Amend CSHB 3693 (Senate committee printing) by adding the 
following appropriately numbered SECTION to the bill and 
renumbering the subsequent SECTIONS of the bill accordingly:
	SECTION __.  (a)  Subchapter Z, Chapter 39, Utilities Code, 
is amended by adding Section 39.916 to read as follows:
	Sec. 39.916.  INTERCONNECTION OF DISTRIBUTED RENEWABLE 
GENERATION.  (a)  In this section:
		(1)  "Distributed renewable generation" means electric 
generation with a capacity of not more than 2,000 kilowatts 
provided by a renewable energy technology, as defined by Section 
39.904, that is installed on a retail electric customer's side of 
the meter.
		(2)  "Distributed renewable generation owner" means 
the owner of distributed renewable generation.
		(3)  "Interconnection" means the right of a distributed 
renewable generation owner to physically connect distributed 
renewable generation to an electricity distribution system, and the 
technical requirements, rules, or processes for the connection.
	(b)  A transmission and distribution utility or electric 
utility shall allow interconnection if:
		(1)  the distributed renewable generation  to be 
interconnected has a five-year warranty against breakdown or undue 
degradation; and
		(2)  the rated capacity of the distributed renewable 
generation does not exceed the transmission and distribution 
utility's or the electric utility's service entrance capacity.
	(c)  A customer may request interconnection by filing an 
application for interconnection with the transmission and 
distribution utility or electric utility.  Procedures of a 
transmission and distribution utility or electric utility for the 
submission and processing of a customer's application for 
interconnection shall be consistent with rules adopted by the 
commission regarding interconnection.
	(d)  The commission by rule shall establish safety, 
technical, and performance standards for distributed renewable 
generation that may be interconnected.  In adopting the rules, the 
commission shall consider standards published by the Underwriters 
Laboratories, the National Electric Code, the National Electric 
Safety Code, and the Institute of Electrical and Electronics 
Engineers.
	(e)  A transmission and distribution utility, electric 
utility, or retail electric provider may not require a distributed 
renewable generation owner whose distributed renewable generation 
meets the standards established by rule under Subsection (d) to 
purchase an amount, type, or classification of liability insurance 
the distributed renewable generation owner would not have in the 
absence of the distributed renewable generation.
	(f)  A transmission and distribution utility or electric 
utility shall make available to a distributed renewable generation 
owner for purposes of this section metering required for services 
provided under this section, including separate meters that measure 
the load and generator output or a single meter capable of measuring 
in-flow and out-flow at the point of common coupling meter point.  
The distributed renewable generation owner must pay the 
differential cost of the metering unless the meters are provided at 
no additional cost.  Except as provided by this section, Section 
39.107 applies to metering under this section.
	(g)  A renewable energy credit that is earned by a 
distributed renewable generation owner through the interconnection 
of a renewable electric system is the sole property of the 
distributed renewable generation owner unless the distributed 
renewable generation owner engages in a transaction to sell or 
trade the credit under Section 39.904.  The commission by rule shall 
address the ownership of renewable energy credits associated with 
power sold to an electric utility.
	(h)  An electric utility or a retail electric provider may 
contract with a distributed renewable generation owner so that:
		(1)  surplus electricity produced by distributed 
renewable generation is made available for sale to the transmission 
grid and distribution system; and
		(2)  the net value of that surplus electricity is 
credited to the distributed renewable generation owner.
	(i)  For a distributed renewable generation owner in an area 
in which customer choice has been introduced, the distributed 
renewable generation owner must sell the owner's surplus 
electricity produced to the retail electric provider that serves 
the distributed renewable generation owner's load at a value agreed 
to between the distributed renewable generation owner and the 
provider that serves the owner's load.  The agreed value may be 
based on the clearing price of energy at the time of day that the 
electricity is made available to the grid, may be a credit applied 
to an account during a billing period that may be carried over to 
subsequent billing periods until the credit has been redeemed, or 
may be as otherwise provided by a mutually agreed commercial 
arrangement.  The independent organization identified in Section 
39.151 shall develop procedures so that, by January 1, 2009, the 
amount of electricity purchased from a distributed renewable 
generation owner under this section is accounted for in settling 
the total load served by the provider that serves that owner's load.  
A distributed renewable generation owner requesting net metering 
services for purposes of this section must have metering devices 
capable of providing measurements consistent with the independent 
organization's settlement requirements.
	(b)  This section takes effect January 1, 2009.