89R10166 JXC-D

By: Dorazio H.B. No. 3904

A BILL TO BE ENTITLED

AN ACT

relating to billing and payments associated with distributed renewable generation.

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

SECTION 1. 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, 39.9113, [and] 39.914(e), and 39.9161, 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 2. Section 39.9113, Utilities Code, is amended to read as follows:

Sec. 39.9113. RENEWABLE ENERGY CREDITS. (a) To facilitate voluntary contractual obligations and verify claims regarding environmental attributes of renewable energy production in this state, the independent organization certified under Section 39.151 for the ERCOT power region shall maintain an accreditation and banking system to award and track voluntary renewable energy credits generated by eligible facilities.

(b) An electric cooperative, municipally owned utility, or retail electric provider may not assume ownership or assignment of or sell a voluntary renewable energy credit generated by distributed renewable generation, as defined by Section 39.916, or require a distributed renewable generation owner, as defined by Section 39.916, to install a meter to monitor the generation of credits unless the cooperative, utility, or provider has entered into a written agreement with the owner for the transfer, assignment, or sale of voluntary renewable energy credits and has paid reasonable monetary consideration to the owner.

(c) An electric cooperative, municipally owned utility, or retail electric provider shall pay the cost of installing any meter used exclusively for a transaction described by Subsection (b). The electric cooperative, municipally owned utility, or retail electric provider shall include with each periodic retail bill provided to the distributed renewable generation owner all generation data measured by the meter described in Subsection (b).

SECTION 3. Subchapter Z, Chapter 39, Utilities Code, is amended by adding Section 39.9161 to read as follows:

Sec. 39.9161. DISTRIBUTED SOLAR GENERATION. (a) In this section, "solar generation owner" means a distributed renewable generation owner, as defined by Section 39.916, of generation that produces electricity using photovoltaic technology.

(b) Notwithstanding any other provision of this code, an electric cooperative, electric utility, municipally owned utility, or retail electric provider may not discriminate against a solar generation owner in any monetary form through billing practices or policies compared to other ratepayers.

(c) Notwithstanding Sections 39.554 and 39.916, an electric cooperative, electric utility, municipally owned utility, or retail electric provider shall offer to contract with a solar generation owner so that:

(1) surplus electricity produced by the solar generation is made available for sale to the transmission grid and distribution system;

(2) the net retail value of that surplus electricity is credited to the solar generation owner during the billing period in which the electricity is produced to reduce the owner's retail bill for services, other than charges for fixed delivery or availability;

(3) any taxes or fees associated with the surplus electricity are not charged to the owner as if the electricity was consumed by the owner; and

(4) the value of any surplus electricity that exceeds the amount authorized to be credited under Subdivision (2), if not purchased at retail value, is purchased from the owner at a value that is at least equal to the clearing price of energy at the time of day that the electricity is made available to the grid.

(d) An electric cooperative, electric utility, municipally owned utility, or retail electric provider shall pay to a solar generation owner at least annually the accumulated value of surplus electricity described by Subsection (c)(4) owed to the owner.

(e) The governing body of a municipally owned utility shall adopt, implement, and enforce rules to comply with the requirements of this section. An electric cooperative shall adopt, implement, and enforce rules to comply with the requirements of this section.

SECTION 4. The changes in law made by this Act apply only to a contract entered into on or after the effective date of this Act. A contract entered into before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 5. This Act takes effect September 1, 2025.