89R9009 CXP-F

By: Reynolds H.B. No. 3346

A BILL TO BE ENTITLED

AN ACT

relating to distributed energy resources.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter A, Chapter 17, Utilities Code, is amended by adding Section 17.011 to read as follows:

Sec. 17.011. METER SOCKET ADAPTER. The commission by rule shall require an electric utility to modify the utility's service requirements to authorize the use of a meter socket adapter owned by a residential customer of retail electric service and certified by a nationally recognized testing laboratory to support residential distributed generation and energy storage systems.

SECTION 2. Section 31.002, Utilities Code, is amended by adding Subdivision (4-c) to read as follows:

(4-c) "Distributed energy resource" means a resource located on the distribution system, on a subsystem of the distribution system, or on the customer's side of the meter, including:

(A) a generation resource or storage resource that provides electricity onto the distribution system; and

(B) a load resource capable of modifying its electricity usage in response to grid conditions.

SECTION 3. Section 39.002, Utilities Code, is amended to read as follows:

Sec. 39.002. APPLICABILITY. This chapter, other than Sections 39.151, 39.1516, 39.155, 39.157(e), 39.161, 39.162, 39.163, 39.203, 39.9051, 39.9052, [and] 39.914(e), and 39.9155, and Subchapters M and N, does not apply to a municipally owned utility or an electric cooperative. Sections 39.157(e) and 39.203 apply only to a municipally owned utility or an electric cooperative that is offering customer choice. If there is a conflict between the specific provisions of this chapter and any other provisions of this title, except for Chapters 40 and 41, the provisions of this chapter control.

SECTION 4. Section 39.3515, Utilities Code, is amended by amending Subsection (b) and adding Subsection (c) to read as follows:

(b) The commission shall adopt [may establish] rules and registration requirements for the aggregation of distributed energy resources.

(c) The commission shall:

(1) establish the aggregate distributed energy resource pilot project (Project 53911) as a formal program;

(2) require the independent organization certified under Section 39.151 for the ERCOT power region to:

(A) increase participation in the program by:

(i) eliminating capacity- and load zone-based limitations;

(ii) allowing for the participation of an aggregated distributed energy resource in the wholesale energy market if the resource has a capacity of 160 megawatts or less and complies with all applicable commission requirements;

(iii) allowing for the participation of an aggregated distributed energy resource in the ancillary services market if the resource has a capacity of 80 megawatts or less and complies with all applicable commission requirements; and

(iv) allowing for the participation in the wholesale energy and ancillary services markets, without security-constrained economic dispatch restrictions, of load resource types that respond to demand response instructions with blocks of demand; and

(B) incorporate aggregated noncontrollable load resources into the program's governing documents; and

(3) provide that, when the independent organization certified under Section 39.151 for the ERCOT power region issues an emergency energy alert, a distributed energy resource that participates in the program is entitled to the same legal protections and subject to the same performance standards as another comparable energy resource.

SECTION 5. Subchapter Z, Chapter 39, Utilities Code, is amended by adding Sections 39.9155 and 39.9161 to read as follows:

Sec. 39.9155. DISTRIBUTED ENERGY RESOURCES. (a) The commission by rule shall:

(1) provide for an expedited application process for the interconnection of distributed energy resources;

(2) adopt statewide technical requirements for interconnected distributed energy resources;

(3) provide for an expedited approval process for the installation of distributed energy resources with a capacity of less than 50 kilowatts; and

(4) authorize the management of distributed energy resource import and export limitations using power control systems that are tested and certified by a nationally recognized testing laboratory.

(b) The commission shall review the requirements adopted under Subsection (a)(2) at least once every two years and update those requirements as necessary for public safety.

(c) Compliance with rules adopted under Subsection (a) by a provider of electric service which is a municipally owned utility shall be administered solely by the governing body of the municipally owned utility, which shall adopt, implement, and enforce, as to the municipally owned utility, rules having the effect of accomplishing the objectives of this section.

(d) The commission by rule shall:

(1) ensure that owners of distributed energy resources are fairly compensated for contributions to grid resilience, including through retail tariffs or other market mechanisms, with compensation that reflects the locational and temporal value of the resources; and

(2) establish standards for telemetry provided to the independent organization certified under Section 39.151 for the ERCOT power region by an owner or operator of a distributed energy resource that include real-time two-second protocols and clarified validation metrics.

(e) The commission may enter into public-private partnerships and allocate grants for the purposes of this section if money is available for those purposes under other law.

Sec. 39.9161. INTERCONNECTION OF ELECTRIC VEHICLES. (a) In this section:

(1) "Electric vehicle" has the meaning assigned by Section 42.0102.

(2) "Interconnection" means the right of an electric vehicle owner to physically connect the electric vehicle to an electricity distribution system and the technical requirements, rules, or processes for the connection.

(b) The commission by rule shall establish safety, technical, and performance standards for electric vehicles that may be interconnected. In adopting the rules, the commission shall consider standards published by the Underwriters Laboratories, the National Electrical Code, the National Electrical Safety Code, and the Institute of Electrical and Electronics Engineers.

(c) The commission by rule shall establish a program to allow the sale of electricity stored by an electric vehicle to the transmission grid and distribution system. The rules must authorize an electric utility or retail electric provider to contract with an electric vehicle owner so that:

(1) electricity stored by the electric vehicle is made available for sale to the transmission grid and distribution system; and

(2) the value of that electricity is credited to the electric vehicle owner.

SECTION 6. Not later than December 31, 2025, the Public Utility Commission of Texas shall adopt the rules required by this Act.

SECTION 7. 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, 2025.