Untitled Texas Attorney General Opinion: KP-0521

Summary

Texas Attorney General Opinion No. KP-0521 addresses whether section 8.4.5 of the City of Austin’s Energy Code conflicts with Texas Utilities Code section 181.903(b). The opinion concludes that the provision’s electric-ready requirements indirectly discriminate against natural gas utility services based on the type or source of energy and is therefore unenforceable to that extent.

Holdings

1. Section 181.903(b) prohibits a political subdivision, including the City of Austin, from adopting or enforcing a code that has the purpose, intent, or effect of directly or indirectly discriminating against a utility service based on the type or source of energy.
2. Austin Energy Code section 8.4.5 has the purpose, intent, or effect of directly or indirectly discriminating against natural-gas utility services based on the type or source of energy and is therefore unenforceable.
3. For purposes of section 181.903(b), discriminating against a utility service includes differential treatment based on the type or source of energy, including discriminatory effects that are direct or indirect.

Questions Presented

1. Whether Texas Utilities Code section 181.903(b) prohibits the City of Austin from adopting or enforcing an energy code that requires electric-ready infrastructure in buildings using natural-gas equipment.
2. Whether Austin Energy Code section 8.4.5 has the purpose, intent, or effect of directly or indirectly discriminating against natural-gas utility services based on the type or source of energy.

Disposition

other