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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of and permitting for certain energy devices at |
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a retail customer's premises. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 250, Local Government Code, is amended |
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by adding Section 250.014 to read as follows: |
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Sec. 250.014. ONLINE AND AUTOMATED RESIDENTIAL SOLAR AND |
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STORAGE PERMITTING. (a) In this section: |
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(1) "Residential energy storage system" means |
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commercially available technology, located behind a customer's |
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residential utility meter, that is capable of: |
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(A) absorbing electricity: |
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(i) generated on-site; or |
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(ii) from the electrical grid; |
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(B) storing electricity for a period of time; and |
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(C) discharging electricity to meet the power |
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needs of the customer or for export to the electrical grid. |
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(2) "Residential solar energy system" means a |
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configuration of solar energy devices that collects and distributes |
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solar energy for the purpose of generating electricity and that has |
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a single residential interconnection with the electrical grid. |
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(3) "SolarAPP+" means the web-based portal, as it |
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existed on January 1, 2023, developed by the National Renewable |
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Energy Laboratory, that automates plan review, produces |
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code-compliant approvals, and issues permits for residential solar |
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energy systems and residential energy storage systems paired with |
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residential solar energy systems. |
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(b) This section applies only to: |
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(1) a municipality that has a population of 5,000 or |
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more; and |
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(2) a county that has a population of 150,000 or more. |
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(c) Notwithstanding any other law, a municipality or county |
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shall implement an online and automated permitting system for |
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residential solar energy systems that have a nameplate rating of |
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not more than 40 kilowatts of alternating current and residential |
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energy storage systems paired with residential solar energy systems |
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that have a nameplate rating of not more than 40 kilowatts of |
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alternating current. The online and automated permitting system |
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must: |
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(1) verify that the proposed systems comply with |
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relevant building and fire codes; and |
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(2) issue a permit necessary for a contractor to |
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install or repair a solar energy system or residential storage |
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system in real time or allow the municipality or county to issue the |
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permit in real time. |
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(d) An online and automated permitting system implemented |
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under this section must have at least the same capabilities as |
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SolarAPP+. A municipality or county is not required to issue a |
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permit under Subsection (c) if the online and automated permitting |
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system implemented by the municipality or county does not meet the |
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capabilities of SolarAPP+ at the time the permit application is |
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submitted to the municipality or county. |
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(e) A municipality or county shall report to the Public |
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Utility Commission of Texas when the municipality or county has |
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implemented an online and automated permitting system under |
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Subsection (c). |
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(f) A municipality or county to which this section applies |
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must confirm compliance with this section when applying for a grant |
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or loan from the State Energy Conservation Office as a condition of |
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receiving the grant or loan. |
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SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is |
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amended by adding Section 39.9166 to read as follows: |
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Sec. 39.9166. INTERCONNECTION OF ON-SITE SMALL DISTRIBUTED |
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GENERATION BY MUNICIPALLY OWNED UTILITIES AND ELECTRIC |
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COOPERATIVES. (a) In this section: |
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(1) "Interconnection" means the right of a distributed |
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generation owner to physically connect distributed generation to an |
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electricity distribution system, and the technical requirements, |
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rules, or processes for the connection. |
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(2) "On-site small distributed generation" means |
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distributed generation, as defined by Section 39.9165, located at a |
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customer's point of delivery with a capacity of not more than 100 |
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kilowatts. |
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(b) Except as provided by Subsections (c) and (e), a |
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municipally owned utility or electric cooperative that provides |
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interconnections for on-site small distributed generation must |
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provide an interconnection not later than the 42nd day after the |
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date the utility or cooperative receives a complete application for |
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the interconnection. |
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(c) If the interconnection of on-site small distributed |
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generation will require substantial capital upgrades to the system |
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of a municipally owned utility or electric cooperative, the utility |
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or cooperative shall: |
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(1) provide to the interconnection applicant an |
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estimate of the applicant's costs for the upgrades and a proposed |
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schedule for the upgrades; and |
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(2) offer to provide the upgrades under a contract |
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with the interconnection applicant. |
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(d) Except as provided by Subsection (e), a municipally |
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owned utility or electric cooperative that enters into an upgrade |
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agreement under Subsection (c) shall provide the interconnection |
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not later than the 14th day after the date the upgrades are |
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complete, unless the interconnection applicant agrees to an |
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extension. The utility or cooperative shall employ best reasonable |
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efforts to complete the upgrades in the shortest time reasonably |
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practical. |
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(e) If a municipally owned utility or electric cooperative |
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determines that the utility or cooperative cannot interconnect |
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on-site small distributed generation according to the requirements |
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of this section, the utility or cooperative shall notify the |
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interconnection applicant in writing of the delay and the reason |
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for the delay and provide an estimated date for the |
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interconnection. |
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(f) A municipally owned utility or electric cooperative |
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shall process all on-site small distributed generation |
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interconnection applications in a non-discriminatory manner, in |
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the order in which they are received. An application that requires |
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minor modifications to be complete may not be rejected solely for |
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that reason. |
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(g) A municipally owned utility or electric cooperative may |
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not charge an owner or operator of on-site small distributed |
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generation that exports energy to the utility's or cooperative's |
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system: |
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(1) a charge for the operation and maintenance of the |
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utility's or cooperative's facilities; |
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(2) a distribution line charge; or |
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(3) a transmission access or line charge, a |
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transformation charge, or a transmission line loss charge. |
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(h) The governing body of a municipally owned utility or |
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electric cooperative shall provide oversight and adopt rules and |
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procedures, as necessary, to ensure that the utility or cooperative |
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complies with this section. |
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SECTION 3. (a) Except as provided by Subsection (b) of this |
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section, a municipality or county shall implement the online and |
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automated permitting system as required by Section 250.014, Local |
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Government Code, as added by this Act, not later than September 30, |
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2024. |
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(b) A municipality that has a population of at least 5,000 |
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and not more than 50,000 shall implement the online and automated |
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permitting system as required by Section 250.014, Local Government |
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Code, as added by this Act, not later than September 30, 2025. |
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SECTION 4. This Act takes effect September 1, 2023. |