82R7446 YDB-F
By: Carona S.B. No. 552
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Energy Efficiency Coordination
Council and to statewide energy efficiency; providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 4, Government Code, is amended
by adding Chapter 470 to read as follows:
CHAPTER 470. ENERGY EFFICIENCY COORDINATION COUNCIL
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 470.001. DEFINITIONS. In this chapter:
(1) "Council" means the Energy Efficiency
Coordination Council.
(2) "Director" means the director of the council.
(3) "Energy efficiency program" means any program
designed, implemented, regulated, or administered for the purpose
of reducing the use of energy by:
(A) a state agency;
(B) an institution of higher education;
(C) a utility provider; or
(D) an entity designated by a person described in
Paragraph (A), (B), or (C).
(4) "Energy efficiency service provider" means a
private contractor or other provider of energy efficiency products
or services in this state.
(5) "Institution of higher education" has the meaning
assigned by Section 61.003, Education Code.
(6) "Presiding officer" means the presiding officer of
the council.
(7) "State agency" means an agency, department,
commission, or office of the executive branch of state government.
(8) "Utility provider" means:
(A) a municipal, cooperative, or other electric
utility or retail electric provider;
(B) a water or wastewater utility; or
(C) a gas utility.
Sec. 470.002. APPLICATION OF SUNSET ACT. The council is
subject to Chapter 325 (Texas Sunset Act). Unless continued in
existence as provided by that chapter, the council is abolished and
this chapter expires September 1, 2023.
Sec. 470.003. APPLICATION OF PUBLIC INFORMATION; OPEN
MEETINGS. The council is subject to Chapters 551 and 552.
[Sections 470.004-470.050 reserved for expansion]
SUBCHAPTER B. COUNCIL
Sec. 470.051. ESTABLISHMENT. The council is established to
maximize energy efficiency statewide while protecting the
environment.
Sec. 470.052. COUNCIL MEMBERSHIP. (a) The council is
composed of the following 15 members:
(1) 11 ex officio members as follows:
(A) the chairperson of the Texas Commission on
Environmental Quality;
(B) the chief executive officer of the Electric
Reliability Council of Texas;
(C) the chairperson of the Public Utilities
Commission of Texas;
(D) the chairperson of the Railroad Commission of
Texas;
(E) the director of the State Energy Conservation
Office;
(F) the executive director of the Texas
Department of Housing and Community Affairs;
(G) the executive director of the Texas
Facilities Commission;
(H) the executive administrator of the Texas
Water Development Board;
(I) the presiding officer of the Water
Conservation Advisory Council;
(J) the executive director of the Texas
Department of Rural Affairs; and
(K) the director of the Energy Systems Laboratory
at the Texas Engineering Experiment Station of The Texas A&M
University System; and
(2) four public members as follows:
(A) one member appointed by the lieutenant
governor to represent low-income ratepayers;
(B) one member appointed by the governor at the
recommendation of the speaker of the house of representatives to
represent residential ratepayers;
(C) one member appointed by the lieutenant
governor to represent either commercial or industrial ratepayers;
and
(D) one member appointed by the governor at the
recommendation of the speaker of the house of representatives to
represent an environmental organization.
(b) The four public members must be appointed with the
advice and consent of the senate.
(c) Appointments to the council shall be made without regard
to the race, color, disability, sex, religion, age, or national
origin of the appointees.
(d) The ex officio members and the appointed members serve
as voting members of the council.
Sec. 470.053. TERMS; VACANCY. (a) Appointed members of the
council serve staggered six-year terms, with the terms of one or two
members, as applicable, expiring on February 1 of each odd-numbered
year.
(b) A vacancy in the office of an appointed member of the
council shall be filled for the unexpired term in the same manner as
the original appointment.
Sec. 470.054. ELIGIBILITY OF PUBLIC MEMBERS. A person may
not be a public member of the council if the person or the person's
spouse:
(1) is registered, certified, or licensed by a
regulatory agency as a utility provider or energy efficiency
service provider;
(2) is employed by or participates in the management
of a business entity or other organization regulated by or
receiving money from the council;
(3) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization regulated by or receiving money from the council; or
(4) uses or receives a substantial amount of tangible
goods, services, or money from the council other than compensation
or reimbursement authorized by law for council membership,
attendance, or expenses.
Sec. 470.055. CONFLICT OF INTEREST. (a) In this section,
"Texas trade association" means a cooperative and voluntarily
joined statewide association of business or professional
competitors in this state designed to assist its members and its
industry or profession in dealing with mutual business or
professional problems and in promoting their common interest.
(b) A person may not be a public member of the council and
may not be a council employee employed in a "bona fide executive,
administrative, or professional capacity," as that phrase is used
for purposes of establishing an exemption to the overtime
provisions of the federal Fair Labor Standards Act of 1938 (29
U.S.C. Section 201 et seq.) if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association of utility providers or
energy efficiency service providers; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association of utility providers or
energy efficiency service providers.
(c) A person may not be a member of the council or act as the
general counsel to the council if the person is required to register
as a lobbyist under Chapter 305 because of the person's activities
for compensation on behalf of a profession related to the operation
of the council.
Sec. 470.056. GROUNDS FOR REMOVAL. (a) It is a ground for
removal from the council that an appointed member:
(1) is ineligible for membership under Section 470.054
or 470.055;
(2) cannot, because of illness or disability,
discharge the member's duties for a substantial part of the member's
term; or
(3) is absent from more than half of the regularly
scheduled council meetings that the member is eligible to attend
during a calendar year without an excuse approved by a majority vote
of the council.
(b) The validity of an action of the council is not affected
by the fact that it is taken when a ground for removal of a council
member exists.
(c) If the director has knowledge that a potential ground
for removal exists, the director shall notify the presiding officer
of the council of the potential ground. The presiding officer shall
then notify the governor and the attorney general that a potential
ground for removal exists. If the potential ground for removal
involves the presiding officer, the director shall notify the next
highest ranking officer of the council, who shall then notify the
governor and the attorney general that a potential ground for
removal exists.
Sec. 470.057. APPOINTED MEMBER TRAINING PROGRAM. (a) A
person who is appointed to and qualifies for office as a member of
the council may not vote, deliberate, or be counted as a member in
attendance at a meeting of the council until the person completes a
training program that complies with this section.
(b) The training program must provide the person with
information regarding:
(1) this chapter;
(2) the programs, functions, rules, and budget of the
council;
(3) the results of the most recent formal audit of the
council;
(4) the requirements of laws relating to open
meetings, public information, administrative procedure, and
conflicts of interest; and
(5) any applicable ethics policies adopted by the
council or the Texas Ethics Commission.
(c) A person appointed to the council is entitled to
reimbursement, as provided by the General Appropriations Act, for
the travel expenses incurred in attending the training program
regardless of whether the attendance at the program occurs before
or after the person qualifies for office.
Sec. 470.058. PRESIDING OFFICER. The director of the State
Energy Conservation Office serves as presiding officer of the
council.
Sec. 470.059. MEETINGS. (a) The council shall meet at
least quarterly and at other times at the call of the presiding
officer.
(b) Each meeting of the council must be webcast and archived
online.
[Sections 470.060-470.100 reserved for expansion]
SUBCHAPTER C. GENERAL DUTIES OF COUNCIL AND DIRECTOR
Sec. 470.101. RULES. The council shall adopt rules
necessary to administer this chapter and rules governing the
development and implementation of the state energy efficiency plan.
Sec. 470.102. PUBLIC TESTIMONY. The council shall develop
and implement policies that provide the public with an opportunity
to appear before the council and to speak on any issue under the
jurisdiction of the council.
Sec. 470.103. DIVISION OF POLICY AND DIRECTOR
RESPONSIBILITIES. The council shall develop and implement policies
that clearly separate the policymaking responsibilities of the
council and the management responsibilities of the director and the
staff of the council.
Sec. 470.104. COMPLAINTS. (a) The council shall maintain a
system to promptly and efficiently act on complaints filed with the
council. The council shall maintain information about parties to
the complaint, the subject matter of the complaint, a summary of the
results of the review or investigation of the complaint, and its
disposition.
(b) The council shall make information available describing
its procedures for complaint investigation and resolution.
(c) The council shall periodically notify the complaint
parties of the status of the complaint until final disposition.
Sec. 470.105. USE OF TECHNOLOGY. The council shall
implement a policy requiring the council to use appropriate
technological solutions to improve the council's ability to perform
its functions. The policy must ensure that the public is able to
interact with the council on the Internet.
Sec. 470.106. NEGOTIATED RULEMAKING AND ALTERNATIVE
DISPUTE RESOLUTION PROCEDURES. (a) The council shall develop and
implement a policy to encourage the use of:
(1) negotiated rulemaking procedures under Chapter
2008 for the adoption of council rules; and
(2) appropriate alternative dispute resolution
procedures under Chapter 2009 to assist in the resolution of
internal and external disputes under the council's jurisdiction.
(b) The council's procedures relating to alternative
dispute resolution must conform, to the extent possible, to any
model guidelines issued by the State Office of Administrative
Hearings for the use of alternative dispute resolution by state
agencies.
(c) The council shall:
(1) coordinate the implementation of the policy
adopted under Subsection (a);
(2) provide training as needed to implement the
procedures for negotiated rulemaking or alternative dispute
resolution; and
(3) collect data concerning the effectiveness of those
procedures.
Sec. 470.107. DIRECTOR. (a) The director of the State
Energy Conservation Office shall appoint a representative of the
office to serve as director for the council.
(b) The director shall:
(1) set the date, time, and place of council meetings;
and
(2) provide administrative support to the council
using existing resources and appropriations of the State Energy
Conservation Office.
(c) If the council is abolished, all materials must be
transferred to the director and the state archives.
Sec. 470.108. ADVISORY AND AD HOC COMMITTEES. The council
may form advisory or ad hoc committees composed of individuals from
the public and private sectors to review policy matters related to
the council's purpose.
Sec. 470.109. STANDING ADVISORY COMMITTEE. (a) The
council shall establish a standing advisory committee composed of
15 members. The council shall appoint one member to represent each
of the following:
(1) low-income communities;
(2) historically disadvantaged communities;
(3) the elderly;
(4) local governments;
(5) public schools;
(6) institutions of higher education;
(7) small business;
(8) agriculture;
(9) the nonprofit sector;
(10) the environment;
(11) public health;
(12) the energy efficiency service industry;
(13) ratepayers from the deregulated market;
(14) ratepayers from the cooperative electric market;
and
(15) ratepayers from municipally owned utilities.
(b) Each member of the standing advisory committee shall
serve as liaison to the council on energy efficiency as related to
the interest represented.
(c) The standing advisory committee shall make
recommendations to the council regarding the effect of energy
efficiency programs on the interests listed in Subsection (a) and
creating or improving energy efficiency programs to better serve
those interests.
(d) In accordance with Subchapter E, the standing advisory
committee may request that persons submit documents and data to the
council and seek the assistance of the staff of any state agency,
utility provider, or energy efficiency service provider.
(e) The standing advisory committee shall meet at least four
times each calendar year.
(f) The standing advisory committee is subject to Chapters
551 and 552.
(g) Chapter 2110 does not apply to the standing advisory
committee.
[Sections 470.110-470.150 reserved for expansion]
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 470.151. ACCEPTANCE OF GIFTS OR GRANTS. (a) In
addition to legislative appropriations, the council may accept
gifts and grants from the federal government, state government, and
private sources to carry out the purposes of this chapter.
(b) The use of a gift or grant is subject to the limitations
contained in the gift or grant.
Sec. 470.152. ENERGY EFFICIENCY ACCOUNT. The energy
efficiency account is a dedicated account in the general revenue
fund. The account consists of:
(1) appropriations of money by the legislature to the
council;
(2) gifts, grants, and other donations received for
the account; and
(3) interest earned on the investment of money in the
account.
[Sections 470.153-470.200 reserved for expansion]
SUBCHAPTER E. STATE ENERGY EFFICIENCY PLAN
Sec. 470.201. PROPOSED STATE ENERGY EFFICIENCY PLAN. (a)
The director shall prepare a proposed state energy efficiency plan
every six years and shall revise and update the plan biennially.
(b) The state energy efficiency plan must:
(1) propose strategies to correct deficiencies in
energy efficiency programs and efforts throughout this state;
(2) propose strategies to utilize new technology to
achieve greater energy efficiency throughout this state;
(3) propose strategies to involve institutions of
higher education in energy efficiency, including through research
and development; and
(4) provide recommendations to the legislature and
governor for implementation of the strategies proposed by the plan.
(c) The council shall establish guidelines for the
development of the state energy efficiency plan and provide
guidance to the director in developing the plan.
(d) The director shall consult with all appropriate energy
efficiency-related state agencies before development of the state
energy efficiency plan.
(e) The director shall submit the proposed plan to the
council for approval by a majority vote.
Sec. 470.202. STATE ENERGY EFFICIENCY PROGRAMS, GOALS, AND
RECOMMENDATIONS. (a) The council shall coordinate with state
agencies, utility providers, energy efficiency service providers,
and other organizations and persons to develop and administer
energy efficiency programs.
(b) The council shall set statewide savings targets for
electricity, natural gas, and electric consumption that results
from the diversion, transportation, delivery, treatment, or
purification of water, wastewater, and storm water to reduce peak
demand and overall demand for the resources by at least 20 percent
not later than 2020 compared to the peak demand and overall demand
for the resources in 2011. The council biennially shall:
(1) assess the statewide progress toward achieving the
goals; and
(2) update the goals based on the statewide
assessment, potential for achieving the goals, and development of
new technology.
(c) The council shall evaluate, review, and make
recommendations for improvements to energy efficiency programs and
proposed energy efficiency programs in its annual and biennial
reports.
(d) The council shall make recommendations for best
practices for state agencies, utility providers, and energy
efficiency service providers to coordinate, increase the
comprehensiveness, and reduce costs in the delivery of energy
efficiency products and services to customers.
(e) Each state agency shall consider the council's
recommendations and submit to the council written comments on the
feasibility of the recommendations not later than the 180th day
after the date the agency receives the council's recommendations.
Sec. 470.203. COLLECTION AND SUBMISSION OF ENERGY
INFORMATION. (a) The council shall:
(1) collect information regarding energy savings and
demand reduction by reviewing energy efficiency programs in this
state; and
(2) submit the information collected to:
(A) the Energy Systems Laboratory at the Texas
Engineering Experiment Station of The Texas A&M University System;
(B) the State Energy Conservation Office; and
(C) the Electric Reliability Council of Texas.
(b) Each state agency, utility provider, and energy
efficiency service provider shall submit information required
under this chapter or council rule to the council in an electronic
format and within the time required by this chapter or council rule.
(c) The State Energy Conservation Office shall annually
submit the following information to the Electric Reliability
Council of Texas:
(1) the total energy savings and demand reduction
determined by the office from all available sources for use in the
reliability council's annual reports; and
(2) the total energy savings and demand reduction
potential for use in the reliability council's long-term
forecasting.
(d) The Texas Engineering Experiment Station of The Texas
A&M University System shall submit information on pollution
reduction, including reductions in nitrogen oxides, volatile
organic compounds, and carbon dioxide, that results from energy
efficiency programs to the Texas Commission on Environmental
Quality and the United States Environmental Protection Agency for
inclusion in the state's air quality plans.
Sec. 470.204. STANDARDIZED CONTRACTS, REPORTING METHODS,
AND DISCLOSURE FORMS. (a) The council shall study and create:
(1) standardized energy contracts, including
contracts that have as a contracting party:
(A) a state agency;
(B) a utility provider;
(C) an energy efficiency service provider; or
(D) a residential consumer;
(2) a standardized method of reporting information
required under this chapter or council rule; and
(3) a standard disclosure form for energy service
efficiency providers to provide to consumers to assist consumers in
making informed decisions on energy efficiency investments or
purchases.
(b) The disclosure form required under Subsection (a)(3)
must include:
(1) information on the full scope of incentives,
including all utility, municipal, county, state, and federal
incentives, available to a consumer for energy efficiency measures
the consumer considers;
(2) information on the incentives provided to an
energy efficiency service provider to market an energy efficiency
program offered to consumers by the provider;
(3) information on any other incentives available for
related energy efficiency programs, products, or services; and
(4) the consumer's estimated energy savings and time
required to achieve the savings.
(c) An energy efficiency service provider shall provide the
standard disclosure form to each consumer considering making an
energy efficiency investment or purchase from the provider.
Sec. 470.205. IMPLEMENTATION OF STATE ENERGY EFFICIENCY
PLAN. The council shall promote the implementation of the state
energy efficiency plan.
Sec. 470.206. DATA COLLECTION. The director, in accordance
with rules adopted by the council, shall set standards and collect
and distribute data necessary to support specific state energy
efficiency plan goals.
Sec. 470.207. FAILURE TO SUBMIT DATA; CIVIL PENALTY. (a)
If the director does not receive necessary data from a utility
provider or energy efficiency service provider required to report
the data under this chapter or council rule, the council shall send
to the person a notice requiring the person to submit the data not
later than the 30th day after the date on which the person receives
the notice.
(b) A person that does not submit the data during the 30-day
period is subject to a civil penalty of not more than $500 for each
day the entity fails to submit the data following the 30-day period.
(c) The attorney general, on request of the director, shall
bring an action in the name of the state to recover the civil
penalty under this section. The attorney general is entitled to
recover all reasonable costs of prosecuting the action, including
reasonable attorney's fees, investigative costs, witness fees,
deposition costs, and court costs.
Sec. 470.208. INTERNET WEBSITE. The council shall create
and maintain a public Internet website. The website must meet the
state's minimum standards for accessibility and include:
(1) each annual and biennial report produced by the
council;
(2) a user-friendly page that allows a consumer to
search by the consumer's address energy efficiency programs
available in the consumer's service area;
(3) comprehensive information on energy efficiency
that allows the website to serve as the state's main resource for
all energy efficiency information; and
(4) a list of every energy efficiency program reviewed
by the council organized by state agency, public utility, or energy
efficiency service provider with appropriate links.
Sec. 470.209. ANNUAL REPORT. (a) The council annually
shall prepare a report that includes:
(1) information about each energy efficiency program
reviewed by the council;
(2) the goals of each energy efficiency program;
(3) the actual results, including the costs, benefits,
and emissions reductions, associated with each energy efficiency
program;
(4) the energy savings associated with each energy
efficiency program;
(5) the job creation results of each energy efficiency
program;
(6) an assessment of the potential for efficiency in
electric, gas, and water use;
(7) recommendations for program changes to increase
the efficiency of energy use in this state;
(8) recommendations for the standardization of data
collection and reporting on the costs, benefits, and emissions
reductions;
(9) the likely impact of energy efficiency programs on
utility rates; and
(10) any other data the council by rule requires.
(b) The council shall:
(1) submit each annual report to:
(A) each state agency with an energy efficiency
program; and
(B) the Electric Reliability Council of Texas;
and
(2) post the reports on its Internet website.
(c) Each state agency, utility provider, energy efficiency
service provider, or other person required to submit an annual
report to the council under this chapter or council rule must submit
the report not later than October 1 of each year.
Sec. 470.210. BIENNIAL REPORT. (a) The council shall
submit an electronic report to each member of the legislature not
later than October 1 of each even-numbered year.
(b) The biennial report must include:
(1) an executive summary of the council's
accomplishments and a link to the council's public website;
(2) the information typically provided in an annual
report;
(3) updates to the state energy efficiency plan;
(4) a comparison of the structure, goals, and results
of energy efficiency programs in this state to the structure,
goals, and results of energy efficiency programs of the five most
populous states and of any other state the council considers
appropriate; and
(5) policy recommendations to the legislature that
require statutory revisions.
[Sections 470.211-470.250 reserved for expansion]
SUBCHAPTER F. COST-EFFECTIVENESS STANDARDS FOR
ENERGY EFFICIENCY PROGRAMS
Sec. 470.251. SELECTION OF COST-EFFECTIVENESS STANDARDS.
(a) The council shall study various methods for evaluating,
measuring, and verifying the cost-effectiveness of energy
efficiency programs.
(b) On completion of the study, the council by rule may
adopt cost-effectiveness standards. The council may:
(1) adopt one cost-effectiveness standard for all
state energy efficiency programs; or
(2) authorize different cost-effectiveness standards
for different energy efficiency programs if the council has a
rational basis for the varying standards.
(c) The council shall review the study, as part of the state
energy efficiency plan, and may adopt or amend rules on the best
practices of cost-effectiveness standards.
(d) Until the council studies and adopts cost-effectiveness
standards, the council shall evaluate the cost-effectiveness of
energy efficiency programs in its annual reports using:
(1) the criteria listed in Section 470.252; and
(2) any other cost-effectiveness testing method used
by a state agency in evaluating the agency's energy efficiency
programs and shall include the agency's testing results in the
annual report.
Sec. 470.252. COST-EFFECTIVENESS STANDARD. (a) The
council shall evaluate whether a state agency's or utility
provider's energy efficiency program is cost-effective by
determining whether the program benefits exceed the program costs.
(b) Costs and benefits shall be considered regardless of
whether the costs are paid for or benefits experienced by the
participant, the business, the government agency, or any other
individual.
(c) Program costs include:
(1) direct program costs, including program design,
administration, incentives, implementation, marketing,
measurement, and evaluation;
(2) incremental costs of an energy efficiency measure,
including installation, over an equivalent baseline measure for new
construction; and
(3) ongoing customer costs, including increased
operation and maintenance costs, reduced productivity, and lost
economic development opportunities, to the extent the costs can be
reasonably quantified and valued.
(d) Program benefits include:
(1) avoided electric generation costs, including
energy and capacity costs, using estimates of market prices and
adjusting for line losses differentiated by time periods that
influence market prices and market price reductions caused by the
reduced energy demand, including peak and off-peak periods and
summer and winter periods;
(2) avoided transmission and distribution costs,
using estimates of transmission and distribution utility marginal
transmission and distribution costs, differentiated by time
periods that influence costs;
(3) avoided fossil fuel costs, using estimated savings
in oil, gas, coal, or other fossil fuel use, at estimated fossil
fuel prices;
(4) other resource benefits, such as reduced water and
sewer costs; and
(5) non-resource benefits, including customer
benefits such as reduced operation and maintenance costs, deferred
replacement costs, productivity improvements, economic development
benefits, reduced health care and pollution costs, and any other
environmental benefits.
(e) The present value of the energy efficiency program
benefits shall be calculated over the projected life of the
measures installed under the energy efficiency program.
SECTION 2. (a) In appointing the initial appointed members
of the Energy Efficiency Coordination Council created under Chapter
470, Government Code, as added by this Act, the governor shall
appoint one member to a term expiring February 1, 2013, one member
to a term expiring February 1, 2015, and two members to terms
expiring February 1, 2017.
(b) The Energy Efficiency Coordination Council shall adopt
rules, procedures, and forms necessary to implement Chapter 470,
Government Code, as added by this Act, not later than May 1, 2012.
SECTION 3. 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, 2011.