Bill > HB2303

This bill introduces two key provisions related to electric power generation and taxation in Texas. First, it creates a sales and use tax exemption for standby electric power devices with a capacity under 200 kilowatts that are permanently installed in a structure with a manual or automatic transfer switch, allowing the comptroller to establish rules for claiming this exemption. Second, the bill establishes an ancillary service program within the Electric Reliability Council of Texas (ERCOT) that allows retail electric providers, municipal utilities, and electric cooperatives to aggregate customer-sited backup generation facilities (up to 10 megawatts) that can be dispatched during power grid outages. This program enables participating customers to potentially sell electricity back to the grid at the current market rate, with credits applied to their utility bills and carried over between billing periods. The program is designed to enhance grid reliability by leveraging distributed generation resources and provides a financial incentive for customers to install backup power systems. The bill includes a sunset provision, with the program set to expire on September 1, 2035, and will take effect on September 1, 2025.