Texas 2023 - 88th Regular

Texas House Bill HB2263 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	H.B. No. 2263
2	2
3	3
4	4	AN ACT
5	5	relating to the authority of a natural gas local distribution
6	6	company to offer energy conservation programs.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Chapter 104, Utilities Code, is amended by
9	9	adding Subchapter J to read as follows:
10	10	SUBCHAPTER J. NATURAL GAS ENERGY CONSERVATION PROGRAMS
11	11	Sec. 104.401. DEFINITIONS. In this subchapter:
12	12	(1) "Energy conservation program" means a program that
13	13	promotes energy conservation or energy efficiency.
14	14	(2) "Local distribution company" means a gas utility
15	15	that operates a retail gas distribution system.
16	16	Sec. 104.402. ENERGY CONSERVATION PROGRAM AUTHORITY. (a)
17	17	A local distribution company may offer to customers and prospective
18	18	customers and provide to customers an energy conservation program
19	19	in the manner provided by this subchapter.
20	20	(b) The railroad commission has exclusive original
21	21	jurisdiction over energy conservation programs implemented by
22	22	local distribution companies.
23	23	(c) A political subdivision served by a local distribution
24	24	company that implements an energy conservation program approved by
25	25	the railroad commission under this subchapter may not limit,
26	26	restrict, or otherwise prevent an eligible customer from
27	27	participating in the energy conservation program based on the type
28	28	or source of energy delivered to the customer.
29	29	Sec. 104.403. ENERGY CONSERVATION PROGRAM COST RECOVERY.
30	30	(a) A local distribution company may recover costs of energy
31	31	conservation programs implemented under this subchapter if
32	32	approved by the railroad commission in the manner provided by this
33	33	subchapter. A local distribution company seeking to recover the
34	34	costs must apply to the railroad commission before beginning
35	35	recovery of the costs and at least once every three years after the
36	36	date the company first applies for the cost recovery.
37	37	(b) If the railroad commission approves the local
38	38	distribution company's application or approves the application
39	39	with modifications, the company may recover costs prudently
40	40	incurred to implement the energy conservation programs, including
41	41	costs incurred to design, market, implement, administer, and
42	42	deliver an energy conservation program.
43	43	(c) If the local distribution company provides an earnings
44	44	monitoring report for the preceding calendar year demonstrating
45	45	that the company did not earn above the rate of return established
46	46	in the latest effective rates approved by the railroad commission
47	47	for the company, the railroad commission may allow the company to
48	48	recover an amount equal to the reduction in the company's marginal
49	49	revenues due to lower sales or demand resulting from the energy
50	50	conservation program.
51	51	(d) The railroad commission by rule shall require a local
52	52	distribution company that implements an energy conservation
53	53	program under this subchapter to submit to the railroad commission
54	54	an annual report on:
55	55	(1) the performance of the company's energy
56	56	conservation programs for the preceding year; and
57	57	(2) the company's planned energy conservation programs
58	58	for the upcoming year.
59	59	(e) An application for cost recovery under Subsection (a)
60	60	must include:
61	61	(1) a summary of and objectives for the local
62	62	distribution company's energy conservation programs;
63	63	(2) a description of each program;
64	64	(3) a proposed budget for each program;
65	65	(4) the projected consumption reduction or cost
66	66	savings for each program; and
67	67	(5) any public input compiled by the local
68	68	distribution company on the proposed programs as required by the
69	69	railroad commission.
70	70	(f) The railroad commission by rule may:
71	71	(1) determine a cost recovery mechanism for timely
72	72	recovery of costs described by Subsection (a); and
73	73	(2) ensure that costs described by Subsection (a) are
74	74	allocated to the customer classes eligible for participation in the
75	75	energy conservation program.
76	76	(g) Energy conservation programs proposed under this
77	77	section may be combined in a portfolio to provide incentives and
78	78	services to encourage energy conservation. The portfolio:
79	79	(1) must be designed to overcome barriers to the
80	80	adoption of energy-efficient equipment, technologies, and
81	81	processes and be designed to change customer behavior as necessary;
82	82	and
83	83	(2) may include measures such as:
84	84	(A) direct financial incentives;
85	85	(B) technical assistance and information,
86	86	including building energy performance analyses performed by the
87	87	local distribution company or a third party approved by the
88	88	company;
89	89	(C) discounts or rebates for products; and
90	90	(D) weatherization for low-income customers.
91	91	(h) A proceeding filed under this section is not a
92	92	ratemaking proceeding for the purposes of Section 103.022.
93	93	(i) A local distribution company implementing an energy
94	94	conservation program under this subchapter shall reimburse the
95	95	railroad commission for the utility's proportionate share of the
96	96	railroad commission's costs related to administration of reviewing
97	97	and approving or denying cost recovery applications under this
98	98	subchapter.
99	99	SECTION 2. This Act takes effect immediately if it receives
100	100	a vote of two-thirds of all the members elected to each house, as
101	101	provided by Section 39, Article III, Texas Constitution. If this
102	102	Act does not receive the vote necessary for immediate effect, this
103	103	Act takes effect September 1, 2023.
104	104	______________________________ ______________________________
105	105	President of the Senate Speaker of the House
106	106	I certify that H.B. No. 2263 was passed by the House on May 4,
107	107	2023, by the following vote: Yeas 140, Nays 4, 1 present, not
108	108	voting; and that the House concurred in Senate amendments to H.B.
109	109	No. 2263 on May 25, 2023, by the following vote: Yeas 120, Nays 19,
110	110	1 present, not voting.
111	111	______________________________
112	112	Chief Clerk of the House
113	113	I certify that H.B. No. 2263 was passed by the Senate, with
114	114	amendments, on May 22, 2023, by the following vote: Yeas 27, Nays
115	115	4.
116	116	______________________________
117	117	Secretary of the Senate
118	118	APPROVED: __________________
119	119	Date
120	120	__________________
121	121	Governor