HB3904 - Relating to billing and payments associated with distributed renewable generation.

  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.