86R6295 GRM-F
By: Raymond H.B. No. 2860
A BILL TO BE ENTITLED
AN ACT
relating to on-site distributed generation and energy storage
resources.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
amended by adding Chapter 113 to read as follows:
CHAPTER 113. SALES AND LEASING OF ON-SITE DISTRIBUTED GENERATION
RESOURCES
Sec. 113.001. DEFINITIONS. In this chapter:
(1) "Distributed generation" has the meaning assigned
by Section 39.1015(a), Utilities Code.
(2) "Small commercial customer" has the meaning
assigned by Section 39.202(o), Utilities Code.
Sec. 113.002. APPLICABILITY. This chapter applies to a
seller or lessor of on-site distributed generation resources.
Sec. 113.003. LEASE, SALES, AND INSTALLATION DISCLOSURES.
A seller or lessor who enters into a purchase, lease, or power
purchase agreement with a residential or small commercial customer
for the operation of an on-site distributed generation resource
shall provide to the customer in writing:
(1) contact information of the salesperson and
installer of the generation resource;
(2) a description of the generation resource,
including all associated equipment to be installed;
(3) the cost of the generation resource, including all
associated equipment to be installed;
(4) a detailed accounting of fees associated with the
installation or operation of the generation resource;
(5) representations made as part of the agreement
regarding the expected operational performance and financial
performance of the generation resource; and
(6) all applicable warranties.
Sec. 113.004. ADDITIONAL DISCLOSURES FOR LEASE AGREEMENTS.
In addition to the disclosures required under Section 113.003, a
lessor shall provide to a leasing residential or small commercial
customer in writing:
(1) the term and rate of the lease, including any
payment escalators or other terms that affect the customer's
payments; and
(2) a statement of whether the lease and any
applicable warranty or maintenance agreement is transferable to the
purchaser of the property where the on-site distributed generation
resource is installed.
Sec. 113.005. ADDITIONAL DISCLOSURES FOR POWER PURCHASE
AGREEMENTS. In addition to the disclosures required under Section
113.003, a residential or small commercial customer who enters into
a power purchase agreement is entitled to receive in writing:
(1) the term and rate of the power purchase agreement,
including any payment escalators or other terms that affect the
customer's payments; and
(2) whether the power purchase agreement and any
applicable warranty or maintenance agreement is transferable to the
purchaser of the property where the on-site distributed generation
resource is installed.
SECTION 2. Chapter 229, Local Government Code, is amended
by adding Subchapter C to read as follows:
SUBCHAPTER C. REGULATION OF SOLAR ENERGY DEVICES
Sec. 229.101. REGULATION OF SOLAR ENERGY DEVICES. (a) In
this section:
(1) "Small commercial customer" has the meaning
assigned by Section 39.202(o), Utilities Code.
(2) "Solar energy device" has the meaning assigned by
Section 171.107, Tax Code.
(b) A municipality may prohibit a residential or small
commercial customer from installing a solar energy device only for
a purpose for which a property owners' association may prohibit the
installation under Section 202.010(d), Property Code.
SECTION 3. The heading to Section 202.010, Property Code,
is amended to read as follows:
Sec. 202.010. REGULATION OF CERTAIN [SOLAR] ENERGY DEVICES.
SECTION 4. Section 202.010(a), Property Code, is amended by
adding Subdivision (3) to read as follows:
(3) "Distributed generation" has the meaning assigned
by Section 39.1015(a), Utilities Code.
SECTION 5. Section 202.010, Property Code, is amended by
adding Subsection (g) to read as follows:
(g) A property owners' association may not include or
enforce a provision in a dedicatory instrument that:
(1) requires three or more inspections by the property
owners' association of an on-site distributed generation or energy
storage resource before the resource is operational;
(2) is more onerous than interconnection rules adopted
by the Public Utility Commission of Texas; or
(3) imposes any inspection or approval requirements or
changes more onerous than those required for a proposed
modification or improvement of an owner's property that is
unrelated to on-site distributed generation or energy storage.
SECTION 6. Subchapter C, Chapter 39, Utilities Code, is
amended by adding Section 39.1015 to read as follows:
Sec. 39.1015. CONSUMER PROTECTIONS FOR CERTAIN ON-SITE
ENERGY GENERATION AND STORAGE. (a) In this section, "distributed
generation" means electric generation with a capacity of not more
than 2,000 kilowatts that is installed on a retail electric
customer's side of the meter.
(b) A residential or small commercial customer is entitled
to have access to on-site distributed generation and energy storage
resources to:
(1) generate and export electricity to the grid;
(2) consume electricity from the grid; and
(3) reduce the customer's use of electricity from the
grid.
(c) A residential or small commercial customer is entitled
to store energy at the location of the customer's connection to the
grid.
(d) A residential or small commercial customer that
installs an on-site distributed generation or energy storage
resource is entitled to timely approval of an interconnection
agreement and interconnection of distributed generation or energy
storage with the customer's transmission and distribution utility
or electric utility in accordance with Section 39.554 or 39.916, as
applicable. A residential or small commercial customer is entitled
to timely approval of any permission to operate or any other
approval required for the customer to use the customer's on-site
distributed generation or energy storage resource.
(e) A residential or small commercial customer is entitled
to timely notice from the customer's transmission and distribution
utility or electric utility of an improvement and the cost of the
improvement to the distribution grid that must be made to allow the
customer to install or expand existing on-site distributed
generation or energy storage resources.
(f) Except for a charge to recover a cost described by
Subsection (e), an electric utility or a retail electric provider
may not impose a rate or charge on a residential or small commercial
customer or require a residential or small commercial customer to
take service under a tariff or service plan that applies only to
customers who have installed on-site distributed generation or
energy storage resources.
(g) An electric utility or a retail electric provider may
not charge a residential or small commercial customer a fee solely
because the customer elects to discontinue service from the utility
or provider.
(h) An electric utility may not charge a residential or
small commercial customer with an on-site distributed generation or
energy storage resource a fee to reconnect to the electric grid that
is more than the fee charged to a customer in the same rate class who
does not have an on-site distributed generation or energy storage
resource, except the interconnection fee applicable to the original
installation of the on-site distributed generation or energy
storage resource.
(i) A residential or small commercial customer is entitled
to interconnect in a manner that allows the customer to receive
power from the customer's on-site energy storage resource when the
electric grid is not operating if the customer's on-site
distributed generation resource is equipped with an inverter or
other technology that complies with a standard developed by a
federal agency or standards widely used by industry and other
states that enables the on-site distributed generation resource to
safely provide power to the customer when the electric grid is not
operating.
SECTION 7. The changes in law made by this Act apply to an
agreement governing the sale or lease of a distributed generation
system, as defined by Section 39.1015, Utilities Code, as added by
this Act, entered into on or after the effective date of this Act.
An agreement entered into before the effective date of this Act is
governed by the law as it existed immediately before the effective
date of this Act, and that law is continued in effect for that
purpose.
SECTION 8. This Act takes effect September 1, 2019.