Overall Vote Recommendation

Yes

Principle Criteria

Free Enterprise

Property Rights

Personal Responsibility

Limited Government

Individual Liberty

Digest

SB 1202 amends Chapter 247 of the Texas Local Government Code to authorize third-party professionals to independently review and inspect property development documents and related improvements for home backup power installations. These systems include electric generating facilities, energy storage units, standby systems, and associated infrastructure designed to provide emergency power to one- or two-family residential dwellings. The bill applies to systems operating at 600 volts or less and includes both grid-connected and non-grid-participating units.

The bill modifies current law by allowing persons already authorized under Section 247.002 to perform reviews and inspections without having to submit development documents or inspection requests to local regulatory authorities, provided those documents are required solely for backup power installations. While this change removes some oversight functions from local governments, it does not interfere with electric utility tariffs or the ability of electric cooperatives and municipal utilities to enforce interconnection policies and service standards.

To ensure transparency and consistency, SB 1202 requires regulatory authorities to publicly post, or upon request electronically provide, all applicable laws, rules, standards, fee schedules, and documents necessary for conducting third-party reviews and inspections. This measure supports broader efforts to streamline residential energy upgrades, promote energy independence, and reduce bureaucratic bottlenecks in critical home infrastructure development.

The originally filed version of SB 1202 and the Committee Substitute share the same intent—to streamline the permitting and inspection process for home backup power installations by allowing third-party reviews and inspections. However, the Committee Substitute simplifies and narrows the bill's provisions in key areas.

The original bill included several administrative mandates. For instance, it required regulatory authorities to issue approvals, permits, or certifications within two business days of receiving notice of third-party approval. It also permitted construction to begin upon submission of that notice. These provisions created enforceable timelines for government action and were designed to further reduce bureaucratic delay.

Additionally, the original version mandated that a third party provide notification to the regulatory authority within 15 days of completing a review or inspection and allowed authorities to prescribe a format for such notification. It also amended Section 247.003 to prohibit local authorities from charging additional fees for these third-party reviews and inspections.

The Committee Substitute removed these procedural deadlines and fee prohibitions. It retains the core policy—authorizing third parties to bypass regulatory authority for document review and inspection of home backup systems—but eliminates the more prescriptive operational directives. The result is a bill that is likely more agreeable to local governments, offering deregulation without imposing rigid administrative requirements.

Author

Phil King

Sponsor

Jay Dean

Contact the Author

Sen. Phil King

Capitol Phone:

(512) 463-0110

Capitol Office:

CAP GE.5

E-Mail:

[email protected]

Visit Official Website

Fiscal Notes

According to the Legislative Budget Board (LBB), SB 1202 is expected to have no fiscal implications for the state government. This means that implementing the bill will not require additional funding or lead to measurable costs at the state level.

For local governments, the analysis concludes that no significant fiscal impact is anticipated. While the bill enables third-party professionals to bypass some local regulatory oversight for reviewing development documents and conducting inspections, this shift is not expected to materially affect local budgets. The lack of significant financial consequences may stem from the fact that local authorities are not barred from maintaining general oversight or setting policies—they are simply required to make relevant documentation accessible.

Overall, SB 1202 is designed to streamline regulatory processes without adding fiscal burdens to state or local entities, thus maintaining budget neutrality while facilitating greater efficiency in permitting and inspection for home backup power systems.

Vote Recommendation Notes

SB 1202 presents a compelling case for support when evaluated through the lens of the five core liberty principles: Individual Liberty, Personal Responsibility, Free Enterprise, Private Property Rights, and Limited Government. The accompanying bill analysis underscores the central purpose of the legislation—to streamline the permitting and inspection process for home backup power installations by enabling licensed third-party professionals to perform these reviews and inspections instead of local regulatory authorities.

The bill promotes Individual Liberty by removing unnecessary bureaucratic obstacles that delay or prevent homeowners from installing backup power systems, empowering Texans to take control over their energy needs—an issue of growing importance amid ongoing concerns about grid reliability. This same autonomy supports Personal Responsibility, encouraging proactive energy resilience rather than reliance on strained public utilities during outages.

From a Free Enterprise standpoint, the bill reduces barriers to entry for licensed engineers and other qualified professionals to participate in the inspection and permitting market, breaking up monopolistic control by local authorities. It also fosters innovation by allowing the use of automation software for reviews and ensuring accessibility to relevant standards and fee schedules. This approach supports a dynamic and open marketplace.

Private Property Rights are also strengthened by reinforcing homeowners’ authority to improve their properties without undue government delay or interference. This is a direct protection of the right to make beneficial use of one’s property.

Finally, Limited Government is advanced by curtailing local governments’ ability to impose redundant fees and bureaucratic review processes while maintaining their role in setting safety standards and interconnection policies. The bill balances deregulation with necessary safeguards, preserving public oversight without heavy-handed interference.

Taken together, these reforms promote efficiency, reduce red tape, and respect the rights of individuals and property owners. As such, Texas Policy Research recommends that lawmakers vote YES on SB 1202.

Related Legislation

HB 2304 (Same As)

View Bill Text and Status