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A BILL TO BE ENTITLED
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AN ACT
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relating to on-site distributed generation and energy storage |
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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 ON-SITE DISTRIBUTED GENERATION |
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RESOURCES |
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Sec. 113.001. DEFINITIONS. In this chapter: |
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(1) "Distributed generation" has the meaning assigned |
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by Section 39.1015(a), 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. This chapter applies to a |
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seller or lessor of on-site distributed generation resources. |
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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 an on-site distributed 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 the generation resource, |
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including all associated equipment to be installed; |
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(3) the cost of the generation resource, including all |
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associated 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 made as part of the agreement |
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regarding the expected operational performance and financial |
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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 the |
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purchaser of the property where the on-site distributed generation |
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resource is installed. |
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Sec. 113.005. ADDITIONAL DISCLOSURES FOR POWER PURCHASE |
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AGREEMENTS. In addition to the disclosures required under Section |
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113.003, a residential or small commercial customer who enters into |
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a power purchase agreement is entitled to receive in writing: |
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(1) 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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(2) whether the power purchase agreement and any |
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applicable warranty or maintenance agreement is transferable to the |
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purchaser of the property where the on-site distributed generation |
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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) "Small commercial customer" has the meaning |
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assigned by Section 39.202(o), Utilities Code. |
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(2) "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 prohibit a residential or small |
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commercial customer from installing a solar energy device only for |
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a purpose for which a property owners' association may prohibit the |
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installation under Section 202.010(d), Property Code. |
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SECTION 3. The heading to Section 202.010, Property Code, |
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is amended to read as follows: |
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Sec. 202.010. REGULATION OF CERTAIN [SOLAR] ENERGY DEVICES. |
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SECTION 4. Section 202.010(a), Property Code, is amended by |
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adding Subdivision (3) to read as follows: |
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(3) "Distributed generation" has the meaning assigned |
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by Section 39.1015(a), Utilities Code. |
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SECTION 5. Section 202.010, Property Code, is amended by |
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adding Subsection (g) to read as follows: |
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(g) A property owners' association may not include or |
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enforce a provision in a dedicatory instrument that: |
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(1) requires three or more inspections by the property |
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owners' association of an on-site distributed generation or energy |
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storage resource before the resource is operational; |
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(2) is more onerous than interconnection rules adopted |
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by the Public Utility Commission of Texas; or |
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(3) imposes any inspection or approval requirements or |
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changes more onerous than those required for a proposed |
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modification or improvement of an owner's property that is |
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unrelated to on-site distributed generation or energy storage. |
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SECTION 6. Subchapter C, Chapter 39, Utilities Code, is |
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amended by adding Section 39.1015 to read as follows: |
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Sec. 39.1015. CONSUMER PROTECTIONS FOR CERTAIN ON-SITE |
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ENERGY GENERATION AND STORAGE. (a) In this section, "distributed |
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generation" means electric generation with a capacity of not more |
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than 2,000 kilowatts that is installed on a retail electric |
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customer's side of the meter. |
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(b) A residential or small commercial customer is entitled |
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to have access to on-site distributed generation and energy storage |
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resources to: |
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(1) generate and export electricity to the grid; |
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(2) consume electricity from the grid; and |
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(3) reduce the customer's use of electricity from the |
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grid. |
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(c) A residential or small commercial customer is entitled |
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to store energy at the location of the customer's connection to the |
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grid. |
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(d) A residential or small commercial customer that |
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installs an on-site distributed generation or energy storage |
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resource is entitled to timely approval of an interconnection |
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agreement and interconnection of distributed generation or energy |
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storage with the customer's transmission and distribution utility |
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or electric utility in accordance with Section 39.554 or 39.916, as |
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applicable. A residential or small commercial customer is entitled |
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to timely approval of any permission to operate or any other |
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approval required for the customer to use the customer's on-site |
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distributed generation or energy storage resource. |
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(e) A residential or small commercial customer is entitled |
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to timely notice from the customer's transmission and distribution |
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utility or electric utility of an improvement and the cost of the |
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improvement to the distribution grid that must be made to allow the |
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customer to install or expand existing on-site distributed |
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generation or energy storage resources. |
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(f) Except for a charge to recover a cost described by |
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Subsection (e), an electric utility or a retail electric provider |
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may not impose a rate or charge on a residential or small commercial |
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customer or require a residential or small commercial customer to |
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take service under a tariff or service plan that applies only to |
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customers who have installed on-site distributed generation or |
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energy storage resources. |
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(g) An electric utility or a retail electric provider may |
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not charge a residential or small commercial customer a fee solely |
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because the customer elects to discontinue service from the utility |
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or provider. |
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(h) An electric utility may not charge a residential or |
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small commercial customer with an on-site distributed generation or |
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energy storage resource a fee to reconnect to the electric grid that |
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is more than the fee charged to a customer in the same rate class who |
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does not have an on-site distributed generation or energy storage |
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resource, except the interconnection fee applicable to the original |
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installation of the on-site distributed generation or energy |
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storage resource. |
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(i) A residential or small commercial customer is entitled |
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to interconnect in a manner that allows the customer to receive |
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power from the customer's on-site energy storage resource when the |
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electric grid is not operating if the customer's on-site |
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distributed generation resource is equipped with an inverter or |
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other technology that complies with a standard developed by a |
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federal agency or standards widely used by industry and other |
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states that enables the on-site distributed generation resource to |
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safely provide power to the customer when the electric grid is not |
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operating. |
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SECTION 7. The changes in law made by this Act apply to an |
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agreement governing the sale or lease of a distributed generation |
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system, as defined by Section 39.1015, Utilities Code, as added by |
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this Act, entered into on or after the effective date of this Act. |
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An agreement entered into before the effective date of this Act is |
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governed by the law as it existed immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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SECTION 8. This Act takes effect September 1, 2019. |