89R5730 JXC-D By: Dorazio H.B. No. 3905 A BILL TO BE ENTITLED AN ACT relating to the interconnection or deployment of distributed generation by or for retail electric customers. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 17.004(a), Utilities Code, is amended to read as follows: (a) All buyers of telecommunications and retail electric services are entitled to: (1) protection from fraudulent, unfair, misleading, deceptive, or anticompetitive practices, including protection from being billed for services that were not authorized or provided; (2) choice of a telecommunications service provider, a retail electric provider, or an electric utility, where that choice is permitted by law, and to have that choice honored; (3) information in English and Spanish and any other language as the commission deems necessary concerning rates, key terms and conditions, and the basis for any claim of environmental benefits of certain production facilities; (4) protection from discrimination on the basis of race, color, sex, nationality, religion, marital status, income level, or source of income and from unreasonable discrimination on the basis of geographic location; (5) impartial and prompt resolution of disputes with a certificated telecommunications utility, a retail electric provider, or an electric utility and disputes with a telecommunications service provider related to unauthorized charges and switching of service; (6) privacy of customer consumption and credit information; (7) accuracy of metering and billing; (8) bills presented in a clear, readable format and easy-to-understand language that uses defined terms as required by commission rules adopted under Section 17.003; (9) information in English and Spanish and any other language as the commission deems necessary concerning low-income assistance programs and deferred payment plans; (10) all consumer protections and disclosures established by the Fair Credit Reporting Act (15 U.S.C. Section 1681 et seq.) and the Truth in Lending Act (15 U.S.C. Section 1601 et seq.); [and] (11) after retail competition begins as authorized by the legislature, programs provided by retail electric providers that offer eligible low-income customers energy efficiency programs, an affordable rate package, and bill payment assistance programs designed to reduce uncollectible accounts; and (12) deploy emergency energy backup generation or storage capability on the customer's premises, whether connected to an electricity distribution system or not, if the generation or storage complies with all applicable standards established by the commission and local building codes. SECTION 2. 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, [and] 39.914(e), and 39.9162, 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 3. Section 39.554, Utilities Code, is amended by adding Subsection (b-1) to read as follows: (b-1) An electric utility subject to this subchapter may not require a distributed renewable generation owner of generation that produces electricity using photovoltaic technology and complies with the standards established by rule under Section 39.916(d) to comply with additional safety, technical, or performance standards. SECTION 4. Subchapter Z, Chapter 39, Utilities Code, is amended by adding Section 39.9162 to read as follows: Sec. 39.9162. DISTRIBUTED SOLAR GENERATION PROTECTIONS. (a) In this section, "distributed solar generation owner" means a distributed renewable generation owner, as defined by Section 39.916, of generation that produces electricity using photovoltaic technology. (b) An electric cooperative, electric utility, municipally owned utility, or retail electric provider may not: (1) prohibit a distributed solar generation owner from connecting a device or load on the circuit on which the generation operates unless a meter used exclusively for monitoring the generation of voluntary renewable energy credits is also installed on that circuit; (2) limit the point of interconnection of generation that produces electricity using photovoltaic technology to a single point of interconnection on a distributed solar generation owner's side of the meter, unless required by the commission by rule; (3) prohibit a distributed solar generation owner from installing the generation on the owner's side of the meter; (4) limit the size of a customer's generation system that produces electricity using photovoltaic technology or the amount of energy production from the system, other than limiting the amount of possible exportation of energy to prevent an exportation of energy that exceeds the customer's existing electrical service transformer rating; (5) prohibit a retail customer of the cooperative, utility, or provider from purchasing or leasing generation that produces electricity using photovoltaic technology; (6) require a person who sells, leases, installs, or maintains generation that produces electricity using photovoltaic technology to or for a retail customer of the cooperative, utility, or provider to hold any certification, license, or insurance not required by state law; or (7) require a distributed solar generation owner to have the generation regularly inspected at the owner's expense. (c) An electric cooperative, electric utility, municipally owned utility, or retail electric provider shall approve or deny an interconnection request submitted by a retail customer regarding generation that produces electricity using photovoltaic technology not later than the 21st day after the date the request is submitted. (d) An electric cooperative, electric utility, or retail electric provider may not require a distributed solar generation owner whose generation complies with the standards established by rule under Section 39.916(d) to comply with additional safety, technical, or performance standards. (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 5. 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 6. This Act takes effect September 1, 2025.