87R18936 BRG-F
By: Deshotel H.B. No. 3696
Substitute the following for H.B. No. 3696:
By: Paddie C.S.H.B. No. 3696
A BILL TO BE ENTITLED
AN ACT
relating to distributed renewable generation 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 DISTRIBUTED RENEWABLE GENERATION
RESOURCES
Sec. 113.001. DEFINITIONS. In this chapter:
(1) "Distributed renewable generation" has the
meaning assigned by Section 39.916, Utilities Code.
(2) "Small commercial customer" has the meaning
assigned by Section 39.202(o), Utilities Code.
Sec. 113.002. APPLICABILITY. (a) This chapter applies to a
seller or lessor of distributed renewable generation resources.
(b) This chapter does not apply to:
(1) a transaction involving the sale or transfer of
the real property on which a distributed renewable generation
resource is located;
(2) a person, including a person acting through the
person's officers, employees, brokers, or agents, who markets,
sells, solicits, negotiates, or enters into an agreement for the
sale or financing of a distributed renewable generation resource as
part of a transaction involving the sale or transfer of the real
property on which the distributed renewable generation resource is
or will be affixed;
(3) a third party that enters into an agreement for the
financing of a distributed renewable generation resource; or
(4) a transaction between a retail electric provider,
as defined by Section 31.002, Utilities Code, and a residential or
small commercial customer.
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 a distributed renewable 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 all equipment to be installed;
(3) the cost of all equipment to be installed;
(4) a detailed accounting of fees associated with the
installation or operation of the generation resource;
(5) representations, if any, 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 a
subsequent purchaser of the property where the distributed
renewable generation resource is installed.
Sec. 113.005. DISCLOSURES FOR POWER PURCHASE AGREEMENTS. A
residential or small commercial customer who enters into a power
purchase agreement is entitled to receive in writing:
(1) the disclosures required under Sections
113.003(1), (2), (5), and (6);
(2) the term and rate of the power purchase agreement,
including any payment escalators or other terms that affect the
customer's payments; and
(3) whether the power purchase agreement and any
applicable warranty or maintenance agreement is transferable to a
subsequent purchaser of the property where the distributed
renewable 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) "Municipally owned utility" has the meaning
assigned by Section 11.003, Utilities Code.
(2) "Small commercial customer" has the meaning
assigned by Section 39.202(o), Utilities Code.
(3) "Solar energy device" has the meaning assigned by
Section 171.107, Tax Code.
(b) A municipality may not prohibit or restrict the
installation of a solar energy device by a residential or small
commercial customer except to the extent:
(1) a property owner's association may prohibit the
installation under Sections 202.010(d)(1) through (7), Property
Code; or
(2) the interconnection guidelines and
interconnection agreement of a municipally owned utility serving
the customer's service area, the rules of the Public Utility
Commission of Texas, or the protocols of an independent
organization certified under Section 39.151, Utilities Code, limit
the installation of solar energy devices due to reliability, power
quality, or safety of the distribution system.
SECTION 3. The changes in law made by this Act apply only to
an agreement governing the sale or lease of distributed renewable
generation, as defined by Section 39.916, Utilities Code, or a
power purchase agreement 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 4. This Act takes effect September 1, 2021.