82R3928 RWG-F
By: Fraser S.B. No. 492
A BILL TO BE ENTITLED
AN ACT
relating to the creation of a distributed solar generation
incentive program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 31.002(6), Utilities Code, is amended to
read as follows:
(6) "Electric utility" means a person or river
authority that owns or operates for compensation in this state
equipment or facilities to produce, generate, transmit,
distribute, sell, or furnish electricity in this state. The term
includes a lessee, trustee, or receiver of an electric utility and a
recreational vehicle park owner who does not comply with Subchapter
C, Chapter 184, with regard to the metered sale of electricity at
the recreational vehicle park. The term does not include:
(A) a municipal corporation;
(B) a qualifying facility;
(C) a power generation company;
(D) an exempt wholesale generator;
(E) a power marketer;
(F) a corporation described by Section 32.053 to
the extent the corporation sells electricity exclusively at
wholesale and not to the ultimate consumer;
(G) an electric cooperative;
(H) a retail electric provider;
(I) this state or an agency of this state; [or]
(J) a person not otherwise an electric utility
who:
(i) furnishes an electric service or
commodity only to itself, its employees, or its tenants as an
incident of employment or tenancy, if that service or commodity is
not resold to or used by others;
(ii) owns or operates in this state
equipment or facilities to produce, generate, transmit,
distribute, sell, or furnish electric energy to an electric
utility, if the equipment or facilities are used primarily to
produce and generate electric energy for consumption by that
person; or
(iii) owns or operates in this state a
recreational vehicle park that provides metered electric service in
accordance with Subchapter C, Chapter 184; or
(K) a distributed renewable generation owner, as
defined by Section 39.916.
SECTION 2. Section 39.002, Utilities Code, is amended to
read as follows:
Sec. 39.002. APPLICABILITY. Except as provided by this
section, this [This] chapter, other than Sections 39.155,
39.157(e), 39.203, 39.903, 39.904, 39.9051, 39.9052, [and]
39.914(e), and 39.9156, does not apply to a municipally owned
utility or to an electric cooperative. Sections 39.157(e), 39.203,
and 39.904[, however,] apply only to a municipally owned utility or
an electric cooperative that is offering customer choice. Section
39.916 applies to an electric cooperative. Section 39.9161 applies
to a municipally owned utility. If there is a conflict between the
specific provisions of this chapter and any other provisions of
this title, except for Chapters 40 and 41, the provisions of this
chapter control.
SECTION 3. Subchapter Z, Chapter 39, Utilities Code, is
amended by adding Sections 39.9155 and 39.9156 to read as follows:
Sec. 39.9155. SOLAR GENERATION INCENTIVE PROGRAM. (a) In
this section:
(1) "Distributed solar generation" means distributed
renewable generation, as defined by Section 39.9161, using solar
energy technology.
(2) "Owner of distributed solar generation" includes a
retail electric customer who contracts with another person to
install or maintain distributed solar generation on the customer's
side of the meter, regardless of whether the customer takes
ownership of the installed distributed solar generation.
(3) "Surplus electricity" means electricity generated
by distributed solar generation that is not consumed at the place
the distributed solar generation is installed but flows onto the
electric distribution system.
(b) It is the goal of the legislature that electric
utilities administer incentive programs for residential and
commercial customers to increase the amount of distributed solar
generation, utility scale solar generation capacity, and energy
storage capacity installed in this state in a cost-effective,
market-neutral, and nondiscriminatory manner.
(c) The commission by rule shall:
(1) establish a solar generation incentive program, to
be implemented by electric utilities;
(2) oversee the implementation of the program required
by Subdivision (1); and
(3) establish procedures to achieve the goal described
by Subsection (b).
(d) The rules adopted under Subsection (c) must include
provisions:
(1) for recovery of the cost of electric utility
programs authorized by this section through nonbypassable fees,
which may not exceed:
(A) 20 cents per month for residential customers;
(B) $2 per month for commercial customers; and
(C) $20 per month for industrial customers;
(2) for rebates to customers to defray the cost of
installing distributed solar generation as provided by Subsection
(f);
(3) to require that customers in the Electric
Reliability Council of Texas who install distributed solar
generation will have the option to be equipped with an advanced
meter and appropriate procedures to give the customers an option to
settle on the basis of their real-time energy usage instead of on
the basis of a load profile and to receive the real-time energy
price for surplus electricity exported to the grid by the customer;
(4) to require:
(A) a retail electric provider to offer service
to a retail electric service customer who has installed distributed
solar generation; and
(B) a retail electric provider that provides
service to a retail electric service customer who has installed
distributed solar generation to:
(i) purchase the customer's surplus
electricity at a price equal to or greater than a fair market price
determined in accordance with this section; or
(ii) credit the customer's bill for the
billing cycle in which the customer's surplus electricity is
generated at a price equal to or greater than the equivalent of a
fair market price determined in accordance with this section and
allow any unused credit on the customer's bill to be carried forward
to subsequent billing cycles for the customer;
(5) for appropriate net metering policies and retail
rate options for customers served by electric utilities outside the
Electric Reliability Council of Texas; and
(6) for the utility scale solar and energy storage
capacity program provided by Subsection (g).
(e) Electric utilities may not assess the fees authorized by
this section after the fifth anniversary of the date the program
required by this section is established by commission rule, except
as provided by Subsection (l). The commission shall ensure that all
fees collected under this section are used for the programs
authorized by this section, except that utilities may not use more
than 2.5 percent of the funds collected for administrative expenses
related to this section, as approved by the commission.
(f) The commission shall set a rebate amount for the
installation of distributed solar generation capacity. The
commission shall periodically adjust the rebate amount such that
the quantity of solar generation capacity installed under this
section is maximized, but shall reduce rebate amounts by not less
than five percent per year. The commission may set a higher rebate
amount for solar generation capacity using equipment manufactured
wholly or substantially in this state, provided that the higher
amount is not more than 20 percent higher than the rebate applicable
to all other solar generation capacity. The commission may provide
for rebates to be provided directly to customers or to qualified
installers of solar generation equipment. Unless adjusted by the
commission, the initial rebates shall be:
(1) $2.40 per watt for installations on residential
buildings;
(2) $1.50 per watt for installations on commercial
buildings; and
(3) $1 per watt for installations at industrial
facilities.
(g) The commission may direct not more than 70 percent of
the money collected from the fees authorized by this section to
utility scale solar generation capacity if the commission
determines such projects are more cost-effective per megawatt of
installed capacity than distributed solar generation or will
provide a greater benefit to the reliability of the electric grid.
The commission may establish rebate amounts not to exceed $1 per
watt for utility scale solar generation projects or may consider a
competitive bidding process, a reverse auction, or other methods to
award money in order to maximize the quantity of generation
capacity installed under this section. If the demand for money
under this section exceeds the money available, the commission
shall consider the following in determining which projects receive
subsidies:
(1) projects that, to be commercially viable, require
the lowest amount of subsidy per megawatt of installed capacity;
(2) projects that use the transmission capacity built
under Section 39.904(g) and that require minimal additional
transmission facilities;
(3) projects that enhance the reliability of the
transmission and distribution grid or defer the need for additional
transmission and distribution infrastructure;
(4) projects in development that can use rebates to
secure additional financing;
(5) projects that provide maximum output during
periods when electricity demand is highest in this state; and
(6) projects that can provide ancillary services to
the electric grid.
(h) The commission shall develop a "Made in Texas"
certification program for energy products useful for distributed
solar generation. The commission shall post a list of energy
products that are wholly or substantially produced in this state
and shall conduct education efforts to inform customers of the
availability of those energy products. The commission may partner
or contract with third parties or nonprofit organizations to
achieve the goals of this subsection.
(i) Notwithstanding any other provision of this title, a
retail electric provider or any other person may own distributed
solar generation and enter into a contract with the retail customer
on whose property the solar generation capacity is located to lease
the solar generation equipment or sell the generated output to the
retail customer or to that customer's retail electric provider. An
owner of the distributed solar generation is not an electric
utility and is not required to register with the commission as a
power generation company or self-generator unless the commission
determines that a registration system of that type is necessary to
maintain the reliability of the distribution grid. The commission
may establish appropriate reporting and other requirements for an
owner of distributed solar generation to be eligible to earn
renewable energy credits.
(j) The commission, in consultation with the Electric
Reliability Council of Texas, shall conduct and make available the
results of a study indicating geographic areas where utility scale,
non-wind, renewable energy generation capacity can be located with
minimal need for additional transmission facilities.
(k) The commission is not required to conduct its selection
of projects under Subsection (g) by contested case proceedings.
The commission may appoint an advisory committee to assist the
commission in evaluating proposals made under Subsection (g).
Members of an advisory committee appointed under this subsection
may not have a financial interest in any of the proposals. After
the conclusion of a process authorized by Subsection (g), the
commission shall release a complete record of the proposals and of
the evaluation of the factors required to be considered under
Subsection (g).
(l) The commission may extend the fees and program
authorized by this section for an additional five years if the
commission finds that:
(1) a substantial amount of manufacturing of solar
generation products has begun in Texas during the initial five-year
program; and
(2) the extension of the program's fees does not
present an undue burden to customers.
(m) The commission by rule shall provide a methodology for
determining a fair market value price for surplus electricity. The
fair market value price may not be less than an amount equal to 80
percent of the customer's applicable retail rate less any
nonbypassable charges. The commission shall post on the
commission's Internet website the fair market value prices derived
from the methodology provided under this subsection.
(n) In an area in which customer choice has been introduced,
a retail electric provider shall pay an owner of distributed solar
generation for surplus electricity:
(1) the local market clearing price for energy at the
time of day the surplus electricity is made available to the grid;
or
(2) a price that is not less than the fair market value
price determined in accordance with the methodology provided under
Subsection (m).
(o) An owner of distributed solar generation is qualified to
be paid for surplus electricity under Subsection (n) only if the
owner's distributed solar generation:
(1) is installed on a residential retail electric
customer's side of the meter;
(2) has a generating capacity of not greater than 50
kilowatts; and
(3) is rated to produce an amount of electricity less
than or equal to the amount of electricity the residential retail
electric customer for whom the distributed solar generation is
installed is reasonably expected to consume.
(p) The commission by rule shall require a retail electric
provider that purchases a customer's surplus electricity to include
on each bill of the customer line items to inform the owner of:
(1) the amount of surplus electricity, in terms of
kilowatt hours;
(2) the price credited to the owner for each kilowatt
hour; and
(3) the amount of any credit for surplus electricity
applied or carried forward from the previous billing period.
(q) Until the commission provides the methodology under
Subsection (m) for determining a fair market value price, a retail
electric provider shall pay a price for surplus electricity that is
not less than five cents per kilowatt hour.
(r) If, at the time distributed solar generation is
installed on a retail electric customer's side of the meter, the
estimated annual amount of electric energy to be generated by the
distributed solar generation is less than or equal to the
customer's estimated annual electric energy consumption, the
commission may not consider the owner of distributed solar
generation to be a power generation company or require the owner of
distributed solar generation to register as a power generation
company.
Sec. 39.9156. SOLAR GENERATION INCENTIVE PROGRAMS. (a) It
is the goal of the legislature that:
(1) electric cooperatives and municipally owned
utilities administer incentive programs that increase the amount of
solar generation capacity installed in this state in a
cost-effective, market-neutral, and nondiscriminatory manner;
(2) customers of electric cooperatives and
municipally owned utilities will have access to incentives for the
installation of distributed solar generation as defined by Section
39.9155(a); and
(3) electric cooperatives and municipally owned
utilities expend funds to increase the amount of solar generation
capacity at a total funding level consistent with the requirements
for electric utilities in this state under Sections 39.9155(d)(1)
and (e).
(b) Beginning not later than September 1, 2014, an electric
cooperative or municipally owned utility must report annually to
the state energy conservation office, in a form and manner
determined by the office, information regarding the efforts of the
municipally owned utility or electric cooperative related to this
section.
(c) This section does not prevent the governing body of an
electric cooperative or municipally owned utility from adopting
rules, programs, or incentives to encourage or provide for the
installation of more solar generation capacity than the goals
established by Section 39.9155 or rules adopted under that section.
(d) An electric cooperative or municipally owned utility
may recover the costs required by this section through a
nonbypassable fee consistent with that authorized by the commission
for electric utilities under Section 39.9155(d)(1) or another cost
recovery mechanism as determined by the governing body of the
electric cooperative or municipally owned utility.
(e) An electric cooperative or municipally owned utility is
entitled to have funding for solar generation capacity provided by
an electric cooperative or municipally owned utility after May 1,
2007, counted toward its compliance with this section.
(f) This section applies only to an electric cooperative or
municipally owned utility with retail sales of more than 500,000
megawatt hours in 2007.
SECTION 4. The heading to Section 39.916, Utilities Code,
is amended to read as follows:
Sec. 39.916. [INTERCONNECTION OF] DISTRIBUTED RENEWABLE
GENERATION.
SECTION 5. Section 39.916, Utilities Code, is amended by
amending Subsections (a), (b), (c), (e), (f), (h), and (j) and
adding Subsections (d-1), (k), (l), (m), (n), (o), (p), (q), and (r)
to read as follows:
(a) In this section:
(1) "Distributed renewable generation" means electric
generation with a capacity of not more than 2,000 kilowatts
provided by a renewable energy technology, as defined by Section
39.904, that is installed on a retail electric customer's side of
the meter.
(2) "Distributed renewable generation owner" means:
(A) the owner of distributed renewable
generation;
(B) a retail electric customer who contracts with
another person to finance, install, or maintain distributed
renewable generation on the customer's side of the meter,
regardless of whether the customer takes ownership of the installed
distributed renewable generation; or
(C) a person who by contract is assigned
ownership rights to distributed renewable generation located at the
premises of a customer on the customer's side of the meter.
(3) "Interconnection" means the right of a distributed
renewable generation owner to physically connect distributed
renewable generation to an electricity distribution system, and the
technical requirements, rules, or processes for the connection.
(b) A transmission and distribution utility, electric
cooperative, or electric utility shall allow interconnection if:
(1) the distributed renewable generation to be
interconnected has a five-year warranty against breakdown or undue
degradation; and
(2) the rated capacity of the distributed renewable
generation does not exceed the transmission and distribution
utility, electric cooperative, or electric utility service
capacity.
(c) A customer may request interconnection by filing an
application for interconnection with the transmission and
distribution utility, electric cooperative, or electric
utility. Procedures of a transmission and distribution utility,
electric cooperative, or electric utility for the submission and
processing of a customer's application for interconnection shall be
consistent with rules adopted by the commission regarding
interconnection.
(d-1) If, at the time distributed renewable generation is
installed on a retail electric customer's side of the meter, the
estimated annual amount of electric energy to be produced by the
distributed renewable generation is less than or equal to the
customer's estimated annual electric energy consumption, the
commission may not consider the distributed renewable generation
owner to be a power generation company or require the distributed
renewable generation owner to register as a power generation
company.
(e) A transmission and distribution utility, electric
cooperative, electric utility, or retail electric provider may not
require a distributed renewable generation owner whose distributed
renewable generation meets the standards established by rule under
Subsection (d) to purchase an amount, type, or classification of
liability insurance the distributed renewable generation owner
would not have in the absence of the distributed renewable
generation.
(f) A transmission and distribution utility, electric
cooperative, or electric utility shall make available to a
distributed renewable generation owner for purposes of this section
metering required for services provided under this section,
including separate meters that measure the load and generator
output or a single meter capable of measuring in-flow and out-flow
at the point of common coupling meter point. The distributed
renewable generation owner must pay the differential cost of the
metering unless the meters are provided at no additional cost.
Except as provided by this section, Section 39.107 applies to
metering under this section.
(h) On the request of a distributed renewable generation
owner and in accordance with this section, an [An] electric
utility, electric cooperative, or retail electric provider shall
[may] contract with a distributed renewable generation owner so
that:
(1) surplus electricity produced by distributed
renewable generation is made available for sale to the transmission
grid and distribution system; and
(2) the fair market [net] value of that surplus
electricity is credited to the distributed renewable generation
owner.
(j) For a distributed renewable generation owner who
chooses to sell the owner's surplus electricity in an area [owners
in areas] in which customer choice has been introduced, the
distributed renewable generation owner must sell the owner's
surplus electricity produced to the retail electric provider that
serves the [distributed renewable generation] owner's load. For a
distributed renewable generation owner who chooses to sell the
owner's surplus electricity in an area in which customer choice has
not been introduced, the owner must sell the owner's surplus
electricity to the electric utility or electric cooperative that
serves the owner's load at a value that is greater than or equal to
the avoided cost of the electric utility or electric cooperative,
as determined in accordance with commission rules, and, for an
electric cooperative, that is at least 4.5 cents per kilowatt hour
regardless of the electric cooperative's avoided cost. A
distributed generation owner who chooses to sell the owner's
surplus electricity in an area in which customer choice has been
introduced must sell the owner's surplus electricity at a fair
market value, determined in accordance with this section, [agreed
to between the distributed renewable generation owner and the
provider that serves the owner's load which may include, but is not
limited to, an agreed value based on the clearing price of energy at
the time of day that the electricity is made available to the grid]
or the owner's surplus electricity may be exchanged for [it may be]
a credit applied at a fair market value, determined in accordance
with this section, to an account during a billing period that may be
carried over to subsequent billing periods until the credit has
been redeemed. The independent organization identified in Section
39.151 shall develop procedures so that the amount of electricity
purchased from a distributed renewable generation owner under this
section is accounted for in settling the total load served by the
provider that serves that owner's load [by January 1, 2009]. A
distributed renewable generation owner requesting [net] metering
services for purposes of this section must have metering devices
capable of providing measurements consistent with the independent
organization's settlement requirements.
(k) In areas in which customer choice has been introduced,
the commission by rule shall provide a methodology for determining
a fair market value price for surplus electricity generated by
distributed renewable generation that provides a monthly or longer
periodic proxy for the market clearing price. The methodology must
not allow the aggregate fair market value of surplus electricity in
any billing period to be less than zero. The commission shall
review the methodology periodically. The commission shall post on
its Internet website the fair market value prices derived from the
methodology provided under this subsection.
(l) In an area in which customer choice has been introduced,
a retail electric provider shall pay a distributed renewable
generation owner for surplus electricity generated by the owner's
distributed renewable generation the local market clearing price
for energy at the time of day the surplus electricity is made
available to the grid or a price that is not less than the fair
market value price determined in accordance with the methodology
provided under Subsection (k).
(m) In areas in which customer choice has been introduced, a
distributed renewable generation owner is qualified to be paid for
surplus electricity under Subsection (h), (j), (k), or (l) only if:
(1) the owner's distributed renewable generation is:
(A) rated to produce an amount of electricity
that is less than or equal to the amount of electricity the retail
electric customer for whom the distributed renewable generation is
installed is reasonably expected to consume; and
(B) installed on the customer's side of the meter
for a residential retail electric customer or a retail electric
customer who is a public school or a church; and
(2) the generating capacity of the distributed
renewable generation does not exceed:
(A) 10 kilowatts for a residential retail
electric customer;
(B) 150 kilowatts for a church retail electric
customer; or
(C) 250 kilowatts for a public school retail
electric customer.
(n) A distributed renewable generation owner who does not
meet the qualifications prescribed by Subsection (m) will be paid
for the owner's surplus electricity or will have the owner's surplus
electricity exchanged for a credit to the owner's electric service
account at a value to which the owner and the provider that serves
the owner's load agree.
(o) The commission by rule may establish standards
distributed renewable generation must meet to be eligible for
compensation under this section, including interconnection
standards and standards for the generating equipment. The
standards must be designed so that small-scale distributed
renewable generation at residential addresses is eligible for
compensation.
(p) The commission by rule shall require an electric
utility, retail electric provider, or electric cooperative that
purchases surplus electricity from distributed renewable
generation to include on each bill or separate statement to the
distributed renewable generation owner line items to inform the
owner of:
(1) the amount of surplus electricity from the
distributed renewable generation, in terms of kilowatt hours;
(2) the price credited to or the payment made to the
owner for each kilowatt hour; and
(3) the amount of any credit for surplus electricity
applied or carried forward from the previous billing period.
(q) Until the commission provides the methodology under
Subsection (k) for determining a fair market value price in an area
open to competition, a retail electric provider shall pay a price
for surplus electricity that is not less than five cents per
kilowatt hour for electricity generated by a solar energy
technology or not less than four cents per kilowatt hour for
electricity generated by another renewable energy technology.
(r) This section expires September 2, 2016.
SECTION 6. Subchapter Z, Chapter 39, Utilities Code, is
amended by adding Sections 39.9161, 39.917, and 39.918 to read as
follows:
Sec. 39.9161. DISTRIBUTED RENEWABLE GENERATION WITHIN
MUNICIPALLY OWNED UTILITIES. (a) In this section:
(1) "Distributed renewable generation" means electric
generation with a capacity of not more than 2,000 kilowatts
provided by a renewable energy technology, as defined by Section
39.904, that is installed on a retail electric customer's side of
the meter.
(2) "Distributed renewable generation owner" means:
(A) the owner of distributed renewable
generation;
(B) a retail electric customer who contracts with
another person to finance, install, or maintain distributed
renewable generation on the customer's side of the meter,
regardless of whether the customer takes ownership of the installed
distributed renewable generation; or
(C) a person who by contract is assigned
ownership rights to distributed renewable generation located at the
premises of a customer on the customer's side of the meter.
(3) "Interconnection" means the right of a distributed
renewable generation owner to physically connect distributed
renewable generation to an electricity distribution system, and the
technical requirements, rules, or processes for the connection.
(b) It is the goal of the legislature that municipally owned
utilities shall allow interconnection and net metering by
distributed renewable generation owners.
(c) A municipally owned utility shall provide its customers
access to the interconnection and net metering of distributed
renewable generation.
(d) The governing body of a municipally owned utility shall
provide oversight and adopt rates, rules, and procedures to allow
interconnection and provide net metering consistent with the goals
of Section 39.916. This section does not prevent the governing body
of a municipally owned utility from adopting rates, rules, and
procedures for interconnection and net metering that are more
favorable to a distributed renewable generation owner than those
established by Section 39.916 or rules of the commission.
(e) If a municipally owned utility implements customer
choice under Chapter 40, the commission:
(1) has jurisdiction over the municipally owned
utility's distributed renewable generation interconnection and net
metering; and
(2) by rule shall establish minimum standards and
procedures for interconnection and net metering by the municipally
owned utility.
(f) A municipally owned utility that had retail sales of
500,000 megawatt hours or greater in 2008 shall file its
interconnection and net metering rates, rules, and procedures with
the state energy conservation office not later than January 1,
2012, and shall make timely updates to the utility's filed rates,
rules, and procedures.
(g) A municipally owned utility that has adopted rules and
procedures related to interconnection and net metering shall make
available, on a publicly accessible Internet website or at the
customary location for publicly posted notices:
(1) information on the purchase price offered per
kilowatt hour for surplus electricity produced by distributed
renewable generation; and
(2) information instructing customers with
distributed renewable generation how to request and obtain the
purchase rates offered.
(h) The governing body of a municipally owned utility that
had retail sales of less than 500,000 megawatt hours in 2008 shall
provide oversight and adopt rules and procedures related to
interconnection and net metering of distributed renewable
generation systems sized with a generating capacity deemed
appropriate by the municipally owned utility on or before the 120th
day after the date the governing body receives a bona fide request
for interconnection.
Sec. 39.917. INFORMATION ON INTERNET REGARDING PURCHASE OF
SURPLUS ELECTRICITY PRODUCED BY DISTRIBUTED RENEWABLE GENERATION.
(a) In this section:
(1) "Distributed renewable generation" means electric
generation with a capacity of not more than 2,000 kilowatts
provided by a renewable energy technology, as defined by Section
39.904, that is installed on a retail electric customer's side of
the meter.
(2) "Distributed renewable generation owner" means:
(A) the owner of distributed renewable
generation;
(B) a retail electric customer who contracts with
another person to finance, install, or maintain distributed
renewable generation on the customer's side of the meter,
regardless of whether the customer takes ownership of the installed
distributed renewable generation; or
(C) a person who by contract is assigned
ownership rights to distributed renewable generation located at the
premises of a customer on the customer's side of the meter.
(b) On the Internet website found at
http://www.powertochoose.org, the commission shall provide for
access to easily comparable information regarding retail electric
providers' offers to residential distributed renewable generation
owners for their surplus electricity, including information
regarding their contract terms, for each retail electric provider
using that website.
(c) On the Internet website found at
http://www.powertochoose.org, the commission shall provide for
access to easily comparable information regarding offers of
renewable energy credit marketers to residential distributed
renewable generation owners, for each renewable energy credit
marketer using that website.
(d) The commission by rule shall require electric
utilities, electric cooperatives, and retail electric providers to
provide on publicly accessible Internet websites information on
purchase price offers per kilowatt hour for surplus electricity
produced by residential distributed renewable generation and
information instructing customers with distributed renewable
generation on how to request and obtain the purchase rates offered.
Sec. 39.918. INFORMATION ON INTERNET REGARDING PURCHASE OF
SURPLUS ELECTRICITY PRODUCED BY DISTRIBUTED SOLAR GENERATION. (a)
In this section, "distributed solar generation," "owner of
distributed solar generation," and "surplus electricity" have the
meanings assigned by Section 39.9155(a).
(b) On the Internet website found at
http://www.powertochoose.org, the commission shall provide for
access to easily comparable information regarding retail electric
providers' offers to owners of distributed solar generation for
their surplus electricity, including information regarding their
contract terms, for each retail electric provider using that
website.
(c) On the Internet website found at
http://www.powertochoose.org, the commission shall provide for
access to easily comparable information regarding offers of
renewable energy credit marketers to owners of distributed solar
generation, for each renewable energy credit marketer using that
website.
(d) The commission by rule shall require electric
utilities, electric cooperatives, and retail electric providers to
provide on publicly accessible Internet websites information on
purchase price offers per kilowatt hour for surplus electricity and
information instructing customers with distributed solar
generation on how to request and obtain the purchase rates offered.
SECTION 7. Chapter 202, Property Code, is amended by adding
Section 202.010 to read as follows:
Sec. 202.010. REGULATION OF SOLAR ENERGY DEVICES. (a) In
this section, "solar energy device" has the meaning assigned by
Section 171.107, Tax Code.
(b) Except as otherwise provided by this section, a property
owners' association may not include or enforce a provision in a
dedicatory instrument that prohibits or restricts a property owner
from installing a solar energy device.
(c) A provision that violates Subsection (b) is void.
(d) This section does not prohibit the inclusion or
enforcement of a provision in a dedicatory instrument that
prohibits a solar energy device that:
(1) a court determines threatens the public health or
safety;
(2) a court determines violates a law;
(3) is located on property owned or maintained by the
property owners' association;
(4) is located on property owned in common by the
members of the property owners' association; or
(5) is located in an area on the property owner's
property other than:
(A) on the roof of the home; or
(B) in a fenced yard or patio maintained by the
property owner.
SECTION 8. Subtitle C, Title 5, Business & Commerce Code, is
amended by adding Chapter 106 to read as follows:
CHAPTER 106. REGULATION OF CONSTRUCTION CONTRACTS
Sec. 106.001. SOLAR PANEL OPTION REQUIRED IN CERTAIN
SUBDIVISIONS. (a) In this section, "solar energy device" means a
system or series of mechanisms designed primarily to provide
heating or cooling or to produce electrical or mechanical power by
collecting and transferring solar-generated energy. The term
includes a mechanical or chemical device that has the ability to
store solar-generated energy for use in heating or cooling or in the
production of power.
(b) This chapter applies only to a contract for construction
of a new home in a subdivision that contains more than 50 lots on
which the builder has built or is offering to build new homes.
(c) A builder who enters into a contract to which this
chapter applies shall offer the home buyer an option to install a
solar energy device on the home for heating or cooling or for the
production of power.
SECTION 9. Subchapter D, Chapter 2305, Government Code, is
amended by adding Section 2305.0321 to read as follows:
Sec. 2305.0321. PILOT REVOLVING LOAN PROGRAM FOR SOLAR
ENERGY FOR SCHOOL BUILDINGS. (a) The energy office shall establish
a pilot program under the loanstar revolving loan program to
provide loans to pay the cost of installing photovoltaic solar
panels on public school buildings and the cost of associated energy
efficiency improvements to the buildings. The energy office shall
allocate to the pilot program at least $4 million from the funds
available to the loanstar revolving loan program.
(b) The energy office by rule shall establish the terms
under which a loan may be made under the pilot program, including
the interest rate for repayment of pilot program loans.
(c) Through the pilot program, the energy office shall offer
to each school district the opportunity to apply for a loan to pay
the cost of installing photovoltaic solar panels on at least one
school building of the school district's choice and the cost of
associated energy efficiency improvements to that building. The
energy office by rule shall establish a procedure for determining
which school districts qualify for a loan under the pilot program,
including rules for selecting the school districts that will
receive a loan if there is not sufficient money set aside for pilot
program improvements at all school districts.
(d) Each school district that receives a loan shall pay for
the principal of and interest on the loan for each school building
improvement primarily from the amount budgeted for the energy costs
of the school at which the solar panels are installed. The school
district may make additional payments of the principal of or
interest on a loan from money rebated to it as compensation for
electric energy generated by the solar panels or money received as a
gift or grant for the purpose of paying the loan.
(e) This section expires September 1, 2013, and the pilot
program established under this section is abolished on that date.
SECTION 10. The Public Utility Commission of Texas shall
adopt rules establishing the programs required under Sections
39.9155 and 39.9156, Utilities Code, as added by this Act, as soon
as practicable.
SECTION 11. Not later than January 1, 2012, the Public
Utility Commission of Texas shall provide the methodology for
determining a fair market value price for surplus electricity
generated by distributed renewable generation, as required by
Section 39.916(k), Utilities Code, as added by this Act.
SECTION 12. (a) The Public Utility Commission shall
conduct a study to determine the effect of the pricing methodology
the commission develops under Section 39.916(k), Utilities Code, as
added by this Act, and shall report its findings and
recommendations to the 83rd Legislature not later than January 15,
2013. The study must include an assessment of:
(1) the development of the market in ERCOT for the sale
of surplus electricity, including the prices that retail electric
providers and electric utilities, municipal electric utilities,
and electric cooperatives in areas in which customer choice has not
been introduced pay for surplus electricity, and the amount of
surplus electricity those entities have purchased;
(2) the rate of adoption by customers in this state of
distributed renewable generation, including generation by solar
and other on-site renewable technologies, including a comparison of
adopted rates in this state compared to the adopted rates in other
states, the extent to which adopted rates vary by retail market
structure, the amount of direct installation incentives, the
pricing for purchasing of surplus electricity, and the extent to
which adopted rates are affected by the cost of other electric
supplies;
(3) a comparison of the default fair market value
price for surplus electricity to:
(A) the local market clearing prices of energy at
the time of day surplus electricity has been made available to the
grid; and
(B) the avoided costs of electric utilities as
determined in accordance with commission rules; and
(4) the extent to which electric service customers
with distributed renewable generation help avoid transmission and
distribution upgrades and reduce pollution, including an
estimation of the value of those benefits regionally.
(b) The study report must include any recommendations for
improvements in policies necessary to appropriately encourage the
development of distributed renewable generation technologies on
customer premises.
SECTION 13. Section 202.010, Property Code, as added by
this Act, applies to a deed restriction enacted before, on, or after
the effective date of this Act.
SECTION 14. Chapter 106, Business & Commerce Code, as added
by this Act, applies only to a contract for new home construction
entered into on or after the effective date of this Act. A contract
entered into before the effective date of this Act is governed by
the law in effect immediately before the effective date of this Act,
and that law is continued in effect for that purpose.
SECTION 15. The state energy conservation office shall
establish a program under Section 2305.0321, Government Code, as
added by this Act, not later than January 1, 2012.
SECTION 16. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2011.