Regular Session
Municipally Owned Utilities (MOUs)
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This bill's path through the Texas Legislature
BILL ANALYSIS
| Senate Research Center | S.B. 1252 |
| 89R5334 CS-F | By: Schwertner |
| Business & Commerce | |
| 3/7/2025 | |
| As Filed |
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Currently, unincorporated areas of Texas allow for an efficient, permit-free installation process for residential battery energy resources. However, some municipalities often require numerous permits from multiple departments for installation, leading to inconsistent standards and a fragmented process for installers and homeowners alike.
S.B. 1252 removes unnecessary red tape by mirroring the current process in unincorporated areas. S.B. 1252 ensures that all homeowners, regardless of location, enjoy the same uniform process and streamlined access to backup power.
As proposed, S.B. 1252 amends current law relating to the authority of a municipality to regulate the installation or inspection of a residential energy backup system.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 214.211, Local Government Code, by adding Subdivision (6) to define "residential energy backup system."
SECTION 2. Amends Section 214.214, Local Government Code, by adding Subsection (d) to prohibit a municipality from adopting or enforcing an amendment to the National Electrical Code that would regulate the installation or inspection of a residential energy backup system.
SECTION 3. Amends the heading to Subchapter C, Chapter 229, Local Government Code, to read as follows:
SUBCHAPTER C. REGULATION OF SOLAR ENERGY AND BACKUP ENERGY DEVICES
SECTION 4. Amends Subchapter C, Chapter 229, Local Government Code, by adding Section 229.102, as follows:
Sec. 229.102. REGULATION OF RESIDENTIAL ENERGY BACKUP SYSTEMS. (a) Defines "residential energy backup system."
(b) Prohibits a municipality from adopting or enforcing an ordinance, rule, or other measure that would regulate the installation or inspection of a residential energy backup system.
SECTION 5. Makes application of this Act prospective.
SECTION 6. Effective date: September 1, 2025.
| S.B. No. 1252 | ||
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| relating to the authority of a municipality to regulate the | ||
| installation or inspection of a residential energy backup system. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 214.211, Local Government Code, is | ||
| amended by adding Subdivision (6) to read as follows: | ||
| (6) "Residential energy backup system" means a backup | ||
| energy system installed at a residential property that is capable | ||
| of providing no more than 50 kilowatts of electricity to the | ||
| residence or has a storage capacity of no more than 100 kilowatt | ||
| hours. | ||
| SECTION 2. Section 214.214, Local Government Code, is | ||
| amended by adding Subsections (d) and (e) to read as follows: | ||
| (d) A municipality may not adopt or enforce an amendment to | ||
| the National Electrical Code that would regulate the installation | ||
| or inspection of a residential energy backup system. | ||
| (e) Subsection (d) does not limit the authority of a | ||
| municipally owned utility, as defined by Section 11.003, Utilities | ||
| Code, to regulate the installation or inspection of a residential | ||
| energy backup system within the utility's service area. | ||
| SECTION 3. The heading to Subchapter C, Chapter 229, Local | ||
| Government Code, is amended to read as follows: | ||
| SUBCHAPTER C. REGULATION OF SOLAR ENERGY AND BACKUP ENERGY DEVICES | ||
| SECTION 4. Subchapter C, Chapter 229, Local Government | ||
| Code, is amended by adding Section 229.102 to read as follows: | ||
| Sec. 229.102. REGULATION OF RESIDENTIAL ENERGY BACKUP | ||
| SYSTEMS. (a) In this section, "residential energy backup system" | ||
| means a backup energy system installed at a residential property | ||
| that is capable of providing no more than 50 kilowatts of | ||
| electricity to the residence or has a storage capacity of no more | ||
| than 100 kilowatt hours. | ||
| (b) A municipality may not adopt or enforce an ordinance, | ||
| rule, or other measure that would regulate the installation or | ||
| inspection of a residential energy backup system. | ||
| (c) This section does not limit the authority of a | ||
| municipally owned utility, as defined by Section 11.003, Utilities | ||
| Code, to regulate the installation or inspection of a residential | ||
| energy backup system within the utility's service area. | ||
| SECTION 5. The changes in law made by this Act apply only to | ||
| the installation or inspection of a residential energy backup | ||
| system initiated on or after the effective date of this Act. | ||
| SECTION 6. This Act takes effect September 1, 2025. | ||
| TO: | Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce |
| FROM: | Jerry McGinty, Director, Legislative Budget Board |
| IN RE: | SB1252 by Schwertner (Relating to the authority of a municipality to regulate the installation or inspection of a residential energy backup system.), As Introduced |
| Source Agencies: |
| LBB Staff: | JMc, RStu, CMA |
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Common questions about SB1252
Effective September 1, 2025, Texas law prohibits municipalities from regulating, permitting, or inspecting residential energy backup systems (batteries and generators $\le$ 50kW or $\le$ 100kWh). However, this prohibition does not apply to Municipally Owned Utilities (MOUs). Consequently, installers must bifurcate operations: projects in MOU territories (e.
SB1252 was authored by Texas Senator Charles Schwertner during the Regular Session.
SB1252 was signed into law by Governor Greg Abbott on June 20, 2025.
SB1252 is enforced by Municipally Owned Utilities (MOUs).
The compliance urgency for SB1252 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
The cost impact of SB1252 is estimated as "low". This may vary based on industry and implementation requirements.
SB1252 addresses topics including city government, city government--utilities, utilities and utilities--electric.
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