By: Rodriguez, Van de Putte S.B. No. 1586 (In the Senate - Filed March 8, 2013; March 19, 2013, read first time and referred to Committee on Business and Commerce; May 2, 2013, reported adversely, with favorable Committee Substitute by the following vote: Yeas 6, Nays 0; May 2, 2013, sent to printer.) COMMITTEE SUBSTITUTE FOR S.B. No. 1586 By: Watson A BILL TO BE ENTITLED AN ACT relating to distributed renewable generation of electricity. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subdivision (1), Subsection (a), Section 39.916, Utilities Code, is amended to read as follows: (1) "Distributed renewable generation" means electric generation [with a capacity of not more than 2,000 kilowatts] provided by a renewable energy technology, as defined by Section 39.904: (A) with a capacity of not more than 2,000 kilowatts[,] that is installed on a retail electric customer's side of the meter; (B) with a capacity of not more than five megawatts that is installed on a retail electric customer's side of the meter and is located on land or in a facility owned by this state or a school district; or (C) with a capacity of not more than 10 megawatts that is installed on land or in a facility owned by the federal government. SECTION 2. Subsection (b), Section 39.916, Utilities Code, is amended to read as follows: (b) A transmission and distribution utility or electric utility shall allow interconnection if: (1) the distributed renewable generation to be interconnected has a five-year warranty against breakdown or undue degradation; [and] (2) the rated capacity of the distributed renewable generation does not exceed the transmission and distribution utility or electric utility service capacity; and (3) for distributed renewable generation described by Subsection (a)(1)(B) or (C), the commission has not made a finding that the interconnection of the generation will impair reliability or increase customer costs. SECTION 3. As soon as practicable after the effective date of this Act, the Public Utility Commission of Texas shall adopt and implement rules as necessary to accommodate the interconnection of distributed renewable generation described by Paragraphs (B) and (C), Subdivision (1), Subsection (a), Section 39.916, Utilities Code, as added by this Act, to an electricity distribution system. SECTION 4. 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, 2013. * * * * *