Relating to the interconnection and integration of distributed energy resources.
Impact
If enacted, SB2021 will amend the Utilities Code, introducing specific definitions for various terms related to DERs, such as 'aggregated distributed energy resource' and 'power generation company.' The law allows for the registration of both individual DERs and aggregated systems with the Texas Public Utility Commission (PUC), establishing the criteria for operational and regulatory compliance. Supporters argue that this will foster investment and innovation in the energy sector while ensuring consumer protections against deceptive practices.
Summary
SB2021 is an act that focuses on the interconnection and integration of distributed energy resources (DER) in Texas, specifically within the Electric Reliability Council of Texas (ERCOT) power region. The bill aims to provide a clearer regulatory framework for the operation of DERs, including electric energy storage and distributed generation systems. This legislation intends to promote the reliability and efficiency of Texas's energy system while allowing more flexibility for distributed energy providers to operate within the existing state laws.
Contention
Despite its intentions, SB2021 has sparked discussions regarding its potential implications for local control and market regulations. Supporters of the bill, particularly from the business sector, advocate for streamlined processes and less bureaucratic red tape for DERs. Conversely, critics express concerns about the risk of regulatory overreach that could undermine local energy initiatives and potentially lead to monopolistic practices in energy generation. This division highlights the ongoing debates regarding energy independence and the balance between state and local regulatory authority.
Texas Constitutional Statutes Affected
Utilities Code
Chapter 31. General Provisions
Section: New Section
Chapter 39. Restructuring Of Electric Utility Industry
Relating to the continuation and functions of the Public Utility Commission of Texas and the Office of Public Utility Counsel, and the functions of the independent organization certified for the ERCOT power region; increasing an administrative penalty.
Relating to the establishment of the Texas Energy Insurance Program and other funding mechanisms to support the construction and operation of electric generating facilities.
Requires electric public utilities to implement certain improvements to interconnection process for certain grid supply solar facilities and energy storage facilities.
Requires electric public utilities to implement certain improvements to interconnection process for certain grid supply solar facilities and energy storage facilities.
Relating to the continuation and functions of the Public Utility Commission of Texas and the Office of Public Utility Counsel, and the functions of the independent organization certified for the ERCOT power region; increasing an administrative penalty.