HB3346 - Relating to distributed energy resources.

  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.