Texas 2011 - 82nd Regular

Texas House Bill HB1629 Compare Versions

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11 82R21783 ALL-D
22 By: Anchia H.B. No. 1629
33 Substitute the following for H.B. No. 1629:
44 By: Lozano C.S.H.B. No. 1629
55
66
77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to energy efficiency goals and programs, public
1010 information regarding energy efficiency programs, and the
1111 participation of loads in certain energy markets.
1212 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1313 SECTION 1. Section 39.905, Utilities Code, is amended by
1414 amending Subsections (a) and (b) and adding Subsections (h), (i),
1515 (j), and (k) to read as follows:
1616 (a) It is the goal of the legislature that:
1717 (1) electric utilities will administer energy
1818 efficiency incentive programs in a market-neutral,
1919 nondiscriminatory manner but will not offer underlying competitive
2020 services;
2121 (2) all customers, in all customer classes, will have
2222 a choice of and access to energy efficiency alternatives and other
2323 choices from the market that allow each customer to reduce energy
2424 consumption, summer and winter peak demand, or energy costs;
2525 (3) each electric utility annually will provide,
2626 through market-based standard offer programs or through [limited,]
2727 targeted[,] market-transformation programs, incentives sufficient
2828 for retail electric providers and competitive energy service
2929 providers to acquire additional cost-effective energy efficiency,
3030 subject to cost ceilings established by the commission, for the
3131 utility's residential and commercial customers equivalent to [at
3232 least]:
3333 (A) not less than:
3434 (i) 30 [10] percent of the electric
3535 utility's annual growth in demand of residential and commercial
3636 customers by December 31 of each year beginning with the 2013
3737 calendar year; and
3838 (ii) the amount of energy efficiency to be
3939 acquired for the utility's residential and commercial customers for
4040 the most recent preceding year [, 2007]; and
4141 (B) for an electric utility whose amount of
4242 energy efficiency to be acquired under this subsection is
4343 equivalent to at least four-tenths of one percent of the electric
4444 utility's summer weather-adjusted peak demand for residential and
4545 commercial customers in the previous calendar year, not less than:
4646 (i) four-tenths of one percent of the
4747 utility's summer weather-adjusted peak demand for residential and
4848 commercial customers by December 31 of each subsequent year; and
4949 (ii) the amount of energy efficiency to be
5050 acquired for the utility's residential and commercial customers for
5151 the most recent preceding year [15 percent of the electric
5252 utility's annual growth in demand of residential and commercial
5353 customers by December 31, 2008, provided that the electric
5454 utility's program expenditures for 2008 funding may not be greater
5555 than 75 percent above the utility's program budget for 2007 for
5656 residential and commercial customers, as included in the April 1,
5757 2006, filing; and
5858 [(C) 20 percent of the electric utility's annual
5959 growth in demand of residential and commercial customers by
6060 December 31, 2009, provided that the electric utility's program
6161 expenditures for 2009 funding may not be greater than 150 percent
6262 above the utility's program budget for 2007 for residential and
6363 commercial customers, as included in the April 1, 2006, filing];
6464 (4) each electric utility in the ERCOT region shall
6565 use its best efforts to encourage and facilitate the involvement of
6666 the region's retail electric providers in the delivery of
6767 efficiency programs and demand response programs under this
6868 section, including programs for demand-side renewable energy
6969 systems that:
7070 (A) use distributed renewable generation, as
7171 defined by Section 39.916; or
7272 (B) reduce the need for energy consumption by
7373 using a renewable energy technology, a geothermal heat pump, a
7474 solar water heater, or another natural mechanism of the
7575 environment;
7676 (5) retail electric providers in the ERCOT region, and
7777 electric utilities outside of the ERCOT region, shall provide
7878 customers with energy efficiency educational materials; and
7979 (6) notwithstanding Subsection (a)(3), electric
8080 utilities shall continue to make available, at 2007 funding and
8181 participation levels, any load management standard offer programs
8282 developed for industrial customers and implemented prior to May 1,
8383 2007.
8484 (b) The commission shall provide oversight and adopt rules
8585 and procedures to ensure that the utilities can achieve the goal of
8686 this section, including:
8787 (1) establishing an energy efficiency cost recovery
8888 factor for ensuring timely and reasonable cost recovery for utility
8989 expenditures made to satisfy the goal of this section;
9090 (2) establishing an incentive under Section 36.204 to
9191 reward utilities administering programs under this section that
9292 exceed the minimum goals established by this section;
9393 (3) providing a utility that is unable to establish an
9494 energy efficiency cost recovery factor in a timely manner due to a
9595 rate freeze with a mechanism to enable the utility to:
9696 (A) defer the costs of complying with this
9797 section; and
9898 (B) recover the deferred costs through an energy
9999 efficiency cost recovery factor on the expiration of the rate
100100 freeze period;
101101 (4) ensuring that the costs associated with programs
102102 provided under this section and any shareholder bonus awarded are
103103 borne by the customer classes that receive the services under the
104104 programs; [and]
105105 (5) ensuring the program rules encourage the value of
106106 the incentives to be passed on to the end-use customer;
107107 (6) ensuring that programs are evaluated, measured,
108108 and verified using a framework established by the commission that
109109 promotes effective program design and consistent and streamlined
110110 reporting; and
111111 (7) ensuring that an independent organization
112112 certified under Section 39.151 allows load participation in all
113113 energy markets for residential, commercial, and industrial
114114 customer classes, either directly or through aggregators of retail
115115 customers, to the extent that load participation by each of those
116116 customer classes complies with reasonable requirements adopted by
117117 the organization relating to the reliability and adequacy of the
118118 regional electric network and in a manner that will increase market
119119 efficiency, competition, and customer benefits.
120120 (h) For an electric utility operating in an area not open to
121121 competition, the utility may achieve the goal of this section by:
122122 (1) providing rebate or incentive funds directly to
123123 customers to promote or facilitate the success of programs
124124 implemented under this section; or
125125 (2) developing, subject to commission approval, new
126126 programs other than standard offer programs and market
127127 transformation programs, to the extent that the new programs
128128 satisfy the same cost-effectiveness requirements as standard offer
129129 programs and market transformation programs.
130130 (i) For an electric utility operating in an area open to
131131 competition, on demonstration to the commission, after a contested
132132 case hearing, that the requirements under Subsection (a) cannot be
133133 met in a rural area through retail electric providers or
134134 competitive energy service providers, the utility may achieve the
135135 goal of this section by providing rebate or incentive funds
136136 directly to customers in the rural area to promote or facilitate the
137137 success of programs implemented under this section.
138138 (j) An electric utility may use energy audit programs to
139139 achieve the goal of this section if:
140140 (1) the programs do not constitute more than three
141141 percent of total program costs under this section; and
142142 (2) the addition of the programs does not cause a
143143 utility's portfolio of programs to no longer be cost-effective.
144144 (k) To help a residential or nongovernmental nonprofit
145145 customer make informed decisions regarding energy efficiency, the
146146 commission may consider program designs that ensure, to the extent
147147 practicable, the customer is provided with information using
148148 standardized forms and terms that allow the customer to compare
149149 offers for varying degrees of energy efficiency attainable using a
150150 measure the customer is considering by cost, estimated energy
151151 savings, and payback periods.
152152 SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is
153153 amended by adding Section 39.9054 to read as follows:
154154 Sec. 39.9054. ENERGY EFFICIENCY PLANS AND REPORTS; PUBLIC
155155 INFORMATION. (a) An electric utility shall submit electronically
156156 an energy efficiency plan and report in a searchable form
157157 prescribed by the commission on or before April 1 of each year. The
158158 commission by rule shall adopt a form that will permit the public to
159159 easily compare information submitted by different electric
160160 utilities. The plan and report must:
161161 (1) provide information on the utility's performance
162162 in achieving energy efficiency goals for the previous five years;
163163 (2) describe how the utility intends to achieve future
164164 goals; and
165165 (3) provide any other information the commission
166166 considers relevant.
167167 (b) On the Internet website found at
168168 http://www.puc.state.tx.us, the commission shall publish
169169 information on energy efficiency programs, including:
170170 (1) an explanation of the goal for energy efficiency
171171 in this state;
172172 (2) a description of the types of energy efficiency
173173 programs available to certain classes of eligible customers;
174174 (3) a link to the plans and reports filed as prescribed
175175 by Subsection (a); and
176176 (4) a list of persons who install or provide energy
177177 efficiency measures or services by area.
178178 (c) This section does not require the commission to warrant
179179 that the list required to be displayed under Subsection (b)
180180 constitutes a complete or accurate list of all persons who install
181181 energy efficiency measures or services in the marketplace.
182182 SECTION 3. Section 39.905(b-2), Utilities Code, is
183183 repealed.
184184 SECTION 4. This Act takes effect September 1, 2011.