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SB1252

Regular Session

Relating to the authority of a municipality to regulate the installation or inspection of a residential energy backup system.

Moderate
Low Cost
Effective:2025-09-01
Enforcing Agencies

Municipally Owned Utilities (MOUs)

SB1252
Moderate
Relating to the authority of a municipality to regulate the installation or inspection of a residential energy backup system.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
Municipally Owned Utilities
Primary Author: Sen. Charles Schwertner
89th Texas Legislature
jdkey.com
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. (Applies to all projects "initiated" on or after this date).
  • Agency Rulemaking: No state-level rulemaking is required. However, expect Municipally Owned Utilities to issue local guidance clarifying that their authority remains intact despite the statewide municipal ban.

Immediate Action Plan

  • Map Your Market: Immediately categorize your active service areas into "MOU" (Regulated) and "Non-MOU" (Deregulated) zones.
  • Update Pricing Logic: Reprogram sales software to auto-remove permit fees for non-MOU projects starting July 1 (for Sept 1 installs).
  • Establish Internal QC: Create a mandatory internal inspection checklist to replace the city inspection report for liability defense.
  • Notify Insurers: Consult your General Liability carrier regarding the removal of municipal oversight; they may require specific documentation to maintain coverage.

Operational Changes Required

Contracts

  • Customer Agreements: Remove line items for "City Permit Fees" and "City Inspection Fees" for qualifying systems in non-MOU jurisdictions. Charging these fees after Sept 1 constitutes potential consumer fraud.
  • Scope of Work: Amend language to state that installations will adhere to the National Electrical Code (NEC) but will not be subject to municipal inspection in applicable areas.
  • Subcontractor MSAs: Update indemnification clauses. With the removal of the municipal safety net, subcontractors must assume higher liability for code compliance.

Hiring/Training

  • Sales Teams: Must be trained to identify the Utility Provider, not just the City, to determine pricing and timelines.
  • Project Managers: Implement a "Jurisdictional Check" step before scheduling.
  • Field Staff: Installers must be trained that there is no "second set of eyes" (city inspector) in IOU territories. Internal Quality Control (QC) protocols must replace municipal inspections.

Reporting & Record-Keeping

  • Defense Documentation: Job files must contain manufacturer spec sheets proving the system is $\le$ 50kW or $\le$ 100kWh to rebut any municipal attempt to enforce jurisdiction.
  • Interconnection Filings: Continue filing interconnection agreements with Transmission and Distribution Utilities (TDUs) regardless of municipal deregulation.

Fees & Costs

  • Fee Reduction: Eliminate municipal permit costs from project bids in IOU territories.
  • Cost Reallocation: Budget for increased internal QC audits or third-party private inspections to mitigate liability risks previously covered by city inspections.

Strategic Ambiguities & Considerations

  • "Initiated" Definition: The statute applies to projects "initiated" on/after Sept 1, 2025, but does not define the term.
  • *Guidance:* Treat the customer contract execution date as the initiation date. Do not rely on the permit application date.
  • Fire Marshal Authority: The law restricts regulating "installation or inspection" of the system. It does not explicitly preempt Fire Code regulations regarding fuel storage (generators) or hazardous materials (batteries). Expect Fire Marshals to assert authority over fuel tanks and setbacks independent of the electrical installation.
  • HOA Covenants: This law restricts municipalities, not Property Owners Associations. HOAs may still attempt to enforce aesthetic or placement restrictions.

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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.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 12, 2025
Passed Senate
Mar 31, 2025
Passed House
May 21, 2025
Signed
Jun 20, 2025
TopicsCity GovernmentCity Government--utilitiesUtilitiesUtilities--electric
03

Senate Authors

Sen. Charles SchwertnerRepublican · Primary Author

House Sponsor

Rep. Ken KingRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Quick Reference

Frequently Asked Questions

Common questions about SB1252

Q

What does Texas SB1252 do?

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.

Q

Who authored SB1252?

SB1252 was authored by Texas Senator Charles Schwertner during the Regular Session.

Q

When was SB1252 signed into law?

SB1252 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB1252?

SB1252 is enforced by Municipally Owned Utilities (MOUs).

Q

How urgent is compliance with SB1252?

The compliance urgency for SB1252 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of SB1252?

The cost impact of SB1252 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB1252 address?

SB1252 addresses topics including city government, city government--utilities, utilities and utilities--electric.

Legislative data provided by LegiScanLast updated: November 25, 2025

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