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A BILL TO BE ENTITLED
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AN ACT
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relating to distributed renewable generation resources. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is |
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amended by adding Chapter 113 to read as follows: |
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CHAPTER 113. SALES AND LEASING OF DISTRIBUTED RENEWABLE GENERATION |
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RESOURCES |
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Sec. 113.001. DEFINITIONS. In this chapter: |
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(1) "Distributed renewable generation" has the |
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meaning assigned by Section 39.916, Utilities Code. |
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(2) "Small commercial customer" has the meaning |
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assigned by Section 39.202(o), Utilities Code. |
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Sec. 113.002. APPLICABILITY. (a) This chapter applies to a |
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seller or lessor of distributed renewable generation resources. |
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(b) This chapter does not apply to: |
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(1) a transaction involving the sale or transfer of |
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the real property on which a distributed renewable generation |
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resource is located; |
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(2) a person, including a person acting through the |
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person's officers, employees, brokers, or agents, who markets, |
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sells, solicits, negotiates, or enters into an agreement for the |
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sale or financing of a distributed renewable generation resource as |
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part of a transaction involving the sale or transfer of the real |
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property on which the distributed renewable generation resource is |
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or will be affixed; or |
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(3) a third party that enters into an agreement for the |
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financing of a distributed renewable generation resource. |
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Sec. 113.003. LEASE, SALES, AND INSTALLATION DISCLOSURES. |
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A seller or lessor who enters into a purchase, lease, or power |
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purchase agreement with a residential or small commercial customer |
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for the operation of a distributed renewable generation resource |
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shall provide to the customer in writing: |
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(1) contact information of the salesperson and |
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installer of the generation resource; |
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(2) a description of all equipment to be installed; |
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(3) the cost of all equipment to be installed; |
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(4) a detailed accounting of fees associated with the |
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installation or operation of the generation resource; |
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(5) representations, if any, made as part of the |
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agreement regarding the expected operational performance and |
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financial performance of the generation resource; and |
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(6) all applicable warranties. |
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Sec. 113.004. ADDITIONAL DISCLOSURES FOR LEASE AGREEMENTS. |
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In addition to the disclosures required under Section 113.003, a |
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lessor shall provide to a leasing residential or small commercial |
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customer in writing: |
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(1) the term and rate of the lease, including any |
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payment escalators or other terms that affect the customer's |
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payments; and |
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(2) a statement of whether the lease and any |
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applicable warranty or maintenance agreement is transferable to a |
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subsequent purchaser of the property where the distributed |
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renewable generation resource is installed. |
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Sec. 113.005. DISCLOSURES FOR POWER PURCHASE AGREEMENTS. A |
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residential or small commercial customer who enters into a power |
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purchase agreement is entitled to receive in writing: |
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(1) the disclosures required under Sections |
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113.003(1), (2), (5), and (6); |
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(2) the term and rate of the power purchase agreement, |
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including any payment escalators or other terms that affect the |
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customer's payments; and |
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(3) whether the power purchase agreement and any |
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applicable warranty or maintenance agreement is transferable to a |
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subsequent purchaser of the property where the distributed |
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renewable generation resource is installed. |
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SECTION 2. Chapter 229, Local Government Code, is amended |
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by adding Subchapter C to read as follows: |
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SUBCHAPTER C. REGULATION OF SOLAR ENERGY DEVICES |
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Sec. 229.101. REGULATION OF SOLAR ENERGY DEVICES. (a) In |
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this section: |
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(1) "Municipally owned utility" has the meaning |
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assigned by Section 11.003, Utilities Code. |
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(2) "Small commercial customer" has the meaning |
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assigned by Section 39.202(o), Utilities Code. |
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(3) "Solar energy device" has the meaning assigned by |
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Section 171.107, Tax Code. |
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(b) A municipality may not prohibit or restrict the |
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installation of a solar energy device by a residential or small |
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commercial customer except to the extent: |
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(1) a property owner's association may prohibit the |
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installation under Sections 202.010(d)(1) through (7), Property |
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Code; or |
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(2) the interconnection guidelines and |
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interconnection agreement of a municipally owned utility serving |
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the customer's service area, the rules of the Public Utility |
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Commission of Texas, or the protocols of an independent |
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organization certified under Section 39.151, Utilities Code, limit |
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the installation of solar energy devices due to reliability, power |
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quality, or safety of the distribution system. |
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SECTION 3. The changes in law made by this Act apply only to |
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an agreement governing the sale or lease of distributed renewable |
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generation, as defined by Section 39.916, Utilities Code, or a |
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power purchase agreement entered into on or after the effective |
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date of this Act. An agreement entered into before the effective |
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date of this Act is governed by the law as it existed immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2021. |