By: Fraser S.B. No. 546
A BILL TO BE ENTITLED
AN ACT
relating to the state goal for energy efficiency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 39.905, Utilities Code, is amended by
amending Subsection (a) and adding Subsections (h), (i), and (j) to
read as follows:
(a) It is the goal of the legislature that:
(1) electric utilities will administer energy
efficiency incentive programs in a market-neutral,
nondiscriminatory manner but will not offer underlying competitive
services;
(2) all customers, in all customer classes, will have
a choice of and access to energy efficiency alternatives and other
choices from the market that allow each customer to reduce energy
consumption, peak demand, or energy costs;
(3) each electric utility will provide, through
market-based standard offer programs, [or] limited, targeted,
market-transformation programs, or programs that address the major
barriers to energy efficiency, incentives sufficient for retail
electric providers and competitive energy service providers to
acquire additional cost-effective energy efficiency for
residential and commercial customers equivalent to at least:
(A) 10 percent of the electric utility's annual
growth in demand of residential and commercial customers by
December 31, 2007;
(B) 15 percent of the electric utility's annual
growth in demand of residential and commercial customers by
December 31, 2008, provided that the electric utility's program
expenditures for 2008 funding may not be greater than 75 percent
above the utility's program budget for 2007 for residential and
commercial customers, as included in the April 1, 2006, filing;
[and]
(C) 20 percent of the electric utility's annual
growth in demand of residential and commercial customers by
December 31, 2009, provided that the electric utility's program
expenditures for 2009 funding may not be greater than 150 percent
above the utility's program budget for 2007 for residential and
commercial customers, as included in the April 1, 2006, filing;
(D) the lower of 30 percent of the electric
utility's annual growth in demand or 0.3 percent of the total peak
demand of residential and commercial customers by December 31,
2012, provided that the average cost of the programs charged by the
electric utility to residential and commercial customers is not
more than 25 cents per megawatt hour; and
(E) the lower of 50 percent of the electric
utility's annual growth in demand or 0.7 percent of the total peak
demand of residential and commercial customers by December 31,
2016, provided that the average cost of the programs charged by the
electric utility to residential and commercial customers is not
more than 35 cents per megawatt hour;
(4) each electric utility in the ERCOT region shall
use its best efforts to encourage and facilitate the involvement of
the region's retail electric providers in the delivery of
efficiency programs and demand response programs under this
section;
(5) retail electric providers in the ERCOT region, and
electric utilities outside of the ERCOT region, shall provide
customers with energy efficiency educational materials; [and]
(6) notwithstanding Subdivision (3) [Subsection
(a)(3)], electric utilities shall continue to make available, at
2007 funding and participation levels, any load management standard
offer programs developed for industrial customers and implemented
prior to May 1, 2007; and
(7) for an electric utility operating outside of ERCOT
in areas of this state that were included in the Western Electricity
Coordinating Council on January 1, 2009, the utility may continue
to provide standard offer programs, limited, targeted
market-transformation programs, or programs that address the major
barriers to energy efficiency as required by Subdivision (3) or may
provide energy efficiency programs and measures directly to a
customer class.
(h) If the commission finds that an electric utility is
unable to meet the goals specified in this section due to the
establishment of new building energy codes; new appliance
standards; federal funding of conservation, weatherization, and
energy efficiency programs; or other factors unique to a particular
utility, the commission may establish alternative goals for the
utility, subject to the average rate impact limitations listed in
Subsection (a)(3).
(i) In the event the federal government establishes
national mandates, requirements, or goals for energy efficiency,
the commission may suspend the goals in this section if it finds
that the maintenance of a separate state requirement is duplicative
or more costly than the suspension of the requirement.
(j) In the event funding is not provided for customer
education efforts under Section 39.903(e)(2) at a level sufficient
to allow the commission to adequately inform customers of the
programs authorized by this section, electric utilities may conduct
advertising or other outreach activities to retail customers if
insufficient demand for incentives exists in the utility's service
area. Outreach funds shall not be included in the average rate
impact cap provided by this section. The commission shall approve
the amount of funds to be expended in outreach efforts and the
electric utility's plan for the activities to ensure that the
activities are coordinated with other customer education
initiatives of the commission.
SECTION 2. Section 39.905, Utilities Code, is amended by
adding Subsections (k) and (l) to read as follows:
(k) An electric utility that was not subject to this section
on January 1, 2009, shall be subject to the energy efficiency goals
established in this section on a phased-in basis, as prescribed by
the commission, starting from the effective date of the final rates
from the first rate case filed by the electric utility with the
commission after January 1, 2010.
(l) Notwithstanding any other law, this section shall apply
to every electric utility as defined by Section 31.002.
SECTION 3. Subdivision (1), Subsection (a), Section
388.005, Health and Safety Code, is amended to read as follows:
(1) "Institution of higher education" includes an
institution of higher education as defined by Section 61.003,
Education Code, and a private institution of higher education that
receives direct funding from the state for general operating
purposes.
SECTION 4. Section 388.005, Health and Safety Code, is
amended by adding Subsection (g) to read as follows:
(g) A private or independent institution of higher
education as defined by Section 61.003, Education Code, that does
not receive direct funding from the state for general operating
purposes may seek and receive advice and assistance from the State
Energy Conservation Office concerning energy conservation measures
to reduce electricity consumption by the existing facilities of the
institution.
SECTION 5. The following provisions of the Utilities Code
are repealed:
(1) Subsection (b-2), Section 39.905; and
(2) Section 39.913.
SECTION 6. 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, 2009.