82R5658 ALL-D By: Anchia H.B. No. 1421 A BILL TO BE ENTITLED AN ACT relating to the classification and use of energy storage equipment or facilities and the provision of studies and reports regarding energy storage equipment or those facilities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 31, Utilities Code, is amended by adding Section 31.006 to read as follows: Sec. 31.006. ENERGY STORAGE EQUIPMENT OR FACILITIES. (a) The commission by rule shall classify energy storage equipment or facilities in this state as a separate class or separate classes of equipment or facilities, distinct from generation or transmission and distribution equipment or facilities. A rule adopted under this section may not prohibit energy storage equipment or facilities from being used to provide a service related to the generation, transmission, or distribution of electricity in this state. (b) The commission by rule shall provide a mechanism for a transmission and distribution utility to provide transmission and distribution services using energy storage equipment or facilities owned or operated by the utility or by another person. SECTION 2. Section 39.904(k), Utilities Code, is amended to read as follows: (k) The commission and the independent organization certified for ERCOT shall study the need for increased transmission capacity, [and] generation capacity, and energy storage capacity throughout this state and report to the legislature the results of the study and any recommendations for legislation. The report must be filed with the legislature not later than December 31 of each even-numbered year and may be filed as a part of the report required by Subsection (j). SECTION 3. Sections 39.905(b-3) and (d), Utilities Code, are amended to read as follows: (b-3) Not [Beginning not] later than January 1, 2012 [2008], the commission, in consultation with the State Energy Conservation Office, [annually for a period of five years] shall compute and report to ERCOT the projected energy savings and demand impacts for each entity in the ERCOT region that administers standard offer programs, market transformation programs, combined heating and power technology, demand response programs, solar incentive programs, appliance efficiency standards, energy efficiency programs in public buildings, energy storage technology, and any other relevant programs that are reasonably anticipated to reduce electricity energy or peak demand or that serve as substitutes for electric supply. (d) The commission shall establish a procedure for reviewing and evaluating market-transformation program options described by this subsection and other options. In evaluating program options, the commission may consider the ability of a program option to reduce costs to customers through reduced demand, energy savings, and relief of congestion. Utilities may choose to implement any program option approved by the commission after its evaluation in order to satisfy the goal in Subsection (a), including: (1) energy-smart schools; (2) appliance retirement and recycling; (3) air conditioning system tune-ups; (4) the use of trees or other landscaping for energy efficiency; (5) customer energy management and demand response programs; (6) high performance residential and commercial buildings that will achieve the levels of energy efficiency sufficient to qualify those buildings for federal tax incentives; (7) programs for customers who rent or lease their residence or commercial space; (8) programs providing energy monitoring equipment to customers that enable a customer to better understand the amount, price, and time of the customer's energy use; (9) energy audit programs for owners and other residents of single-family or multifamily residences and for small commercial customers; (10) net-zero energy new home programs; (11) solar thermal or solar electric programs; [and] (12) programs for using windows and other glazing systems, glass doors, and skylights in residential and commercial buildings that reduce solar gain by at least 30 percent from the level established for the federal Energy Star windows program; and (13) thermal, chemical, mechanical, and electrical energy storage technology programs. SECTION 4. This Act takes effect September 1, 2011.