It falls under NEC 702. Its considered optional in that it allows authority having jurisdiction to have final say so, meaning different cities and utilities can have their own requirements. For instance where i live, the public and private utilities send out letters which state that your power can be cut off if they find your not using an i terconnect or listed transfer switch.
For non essential uses like home backup, its far more lenient than for emergency backup, but essentially it falls back to authority having jurisdiction . Most utility companies require this, and in the 4 states where i worked as an electrician they required it. I have no idea what stare you live in
View attachment 772110, so cant comment on your situation.