Relating to third-party review of property development documents and inspections of improvements related to those documents, including home backup power installations.
Low Cost
Effective:2025-09-01
Enforcing Agencies
Municipal Regulatory Authorities • County Regulatory Authorities
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: September 1, 2025
Compliance Deadline: September 1, 2025 (Businesses must have third-party reviewers under contract to utilize the expedited workflow immediately).
Agency Rulemaking: No state-level rulemaking is required. However, municipalities may establish "reasonable formats" for notice submission prior to September; monitor local ordinances for new portal requirements.
Immediate Action Plan
1.Audit Insurance: Verify your Professional Liability (E&O) coverage explicitly includes design review and inspection activities for your Master Electricians.
2.Secure Reviewers: Finalize contracts with third-party Master Electricians or certify internal staff by August 15, 2025.
3.Web Audit: On September 1, document which municipalities in your territory have failed to post fee schedules online to leverage the statutory fee waiver.
4.Prepare Legal Templates: Draft demand letters citing Sec. 247.0025(i) to deploy immediately when municipalities miss the 3-day permit issuance deadline.
Operational Changes Required
Contracts
Vendor Agreements: Update Master Services Agreements (MSAs) with third-party inspection firms to require specific indemnification for "negligent acts or omissions" in reviews, as SB1202 shifts liability to them.
Customer Contracts: Revise installation timelines to reflect faster starts. Include specific force majeure clauses regarding "regulatory authority refusal to accept third-party notice" to protect against initial municipal non-compliance.
Hiring/Training
Master Electricians: You must designate specific licensed Master Electricians (Ch. 1305) or Electrical Inspectors to perform these reviews.
Liability Awareness: In-house Master Electricians must be briefed that their license is now the primary liability shield for the project; General Liability policies may need review to ensure professional services (inspection/review) are covered.
Reporting & Record-Keeping
The 15-Day Rule: Implement a strict protocol ensuring the regulatory authority receives notice of results and copies of documents no later than the 15th day after the review or inspection is completed.
The 3-Day Trigger: Establish a tracking system for the 3-business-day deadline. If the city does not issue the permit within 3 days of receiving your final inspection notice, the law mandates issuance.
Fees & Costs
Fee Prohibition: Municipalities are prohibited from charging review or inspection fees for projects handled by third parties.
Fee Waiver: Verify if your target municipalities have posted their fee schedules on their websites. If they have not, you are not required to pay any permit issuance fees (Sec. 247.0025(g)).
Strategic Ambiguities & Considerations
"Reasonable Format" Friction: Sec. 247.004(b) allows cities to prescribe a "reasonable format" for notices. We anticipate hostile municipalities may create cumbersome digital portals to artificially slow this process. The law allows email submission if no format is prescribed, but "reasonableness" will likely be litigated.
Unposted Code Amendments: If a city fails to post specific local code amendments online, your reviewer is authorized to approve plans based on standard state/international codes. Expect disputes where cities attempt to enforce "hidden" local ordinances.
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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
Currently, Texas residents who wish to install home backup power generation are hampered by tedious regulations at the municipal level. Regulatory bottlenecks, costly fees, and slow permitting processes can cause property owners to wait months before receiving permission to install backup power generators on their property.
S.B. 1202 expedites the approval process by allowing authorized third parties, such as a licensed engineer, to review development documents and conduct inspections required by regulatory authorities to install home backup power generation. This is in place of review or inspection by the regulatory authority. Within 15 days of completing the review of the required development documents or the development inspection, the authorized third party must provide notice to the regulatory authority of the results of the review or inspection.
The bill allows a person to begin construction of a home backup power installation on their property immediately upon submission of the notice. Additionally, the bill requires a regulatory authority to issue an applicable approval, permit, or certification within two business days of receiving the notice.
S.B. 1202 reduces regulatory burdens and increases Texas' grid resiliency by making it easier, faster, and more affordable for Texans to install home backup power solutions.
As proposed, S.B. 1202 amends current law relating to third-party review of property development documents and inspections of improvements related to those documents, including home backup power installations.
SECTION 1. Amends Chapter 247, Local Government Code, as added by Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular Session, 2023, by adding Section 247.0025, as follows:
Sec. 247.0025.� THIRD-PARTY REVIEW OR INSPECTION FOR HOME BACKUP POWER INSTALLATIONS. (a) Defines "home backup power installation."
(b)� Provides that, notwithstanding Section 247.002 (Restriction on Regulation of Energy Sources), a person authorized to review a development document under Section 247.002(a) (relating to prohibiting a political subdivision from adopting or enforcing an ordinance, order, regulation, or similar measure that limits access to or use of certain energy sources) is authorized to review a development document required by a regulatory authority to install a home backup power installation without having to submit the document to the authority for review and a person authorized to conduct a development inspection under Section 247.002(b) (relating to providing that Section 247.002 does not limit the authority of a political subdivision to adopt or enforce an ordinance, order, regulation, or similar measure relating to certain energy sources or infrastructure) is authorized to conduct a development inspection required by a regulatory authority to install a home backup power installation without having to request the inspection from the authority.
(c)� Requires a regulatory authority to:
(1)� post on the authority's Internet website each law, rule, standard, and other document necessary for a person to review a development document or conduct a development inspection under this section; or
(2)� provide on request an electronic copy of the information described by Subdivision (1) not later than the second business day after the date the regulatory authority receives the request.
(d)� Authorizes a person who reviews a development document or conducts a development inspection under this section to rely on the accuracy and completeness of the information provided by a regulatory authority under Subsection (c).
(e)� Requires a regulatory authority to issue each approval, permit, or certification applicable to a review of a development document or development inspection conducted under this section not later than the second business day after the date the authority receives the notice prescribed by Section 247.004(a) (relating to requiring a person who reviews a development document or conducts a development inspection under Section 247.002 to perform certain actions) that approves the document or inspection.
(f)� Authorizes a person to begin construction of a home backup power installation on submission of the notice prescribed by Section 247.004(a) that approves the development document or development inspection.
SECTION 2. Amends Section 247.003, Local Government Code, as added by Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular Session, 2023, to prohibit a regulatory authority from imposing a fee related to the review of a development document or the inspection of an improvement conducted under Chapter 247 (Regulation of Energy Sources and Engines), rather than Section 247.002.
SECTION 3. Amends Section 247.004, Local Government Code, as added by Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular Session, 2023, as follows:
Sec. 247.004.� THIRD-PARTY REQUIREMENTS. (a) Makes a conforming change to this subsection.
(b)� Authorizes a person who reviews a development document or conducts a development inspection under Chapter 247 (Third-Party Review of Development Documents and Inspection of Improvements), if the regulatory authority has not prescribed a format, to provide notice by e-mail to the e-mail address of the regulatory authority.
Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB1202 by King (Relating to third-party review of property development documents and inspections of improvements related to those documents, including home backup power installations.), As Introduced
No fiscal implication to the State is anticipated.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
473 Public Utility Commission of Texas
LBB Staff:
JMc, RStu, BC, CWi
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Effective September 1, 2025, SB1202 fundamentally alters the workflow for residential backup power installations (solar, battery, and generators) by allowing businesses to bypass municipal review delays through the use of third-party Master Electricians. While this enables a "submit-and-start" construction model, it explicitly shifts liability for negligent reviews from the municipality to the third-party reviewer, necessitating immediate updates to insurance and risk management protocols. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025 (Businesses must have third-party reviewers under contract to utilize the expedited workflow immediately).
Q
Who authored SB1202?
SB1202 was authored by Texas Senator Phil King during the Regular Session.
Q
When was SB1202 signed into law?
SB1202 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce SB1202?
SB1202 is enforced by Municipal Regulatory Authorities and County Regulatory Authorities.
Q
What is the cost impact of SB1202?
The cost impact of SB1202 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does SB1202 address?
SB1202 addresses topics including electronic information systems, energy, energy--solar, utilities and utilities--electric.
Legislative data provided by LegiScanLast updated: November 25, 2025
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