Texas 2025 - 89th Regular

Texas Senate Bill SB2021 Compare Versions

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

Old	New	Differences
1	1	89R15531 CXP-F
2	2	By: Johnson S.B. No. 2021
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the interconnection and integration of distributed
10	10	energy resources.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 31.002, Utilities Code, is amended by
13	13	adding Subdivisions (2-a) and (4-c) and amending Subdivision (10)
14	14	to read as follows:
15	15	(2-a) "Aggregated distributed energy resource" means
16	16	a group of distributed energy resources joined together to be
17	17	operated as a single distributed energy resource, where each
18	18	individual resource in the aggregation produces not more than 1.5
19	19	megawatts of electricity, subject to an increase or decrease by
20	20	commission rule if the commission determines that a different
21	21	capacity size limit is appropriate and does not adversely affect
22	22	the ERCOT power region or distribution system reliability.
23	23	(4-c) "Distributed energy resource" means a source of
24	24	electricity connected at a voltage less than 60 kilovolts,
25	25	including electric energy storage, distributed generation,
26	26	distributed natural gas generation, or electric vehicles that
27	27	provide electricity onto the distribution system. The term does
28	28	not include a facility that provides temporary emergency electric
29	29	energy under Section 39.918.
30	30	(10) "Power generation company" means a person[,
31	31	including a person who owns or operates a distributed natural gas
32	32	generation facility,] that:
33	33	(A) generates electricity that is intended to be
34	34	sold at wholesale, including the owner or operator of electric
35	35	energy storage equipment or facilities to which Subchapter E,
36	36	Chapter 35, applies;
37	37	(B) does not own a transmission or distribution
38	38	facility in this state other than an essential interconnecting
39	39	facility, a facility not dedicated to public use, or a facility
40	40	otherwise excluded from the definition of "electric utility" under
41	41	this section; and
42	42	(C) does not have a certificated service area,
43	43	although its affiliated electric utility or transmission and
44	44	distribution utility may have a certificated service area.
45	45	SECTION 2. Section 39.351(a), Utilities Code, is amended to
46	46	read as follows:
47	47	(a) A person may not generate electricity unless:
48	48	(1) the person is registered with the commission as a
49	49	power generation company in accordance with this section; or
50	50	(2) the electricity is generated as part of a
51	51	registered aggregated [aggregate] distributed energy resource
52	52	[under Section 39.3515].
53	53	SECTION 3. Subchapter H, Chapter 39, Utilities Code, is
54	54	amended by adding Section 39.3514 to read as follows:
55	55	Sec. 39.3514. REGISTRATION OF DISTRIBUTED ENERGY
56	56	RESOURCES. An owner or operator of a distributed energy resource
57	57	may provide energy or ancillary services in the wholesale market in
58	58	the ERCOT power region through generating electricity and providing
59	59	that electricity onto a distribution system only if:
60	60	(1) the owner or operator is registered with the
61	61	commission as a power generation company under Section 39.351 and
62	62	authorized by the independent organization certified under Section
63	63	39.151 for the ERCOT power region; or
64	64	(2) the distributed energy resource:
65	65	(A) is part of an aggregated distributed energy
66	66	resource that is:
67	67	(i) included in the registration of a power
68	68	generation company under Section 39.351 and the independent
69	69	organization certified under Section 39.151 for the ERCOT power
70	70	region; or
71	71	(ii) authorized by the commission and
72	72	registered under Section 39.3515; and
73	73	(B) has complied with the interconnection
74	74	requirements of the interconnecting transmission and distribution
75	75	utility.
76	76	SECTION 4. Chapter 39, Utilities Code, is amended by adding
77	77	Subchapter O to read as follows:
78	78	SUBCHAPTER O. INTERCONNECTION OF DISTRIBUTED ENERGY RESOURCES
79	79	Sec. 39.701. INTEGRATION AND COST RECOVERY. (a) The
80	80	commission by rule shall establish for the ERCOT power region:
81	81	(1) requirements for the dispatchability,
82	82	reliability, and other characteristics of each type or
83	83	classification of distributed energy resource;
84	84	(2) appropriate disclosure requirements and other
85	85	customer protections for residential and small commercial
86	86	customers of providers of aggregated distributed energy services;
87	87	(3) information an owner or operator of a distributed
88	88	energy resource must provide to the interconnecting transmission
89	89	and distribution utility to ensure the resource will not adversely
90	90	affect the transmission or distribution system;
91	91	(4) interconnection guidelines that address:
92	92	(A) the determination of whether a given
93	93	interconnection or combination of interconnections would exceed a
94	94	transmission and distribution utility's system capacity in a
95	95	particular location;
96	96	(B) considerations for feeder locations related
97	97	to distributed energy resources;
98	98	(C) considerations of the size or capacity of a
99	99	distributed energy resource;
100	100	(D) the assessment by the interconnecting
101	101	transmission and distribution utility of potential impacts to other
102	102	customers in the area of the distributed energy resource; and
103	103	(E) other operating parameters necessary for the
104	104	transmission and distribution utility's reliable operation of its
105	105	transmission and distribution system;
106	106	(5) a methodology for the appropriate allocation and
107	107	recovery of the transmission and distribution utility's costs to
108	108	interconnect a distributed energy resource; and
109	109	(6) requirements for the independent organization
110	110	certified under Section 39.151 for the ERCOT power region to report
111	111	to the commission periodically:
112	112	(A) the categories and generation levels of
113	113	distributed energy resources allowed to participate in the ERCOT
114	114	wholesale market;
115	115	(B) the categories and megawatt levels of
116	116	aggregated distributed energy resources allowed to participate in
117	117	the ERCOT wholesale market;
118	118	(C) performance metrics for distributed energy
119	119	resources allowed to participate in the ERCOT wholesale market; and
120	120	(D) other information the commission may
121	121	require.
122	122	(b) The commission shall authorize a transmission and
123	123	distribution utility to:
124	124	(1) defer for recovery in a later ratemaking
125	125	proceeding the incremental operations and maintenance expenses, or
126	126	other expenses, and the return, not otherwise recovered in a rate
127	127	proceeding, associated with the installation, modification,
128	128	upgrade, or maintenance of its transmission or distribution
129	129	facilities required by an interconnection with a distributed energy
130	130	resource; and
131	131	(2) request recovery of the costs associated with an
132	132	interconnection with a distributed energy resource, including any
133	133	deferred expenses, through a proceeding under Section 35.004 or
134	134	36.210 or in another ratemaking proceeding regardless of whether
135	135	the utility or cooperative first requested recovery in a base-rate
136	136	proceeding.
137	137	(c) This subchapter does not:
138	138	(1) require or authorize a distribution service
139	139	provider to procure distributed energy resource services to enable
140	140	the operation of the distribution system;
141	141	(2) require a distribution service provider to
142	142	disclose to any third party, except as required by the independent
143	143	system operator, the provider's system planning information,
144	144	studies, models, critical infrastructure information, or other
145	145	confidential information;
146	146	(3) diminish a distribution service provider's rights
147	147	or obligations to own or operate its distribution system and
148	148	provide electric delivery service to retail customers in the
149	149	provider's certificated service area;
150	150	(4) obligate a distribution service provider to
151	151	interconnect a distributed energy resource with a capacity equal to
152	152	or greater than 10 megawatts; or
153	153	(5) prohibit an interconnecting distribution service
154	154	provider from shedding a distributed energy resource, or otherwise
155	155	obligate an interconnecting distribution service provider to
156	156	provide preferential treatment to feeders with distributed energy
157	157	resources or prevent a transmission and distribution utility from
158	158	fulfilling its load shedding obligations during an involuntary load
159	159	shedding event initiated by the independent system operator or a
160	160	planned or unplanned outage of the distribution system.
161	161	Sec. 39.702. LIABILITY. An interconnecting transmission
162	162	and distribution utility or retail electric provider providing
163	163	service to a distributed energy resource to which this subchapter
164	164	applies is not liable for:
165	165	(1) a violation of reliability or service metrics
166	166	caused by distributed energy resource operations that violate its
167	167	interconnection agreement; or
168	168	(2) a distributed energy resource's inability or
169	169	failure to provide services that violate its interconnection
170	170	agreement or a penalty for such inability or failure.
171	171	SECTION 5. Subchapter Z, Chapter 39, Utilities Code, is
172	172	amended by adding Section 39.9166 to read as follows:
173	173	Sec. 39.9166. DISTRIBUTED ENERGY RESOURCES. (a) A
174	174	customer who purchases or leases a distributed energy resource or
175	175	enters into a power purchase agreement for a distributed energy
176	176	resource in the ERCOT power region is entitled to the information
177	177	and disclosures required under Chapter 115, Business & Commerce
178	178	Code, and is entitled to protection from fraudulent, unfair,
179	179	misleading, or deceptive practices.
180	180	(b) An owner or operator of a distributed energy resource
181	181	may provide energy or ancillary services in the wholesale market in
182	182	the ERCOT power region.
183	183	(c) A person who owns or operates a distributed energy
184	184	resource in an area in which customer choice has been introduced and
185	185	is part of an aggregated distributed energy resource, or has not
186	186	individually registered with the commission as its own power
187	187	generation company, may only sell the surplus electricity that is
188	188	produced by the distributed energy resource and not consumed by the
189	189	owner's premise to the retail electric provider that serves the
190	190	premise's load at a value agreed to between the distributed energy
191	191	resource owner and the retail electric provider that serves the
192	192	premise's load. The value may be an agreed value based on the
193	193	clearing price of energy or ancillary service at the time of day
194	194	that the electricity is made available to the grid.
195	195	(d) A person who operates an aggregated distributed energy
196	196	resource in an area in which customer choice has been introduced is
197	197	subject to customer protection rules established by the commission
198	198	under Chapter 17 and this chapter.
199	199	(e) The independent organization certified under Section
200	200	39.151 for the ERCOT power region shall adopt procedures to ensure
201	201	that the amount of electricity purchased from a distributed energy
202	202	resource owner under this section is accounted for when settling
203	203	the total load served by the retail electric provider that serves
204	204	that premise owner's load.
205	205	(f) A distributed energy resource owner that requests net
206	206	metering services for purposes of this section must have metering
207	207	devices capable of providing measurements consistent with the
208	208	independent organization's settlement requirements.
209	209	(g) A transmission and distribution utility may provide to
210	210	customers educational information regarding the technical
211	211	requirements for the interconnection of distributed energy
212	212	resources to the distribution system. The provision of information
213	213	under this subsection is not considered a competitive energy
214	214	service.
215	215	(h) This section does not apply to a purchase or agreement
216	216	entered into under Section 39.914 or 39.916.
217	217	SECTION 6. As soon as practicable after the effective date
218	218	of this Act, the Public Utility Commission of Texas shall adopt
219	219	rules necessary to implement the changes in law made by this Act.
220	220	SECTION 7. This Act takes effect immediately if it receives
221	221	a vote of two-thirds of all the members elected to each house, as
222	222	provided by Section 39, Article III, Texas Constitution. If this
223	223	Act does not receive the vote necessary for immediate effect, this
224	224	Act takes effect September 1, 2025.