Texas 2021 - 87th Regular

Texas House Bill HB4332 Compare Versions

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1	1	By: Zwiener H.B. No. 4332
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to distributed renewable generation and energy storage
7	7	resources.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
10	10	amended by adding Chapter 113 to read as follows:
11	11	CHAPTER 113. SALES AND LEASING OF DISTRIBUTED RENEWABLE GENERATION
12	12	RESOURCES
13	13	Sec. 113.001. DEFINITIONS. In this chapter:
14	14	(1) "Distributed renewable generation" has the
15	15	meaning assigned by Section 39.916, Utilities Code.
16	16	(2) "Small commercial customer" has the meaning
17	17	assigned by Section 39.202(o), Utilities Code.
18	18	Sec. 113.002. APPLICABILITY. (a) This chapter applies to a
19	19	seller or lessor of distributed renewable generation resources.
20	20	(b) This chapter does not apply to:
21	21	(1) a transaction involving the sale or transfer of
22	22	the real property on which a distributed renewable generation
23	23	resource is located;
24	24	(2) a person, including a person acting through the
25	25	person's officers, employees, brokers, or agents, who markets,
26	26	sells, solicits, negotiates, or enters into an agreement for the
27	27	sale or financing of a distributed renewable generation resource as
28	28	part of a transaction involving the sale or transfer of the real
29	29	property on which the distributed renewable generation resource is
30	30	or will be affixed; or
31	31	(3) a third party that enters into an agreement for the
32	32	financing of a distributed renewable generation resource.
33	33	Sec. 113.003. LEASE, SALES, AND INSTALLATION DISCLOSURES. A
34	34	seller or lessor who enters into a purchase, lease, or power
35	35	purchase agreement with a residential or small commercial customer
36	36	for the operation of a distributed renewable generation resource
37	37	shall provide to the customer in writing:
38	38	(1) contact information of the salesperson and
39	39	installer of the generation resource;
40	40	(2) a description of all equipment to be installed;
41	41	(3) the cost of all equipment to be installed;
42	42	(4) a detailed accounting of fees associated with the
43	43	installation or operation of the generation resource;
44	44	(5) representations, if any, made as part of the
45	45	agreement regarding the expected operational performance and
46	46	financial performance of the generation resource; and
47	47	(6) all applicable warranties.
48	48	Sec. 113.004. ADDITIONAL DISCLOSURES FOR LEASE AGREEMENTS.
49	49	In addition to the disclosures required under Section 113.003, a
50	50	lessor shall provide to a leasing residential or small commercial
51	51	customer in writing:
52	52	(1) the term and rate of the lease, including any
53	53	payment escalators or other terms that affect the customer's
54	54	payments; and
55	55	(2) a statement of whether the lease and any
56	56	applicable warranty or maintenance agreement is transferable to the
57	57	purchaser of the property where the distributed renewable
58	58	generation resource is installed.
59	59	Sec. 113.005. ADDITIONAL DISCLOSURES FOR POWER PURCHASE
60	60	AGREEMENTS. A residential or small commercial customer who enters
61	61	into a power purchase agreement is entitled to receive in writing:
62	62	(1) the disclosures required under Sections
63	63	113.003(2), (3), (5), and (6);
64	64	(2) the term and rate of the power purchase agreement,
65	65	including any payment escalators or other terms that affect the
66	66	customer's payments; and
67	67	(3) whether the power purchase agreement and any
68	68	applicable warranty or maintenance agreement is transferable to the
69	69	subsequent purchaser of the property where the distributed
70	70	renewable generation resource is installed.
71	71	SECTION 2. Chapter 229, Local Government Code, is amended
72	72	by adding Subchapter C to read as follows:
73	73	SUBCHAPTER C. REGULATION OF SOLAR ENERGY DEVICES
74	74	Sec. 229.101. REGULATION OF SOLAR ENERGY DEVICES. (a) In
75	75	this section:
76	76	(1) "Municipally owned utility" has the meaning
77	77	assigned by Section 11.003, Utilities Code.
78	78	(2) "Small commercial customer" has the meaning
79	79	assigned by Section 39.202(o), Utilities Code.
80	80	(3) "Solar energy device" has the meaning assigned by
81	81	Section 171.107, Tax Code.
82	82	(b) A municipality may not prohibit or restrict the
83	83	installation of a solar energy device by a residential or small
84	84	commercial customer except to the extent:
85	85	(1) a property owner's association may prohibit the
86	86	installation under Sections 202.010(d)(1) through (7), Property
87	87	Code; or
88	88	(2) the interconnection guidelines and
89	89	interconnection agreement of a municipally owned utility serving
90	90	the customer's service area, the rules of the Public Utility
91	91	Commission of Texas, or the protocols of an independent
92	92	organization certified under Section 39.151, Utilities Code, limit
93	93	the installation of solar energy devices due to reliability, power
94	94	quality, or safety of the distribution system.
95	95	(c) A municipality may not assess one or more fees or other
96	96	charges on a person related to the installation of a solar energy
97	97	device by a residential or small commercial customer that exceeds
98	98	in the aggregate $250.00.
99	99	(d) Pursuant to the following compliance schedule in this
100	100	subsection, a city or county shall implement an online, automated
101	101	permitting platform that verifies code compliance and
102	102	instantaneously issues permits for a residential photovoltaic
103	103	solar energy system or an energy storage system paired with a
104	104	residential photovoltaic solar energy system consistent with the
105	105	system parameters and configurations, including an inspection
106	106	checklist.
107	107	(1) A city or county with a population of less than
108	108	10,000 is exempt from this subsection.
109	109	(2) A city of county with a population of
110	110	10,001-50,000 shall satisfy the requirements of this subsection no
111	111	later than December 31, 2023.
112	112	(3) A city or county with a population greater than
113	113	50,000 shall satisfy the requirements of this subsection no later
114	114	than December 31, 2022.
115	115	SECTION 3. The heading to Section 202.010, Property Code,
116	116	is amended to read as follows:
117	117	Sec. 202.010. REGULATION OF CERTAIN [SOLAR] ENERGY DEVICES.
118	118	SECTION 4. Section 202.010(a), Property Code, is amended by
119	119	adding Subdivision (3) to read as follows:
120	120	(3) "Distributed renewable generation" has the
121	121	meaning assigned by Section 39.916, Utilities Code.
122	122	SECTION 5. Section 202.010(d)(5)(B), Property Code, is
123	123	amended to read as follows:
124	124	(B) is located in an area other than an area
125	125	designated by the property owners' association, unless the
126	126	alternate location decreases the cost of the system by more than
127	127	$1000 or increases the estimated annual energy production of the
128	128	device, as determined by using a publicly available modeling tool
129	129	provided by the National Renewable Energy Laboratory, by more than
130	130	10 percent above the energy production of the device if located in
131	131	an area designated by the property owners' association. The
132	132	property owner shall provide to the property owners' association
133	133	documentation prepared by an independent solar panel design
134	134	specialist who is certified by the North American Board of
135	135	Certified Energy Practitioners and is licensed in Texas to show
136	136	that the alternate location satisfies one of the applicable
137	137	exception;
138	138	SECTION 6. Section 202.010(e), Property Code, is amended to
139	139	read as follows:
140	140	(e) A property owners' association or the association's
141	141	architectural review committee may not withhold approval for
142	142	installation of a solar energy device if the provisions of the
143	143	dedicatory instruments to the extent authorized by Subsection (d)
144	144	are met or exceeded. If a property owner's application is not denied
145	145	in writing by property owners' association or the association's
146	146	architectural review committee within 90 days from date of receipt
147	147	of the application, the application is deemed approved unless the
148	148	delay is the result of a reasonable request for additional
149	149	information.[, unless the association or committee, as applicable,
150	150	determines in writing that placement of the device as proposed by
151	151	the property owner constitutes a condition that substantially
152	152	interferes with the use and enjoyment of land by causing
153	153	unreasonable discomfort or annoyance to persons of ordinary
154	154	sensibilities. For purposes of making a determination under this
155	155	subsection, the written approval of the proposed placement of the
156	156	device by all property owners of adjoining property constitutes
157	157	prima facie evidence that such a condition does not exist.]
158	158	SECTION 7. Section 202.010, Property Code, is amended by
159	159	adding Subsection (g) to read as follows:
160	160	(g) A property owners' association may not include or
161	161	enforce a provision in a dedicatory instrument that:
162	162	(1) requires three or more inspections by the property
163	163	owners' association of a distributed renewable generation or energy
164	164	storage resource before the resource is operational;
165	165	(2) is more onerous than interconnection rules adopted
166	166	by the Public Utility Commission of Texas; or
167	167	(3) imposes any inspection or approval requirements or
168	168	changes more onerous than those required for a proposed
169	169	modification or improvement of an owner's property that is
170	170	unrelated to a distributed renewable generation or energy storage
171	171	resource.
172	172	SECTION 8. Subchapter C, Chapter 39, Utilities Code, is
173	173	amended by adding Section 39.9165 to read as follows:
174	174	Sec. 39.9165. CONSUMER PROTECTIONS FOR CERTAIN DISTRIBUTED
175	175	RENEWABLE GENERATION AND ELECTRIC STORAGE RESOURCES. (a) A
176	176	residential or small commercial customer is entitled to have access
177	177	to distributed renewable generation and energy storage resources
178	178	to:
179	179	(1) generate and export electricity to the grid;
180	180	(2) consume electricity from the grid; and
181	181	(3) reduce the customer's use of electricity from the
182	182	grid.
183	183	(b) A residential or small commercial customer is entitled
184	184	to store energy at the location of the customer's connection to the
185	185	grid.
186	186	(c) A residential or small commercial customer that
187	187	installs a distributed renewable generation or energy storage
188	188	resource is entitled to timely approval of an interconnection
189	189	agreement and interconnection of the distributed renewable
190	190	generation or energy storage resource with the customer's
191	191	transmission and distribution utility or electric utility in
192	192	accordance with Section 39.554 or 39.916, as applicable. A
193	193	residential or small commercial customer is entitled to timely
194	194	approval of any permission to operate or any other approval
195	195	required for the customer to use the customer's distributed
196	196	renewable generation or energy storage resource.
197	197	(d) A residential or small commercial customer is entitled
198	198	to timely notice from the customer's transmission and distribution
199	199	utility or electric utility of an improvement and the cost of the
200	200	improvement to the distribution grid that must be made to allow the
201	201	customer to install or expand existing distributed renewable
202	202	generation or energy storage resources.
203	203	(e) Except for a charge to recover a cost described by
204	204	Subsection (d), an electric utility or a retail electric provider
205	205	may not impose a rate or charge on a residential or small commercial
206	206	customer or require a residential or small commercial customer to
207	207	take service under a tariff or service plan that applies only to
208	208	customers who have installed distributed renewable generation or
209	209	energy storage resources.
210	210	(f) An electric utility or a retail electric provider may
211	211	not charge a residential or small commercial customer a fee solely
212	212	because the customer elects to discontinue service from the utility
213	213	or provider.
214	214	(g) An electric utility may not charge a residential or
215	215	small commercial customer with a distributed renewable generation
216	216	or energy storage resource a fee to reconnect to the electric grid
217	217	that is more than the fee charged to a customer in the same rate
218	218	class who does not have a distributed renewable generation or
219	219	energy storage resource, except the interconnection fee applicable
220	220	to the original installation of the distributed renewable
221	221	generation or energy storage resource.
222	222	(h) A residential or small commercial customer is entitled
223	223	to interconnect in a manner that allows the customer to receive
224	224	power from the customer's energy storage resource when the electric
225	225	grid is not operating if the customer's distributed renewable
226	226	generation resource is equipped with an inverter or other
227	227	technology that complies with a standard developed by a federal
228	228	agency or standards widely used by industry and other states that
229	229	enables the distributed renewable generation resource to safely
230	230	provide power to the customer when the electric grid is not
231	231	operating.
232	232	(i) A residential or commercial customer that installs a
233	233	distributed renewable generation or energy storage resource,
234	234	regardless of ownership or financing structure of the resource, is
235	235	entitled to the same interconnection rules, metering rules and
236	236	programs, and incentive programs that may be provided by their
237	237	retail electric utility, transmission and distribution utility,
238	238	municipally owned utility, or an electric cooperative.
239	239	(j) The commission shall adopt a rule within 1 year of the
240	240	effective date of this Act that provides standards for billing and
241	241	crediting mechanisms for distributed renewable generators.
242	242	(1) The standards shall calculate the value and
243	243	benefits of distributed renewable generation. The value shall
244	244	consider benefits of distributed renewable generation to the
245	245	distribution grid, including time-based and performance-based
246	246	benefits, technology capabilities, increased resiliency, and
247	247	present and future grid needs. The billing and crediting mechanism
248	248	shall be understandable and easy to use for customers.
249	249	(2) Notwithstanding any other provision of this Title,
250	250	the standards adopted by the Commission pursuant to this section
251	251	shall be made available to a customer with distributed renewable
252	252	generation installed anywhere in this state regardless of whether
253	253	the customer is served by a retail electric utility, transmission
254	254	and distribution utility, municipally owned utility, or an electric
255	255	cooperative.
256	256	SECTION 9. Section 202.010(f), Property Code, is repealed.
257	257	SECTION 10. The changes in law made by this Act apply to an
258	258	agreement governing the sale or lease of a distributed renewable
259	259	generation system, as defined by Section 39.916, Utilities Code, as
260	260	added by this Act, entered into on or after the effective date of
261	261	this Act. An agreement entered into before the effective date of
262	262	this Act is governed by the law as it existed immediately before the
263	263	effective date of this Act, and that law is continued in effect for
264	264	that purpose.
265	265	SECTION 11. This Act takes effect September 1, 2021.