remote locations or in heavily congested grid areas. It also eliminates the cost of hydrogen transportation by generating hydrogen on-site with commonly available methanol, which can be both used for hydrogen fuel and converted to electricity for electric vehicle charging. This microgrid technology can both connect to the grid to supplement available power, or can be used during a power outage.

To put this energy source to use, KCE has partnered with Extreme E, an international off-road racing series that is part of Formula 1 and uses electric SUV’s to race in remote parts of the world. Kaizen’s units are also being used at a fleet-charging location in Los Angeles.

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Texas Gov. Abbott broadens crackdown on data centers by halting all permits

data center crackdown

Responding to public outcry, Gov. Greg Abbott has stepped up his campaign against data centers by temporarily halting approval of environmental permits for data center projects.

This and previous moves by Abbott essentially amount to a temporary freeze on the development of new data centers in Texas. His actions come at a time when Texas’ stature as a data center hub has been soaring.

On Monday, Abbott directed the Texas Commission on Environmental Quality to stop issuing permits for data center developments until the Electric Reliability Council of Texas (ERCOT) and Public Utility Commission of Texas complete their review of projects seeking power grid connections.

With regulatory reviews underway and environmental permitting now frozen, state regulators currently cannot approve or deny requests from data center developers, Abbott said.

In a letter to the environmental quality commission’s executive director, Kelly Keel, Abbott said this directive is “consistent with my whole-of-government approach to ensure Texans’ natural resources and way of life are protected.”

Abbott previously ordered the Texas Water Development Board to require data centers to meet reporting requirements for water use. He also told the board to impose penalties for failure to comply with those requirements and to collaborate with ERCOT on its review.

Abbott launched his crackdown on data centers in August by ordering the Public Utility Commission and ERCOT to review data center projects in Texas. The audits will examine all data centers in the queue for interconnections before any more projects can move forward. Interconnections enable data centers to share power, data and computing resources.

In calling for those audits, Abbott cited concerns over data centers’ use of water and electricity, and the centers’ effect on infrastructure expenses and consumers’ utility rates.

“Simply put, Texans must come first,” the governor said.

During next year’s legislation session, Abbott will push for the elimination of state financial incentives for data center projects.

Ed Hirs, an energy fellow ⁠at the University of Houston, told Reuters that Abbott was backtracking on “his earlier pronouncements about data centers leading to lower electricity prices.”

Abbott’s actions come amid growing public backlash over data centers. A recent University of Houston survey found that nearly 63 percent of Houston-area residents opposed construction of a data center within a mile of their home.

Only 8 of 160 utility companies in Texas have filed wildfire response plans

Utility News

Only eight of 160 utility companies that operate in fire-prone areas of Texas have complied with a law that helps mitigate wildfires, lawmakers recently learned. The revelation comes on the heels of a chaotic wildfire season that has continued through the summer.

Lawmakers learned about the slow progress last week during a House State Affairs committee hearing, led by Rep. Ken King, who led the charge on the new law last year. The law under House Bill 145 requires utility companies to file wildfire mitigation plans to the Public Utility Commission.

The plans must include emergency protocols in the case of a wildfire, utility operating plans during high-risk weather conditions, management of grass, shrubs and other vegetation in areas that are at risk of wildfires, inspection of poles and other electric equipment and identified areas of wildfire risks within a utility’s service territory.

King, a Republican from Canadian where much of the wildfire damage occurred during the Panhandle wildfires, pressed utility companies on the lack of compliance.

“I’m very, very disappointed with the industry,” King said. “I think it’s imperative for anybody that has not filed that report to realize January is coming. You will file that wildfire mitigation plan, and if you’re dragging your feet, there’s no excuse good enough for me.”

Last year, King filed a slew of bills in response to the devastating Smokehouse Creek wildfires in the Texas Panhandle and parts of Oklahoma in 2024. It was the largest wildfire in Texas history, started when a decayed power pole owned by Xcel Energy snapped and landed in dry grass.

It was one of a spate of fires, the majority of which were linked to electrical ignitions.

This year alone has been a very active wildfire season. Nim Kidd, chief for the Texas Division of Emergency Management, said the state has helped local governments respond to more than 1,200 fires since the start of the year. The Ross Fire, which burned for more than three weeks in North Texas, was finally contained by firefighters last week. It’s now the second largest wildfire in the region’s history.

Two wildfires have broken out on Craig Cowden’s Panhandle ranch this year, both ignited by electrical equipment used by oil and gas companies. Cowden extinguished them, before they could spread beyond 5 acres — a fraction of the 20,000 acres he lost to wildfires in 2024.

Cowden was one of many ranchers who worked with lawmakers last year to address the problem. Over the years, several fires have started on Cowden’s land, most of which were the result of faulty or damaged electrical equipment.

“It’s kind of discouraging that there hasn’t been more proactively submitting their wildfire plan,” Cowden said.

Slow progress

There has been progress since the bill was filed. According to King, six fires have been linked to electrical issues this year, a significant decrease from 80 in 2024.

Connie Corona, director at the PUC, explained the lag in filings to lawmakers, stating that on top of the eight who have submitted, four more have given the PUC a date for when they intend to file their plans. Corona said another 135 have indicated to the PUC they are in the process of preparing their plan. This leaves 13 who have not communicated their plans to the PUC.

“We’ve asked for a heads-up notice of when the utility plans to file, and try to ensure that meets with the resources we have available,” Corona told lawmakers.

Corona said PUC staff had created a model wildfire mitigation plan that utility companies can use as a template. The model is intended to support smaller utility companies that lack sufficient resources to make their own plan. King asked Corona for a list of entities who complied with the requirement.

“When eight out of 160 have complied, and we’re sitting here in September, that doesn’t sound like a very good response to me,” King said.

A looming deadline

Brad Baldridge, interim president of Southwestern Public Service Company, which operates as Xcel Energy, told lawmakers what his company is doing to mitigate wildfires. The company was heavily criticized in the wake of the fires and has since deployed 97 wildfire detection cameras across its service territory. The cameras use AI to detect smoke and provide that information in real-time to utility personnel, local fire responders and emergency managers. It also uses Public Safety Power Shutoffs to turn off power in certain areas during critical wildfire conditions to prevent an electrical start. Baldridge said since 2024, the company has had to shut off power five times.

When King asked if the company had submitted its wildfire mitigation plans, Baldridge said it was submitted last month. It would have been submitted earlier, he said, but there was “tremendous” vegetation that grew from rain earlier in the year.

“All of our experts were focusing on wildfire mitigation,” Baldridge said. “Which delayed us a little bit in our filing.”

Mark Bell, CEO for the Association of Electric Companies of Texas, said they are using remote cameras and sensors to detect wildfires and are taking a more aggressive approach to manage vegetation. They also use power shutoffs in extreme conditions to minimize the risk. Bell testified that their utility companies were on track to file their wildfire mitigation plans.

“I think all the plans are going to be filed by the end of the year,” Bell said.

King reminded Bell that it’s September, and many haven’t filed yet.

“That’d be 148 (plans) approved before January,” King said.

Bell assured King that five of them have filed their plans and one is scheduled to file in October.

Corona, with the PUC, said there are also pole and maintenance plans due in January that will detail a complete inventory of those assets owned by utilities. King said the plan is to have the companies list everything they own in Texas, where it is and how old it is. However, he said they aren’t being compliant and lawmakers will see what happens in January.

Cowden, the rancher in the Panhandle, told the Tribune that while it’s not technically fire season anymore, there are still small fires that ignite around the area.

Cowden sees the amount of work being done by Xcel Energy to upgrade their electrical poles and infrastructure in the area. He said it’s different than before the wildfires in 2024. He thinks the fires got their attention.

“You can tell they’re making a conscious effort to try to upgrade their infrastructure,” Cowden said.

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This story was originally published by The Texas Tribune and distributed through a partnership with The Associated Press.

Houston-based ‘grid in a box’ provider Branch Energy raises $33M

fresh funding

Houston-based startup Branch Energy, which offers a self-contained “grid in a box,” has collected $33 million in a Series B round.

Piva Capital and Clean Energy Ventures led the round, according to a news release. Active Impact Investments, Whitecap Venture Partners, Prelude Ventures, Zero Infinity Partners and Inovia Capital also contributed to the round.

In 2024, Branch raised $10.8 million in an oversubscribed Series A round.

Branch’s business model

Branch, which launched in 2021, says its proprietary Arc “grid in a box” contains everything needed to store and supply electricity. A container about the size of a parking space holds an industrial-grade battery, grid connection equipment, cooling capabilities, autonomous controls and cloud-based management software.

The startup installs Arc systems at warehouses, hotels, factories, stores and other commercial properties. Each system arrives on a flatbed truck and can be online within two days, Branch says.

Under Branch’s business model, a property owner avoids upfront payment for an Arc system.

Aside from equipping a host business with an Arc system, Branch serves as the business’ power provider. The startup says it guarantees savings on the host’s energy bills and delivers backup power during outages.

Branch generates revenue by sending the battery’s stored power to the grid or to customers like hyperscale data centers. It also benefits by shifting energy from low-cost periods at night to high-cost periods during daily power peaks.

The startup handles permitting, installation, insurance and operations for each Arc system. The host provides a parking-lot-sized plot of land for the system.

Alex Ince-Cushman, co-founder and CEO of Branch, says the startup’s “grid in a box” can quickly meet the substantial power requirements of hyperscale data centers.

“We can do it on the timeline of a delivery, not a construction project. Our customers don’t lift a finger, don’t pay a dime and get guaranteed savings,” Ince-Cushman said in the release.

Entering the Illinois market

Branch already operates in Texas and is entering the Illinois market.

PJM, which operates Illinois’ power grid, recently paved the way for major energy users like data centers to connect to the grid sooner when they rely on their own electricity generation. PJM’s territory covers roughly 1.2 million commercial buildings and represents 20 percent of U.S. power demand, according to Branch.

“Grids around the country need the distributed capacity that [the Arc] system can supply, especially in states with fast-growing power demand like Texas and Illinois,” Lee Larson, principal at Piva Capital added in the release.

To keep up with that demand, Branch plans to build tens of thousands of Arc systems in the U.S.

A multibillion-dollar company in the making?

Daniel Goldman, co-founder and managing partner of Clean Energy Ventures, said Branch holds the potential to become a multibillion-dollar competitor in the emerging market for distributed power.

“With utility-scale generation and storage challenged by interconnect and siting constraints, behind-the-meter commercial, and industrial storage sites have become the ultimate market opportunity with ease of interconnect, ability to combine distributed AI data centers, and identifiable savings in rapidly growing markets,” Goldman said.