Texas 2025 - 89th Regular

Texas House Bill HB2303 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R4443 JXC/CJC-D
2	2	By: Bell of Montgomery H.B. No. 2303
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to electric market payments for and an exemption from
10	10	sales and use taxes for customer-sited distributed generation.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
13	13	by adding Section 151.360 to read as follows:
14	14	Sec. 151.360. CERTAIN STANDBY ELECTRIC POWER DEVICES.
15	15	(a) In this section, "standby electric power device" means a
16	16	non-portable device capable of supplying electric power to the
17	17	structure or facility at which it is permanently installed in the
18	18	event of a power grid outage.
19	19	(b) A device that has a rated capacity to supply less than
20	20	200 kilowatts that is purchased with the intent that it be
21	21	permanently installed and connected to the main electrical panel of
22	22	a structure or facility by a manual or automatic transfer switch for
23	23	use as a standby electric power device is exempt from the taxes
24	24	imposed by this chapter.
25	25	(c) The comptroller by rule shall prescribe the manner by
26	26	which a person who purchases a standby electric power device must
27	27	establish that the person is entitled to the exemption provided by
28	28	this section.
29	29	SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is
30	30	amended by adding Section 39.9166 to read as follows:
31	31	Sec. 39.9166. AGGREGATED DISTRIBUTED GENERATION FACILITY
32	32	PROGRAM FOR DISPATCHABLE GENERATION. (a) In this section,
33	33	"customer-sited backup generation facility" means a distributed
34	34	generation facility in the ERCOT power region that is installed on a
35	35	retail electric customer's side of the meter:
36	36	(1) with a nameplate capacity of not more than 10
37	37	megawatts;
38	38	(2) that is capable of generating and providing backup
39	39	or supplementary power to the customer's premises and the power
40	40	grid; and
41	41	(3) that is capable of being dispatched by the
42	42	independent organization certified under Section 39.151 for the
43	43	ERCOT power region.
44	44	(b) This section does not apply to:
45	45	(1) a distributed natural gas generation facility
46	46	operated by a power generation company; or
47	47	(2) a distributed generation facility to which Section
48	48	35.037 applies.
49	49	(c) The commission shall establish an ancillary service
50	50	program to allow a retail electric provider, a municipally owned
51	51	utility that has not adopted customer choice, or an electric
52	52	cooperative that has not adopted customer choice to aggregate
53	53	customer-sited backup generation facilities to provide
54	54	dispatchable generation during a power grid outage if the
55	55	participation of the facilities in such a program is
56	56	technologically feasible.
57	57	(d) A retail electric provider, municipally owned utility,
58	58	or electric cooperative participating in the program shall provide
59	59	to the independent organization certified under Section 39.151 for
60	60	the ERCOT power region information about the facilities that the
61	61	independent organization determines is necessary for maintaining
62	62	system reliability.
63	63	(e) A customer that participates in the program is not
64	64	required to register as a power generation company solely because
65	65	of the person's participation in the program.
66	66	(f) The program may allow participating customers to sell
67	67	electric energy produced by customer-sited backup generation
68	68	facilities at:
69	69	(1) a value based on the clearing price of energy at
70	70	the time of day and at the location at which the electricity is
71	71	generated, including electric energy consumed on customer
72	72	premises; or
73	73	(2) another value as determined by the commission or
74	74	the independent organization certified under Section 39.151 for the
75	75	ERCOT power region.
76	76	(g) The sale may be applied as a credit to the customer's
77	77	account during a billing period that may be carried over to
78	78	subsequent billing periods until the credit has been redeemed.
79	79	(h) This section expires September 1, 2035.
80	80	SECTION 3. Section 151.360, Tax Code, as added by this Act,
81	81	does not affect tax liability accruing before the effective date of
82	82	this Act. That liability continues in effect as if Section 151.360,
83	83	Tax Code, had not been enacted, and the former law is continued in
84	84	effect for the collection of taxes due and for civil and criminal
85	85	enforcement of the liability for those taxes.
86	86	SECTION 4. This Act takes effect September 1, 2025.