HB 3904

relating to billing and payments associated with distributed
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  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, 39.9113, [and] 39.914(e), and
39.9161, 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 2.  Section 39.9113, Utilities Code, is amended to
Sec. 39.9113.  RENEWABLE ENERGY CREDITS.  (a) To facilitate
voluntary contractual obligations and verify claims regarding
environmental attributes of renewable energy production in this
state, the independent organization certified under Section 39.151
for the ERCOT power region shall maintain an accreditation and
banking system to award and track voluntary renewable energy
credits generated by eligible facilities.
(b)  An electric cooperative, municipally owned utility, or
retail electric provider may not assume ownership or assignment of
or sell a voluntary renewable energy credit generated by
distributed renewable generation, as defined by Section 39.916, or
require a distributed renewable generation owner, as defined by
Section 39.916, to install a meter to monitor the generation of
credits unless the cooperative, utility, or provider has entered
into a written agreement with the owner for the transfer,
assignment, or sale of voluntary renewable energy credits and has
paid reasonable monetary consideration to the owner.
(c)  An electric cooperative, municipally owned utility, or
retail electric provider shall pay the cost of installing any meter
used exclusively for a transaction described by Subsection (b).
The electric cooperative, municipally owned utility, or retail
electric provider shall include with each periodic retail bill
provided to the distributed renewable generation owner all
generation data measured by the meter described in Subsection (b).
SECTION 3.  Subchapter Z, Chapter 39, Utilities Code, is
amended by adding Section 39.9161 to read as follows:
Sec. 39.9161.  DISTRIBUTED SOLAR GENERATION.  (a)  In this
section, "solar generation owner" means a distributed renewable
generation owner, as defined by Section 39.916, of generation that
produces electricity using photovoltaic technology.
(b)  Notwithstanding any other provision of this code, an
electric cooperative, electric utility, municipally owned utility,
or retail electric provider may not discriminate against a solar
generation owner in any monetary form through billing practices or
policies compared to other ratepayers.
(c)  Notwithstanding Sections 39.554 and 39.916, an electric
cooperative, electric utility, municipally owned utility, or
retail electric provider shall offer to contract with a solar
(1)  surplus electricity produced by the solar
generation is made available for sale to the transmission grid and
(2)  the net retail value of that surplus electricity
is credited to the solar generation owner during the billing period
in which the electricity is produced to reduce the owner's retail
bill for services, other than charges for fixed delivery or
(3)  any taxes or fees associated with the surplus
electricity are not charged to the owner as if the electricity was
(4)  the value of any surplus electricity that exceeds
the amount authorized to be credited under Subdivision (2), if not
purchased at retail value, is purchased from the owner at a value
that is at least equal to the clearing price of energy at the time of
day that the electricity is made available to the grid.
(d)  An electric cooperative, electric utility, municipally
owned utility, or retail electric provider shall pay to a solar
generation owner at least annually the accumulated value of surplus
electricity described by Subsection (c)(4) owed to the owner.
(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 4.  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
SECTION 5.  This Act takes effect September 1, 2025.