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A BILL TO BE ENTITLED
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AN ACT
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relating to distributed renewable 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 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. A |
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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 the |
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purchaser of the property where the distributed renewable |
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generation resource is installed. |
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Sec. 113.005. ADDITIONAL DISCLOSURES FOR POWER PURCHASE |
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AGREEMENTS. A residential or small commercial customer who enters |
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into a power purchase agreement is entitled to receive in writing: |
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(1) the disclosures required under Sections |
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113.003(2), (3), (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 the |
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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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(c) A municipality may not assess one or more fees or other |
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charges on a person related to the installation of a solar energy |
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device by a residential or small commercial customer that exceeds |
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in the aggregate $250.00. |
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(d) Pursuant to the following compliance schedule in this |
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subsection, a city or county shall implement an online, automated |
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permitting platform that verifies code compliance and |
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instantaneously issues permits for a residential photovoltaic |
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solar energy system or an energy storage system paired with a |
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residential photovoltaic solar energy system consistent with the |
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system parameters and configurations, including an inspection |
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checklist. |
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(1) A city or county with a population of less than |
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10,000 is exempt from this subsection. |
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(2) A city of county with a population of |
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10,001-50,000 shall satisfy the requirements of this subsection no |
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later than December 31, 2023. |
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(3) A city or county with a population greater than |
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50,000 shall satisfy the requirements of this subsection no later |
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than December 31, 2022. |
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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 renewable generation" has the |
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meaning assigned by Section 39.916, Utilities Code. |
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SECTION 5. Section 202.010(d)(5)(B), Property Code, is |
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amended to read as follows: |
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(B) is located in an area other than an area |
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designated by the property owners' association, unless the |
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alternate location decreases the cost of the system by more than |
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$1000 or increases the estimated annual energy production of the |
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device, as determined by using a publicly available modeling tool |
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provided by the National Renewable Energy Laboratory, by more than |
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10 percent above the energy production of the device if located in |
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an area designated by the property owners' association. The |
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property owner shall provide to the property owners' association |
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documentation prepared by an independent solar panel design |
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specialist who is certified by the North American Board of |
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Certified Energy Practitioners and is licensed in Texas to show |
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that the alternate location satisfies one of the applicable |
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exception; |
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SECTION 6. Section 202.010(e), Property Code, is amended to |
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read as follows: |
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(e) A property owners' association or the association's |
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architectural review committee may not withhold approval for |
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installation of a solar energy device if the provisions of the |
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dedicatory instruments to the extent authorized by Subsection (d) |
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are met or exceeded. If a property owner's application is not denied |
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in writing by property owners' association or the association's |
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architectural review committee within 90 days from date of receipt |
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of the application, the application is deemed approved unless the |
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delay is the result of a reasonable request for additional |
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information.[, unless the association or committee, as applicable, |
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determines in writing that placement of the device as proposed by |
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the property owner constitutes a condition that substantially |
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interferes with the use and enjoyment of land by causing |
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unreasonable discomfort or annoyance to persons of ordinary |
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sensibilities. For purposes of making a determination under this |
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subsection, the written approval of the proposed placement of the |
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device by all property owners of adjoining property constitutes |
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prima facie evidence that such a condition does not exist.] |
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SECTION 7. 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 a distributed renewable 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 a distributed renewable generation or energy storage |
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resource. |
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SECTION 8. Subchapter C, Chapter 39, Utilities Code, is |
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amended by adding Section 39.9165 to read as follows: |
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Sec. 39.9165. CONSUMER PROTECTIONS FOR CERTAIN DISTRIBUTED |
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RENEWABLE GENERATION AND ELECTRIC STORAGE RESOURCES. (a) A |
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residential or small commercial customer is entitled to have access |
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to distributed renewable generation and energy storage resources |
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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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(b) 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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(c) A residential or small commercial customer that |
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installs a distributed renewable 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 the distributed renewable |
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generation or energy storage resource with the customer's |
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transmission and distribution utility or electric utility in |
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accordance with Section 39.554 or 39.916, as applicable. A |
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residential or small commercial customer is entitled to timely |
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approval of any permission to operate or any other approval |
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required for the customer to use the customer's distributed |
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renewable generation or energy storage resource. |
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(d) 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 distributed renewable |
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generation or energy storage resources. |
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(e) Except for a charge to recover a cost described by |
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Subsection (d), 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 distributed renewable generation or |
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energy storage resources. |
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(f) 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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(g) An electric utility may not charge a residential or |
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small commercial customer with a distributed renewable generation |
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or energy storage resource a fee to reconnect to the electric grid |
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that is more than the fee charged to a customer in the same rate |
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class who does not have a distributed renewable generation or |
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energy storage resource, except the interconnection fee applicable |
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to the original installation of the distributed renewable |
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generation or energy storage resource. |
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(h) 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 energy storage resource when the electric |
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grid is not operating if the customer's distributed renewable |
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generation resource is equipped with an inverter or other |
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technology that complies with a standard developed by a federal |
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agency or standards widely used by industry and other states that |
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enables the distributed renewable generation resource to safely |
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provide power to the customer when the electric grid is not |
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operating. |
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(i) A residential or commercial customer that installs a |
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distributed renewable generation or energy storage resource, |
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regardless of ownership or financing structure of the resource, is |
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entitled to the same interconnection rules, metering rules and |
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programs, and incentive programs that may be provided by their |
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retail electric utility, transmission and distribution utility, |
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municipally owned utility, or an electric cooperative. |
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(j) The commission shall adopt a rule within 1 year of the |
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effective date of this Act that provides standards for billing and |
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crediting mechanisms for distributed renewable generators. |
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(1) The standards shall calculate the value and |
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benefits of distributed renewable generation. The value shall |
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consider benefits of distributed renewable generation to the |
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distribution grid, including time-based and performance-based |
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benefits, technology capabilities, increased resiliency, and |
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present and future grid needs. The billing and crediting mechanism |
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shall be understandable and easy to use for customers. |
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(2) Notwithstanding any other provision of this Title, |
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the standards adopted by the Commission pursuant to this section |
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shall be made available to a customer with distributed renewable |
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generation installed anywhere in this state regardless of whether |
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the customer is served by a retail electric utility, transmission |
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and distribution utility, municipally owned utility, or an electric |
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cooperative. |
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SECTION 9. Section 202.010(f), Property Code, is repealed. |
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SECTION 10. The changes in law made by this Act apply to an |
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agreement governing the sale or lease of a distributed renewable |
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generation system, as defined by Section 39.916, Utilities Code, as |
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added by this Act, entered into on or after the effective date of |
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this Act. An agreement entered into before the effective date of |
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this Act is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 11. This Act takes effect September 1, 2021. |