78R7958 T

By:  Madla                                                        S.B. No. 1561



A BILL TO BE ENTITLED

AN ACT

relating to the promotion and development of renewable energy 
generation from photovoltaic and other renewable distributed 
generation technologies.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  DISTRIBUTED RENEWABLE ENERGY GENERATION.                           
	(a)  GOAL.  Subchapter Z, Chapter 39, Utilities Code, is 
amended by adding Section 39.910 to read as follows:
		Sec. 39.910.  GOAL FOR DISTRIBUTED RENEWABLE 
GENERATION.  (a)  For purposes of this Act only:
			(1)  except as indicated in (3) below, "renewable 
energy technology" is defined as in Sec. 39.904(d), Texas Utilities 
Code
			(2)  "distributed renewable generation (DRG)" 
means renewable energy generation connected to the retail 
customer's side of the electric meter.
			(3)  DRG capacity shall be at least one half 
photovoltaic technology, and the balance, other renewable energy 
technology and one half other renewable energy technology installed 
after the effective date of this Act.
			(4)  DRG must be certified through the Public 
Utility Commission of Texas (PUCT) Renewable Energy Credits (REC) 
program.
		(b)  It is the intent of the legislature that by January 
1, 2009, 50 megawatts of DRG capacity will have been installed 
Texas.  The cumulative total of installed DRG capacity in this state 
shall total 10 megawatts by January 1, 2005, with DRG capacity 
increasing by 10 megawatts per year through January 1, 2009.
		(c)  Under the Commission's existing REC trading 
program, competitive Retail Electric Providers (REPS) shall be 
required to purchase sufficient renewable energy credits (RECs) 
from DRG to promote installation of DRG in the amount specified in 
this Section.  Starting in 2004, REPS may recover cost of purchasing 
energy from DRG that exceeds the average cost of energy, including 
fuel, purchased from sources other than DRG in "DRG Cost 
Adjustment" in electric rates similar to other ERCOT assessments.
		(d)  DRG shall be eligible for tax credits in the State 
Clean Air Implementation plan due to reduction in nitrogen oxides 
(NOX).
	(b)  INTERCONNECTION.  Subchapter Z, Chapter 39, Utilities 
Code, is amended by adding Section 39.911 to read as follows:
		Sec. 39.911.  INTERCONNECTION FOR DISTRIBUTED 
RENEWABLE GENERATION.  (a)  all price to beat retail electric 
providers, transmission and distribution utilities, electric 
utilities, municipal utilities, river authorities, competitive 
retailers, and electric cooperatives shall offer net billing 
through a bi-directional single meter to customers that install 
DRG;
		(b)  meters with DRG shall be allowed to accrue 
generation, but monetary compensation for excess generation netted 
into the utility grid shall not be required.  Any standby fees 
imposed must be cost based;
		(c)  compliance with recognized standards published by 
Underwriters Laboratories (UL) shall constitute compliance with 
standards for equipment to interface DRG with the electric grid;
		(d)  compliance with recognized standards published by 
the National Electrical Code (NEC), the National Electric Safety 
Code (NESC), and the Institute of Electrical and Electronics 
Engineers (IEEE), shall guarantee compliance with utility 
interconnection standards with DRG;
	(c)  INSURANCE.  Subchapter E, Chapter 21, Insurance Code, 
is amended by adding Art. 21.30 to read as follows:
		Art. 21.30.  INSURANCE FOR DISTRIBUTED RENEWABLE 
ENERGY GENERATION.  The State Department of Insurance shall, within 
one120 days from the date this bill is signed into law, develop 
rules for an appropriate, affordable and non-discriminatory rider 
to standard homeowners liability insurance that shall suffice for 
insurance coverage required for retail customers connecting DRG to 
the utility grid.  Such an insurance rider shall be offered by all 
sellers of insurance in Texas.
	(d)  NOTIFICATION.  Subchapter Z, Chapter 39, Utilities 
Code, is amended by adding Section 39.912 to read as follows:
		Sec. 39.912.  NOTIFICATION OF RENEWABLE ENERGY 
GENERATION AS AN OPTION.  In an electric utility, price to beat 
retail electric provider, transmission and distribution utility, 
municipal utility, river authority, competitive retailer, or 
electric cooperative must provide a line extension to or on the 
customer's premises and the electric utility, price to beat retail 
electric provider, transmission and distribution utility, 
municipal utility, river authority, competitive retailer, or 
electric cooperative will require that customer to pay a 
Contribution in Aid to Construction (CIAC), a prepayment, or sign a 
contract with a term of one year or longer, the electric utility, 
price to beat retail electric provider, transmission and 
distribution utility, municipal utility, river authority, 
competitive retailer, or electric cooperative shall provide the 
customer with information about on-site distributed renewable 
generation technology alternatives.  The information shall comply 
with guidelines established by the Public Utility Commission of 
Texas, and shall be provided to the customer at the time the 
estimate of the CIAC or prepayment is given to the customer.  If no 
CIAC or prepayment is required the information shall be given to the 
customer before a contract is signed.  The information is intended 
to educate the customer on alternate options that are available.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.