| 1 | 1 | | By: Hughes S.B. No. 1050 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the authority of a natural gas local distribution |
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| 7 | 7 | | company to offer energy conservation programs. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Chapter 104, Utilities Code, is amended by |
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| 10 | 10 | | adding Subchapter J to read as follows: |
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| 11 | 11 | | SUBCHAPTER J. NATURAL GAS ENERGY CONSERVATION PROGRAMS |
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| 12 | 12 | | Sec. 104.401. DEFINITIONS. In this subchapter: |
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| 13 | 13 | | (1) "Energy conservation program" means a program that |
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| 14 | 14 | | promotes energy conservation or energy efficiency. |
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| 15 | 15 | | (2) "Local distribution company" means a gas utility |
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| 16 | 16 | | that operates a retail gas distribution system. |
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| 17 | 17 | | Sec. 104.402. ENERGY CONSERVATION PROGRAM AUTHORITY. (a) |
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| 18 | 18 | | A local distribution company may offer to customers and prospective |
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| 19 | 19 | | customers and provide to customers an energy conservation program |
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| 20 | 20 | | in the manner provided by this subchapter. |
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| 21 | 21 | | (b) The railroad commission has exclusive original |
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| 22 | 22 | | jurisdiction over energy conservation programs implemented by |
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| 23 | 23 | | local distribution companies. |
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| 24 | 24 | | (c) A political subdivision served by a local distribution |
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| 25 | 25 | | company that implements an energy conservation program approved by |
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| 26 | 26 | | the railroad commission under this subchapter may not limit, |
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| 27 | 27 | | restrict, or otherwise prevent an eligible customer from |
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| 28 | 28 | | participating in the energy conservation program based on the type |
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| 29 | 29 | | or source of energy delivered to the customer. |
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| 30 | 30 | | Sec. 104.403. ENERGY CONSERVATION PROGRAM COST RECOVERY. |
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| 31 | 31 | | (a) A local distribution company may recover costs prudently |
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| 32 | 32 | | incurred to implement one or more energy conservation programs, |
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| 33 | 33 | | including costs incurred to design, market, implement, administer, |
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| 34 | 34 | | and deliver an energy conservation program and an amount equal to |
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| 35 | 35 | | the reduction in the local distribution company's marginal revenues |
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| 36 | 36 | | due to the lower sales or demand resulting from the energy |
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| 37 | 37 | | conservation program, if: |
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| 38 | 38 | | (1) the company applies to the railroad commission at |
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| 39 | 39 | | least once every three years under this subchapter for review and |
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| 40 | 40 | | approval of the company's energy conservation programs; and |
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| 41 | 41 | | (2) the railroad commission approves cost recovery for |
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| 42 | 42 | | the company's energy conservation programs. |
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| 43 | 43 | | (b) The railroad commission by rule shall require a local |
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| 44 | 44 | | distribution company that implements an energy conservation |
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| 45 | 45 | | program under this subchapter to submit to the railroad commission |
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| 46 | 46 | | an annual report on: |
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| 47 | 47 | | (1) the performance of the company's energy |
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| 48 | 48 | | conservation programs for the preceding year; and |
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| 49 | 49 | | (2) the company's planned energy conservation programs |
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| 50 | 50 | | for the upcoming year. |
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| 51 | 51 | | (c) An application submitted under Subsection (a) must |
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| 52 | 52 | | include: |
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| 53 | 53 | | (1) a summary of and objectives for the local |
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| 54 | 54 | | distribution company's energy conservation programs; |
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| 55 | 55 | | (2) a description of each program; |
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| 56 | 56 | | (3) a proposed budget for each program; |
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| 57 | 57 | | (4) the projected consumption reduction or cost |
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| 58 | 58 | | savings for each program; and |
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| 59 | 59 | | (5) any public input compiled by the local |
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| 60 | 60 | | distribution company on the proposed programs as required by the |
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| 61 | 61 | | railroad commission. |
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| 62 | 62 | | (d) The railroad commission by rule may: |
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| 63 | 63 | | (1) determine a cost recovery mechanism for timely |
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| 64 | 64 | | recovery of costs described by Subsection (a); and |
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| 65 | 65 | | (2) ensure that costs described by Subsection (a) are |
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| 66 | 66 | | allocated to the customer classes eligible for participation in the |
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| 67 | 67 | | energy conservation program. |
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| 68 | 68 | | (e) Energy conservation programs proposed under this |
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| 69 | 69 | | section may be combined in a portfolio to provide incentives and |
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| 70 | 70 | | services to encourage energy conservation. The portfolio: |
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| 71 | 71 | | (1) must be designed to overcome barriers to the |
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| 72 | 72 | | adoption of energy-efficient equipment, technologies, and |
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| 73 | 73 | | processes and be designed to change customer behavior as necessary; |
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| 74 | 74 | | and |
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| 75 | 75 | | (2) may include measures such as: |
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| 76 | 76 | | (A) direct financial incentives; |
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| 77 | 77 | | (B) technical assistance and information, |
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| 78 | 78 | | including building energy performance analyses performed by the |
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| 79 | 79 | | local distribution company or a third party approved by the |
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| 80 | 80 | | company; |
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| 81 | 81 | | (C) discounts or rebates for products; and |
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| 82 | 82 | | (D) weatherization for low-income customers. |
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| 83 | 83 | | (f) A proceeding filed under this section is not a |
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| 84 | 84 | | ratemaking proceeding for the purposes of Section 103.022. |
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| 85 | 85 | | (g) A local distribution company implementing an energy |
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| 86 | 86 | | conservation program under this subchapter shall reimburse the |
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| 87 | 87 | | railroad commission for the utility's proportionate share of the |
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| 88 | 88 | | railroad commission's costs related to administration of reviewing |
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| 89 | 89 | | and approving or denying cost recovery applications under this |
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| 90 | 90 | | subchapter. |
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| 91 | 91 | | SECTION 2. This Act takes effect immediately if it receives |
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| 92 | 92 | | a vote of two-thirds of all the members elected to each house, as |
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| 93 | 93 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 94 | 94 | | Act does not receive the vote necessary for immediate effect, this |
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| 95 | 95 | | Act takes effect September 1, 2023. |
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