By: Strama H.B. No. 4458
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to research development and deployment of emerging
  technology in the area of electricity storage.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1. Section 39.905, Utilities Code, is amended by
  adding Subsection (a-1) to read as follows:
         (a-1)  As a component of an electric utility's
  market-transformation programs, including programs targeted to the
  construction of new buildings, each utility shall provide
  incentives for the development and use of the following distributed
  energy storage technologies:
               (1)  capacitors;
               (2)  batteries;
               (3)  ice-based thermal storage; and
               (4)  molten salt-based storage.
         SECTION 2.  Subchapter Z, Chapter 39, Utilities Code, is
  amended by adding Sections 39.923 and 39.924 to read as follows:
         Sec. 39.923.  NET METERING AND FAIR MARKET COMPENSATION OF
  ON-SITE ENERGY PRODUCTION.  (a)  In this section:
               (1)  "Net metering service" has the meaning assigned by
  Section 111(d)(11) of the federal Public Utility Regulatory
  Policies Act of 1978 (16 U.S.C. Section 2621(d)(11)).
               (2)  "Renewable energy technology" has the meaning
  assigned by Section 39.904(d).
         (b)  Notwithstanding any other law, the commission by rule
  shall require an electric utility to:
               (1)  offer net metering service to all retail customers
  of the utility who have an eligible on-site:
                     (A)  distributed energy generating facility that
  generates electricity using renewable energy technology; or
                     (B)  distributed energy storage facility; and
               (2)  compensate a retail customer at fair market value
  for metered electricity:
                     (A)  produced by the customer's eligible on-site
  renewable energy technology generating facility and delivered to
  the electric transmission grid; or
                     (B)  delivered to the electric transmission grid
  from an eligible on-site distributed energy storage facility.
         (c)  The commission by rule may establish standards an
  on-site renewable energy technology generating facility or on-site
  distributed energy storage facility must meet to be eligible for
  compensation under Subsection (b), including standards for
  equipment and for interconnection.
         Sec. 39.924.  VEHICLE-BASED BATTERY STORAGE.  The commission
  by rule shall require each electric utility to integrate into at
  least 20 percent of the utility's net metering infrastructure by
  not later than January 1, 2020, the ability to measure and deliver
  to the electric transmission grid electricity from vehicle-based
  battery storage.
         SECTION 3.  Chapter 388, Health and Safety Code, is amended
  by adding Section 388.0035 to read as follows:
         Sec. 388.0035.  REQUIREMENTS RELATING TO COMPATIBILITY WITH
  PLUG-IN MOTOR VEHICLES.  The State Energy Conservation Office by
  rule shall amend the energy code for single-family residential
  construction to require that new homes built after 2012 have an
  electrical system, including outlets, that is capable of recharging
  plug-in electric or plug-in hybrid electric motor vehicles.
         SECTION 4.  Subchapter B, Chapter 37, Utilities Code, is
  amended by adding Section 37.0525 to read as follows:
         Sec. 37.0525.  EXCEPTION TO CERTIFICATE FOR DEPLOYMENT OF
  STORAGE CAPACITY.  A transmission and distribution utility is not
  required to obtain a certificate for deploying not more than five
  megawatts of stored renewable energy for grid stability and
  transmission congestion management.
         SECTION 5.  Subchapter C, Chapter 39, Utilities Code, is
  amended by adding Section 39.1055 to read as follows:
         Sec. 39.1055.  OWNERSHIP AND SALE OF STORED RENEWABLE
  ENERGY.  (a)  Notwithstanding any other law, the commission by rule
  shall allow a transmission and distribution utility to own and sell
  stored renewable energy.
         (b)  In adopting rules under this section, the commission
  shall limit the amount of stored renewable energy a transmission
  and distribution utility may own and sell to an amount that will not
  affect market prices.
         SECTION 6.  (a)  The Electric Reliability Council of Texas
  shall conduct a study of the best methods to deploy utility-scale
  distributed renewable stored energy on the transmission and
  distribution grid in a manner that minimizes costs to consumers.
         (b)  Not later than January 1, 2011, the Electric Reliability
  Council of Texas shall prepare a report on the study and submit the
  report to the governor, the lieutenant governor, the speaker of the
  house of representatives, and each house and senate standing
  committee that has jurisdiction over electric issues.  The report
  must include recommendations for policy or statutory changes
  necessary to implement the results of the study.
         SECTION 7.  ENERGY STORAGE RESEARCH, DEVELOPMENT,
  DEMONSTRATION, AND COMMERCIALIZATION. Section 447.006(e) of the
  Government Code is amended by adding Subsection (j) as follows:
         (j)  The state energy conservation office shall develop a
  program to encourage the development of advanced energy storage
  technologies in this state:
               (1)  The office shall seek federal funds available
  under the American Recovery and Reinvestment Act of 2009 including
  grants for the manufacturing of advanced batteries and components,
  funding awards to manufacturers of advanced battery systems and
  vehicle batteries, and funds available to support smart grid
  demonstration projects in urban, suburban, tribal, and rural areas,
  including areas where electric system assets are controlled by
  nonprofit entities and areas where electric system assets are
  controlled by investor-owned utilities
               (2)  The office shall contract with an institution of
  higher education, a consortium of institutions of higher education,
  or another governmental entity to develop, test and commercialize
  new storage and reliability technologies for renewable energy to
  minimize costs of generation and transmission using federal or
  state funds or fee revenue.
               (3)  The office shall by 2011 perform a study in
  conjunction with ERCOT to determine:
         a.  how to deploy storage to minimize consumer costs
         b.  how to use storage to meet to maximize opportunities to
  sell Texas renewable energy out of state to meet any new federal
  renewable portfolio standard requirements
         c.  the impact of plug in hybrid and electric vehicle demand
  on the transmission systems and develop integration and utilization
  systems.
         d.  how to encourage the development, construction, and
  operation of new renewable energy storage projects at those sites
  in this state that have the greatest economic potential for capture
  and release of energy from development of this state's
  environmentally beneficial renewable resources.
               (4)  The office shall contract with a consortium of
  community colleges to create training and certification programs to
  support energy storage technologies.
         SECTION 8.  The Public Utility Commission of Texas shall
  adopt rules as required by this Act as soon as possible, but not
  later than January 1, 2010.
         SECTION 9.  This Act takes effect September 1, 2009.