By: Menéndez S.B. No. 2066
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to distributed renewable generation resources.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 5, Business & Commerce Code, is
  amended by adding Chapter 113 to read as follows:
  CHAPTER 113. SALES AND LEASING OF DISTRIBUTED RENEWABLE GENERATION
  RESOURCES
         Sec. 113.001.  DEFINITIONS. In this chapter:
               (1)  "Distributed renewable generation" has the
  meaning assigned by Section 39.916, Utilities Code.
               (2)  "Small commercial customer" has the meaning
  assigned by Section 39.202(o), Utilities Code.
         Sec. 113.002.  APPLICABILITY. (a)  This chapter applies to
  a seller or lessor of distributed renewable generation resources.
         (b)  This chapter does not apply to:
               (1)  a transaction involving the sale or transfer of
  the real property on which a distributed renewable generation
  resource is located;
               (2)  a person, including a person acting through the
  person's officers, employees, brokers, or agents, who markets,
  sells, solicits, negotiates, or enters into an agreement for the
  sale or financing of a distributed renewable generation resource as
  part of a transaction involving the sale or transfer of the real
  property on which the distributed renewable generation resource is
  or will be affixed; or
               (3)  a third party that enters into an agreement for the
  financing of a distributed renewable generation resource.
         Sec. 113.003.  LEASE, SALES, AND INSTALLATION DISCLOSURES.
  A seller or lessor who enters into a purchase, lease, or power
  purchase agreement with a residential or small commercial customer
  for the operation of a distributed renewable generation resource
  shall provide to the customer in writing:
               (1)  contact information of the salesperson and
  installer of the generation resource;
               (2)  a description of all equipment to be installed;
               (3)  the cost of all equipment to be installed;
               (4)  a detailed accounting of fees associated with the
  installation or operation of the generation resource;
               (5)  representations, if any, made as part of the
  agreement regarding the expected operational performance and
  financial performance of the generation resource; and
               (6)  all applicable warranties.
         Sec. 113.004.  ADDITIONAL DISCLOSURES FOR LEASE AGREEMENTS.
  In addition to the disclosures required under Section 113.003, a
  lessor shall provide to a leasing residential or small commercial
  customer in writing:
               (1)  the term and rate of the lease, including any
  payment escalators or other terms that affect the customer's
  payments; and
               (2)  a statement of whether the lease and any
  applicable warranty or maintenance agreement is transferable to a
  subsequent purchaser of the property where the distributed
  renewable generation resource is installed.
         Sec. 113.005.  DISCLOSURES FOR POWER PURCHASE AGREEMENTS. A
  residential or small commercial customer who enters into a power
  purchase agreement is entitled to receive in writing:
               (1)  the disclosures required under Sections
  113.003(1), (2), (5), and (6);
               (2)  the term and rate of the power purchase agreement,
  including any payment escalators or other terms that affect the
  customer's payments; and
               (3)  whether the power purchase agreement and any
  applicable warranty or maintenance agreement is transferable to a
  subsequent purchaser of the property where the distributed
  renewable generation resource is installed.
         SECTION 2.  Chapter 229, Local Government Code, is amended
  by adding Subchapter C to read as follows:
  SUBCHAPTER C. REGULATION OF SOLAR ENERGY DEVICES
         Sec. 229.101.  REGULATION OF SOLAR ENERGY DEVICES. (a)  In
  this section:
               (1)  "Municipally owned utility" has the meaning
  assigned by Section 11.003, Utilities Code.
               (2)  "Small commercial customer" has the meaning
  assigned by Section 39.202(o), Utilities Code.
               (3)  "Solar energy device" has the meaning assigned by
  Section 171.107, Tax Code.
         (b)  A municipality may not prohibit or restrict the
  installation of a solar energy device by a residential or small
  commercial customer except to the extent:
               (1)  a property owner's association may prohibit the
  installation under Sections 202.010(d)(1) through (7), Property
  Code; or
               (2)  the interconnection guidelines and
  interconnection agreement of a municipally owned utility serving
  the customer's service area, the rules of the Public Utility
  Commission of Texas, or the protocols of an independent
  organization certified under Section 39.151, Utilities Code, limit
  the installation of solar energy devices due to reliability, power
  quality, or safety of the distribution system.
         SECTION 3.  The changes in law made by this Act apply only to
  an agreement governing the sale or lease of distributed renewable
  generation, as defined by Section 39.916, Utilities Code, entered
  into on or after the effective date of this Act.  An agreement
  entered into before the effective date of this Act is governed by
  the law as it existed immediately before the effective date of this
  Act, and that law is continued in effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2019.