87R16166 JXC-F By: Deshotel H.B. No. 3624 Substitute the following for H.B. No. 3624: By: Paddie C.S.H.B. No. 3624 A BILL TO BE ENTITLED AN ACT relating to certain distributed electricity resources. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 35, Utilities Code, is amended by adding Subchapter F to read as follows: SUBCHAPTER F. DISTRIBUTED RENEWABLE GENERATION AND DISTRIBUTED ENERGY STORAGE Sec. 35.201. DEFINITIONS. In this subchapter: (1) "Distributed renewable generation" has the meaning assigned by Section 39.916. (2) "Distributed energy storage" has the meaning assigned by Section 39.9165. Sec. 35.202. OWNER OR OPERATOR USE. (a) An owner or operator of distributed renewable generation or distributed energy storage that is installed on the retail electric customer's side of the meter is entitled to use the generation or storage to sell electricity or ancillary services at wholesale in a manner consistent with the provisions of this title. (b) A retail electric customer described by Subsection (a) is not required to register as a power generation company under Section 39.351(a). SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is amended by adding Section 39.9165 to read as follows: Sec. 39.9165. DEVICES USED WITH DISTRIBUTED RENEWABLE GENERATION AND DISTRIBUTED ENERGY STORAGE. (a) In this section: (1) "Distributed renewable generation" has the meaning assigned by Section 39.916. (2) "Distributed energy storage" means electric energy storage with a capacity of not more than 2,000 kilowatts that is installed on a retail electric customer's side of the meter. (3) "Owner" means: (A) an owner of distributed renewable generation; (B) an owner of distributed energy storage; (C) an owner of distributed renewable generation and distributed energy storage; (D) a retail electric customer on whose side of the meter distributed renewable generation or distributed energy storage is installed and operated regardless of whether the customer takes ownership of the generation or storage; or (E) a person who by contract is assigned ownership rights to energy produced from distributed renewable generation or distributed energy storage located at the premises of the customer on the customer's side of the meter. (b) An electric utility shall allow an owner to use an owner-supplied, UL-certified device designed to isolate and disconnect household loads on the retail electric customer's side of the meter. SECTION 3. This Act takes effect September 1, 2021.