| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the creation of a distributed solar generation |
|
|
incentive program and to encouraging the use of solar energy |
|
|
devices. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 39.002, Utilities Code, is amended to |
|
|
read as follows: |
|
|
Sec. 39.002. APPLICABILITY. This chapter, other than |
|
|
Sections 39.155, 39.157(e), 39.203, 39.903, 39.904, 39.9051, |
|
|
39.9052, [and] 39.914(e), and 39.9156, does not apply to a |
|
|
municipally owned utility or an electric cooperative. Sections |
|
|
39.157(e), 39.203, and 39.904, however, apply only to a municipally |
|
|
owned utility or an electric cooperative that is offering customer |
|
|
choice. If there is a conflict between the specific provisions of |
|
|
this chapter and any other provisions of this title, except for |
|
|
Chapter 40 and 41, the provisions of this chapter control. |
|
|
SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is |
|
|
amended by adding Section 39.9155 to read as follows: |
|
|
Sec. 39.9155. DISTRIBUTED SOLAR GENERATION INCENTIVE |
|
|
PROGRAM. (a) It is the goal of the legislature that electric |
|
|
utilities administer incentive programs for residential and |
|
|
commercial customers to increase the amount of distributed solar |
|
|
generation, utility scale solar generation, and energy storage |
|
|
installed within the state in a cost-effective, market-neutral, and |
|
|
nondiscriminatory manner. |
|
|
(b) The commission by rule shall: |
|
|
(1) establish a distributed solar generation |
|
|
incentive program, to be implemented by electric utilities; |
|
|
(2) oversee the implementation of the program required |
|
|
by Subdivision (1); and |
|
|
(3) establish procedures to achieve the goal described |
|
|
by Subsection (a). |
|
|
(c) The rules adopted under Subsection (b) must include |
|
|
provisions for: |
|
|
(1) recovery of the cost of electric utility programs |
|
|
authorized by this section through nonbypassable fees, which may |
|
|
not exceed: |
|
|
(A) 20 cents per month for residential customers; |
|
|
(B) $2 per month for commercial customers; and |
|
|
(C) $20 per month for industrial customers; |
|
|
(2) rebates to customers to defray the cost of |
|
|
installing distributed solar generation as provided by Subsection |
|
|
(e); |
|
|
(3) a requirement that customers within the Electric |
|
|
Reliability Council of Texas who install distributed solar |
|
|
generation will have the option to be equipped with an advanced |
|
|
meter and appropriate procedures such that the customers have the |
|
|
option to be settled on their real-time energy usage instead of a |
|
|
load profile and receive the real-time energy price for net energy |
|
|
exported to the grid by the customer; |
|
|
(4) a requirement that: |
|
|
(A) a retail electric provider offer service to a |
|
|
retail electric service customer who has installed distributed |
|
|
solar generation; and |
|
|
(B) a retail electric provider that provides |
|
|
service to a retail electric service customer who has installed |
|
|
distributed solar generation: |
|
|
(i) purchase the customer's surplus |
|
|
electricity at a price equal to or greater than a fair market price |
|
|
determined in accordance with this section; or |
|
|
(ii) credit the customer's bill for the |
|
|
billing cycling in which the customer's surplus electricity is |
|
|
generated at a price equal to or greater than the equivalent of a |
|
|
fair market price determined in accordance with this section and |
|
|
allow any unused credit on the customer's bill to be carried forward |
|
|
to subsequent billing cycles for the customer; |
|
|
(5) appropriate net metering policies and retail rate |
|
|
options for customers served by electric utilities outside the |
|
|
Electric Reliability Council of Texas; and |
|
|
(6) the utility scale solar and energy storage program |
|
|
provided by Subsection (f). |
|
|
(d) Electric utilities may not assess the fees authorized by |
|
|
this section after the fifth anniversary of the date the program |
|
|
required by this section is established by commission rule, except |
|
|
as provided by Subsection (k). The commission shall ensure that all |
|
|
fees collected under this section are used for the programs |
|
|
authorized by this section, except that utilities may not use more |
|
|
than 2.5 percent of the funds collected for administrative expenses |
|
|
related to this section, as approved by the commission. |
|
|
(e) The commission shall set a rebate amount for the |
|
|
installation of solar generation. The commission shall |
|
|
periodically adjust the rebate amount such that the quantity of |
|
|
solar generation installed under this section is maximized, but |
|
|
shall reduce rebate amounts by not less than five percent per year. |
|
|
The commission may set a higher rebate amount for solar generation |
|
|
manufactured wholly or substantially in this state, provided that |
|
|
the higher amount is not more than 20 percent higher than the rebate |
|
|
applicable to all other solar generation. The commission may |
|
|
provide for rebates to be provided directly to customers or to |
|
|
qualified installers of solar generation. Unless otherwise |
|
|
adjusted by the commission, the initial rebates shall be: |
|
|
(1) $2.40 per watt for installations on residential |
|
|
buildings; |
|
|
(2) $1.50 per watt for installations on commercial |
|
|
buildings; and |
|
|
(3) $1 per watt for installations at industrial |
|
|
facilities. |
|
|
(f) The commission may direct not more than 70 percent of |
|
|
the funds collected by the fees authorized by this section to |
|
|
utility scale solar generation if the commission determines such |
|
|
projects are more cost-effective per megawatt installed than |
|
|
distributed solar generation or will provide a greater benefit to |
|
|
the reliability of the electric grid. The commission may establish |
|
|
rebate amounts not to exceed $1 per watt for such projects or may |
|
|
consider a competitive bidding process, a reverse auction, or other |
|
|
methods to award funds in order to maximize the quantity of |
|
|
generation installed under this section. If the demand for funds |
|
|
under this section exceeds the available funds, the commission |
|
|
shall consider the following in determining which projects receive |
|
|
subsidies: |
|
|
(1) projects that require the lowest amount per |
|
|
megawatt installed of subsidy to be commercially viable; |
|
|
(2) projects that use the transmission capacity built |
|
|
under Section 39.904(g) and require minimal additional |
|
|
transmission facilities; |
|
|
(3) projects that enhance the reliability of the |
|
|
transmission and distribution grid or defer the need for additional |
|
|
transmission and distribution infrastructure; |
|
|
(4) projects in development that can use rebates |
|
|
awarded to secure additional financing for that project; |
|
|
(5) projects that provide maximum output during |
|
|
periods when electricity demand is highest in this state; and |
|
|
(6) projects that can provide ancillary services to |
|
|
the electric grid. |
|
|
(g) The commission shall develop a "Made in Texas" |
|
|
certification program for energy products that include distributed |
|
|
solar generation. The commission shall post a list of energy |
|
|
products that are wholly or substantially produced in Texas and |
|
|
shall conduct education efforts to inform customers of the |
|
|
availability of Texas-manufactured energy products. The |
|
|
commission may partner or contract with third parties or nonprofit |
|
|
organizations to achieve this goal. |
|
|
(h) Notwithstanding any other provision of this title, a |
|
|
retail electric provider or any other person may own distributed |
|
|
generation and enter into a contract with the retail customer on |
|
|
whose property the generation is located to lease the generation or |
|
|
sell the output to the retail customer or to the customer's retail |
|
|
electric provider. The owner of the generation is not an electric |
|
|
utility and is not required to register with the commission as a |
|
|
power generation company or self generator unless the commission |
|
|
determines that such registration is necessary to maintain the |
|
|
reliability of the distribution grid. The commission may establish |
|
|
appropriate reporting and other requirements for distributed |
|
|
generation owners to be eligible to earn renewable energy credits. |
|
|
(i) The commission, in consultation with the Electric |
|
|
Reliability Council of Texas, shall prepare and make available a |
|
|
study indicating geographic areas where utility scale non-wind |
|
|
renewable energy can be located with minimal additional |
|
|
transmission facilities. |
|
|
(j) Selection of projects by the commission under |
|
|
Subsection (f) is not required to be conducted as a contested case |
|
|
proceeding. The commission may appoint an advisory committee to |
|
|
assist the commission in evaluating proposals made under Subsection |
|
|
(f), provided, however, that members of the committee may not have a |
|
|
financial interest in any of the proposals. After conclusion of a |
|
|
process authorized by Subsection (f), the commission shall release |
|
|
a complete record of the proposals and the evaluation of the factors |
|
|
required to be considered under Subsection (f). |
|
|
(k) The commission may extend the fees and program |
|
|
authorized by this section for an additional five years if the |
|
|
commission finds that a substantial amount of manufacturing of |
|
|
solar generation products has located in Texas after the initial |
|
|
five-year program and that the extension of the fees does not |
|
|
present an undue burden to customers. |
|
|
(l) The commission by rule shall provide a methodology for |
|
|
determining a fair market value price for surplus electricity. The |
|
|
fair market value may not be less than an amount equal to 80 percent |
|
|
of the customer's applicable retail rate minus any nonbypassable |
|
|
charges. The commission shall post on the commission's Internet |
|
|
website the fair market value prices derived from the methodology |
|
|
provided under this subsection. |
|
|
(m) In an area in which customer choice has been introduced, |
|
|
a retail electric provider shall pay an owner of distributed solar |
|
|
generation for surplus electricity the local market clearing price |
|
|
for energy at the time of day the surplus electricity is made |
|
|
available to the grid or a price that is not less than the fair |
|
|
market value price determined in accordance with the methodology |
|
|
provided under Subsection (l). |
|
|
(n) An owner of distributed solar generation is qualified to |
|
|
be paid for surplus electricity under Subsection (m) only if the |
|
|
owner's distributed solar generation: |
|
|
(1) is installed on a residential retail electric |
|
|
customer's side of the meter; |
|
|
(2) has a generating capacity of not greater than 50 |
|
|
kilowatts; and |
|
|
(3) is rated to produce an amount of electricity less |
|
|
than or equal to the amount of electricity the residential retail |
|
|
electric customer for whom the distributed solar generation is |
|
|
installed is reasonably expected to consume. |
|
|
(o) The commission by rule shall require a retail electric |
|
|
provider that purchases a customer's surplus electricity to include |
|
|
on each bill of the customer line items to inform the owner of: |
|
|
(1) the amount of surplus electricity, in terms of |
|
|
kilowatt hours; |
|
|
(2) the price credited to the owner for each kilowatt |
|
|
hour; and |
|
|
(3) the amount of any credit for surplus electricity |
|
|
applied or carried forward from the previous billing period. |
|
|
(p) Until the commission provides the methodology under |
|
|
Subsection (l) for determining a fair market value price, a retail |
|
|
electric provider shall pay a price for surplus electricity that is |
|
|
not less than five cents per kilowatt hour. |
|
|
(q) If, at the time distributed solar generation is |
|
|
installed on a retail electric customer's side of the meter, the |
|
|
estimated annual amount of electric energy to be generated by the |
|
|
distributed solar generation is less than or equal to the |
|
|
customer's estimated annual electric energy consumption, the |
|
|
commission may not consider the owner of distributed solar |
|
|
generation to be a power generation company or require the owner of |
|
|
distributed solar generation to register as a power generation |
|
|
company. |
|
|
(r) In this section: |
|
|
(1) "Distributed solar generation" means distributed |
|
|
renewable generation, as defined by Section 39.916, using solar |
|
|
energy technology. |
|
|
(2) "Owner of distributed solar generation" includes a |
|
|
retail electric customer who contracts with another person to |
|
|
install or maintain distributed solar generation on the customer's |
|
|
side of the meter, regardless of whether the customer takes |
|
|
ownership of the installed distributed solar generation. |
|
|
(3) "Surplus electricity" means electricity generated |
|
|
by distributed solar generation that is not consumed at the place |
|
|
the distributed solar generation is installed but flows onto the |
|
|
electric distribution system. |
|
|
SECTION 3. Subchapter Z, Chapter 39, Utilities Code, is |
|
|
amended by adding Section 39.9156 to read as follows: |
|
|
Sec. 39.9156. SOLAR GENERATION INCENTIVE PROGRAMS. (a) It |
|
|
is the goal of the legislature that: |
|
|
(1) electric cooperatives and municipally owned |
|
|
utilities administer incentive programs that increase the amount of |
|
|
solar generation installed within the state in a cost-effective, |
|
|
market-neutral, and nondiscriminatory manner; |
|
|
(2) customers of electric cooperatives and |
|
|
municipally owned utilities will have access to incentives for the |
|
|
installation of distributed solar generation; and |
|
|
(3) electric cooperatives and municipally owned |
|
|
utilities expend funds to increase the amount of solar generation |
|
|
and energy storage projects at a total funding level consistent |
|
|
with the requirements for electric utilities in this state under |
|
|
Sections 39.9155(c)(1) and (d). |
|
|
(b) Beginning not later than September 1, 2012, a |
|
|
municipally owned utility or electric cooperative must report |
|
|
annually to the state energy conservation office, in a form and |
|
|
manner determined by the office, information regarding the efforts |
|
|
of the municipally owned utility or electric cooperative related to |
|
|
this section. |
|
|
(c) Nothing in this section shall be construed to prevent |
|
|
the governing body of an electric cooperative or municipally owned |
|
|
utility from adopting rules, programs, and incentives that |
|
|
encourage or provide for the installation of more solar generation |
|
|
capacity than the goals set forth in Section 39.9155 or the rules |
|
|
adopted by the commission under that section. |
|
|
(d) Funding for solar generation provided after May 1, 2007, |
|
|
shall count toward compliance with this section. |
|
|
(e) An electric cooperative or municipally owned utility may |
|
|
recover the costs required by this section through a nonbypassable |
|
|
fee consistent with that authorized by the commission for electric |
|
|
utilities under Section 39.9155(c)(1) or such other cost recovery |
|
|
mechanism as determined by the governing body of the electric |
|
|
cooperative or municipally owned utility. |
|
|
(f) This section applies only to an electric cooperative or |
|
|
municipally owned utility with retail sales of more than 500,000 |
|
|
megawatt hours in 2007. |
|
|
SECTION 4. Subchapter Z, Chapter 39, Utilities Code, is |
|
|
amended by adding Section 39.929 to read as follows: |
|
|
Sec. 39.929. INFORMATION ON INTERNET REGARDING PURCHASE OF |
|
|
SURPLUS ELECTRICITY PRODUCED BY DISTRIBUTED SOLAR GENERATION. |
|
|
(a) In this section: |
|
|
(1) "Distributed solar generation" means distributed |
|
|
renewable generation, as defined by Section 39.916, using solar |
|
|
energy technology. |
|
|
(2) "Owner of distributed solar generation" includes a |
|
|
retail electric customer who contracts with another person to |
|
|
install or maintain distributed solar generation on the customer's |
|
|
side of the meter, regardless of whether the customer takes |
|
|
ownership of the installed distributed solar generation. |
|
|
(3) "Surplus electricity" means electricity generated |
|
|
by distributed solar generation that is not consumed at the place |
|
|
the distributed solar generation is installed but flows onto the |
|
|
electric distribution system. |
|
|
(b) On the Internet website found at |
|
|
http://www.powertochoose.org, the commission shall provide for |
|
|
access to easily comparable information regarding retail electric |
|
|
providers' offers to owners of distributed solar generation for |
|
|
their surplus electricity, including information regarding their |
|
|
contract terms, for each retail electric provider using that |
|
|
website. |
|
|
(c) On the Internet website found at |
|
|
http://www.powertochoose.org, the commission shall provide for |
|
|
access to easily comparable information regarding offers of |
|
|
renewable energy credit marketers to owners of distributed solar |
|
|
generation, for each renewable energy credit marketer using that |
|
|
website. |
|
|
(d) The commission by rule shall require electric |
|
|
utilities, electric cooperatives, and retail electric providers to |
|
|
provide on publicly accessible Internet websites information on |
|
|
purchase price offers per kilowatt hour for surplus electricity and |
|
|
information instructing customers with distributed solar |
|
|
generation on how to request and obtain the purchase rates offered. |
|
|
SECTION 5. Chapter 202, Property Code, is amended by adding |
|
|
Section 202.010 to read as follows: |
|
|
Sec. 202.010. REGULATION OF SOLAR ENERGY DEVICES. (a) In |
|
|
this section, "solar energy device" has the meaning assigned by |
|
|
Section 171.107, Tax Code. |
|
|
(b) Except as otherwise provided by this section, a property |
|
|
owners' association may not include or enforce a provision in a |
|
|
dedicatory instrument that prohibits or restricts a property owner |
|
|
from installing a solar energy device. |
|
|
(c) A provision that violates Subsection (b) is void. |
|
|
(d) This section does not prohibit the inclusion or |
|
|
enforcement of a provision in a dedicatory instrument that |
|
|
prohibits a solar energy device that: |
|
|
(1) as adjudicated by a court: |
|
|
(A) threatens the public health or safety; or |
|
|
(B) violates a law; |
|
|
(2) is located on property owned or maintained by the |
|
|
property owners' association; |
|
|
(3) is located on property owned in common by the |
|
|
members of the property owners' association; or |
|
|
(4) is located in an area on the property owner's |
|
|
property other than: |
|
|
(A) on the roof of the home; or |
|
|
(B) in a fenced yard or patio maintained by the |
|
|
property owner. |
|
|
SECTION 6. The heading to Subtitle F, Title 16, Property |
|
|
Code, is amended to read as follows: |
|
|
SUBTITLE F. REGULATION [INSPECTION] OF [NEW] RESIDENTIAL |
|
|
CONSTRUCTION GENERALLY |
|
|
SECTION 7. The heading to Chapter 446, Property Code, is |
|
|
amended to read as follows: |
|
|
CHAPTER 446. INSPECTION OF RESIDENTIAL CONSTRUCTION IN |
|
|
UNINCORPORATED AREAS AND OTHER AREAS NOT SUBJECT TO MUNICIPAL |
|
|
INSPECTIONS |
|
|
SECTION 8. Subtitle F, Title 16, Property Code, is amended |
|
|
by adding Chapter 447 to read as follows: |
|
|
CHAPTER 447. REQUIREMENTS FOR NEW CONSTRUCTION CONTRACTS |
|
|
Sec. 447.001. SOLAR PANEL OPTION REQUIRED IN CERTAIN |
|
|
SUBDIVISIONS. (a) In this section, "solar energy device" means a |
|
|
system or series of mechanisms designed primarily to provide |
|
|
heating or cooling or to produce electrical or mechanical power by |
|
|
collecting and transferring solar-generated energy. The term |
|
|
includes a mechanical or chemical device that has the ability to |
|
|
store solar-generated energy for use in heating or cooling or in the |
|
|
production of power. |
|
|
(b) This chapter applies only to a contract for construction |
|
|
of a new home in a subdivision that contains more than 50 lots on |
|
|
which the builder has built or is offering to build new homes. |
|
|
(c) A builder who enters into a contract to which this |
|
|
chapter applies shall offer the homebuyer an option to install a |
|
|
solar energy device on the home for heating or cooling or for the |
|
|
production of power. |
|
|
SECTION 9. Subchapter D, Chapter 2305, Government Code, is |
|
|
amended by adding Section 2305.0321 to read as follows: |
|
|
Sec. 2305.0321. PILOT REVOLVING LOAN PROGRAM FOR SOLAR |
|
|
ENERGY FOR SCHOOL BUILDINGS. (a) The energy office shall |
|
|
establish a pilot program under the loanstar revolving loan program |
|
|
to provide loans to pay the cost of installing photovoltaic solar |
|
|
panels on public school buildings and the cost of associated energy |
|
|
efficiency improvements to the buildings. The energy office shall |
|
|
allocate to the pilot program at least $4 million from the funds |
|
|
available to the loanstar revolving loan program. |
|
|
(b) The energy office by rule shall establish the terms |
|
|
under which a loan may be made under the pilot program, including |
|
|
the interest rate for repayment of pilot program loans. |
|
|
(c) Through the pilot program, the energy office shall offer |
|
|
to each school district the opportunity to apply for a loan to pay |
|
|
the cost of installing photovoltaic solar panels on at least one |
|
|
school building of the school district's choice and the cost of |
|
|
associated energy efficiency improvements to that building. The |
|
|
energy office by rule shall establish a procedure for determining |
|
|
which school districts qualify for a loan under the pilot program, |
|
|
including rules for selecting the school districts that will |
|
|
receive a loan if there is not sufficient money set aside for pilot |
|
|
program improvements at all school districts. |
|
|
(d) Each school district that receives a loan shall pay for |
|
|
the principal of and interest on the loan for each school building |
|
|
improvement primarily from the amount budgeted for the energy costs |
|
|
of the school at which the solar panels are installed. The school |
|
|
district may make additional payments of the principal of or |
|
|
interest on a loan from money rebated to it as compensation for |
|
|
electric energy generated by the solar panels or money received as a |
|
|
gift or grant for the purpose of paying the loan. |
|
|
(e) This section expires September 1, 2011, and the pilot |
|
|
program established under this section is abolished on that date. |
|
|
SECTION 10. The Public Utility Commission of Texas shall |
|
|
adopt rules establishing the programs required under Section |
|
|
39.9155, Utilities Code, as added by this Act, as soon as |
|
|
practicable. |
|
|
SECTION 11. Section 202.010, Property Code, as added by |
|
|
this Act, applies to a deed restriction enacted before, on, or after |
|
|
the effective date of this Act. |
|
|
SECTION 12. Chapter 447, Property Code, as added by this |
|
|
Act, applies only to a contract for new home construction entered |
|
|
into on or after the effective date of this Act. A contract entered |
|
|
into before the effective date of this Act is governed by the law in |
|
|
effect immediately before the effective date of this Act, and that |
|
|
law is continued in effect for that purpose. |
|
|
SECTION 13. The state energy conservation office shall |
|
|
establish a program under Section 2305.0321, Government Code, as |
|
|
added by this Act, not later than January 1, 2010. |
|
|
SECTION 14. This Act takes effect immediately if it |
|
|
receives a vote of two-thirds of all the members elected to each |
|
|
house, as provided by Section 39, Article III, Texas Constitution. |
|
|
If this Act does not receive the vote necessary for immediate |
|
|
effect, this Act takes effect September 1, 2009. |