Texas 2021 - 87th Regular

Texas House Bill HB3696 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~87R18936~~ BRG-F
	1	+	87R2471 BRG-F
2	2		By: Deshotel H.B. No. 3696
3		-	Substitute the following for H.B. No. 3696:
4		-	By: Paddie C.S.H.B. No. 3696
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9	7		relating to distributed renewable generation resources.
10	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	9		SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
12	10		amended by adding Chapter 113 to read as follows:
13	11		CHAPTER 113. SALES AND LEASING OF DISTRIBUTED RENEWABLE GENERATION
14	12		RESOURCES
15	13		Sec. 113.001. DEFINITIONS. In this chapter:
16	14		(1) "Distributed renewable generation" has the
17	15		meaning assigned by Section 39.916, Utilities Code.
18	16		(2) "Small commercial customer" has the meaning
19	17		assigned by Section 39.202(o), Utilities Code.
20	18		Sec. 113.002. APPLICABILITY. (a) This chapter applies to a
21	19		seller or lessor of distributed renewable generation resources.
22	20		(b) This chapter does not apply to:
23	21		(1) a transaction involving the sale or transfer of
24	22		the real property on which a distributed renewable generation
25	23		resource is located;
26	24		(2) a person, including a person acting through the
27	25		person's officers, employees, brokers, or agents, who markets,
28	26		sells, solicits, negotiates, or enters into an agreement for the
29	27		sale or financing of a distributed renewable generation resource as
30	28		part of a transaction involving the sale or transfer of the real
31	29		property on which the distributed renewable generation resource is
32		-	or will be affixed;
	30	+	or will be affixed; or
33	31		(3) a third party that enters into an agreement for the
34		-	financing of a distributed renewable generation resource; or
35		-	(4) a transaction between a retail electric provider,
36		-	as defined by Section 31.002, Utilities Code, and a residential or
37		-	small commercial customer.
	32	+	financing of a distributed renewable generation resource.
38	33		Sec. 113.003. LEASE, SALES, AND INSTALLATION DISCLOSURES.
39	34		A seller or lessor who enters into a purchase, lease, or power
40	35		purchase agreement with a residential or small commercial customer
41	36		for the operation of a distributed renewable generation resource
42	37		shall provide to the customer in writing:
43	38		(1) contact information of the salesperson and
44	39		installer of the generation resource;
45	40		(2) a description of all equipment to be installed;
46	41		(3) the cost of all equipment to be installed;
47	42		(4) a detailed accounting of fees associated with the
48	43		installation or operation of the generation resource;
49	44		(5) representations, if any, made as part of the
50	45		agreement regarding the expected operational performance and
51	46		financial performance of the generation resource; and
52	47		(6) all applicable warranties.
53	48		Sec. 113.004. ADDITIONAL DISCLOSURES FOR LEASE AGREEMENTS.
54	49		In addition to the disclosures required under Section 113.003, a
55	50		lessor shall provide to a leasing residential or small commercial
56	51		customer in writing:
57	52		(1) the term and rate of the lease, including any
58	53		payment escalators or other terms that affect the customer's
59	54		payments; and
60	55		(2) a statement of whether the lease and any
61	56		applicable warranty or maintenance agreement is transferable to a
62	57		subsequent purchaser of the property where the distributed
63	58		renewable generation resource is installed.
64	59		Sec. 113.005. DISCLOSURES FOR POWER PURCHASE AGREEMENTS. A
65	60		residential or small commercial customer who enters into a power
66	61		purchase agreement is entitled to receive in writing:
67	62		(1) the disclosures required under Sections
68	63		113.003(1), (2), (5), and (6);
69	64		(2) the term and rate of the power purchase agreement,
70	65		including any payment escalators or other terms that affect the
71	66		customer's payments; and
72	67		(3) whether the power purchase agreement and any
73	68		applicable warranty or maintenance agreement is transferable to a
74	69		subsequent purchaser of the property where the distributed
75	70		renewable generation resource is installed.
76	71		SECTION 2. Chapter 229, Local Government Code, is amended
77	72		by adding Subchapter C to read as follows:
78	73		SUBCHAPTER C. REGULATION OF SOLAR ENERGY DEVICES
79	74		Sec. 229.101. REGULATION OF SOLAR ENERGY DEVICES. (a) In
80	75		this section:
81	76		(1) "Municipally owned utility" has the meaning
82	77		assigned by Section 11.003, Utilities Code.
83	78		(2) "Small commercial customer" has the meaning
84	79		assigned by Section 39.202(o), Utilities Code.
85	80		(3) "Solar energy device" has the meaning assigned by
86	81		Section 171.107, Tax Code.
87	82		(b) A municipality may not prohibit or restrict the
88	83		installation of a solar energy device by a residential or small
89	84		commercial customer except to the extent:
90	85		(1) a property owner's association may prohibit the
91	86		installation under Sections 202.010(d)(1) through (7), Property
92	87		Code; or
93	88		(2) the interconnection guidelines and
94	89		interconnection agreement of a municipally owned utility serving
95	90		the customer's service area, the rules of the Public Utility
96	91		Commission of Texas, or the protocols of an independent
97	92		organization certified under Section 39.151, Utilities Code, limit
98	93		the installation of solar energy devices due to reliability, power
99	94		quality, or safety of the distribution system.
100	95		SECTION 3. The changes in law made by this Act apply only to
101	96		an agreement governing the sale or lease of distributed renewable
102	97		generation, as defined by Section 39.916, Utilities Code, or a
103	98		power purchase agreement entered into on or after the effective
104	99		date of this Act. An agreement entered into before the effective
105	100		date of this Act is governed by the law as it existed immediately
106	101		before the effective date of this Act, and that law is continued in
107	102		effect for that purpose.
108	103		SECTION 4. This Act takes effect September 1, 2021.