HB 3346

relating to distributed energy resources.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter A, Chapter 17, Utilities Code, is
amended by adding Section 17.011 to read as follows:
Sec. 17.011.  METER SOCKET ADAPTER.  The commission by rule
shall require an electric utility to modify the utility's service
requirements to authorize the use of a meter socket adapter owned by
a residential customer of retail electric service and certified by
a nationally recognized testing laboratory to support residential
distributed generation and energy storage systems.
SECTION 2.  Section 31.002, Utilities Code, is amended by
adding Subdivision (4-c) to read as follows:
(4-c)  "Distributed energy resource" means a resource
located on the distribution system, on a subsystem of the
distribution system, or on the customer's side of the meter,
(A)  a generation resource or storage resource
that provides electricity onto the distribution system; and
(B)  a load resource capable of modifying its
electricity usage in response to grid conditions.
SECTION 3.  Section 39.002, Utilities Code, is amended to
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 39.9155, 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
SECTION 4.  Section 39.3515, Utilities Code, is amended by
amending Subsection (b) and adding Subsection (c) to read as
(b)  The commission shall adopt [may establish] rules and
registration requirements for the aggregation of distributed
(1)  establish the aggregate distributed energy
resource pilot project (Project 53911) as a formal program;
(2)  require the independent organization certified
under Section 39.151 for the ERCOT power region to:
(A)  increase participation in the program by:
(i)  eliminating capacity- and load
(ii)  allowing for the participation of an
aggregated distributed energy resource in the wholesale energy
market if the resource has a capacity of 160 megawatts or less and
complies with all applicable commission requirements;
(iii)  allowing for the participation of an
aggregated distributed energy resource in the ancillary services
market if the resource has a capacity of 80 megawatts or less and
complies with all applicable commission requirements; and
(iv)  allowing for the participation in the
wholesale energy and ancillary services markets, without
security-constrained economic dispatch restrictions, of load
resource types that respond to demand response instructions with
(B)  incorporate aggregated noncontrollable load
resources into the program's governing documents; and
(3)  provide that, when the independent organization
certified under Section 39.151 for the ERCOT power region issues an
emergency energy alert, a distributed energy resource that
participates in the program is entitled to the same legal
protections and subject to the same performance standards as
another comparable energy resource.
SECTION 5.  Subchapter Z, Chapter 39, Utilities Code, is
amended by adding Sections 39.9155 and 39.9161 to read as follows:
Sec. 39.9155.  DISTRIBUTED ENERGY RESOURCES.  (a)  The
(1)  provide for an expedited application process for
the interconnection of distributed energy resources;
(2)  adopt statewide technical requirements for
interconnected distributed energy resources;
(3)  provide for an expedited approval process for the
installation of distributed energy resources with a capacity of
(4)  authorize the management of distributed energy
resource import and export limitations using power control systems
that are tested and certified by a nationally recognized testing
(b)  The commission shall review the requirements adopted
under Subsection (a)(2) at least once every two years and update
those requirements as necessary for public safety.
(c)  Compliance with rules adopted under Subsection (a) by a
provider of electric service which is a municipally owned utility
shall be administered solely by the governing body of the
municipally owned utility, which shall adopt, implement, and
enforce, as to the municipally owned utility, rules having the
effect of accomplishing the objectives of this section.
(d)  The commission by rule shall:
(1)  ensure that owners of distributed energy resources
are fairly compensated for contributions to grid resilience,
including through retail tariffs or other market mechanisms, with
compensation that reflects the locational and temporal value of the
(2)  establish standards for telemetry provided to the
independent organization certified under Section 39.151 for the
ERCOT power region by an owner or operator of a distributed energy
resource that include real-time two-second protocols and clarified
(e)  The commission may enter into public-private
partnerships and allocate grants for the purposes of this section
if money is available for those purposes under other law.
Sec. 39.9161.  INTERCONNECTION OF ELECTRIC VEHICLES.  (a)
(1)  "Electric vehicle" has the meaning assigned by
(2)  "Interconnection" means the right of an electric
vehicle owner to physically connect the electric vehicle to an
electricity distribution system and the technical requirements,
rules, or processes for the connection.
(b)  The commission by rule shall establish safety,
technical, and performance standards for electric vehicles that may
be interconnected. In adopting the rules, the commission shall
consider standards published by the Underwriters Laboratories, the
National Electrical Code, the National Electrical Safety Code, and
the Institute of Electrical and Electronics Engineers.
(c)  The commission by rule shall establish a program to
allow the sale of electricity stored by an electric vehicle to the
transmission grid and distribution system.  The rules must
authorize an electric utility or retail electric provider to
contract with an electric vehicle owner so that:
(1)  electricity stored by the electric vehicle is made
available for sale to the transmission grid and distribution
(2)  the value of that electricity is credited to the
SECTION 6.  Not later than December 31, 2025, the Public
Utility Commission of Texas shall adopt the rules required by this
SECTION 7.  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, 2025.