Amend CSSB 483 as follows:                                                   
	SECTION ____. Subchapter Z, Chapter 39, Utilities Code, is 
amended by adding Section 39.9032 to read as follows:
	Sec. 39.9032. 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 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 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 separately 
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.
	(h) A transmission and distribution utility, an electric 
utility or retail electric provider shall provide for net metering 
and 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.
	(j) For distributed renewable generation owners in areas 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. Without limiting any 
mutually agreed commercial arrangement, 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 or 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. The 
independent organization identified in Section 39.151 shall 
develop procedures so that 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 by January 1, 2009. 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.
	SECTION ____. (a) This Act takes effect September 1, 2007.                     
	(b) Section 39.9032, Utilities Code, as added by this Act, 
takes effect January 1, 2009.