88R12603 JXC/MP-F     By: Zwiener H.B. No. 3010       A BILL TO BE ENTITLED   AN ACT   relating to the use of and permitting for certain energy devices at   a retail customer's premises.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 250, Local Government Code, is amended   by adding Section 250.014 to read as follows:          Sec. 250.014.  ONLINE AND AUTOMATED RESIDENTIAL SOLAR AND   STORAGE PERMITTING. (a)  In this section:                (1)  "Residential energy storage system" means   commercially available technology, located behind a customer's   residential utility meter, that is capable of:                      (A)  absorbing electricity:                            (i)  generated on-site; or                            (ii)  from the electrical grid;                      (B)  storing electricity for a period of time; and                      (C)  discharging electricity to meet the power   needs of the customer or for export to the electrical grid.                (2)  "Residential solar energy system" means a   configuration of solar energy devices that collects and distributes   solar energy for the purpose of generating electricity and that has   a single residential interconnection with the electrical grid.                (3)  "SolarAPP+" means the web-based portal, as it   existed on January 1, 2023, developed by the National Renewable   Energy Laboratory, that automates plan review, produces   code-compliant approvals, and issues permits for residential solar   energy systems and residential energy storage systems paired with   residential solar energy systems.          (b)  This section applies only to:                (1)  a municipality that has a population of 5,000 or   more; and                (2)  a county that has a population of 150,000 or more.          (c)  Notwithstanding any other law, a municipality or county   shall implement an online and automated permitting system for   residential solar energy systems that have a nameplate rating of   not more than 40 kilowatts of alternating current and residential   energy storage systems paired with residential solar energy systems   that have a nameplate rating of not more than 40 kilowatts of   alternating current.  The online and automated permitting system   must:                (1)  verify that the proposed systems comply with   relevant building and fire codes; and                (2)  issue a permit necessary for a contractor to   install or repair a solar energy system or residential storage   system in real time or allow the municipality or county to issue the   permit in real time.          (d)  An online and automated permitting system implemented   under this section must have at least the same capabilities as   SolarAPP+.  A municipality or county is not required to issue a   permit under Subsection (c) if the online and automated permitting   system implemented by the municipality or county does not meet the   capabilities of SolarAPP+ at the time the permit application is   submitted to the municipality or county.          (e)  A municipality or county shall report to the Public   Utility Commission of Texas when the municipality or county has   implemented an online and automated permitting system under   Subsection (c).          (f)  A municipality or county to which this section applies   must confirm compliance with this section when applying for a grant   or loan from the State Energy Conservation Office as a condition of   receiving the grant or loan.          SECTION 2.  Subchapter Z, Chapter 39, Utilities Code, is   amended by adding Section 39.9166 to read as follows:          Sec. 39.9166.  INTERCONNECTION OF ON-SITE SMALL DISTRIBUTED   GENERATION BY MUNICIPALLY OWNED UTILITIES AND ELECTRIC   COOPERATIVES.  (a)  In this section:                (1)  "Interconnection" means the right of a distributed   generation owner to physically connect distributed generation to an   electricity distribution system, and the technical requirements,   rules, or processes for the connection.                (2)  "On-site small distributed generation" means   distributed generation, as defined by Section 39.9165, located at a   customer's point of delivery with a capacity of not more than 100   kilowatts.          (b)  Except as provided by Subsections (c) and (e), a   municipally owned utility or electric cooperative that provides   interconnections for on-site small distributed generation must   provide an interconnection not later than the 42nd day after the   date the utility or cooperative receives a complete application for   the interconnection.          (c)  If the interconnection of on-site small distributed   generation will require substantial capital upgrades to the system   of a municipally owned utility or electric cooperative, the utility   or cooperative shall:                (1)  provide to the interconnection applicant an   estimate of the applicant's costs for the upgrades and a proposed   schedule for the upgrades; and                (2)  offer to provide the upgrades under a contract   with the interconnection applicant.          (d)  Except as provided by Subsection (e), a municipally   owned utility or electric cooperative that enters into an upgrade   agreement under Subsection (c) shall provide the interconnection   not later than the 14th day after the date the upgrades are   complete, unless the interconnection applicant agrees to an   extension.  The utility or cooperative shall employ best reasonable   efforts to complete the upgrades in the shortest time reasonably   practical.          (e)  If a municipally owned utility or electric cooperative   determines that the utility or cooperative cannot interconnect   on-site small distributed generation according to the requirements   of this section, the utility or cooperative shall notify the   interconnection applicant in writing of the delay and the reason   for the delay and provide an estimated date for the   interconnection.          (f)  A municipally owned utility or electric cooperative   shall process all on-site small distributed generation   interconnection applications in a non-discriminatory manner, in   the order in which they are received.  An application that requires   minor modifications to be complete may not be rejected solely for   that reason.          (g)  A municipally owned utility or electric cooperative may   not charge an owner or operator of on-site small distributed   generation that exports energy to the utility's or cooperative's   system:                 (1)  a charge for the operation and maintenance of the   utility's or cooperative's facilities;                (2)  a distribution line charge; or                (3)  a transmission access or line charge, a   transformation charge, or a transmission line loss charge.          (h)  The governing body of a municipally owned utility or   electric cooperative shall provide oversight and adopt rules and   procedures, as necessary, to ensure that the utility or cooperative   complies with this section.          SECTION 3.  (a)  Except as provided by Subsection (b) of this   section, a municipality or county shall implement the online and   automated permitting system as required by Section 250.014, Local   Government Code, as added by this Act, not later than September 30,   2024.          (b)  A municipality that has a population of at least 5,000   and not more than 50,000 shall implement the online and automated   permitting system as required by Section 250.014, Local Government   Code, as added by this Act, not later than September 30, 2025.          SECTION 4.  This Act takes effect September 1, 2023.