Texas 2019 - 86th Regular

Texas House Bill HB2860 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R6295 GRM-F
2	2	By: Raymond H.B. No. 2860
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to on-site distributed generation and energy storage
8	8	resources.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
11	11	amended by adding Chapter 113 to read as follows:
12	12	CHAPTER 113. SALES AND LEASING OF ON-SITE DISTRIBUTED GENERATION
13	13	RESOURCES
14	14	Sec. 113.001. DEFINITIONS. In this chapter:
15	15	(1) "Distributed generation" has the meaning assigned
16	16	by Section 39.1015(a), Utilities Code.
17	17	(2) "Small commercial customer" has the meaning
18	18	assigned by Section 39.202(o), Utilities Code.
19	19	Sec. 113.002. APPLICABILITY. This chapter applies to a
20	20	seller or lessor of on-site distributed generation resources.
21	21	Sec. 113.003. LEASE, SALES, AND INSTALLATION DISCLOSURES.
22	22	A seller or lessor who enters into a purchase, lease, or power
23	23	purchase agreement with a residential or small commercial customer
24	24	for the operation of an on-site distributed generation resource
25	25	shall provide to the customer in writing:
26	26	(1) contact information of the salesperson and
27	27	installer of the generation resource;
28	28	(2) a description of the generation resource,
29	29	including all associated equipment to be installed;
30	30	(3) the cost of the generation resource, including all
31	31	associated equipment to be installed;
32	32	(4) a detailed accounting of fees associated with the
33	33	installation or operation of the generation resource;
34	34	(5) representations made as part of the agreement
35	35	regarding the expected operational performance and financial
36	36	performance of the generation resource; and
37	37	(6) all applicable warranties.
38	38	Sec. 113.004. ADDITIONAL DISCLOSURES FOR LEASE AGREEMENTS.
39	39	In addition to the disclosures required under Section 113.003, a
40	40	lessor shall provide to a leasing residential or small commercial
41	41	customer in writing:
42	42	(1) the term and rate of the lease, including any
43	43	payment escalators or other terms that affect the customer's
44	44	payments; and
45	45	(2) a statement of whether the lease and any
46	46	applicable warranty or maintenance agreement is transferable to the
47	47	purchaser of the property where the on-site distributed generation
48	48	resource is installed.
49	49	Sec. 113.005. ADDITIONAL DISCLOSURES FOR POWER PURCHASE
50	50	AGREEMENTS. In addition to the disclosures required under Section
51	51	113.003, a residential or small commercial customer who enters into
52	52	a power purchase agreement is entitled to receive in writing:
53	53	(1) the term and rate of the power purchase agreement,
54	54	including any payment escalators or other terms that affect the
55	55	customer's payments; and
56	56	(2) whether the power purchase agreement and any
57	57	applicable warranty or maintenance agreement is transferable to the
58	58	purchaser of the property where the on-site distributed generation
59	59	resource is installed.
60	60	SECTION 2. Chapter 229, Local Government Code, is amended
61	61	by adding Subchapter C to read as follows:
62	62	SUBCHAPTER C. REGULATION OF SOLAR ENERGY DEVICES
63	63	Sec. 229.101. REGULATION OF SOLAR ENERGY DEVICES. (a) In
64	64	this section:
65	65	(1) "Small commercial customer" has the meaning
66	66	assigned by Section 39.202(o), Utilities Code.
67	67	(2) "Solar energy device" has the meaning assigned by
68	68	Section 171.107, Tax Code.
69	69	(b) A municipality may prohibit a residential or small
70	70	commercial customer from installing a solar energy device only for
71	71	a purpose for which a property owners' association may prohibit the
72	72	installation under Section 202.010(d), Property Code.
73	73	SECTION 3. The heading to Section 202.010, Property Code,
74	74	is amended to read as follows:
75	75	Sec. 202.010. REGULATION OF CERTAIN [SOLAR] ENERGY DEVICES.
76	76	SECTION 4. Section 202.010(a), Property Code, is amended by
77	77	adding Subdivision (3) to read as follows:
78	78	(3) "Distributed generation" has the meaning assigned
79	79	by Section 39.1015(a), Utilities Code.
80	80	SECTION 5. Section 202.010, Property Code, is amended by
81	81	adding Subsection (g) to read as follows:
82	82	(g) A property owners' association may not include or
83	83	enforce a provision in a dedicatory instrument that:
84	84	(1) requires three or more inspections by the property
85	85	owners' association of an on-site distributed generation or energy
86	86	storage resource before the resource is operational;
87	87	(2) is more onerous than interconnection rules adopted
88	88	by the Public Utility Commission of Texas; or
89	89	(3) imposes any inspection or approval requirements or
90	90	changes more onerous than those required for a proposed
91	91	modification or improvement of an owner's property that is
92	92	unrelated to on-site distributed generation or energy storage.
93	93	SECTION 6. Subchapter C, Chapter 39, Utilities Code, is
94	94	amended by adding Section 39.1015 to read as follows:
95	95	Sec. 39.1015. CONSUMER PROTECTIONS FOR CERTAIN ON-SITE
96	96	ENERGY GENERATION AND STORAGE. (a) In this section, "distributed
97	97	generation" means electric generation with a capacity of not more
98	98	than 2,000 kilowatts that is installed on a retail electric
99	99	customer's side of the meter.
100	100	(b) A residential or small commercial customer is entitled
101	101	to have access to on-site distributed generation and energy storage
102	102	resources to:
103	103	(1) generate and export electricity to the grid;
104	104	(2) consume electricity from the grid; and
105	105	(3) reduce the customer's use of electricity from the
106	106	grid.
107	107	(c) A residential or small commercial customer is entitled
108	108	to store energy at the location of the customer's connection to the
109	109	grid.
110	110	(d) A residential or small commercial customer that
111	111	installs an on-site distributed generation or energy storage
112	112	resource is entitled to timely approval of an interconnection
113	113	agreement and interconnection of distributed generation or energy
114	114	storage with the customer's transmission and distribution utility
115	115	or electric utility in accordance with Section 39.554 or 39.916, as
116	116	applicable. A residential or small commercial customer is entitled
117	117	to timely approval of any permission to operate or any other
118	118	approval required for the customer to use the customer's on-site
119	119	distributed generation or energy storage resource.
120	120	(e) A residential or small commercial customer is entitled
121	121	to timely notice from the customer's transmission and distribution
122	122	utility or electric utility of an improvement and the cost of the
123	123	improvement to the distribution grid that must be made to allow the
124	124	customer to install or expand existing on-site distributed
125	125	generation or energy storage resources.
126	126	(f) Except for a charge to recover a cost described by
127	127	Subsection (e), an electric utility or a retail electric provider
128	128	may not impose a rate or charge on a residential or small commercial
129	129	customer or require a residential or small commercial customer to
130	130	take service under a tariff or service plan that applies only to
131	131	customers who have installed on-site distributed generation or
132	132	energy storage resources.
133	133	(g) An electric utility or a retail electric provider may
134	134	not charge a residential or small commercial customer a fee solely
135	135	because the customer elects to discontinue service from the utility
136	136	or provider.
137	137	(h) An electric utility may not charge a residential or
138	138	small commercial customer with an on-site distributed generation or
139	139	energy storage resource a fee to reconnect to the electric grid that
140	140	is more than the fee charged to a customer in the same rate class who
141	141	does not have an on-site distributed generation or energy storage
142	142	resource, except the interconnection fee applicable to the original
143	143	installation of the on-site distributed generation or energy
144	144	storage resource.
145	145	(i) A residential or small commercial customer is entitled
146	146	to interconnect in a manner that allows the customer to receive
147	147	power from the customer's on-site energy storage resource when the
148	148	electric grid is not operating if the customer's on-site
149	149	distributed generation resource is equipped with an inverter or
150	150	other technology that complies with a standard developed by a
151	151	federal agency or standards widely used by industry and other
152	152	states that enables the on-site distributed generation resource to
153	153	safely provide power to the customer when the electric grid is not
154	154	operating.
155	155	SECTION 7. The changes in law made by this Act apply to an
156	156	agreement governing the sale or lease of a distributed generation
157	157	system, as defined by Section 39.1015, Utilities Code, as added by
158	158	this Act, entered into on or after the effective date of this Act.
159	159	An agreement entered into before the effective date of this Act is
160	160	governed by the law as it existed immediately before the effective
161	161	date of this Act, and that law is continued in effect for that
162	162	purpose.
163	163	SECTION 8. This Act takes effect September 1, 2019.