78R7731 JJT-F

By:  Gallego                                                      H.B. No. 3271



A BILL TO BE ENTITLED

AN ACT

relating to development and promotion of renewable energy 
generation from renewable and distributed electric generation 
technologies.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter Z, Chapter 39, Utilities Code, is 
amended by adding Sections 39.9041-39.9043 to read as follows:
	Sec. 39.9041.  GOAL FOR DISTRIBUTED GENERATION BY RENEWABLE 
ENERGY TECHNOLOGIES.  (a)  In this section:
		(1)  "Distributed renewable generation" means electric 
generating capacity provided by a renewable energy technology 
installed on the electric grid on a retail electric customer's side 
of the meter.
		(2)  "Renewable energy technology" has the meaning 
assigned by 39.904(d).
	(b)  It is the intent of the legislature that by January 1, 
2009, an additional 50 megawatts of distributed renewable 
generation will have been installed in this state.  Of the installed 
distributed renewable generation, one-half or more must be 
photovoltaic generation.  Electric generating capacity using 
geothermal heat pump technology may not be counted toward the goals 
established by this subsection.  The cumulative total of 
distributed renewable generation in this state installed after 
September 1, 2003, shall be:
		(1)  10 megawatts by January 1, 2005;                                  
		(2)  20 megawatts by January 1, 2006;                                  
		(3)  30 megawatts by January 1, 2007; and                              
		(4)  40 megawatts by January 1, 2008.                                  
	(c)  The commission by rule shall require a retail electric 
provider to purchase under the renewable energy credits trading 
program established under Section 39.904(b) sufficient renewable 
energy credits from distributed renewable generation to meet the 
goals provided by this section.
	(d)  The commission shall order ERCOT to amend its protocols 
to provide for retail electric providers, beginning in 2004, to 
recover as a cost adjustment the cost difference between the 
average cost of energy, including fuel cost, and the cost incurred 
by purchasing energy from distributed renewable generation.
	Sec. 39.9042.  INTERCONNECTION FOR DISTRIBUTED RENEWABLE 
GENERATION.  (a)  In this section "distributed renewable 
generation" has the meaning assigned by Section 39.9041.
	(b)  A provider of metering services or billing services 
shall offer to a customer who installs distributed renewable 
generation net billing by means of a single bidirectional meter.
	(c)  Standby fees associated with distributed renewable 
generation must be based on cost.
	(d)  The commission may not require monetary compensation 
for excess net generation by distributed renewable generation.
	(e)  The commission shall adopt standards for equipment to 
connect distributed electric generation to the electric grid.  In 
adopting the standards, the commission shall consider standards 
published by Underwriters Laboratories, the National Electric 
Code, the National Electric Safety Code, and the Institute of 
Electrical and Electronics Engineers.
	Sec. 39.9043.  INFORMATION REGARDING DISTRIBUTED RENEWABLE 
GENERATION ALTERNATIVES.  (a) In this section "distributed 
renewable generation" has the meaning assigned by Section 39.9041.
	(b)  If an electric utility, retail electric provider, 
transmission and distribution utility, municipally owned utility, 
river authority, or electric cooperative must provide a line 
extension to or on a customer's property or premises and the 
electric utility, retail electric provider, transmission and 
distribution utility, municipally owned utility, river authority, 
or electric cooperative requires the customer to pay a contribution 
in aid of construction for that purpose, to make a prepayment, or to 
sign a contract with a term of one year or more, the electric 
utility, retail electric provider, transmission and distribution 
utility, municipally owned utility, river authority, or electric 
cooperative shall provide the customer with information regarding 
distributed renewable generation alternatives.
	(c)  Information provided under Subsection (b) must conform 
to rules of the commission and must be delivered to the customer at 
the same time that the estimate of the contribution in aid of 
construction or amount of prepayment is delivered.  In the case of a 
contract with a term of one year or more, the information must be 
delivered before the contract is executed.
	SECTION 2.  Subchapter C, Chapter 5, Insurance Code, is 
amended by adding Article 5.35-2 to read as follows:
	Art. 5.35-2.  COVERAGE RELATING TO DISTRIBUTED RENEWABLE 
GENERATION.  (a)  In this article, "distributed renewable 
generation" has the meaning assigned by Section 39.9041, Utilities 
Code.
	(b)  An insurer offering a homeowners or farm and ranch 
owners insurance policy in this state, including a Lloyd's plan or a 
reciprocal or interinsurance exchange, shall offer an endorsement 
to the policy to provide coverage to residential property owners 
for liability for damages arising out of distributed renewable 
generation on or proximate to the residential property.  The 
endorsement must be approved or adopted in accordance with Article 
5.35 of this code.  In approving or adopting the required 
endorsements, the commissioner shall ensure that the endorsement to 
be offered provides appropriate coverage, is affordable, and is 
offered in a nondiscriminatory manner.
	SECTION 3.  This Act takes effect September 1, 2003.