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AN ACT
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relating to energy efficiency goals and programs, public |
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information regarding energy efficiency programs, and the |
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participation of loads in certain energy markets. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.905, Utilities Code, is amended by |
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amending Subsections (a), (b), and (d) and adding Subsections (h) |
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through (k) to read as follows: |
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(a) It is the goal of the legislature that: |
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(1) electric utilities will administer energy |
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efficiency incentive programs in a market-neutral, |
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nondiscriminatory manner but will not offer underlying competitive |
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services; |
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(2) all customers, in all customer classes, will have |
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a choice of and access to energy efficiency alternatives and other |
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choices from the market that allow each customer to reduce energy |
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consumption, summer and winter peak demand, or energy costs; |
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(3) each electric utility annually will provide, |
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through market-based standard offer programs or through [limited,] |
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targeted[,] market-transformation programs, incentives sufficient |
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for retail electric providers and competitive energy service |
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providers to acquire additional cost-effective energy efficiency, |
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subject to cost ceilings established by the commission, for the |
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utility's residential and commercial customers equivalent to [at
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least]: |
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(A) not less than: |
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(i) 30 [10] percent of the electric |
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utility's annual growth in demand of residential and commercial |
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customers by December 31 of each year beginning with the 2013 |
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calendar year; and |
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(ii) the amount of energy efficiency to be |
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acquired for the utility's residential and commercial customers for |
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the most recent preceding year[, 2007]; and |
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(B) for an electric utility whose amount of |
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energy efficiency to be acquired under this subsection is |
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equivalent to at least four-tenths of one percent of the electric |
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utility's summer weather-adjusted peak demand for residential and |
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commercial customers in the previous calendar year, not less than: |
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(i) four-tenths of one percent of the |
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utility's summer weather-adjusted peak demand for residential and |
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commercial customers by December 31 of each subsequent year; and |
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(ii) the amount of energy efficiency to be |
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acquired for the utility's residential and commercial customers for |
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the most recent preceding year [15 percent of the electric
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utility's annual growth in demand of residential and commercial
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customers by December 31, 2008, provided that the electric
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utility's program expenditures for 2008 funding may not be greater
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than 75 percent above the utility's program budget for 2007 for
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residential and commercial customers, as included in the April 1,
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2006, filing; and
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[(C)
20 percent of the electric utility's annual
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growth in demand of residential and commercial customers by
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December 31, 2009, provided that the electric utility's program
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expenditures for 2009 funding may not be greater than 150 percent
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above the utility's program budget for 2007 for residential and
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commercial customers, as included in the April 1, 2006, filing]; |
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(4) each electric utility in the ERCOT region shall |
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use its best efforts to encourage and facilitate the involvement of |
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the region's retail electric providers in the delivery of |
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efficiency programs and demand response programs under this |
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section, including programs for demand-side renewable energy |
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systems that: |
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(A) use distributed renewable generation, as |
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defined by Section 39.916; or |
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(B) reduce the need for energy consumption by |
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using a renewable energy technology, a geothermal heat pump, a |
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solar water heater, or another natural mechanism of the |
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environment; |
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(5) retail electric providers in the ERCOT region, and |
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electric utilities outside of the ERCOT region, shall provide |
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customers with energy efficiency educational materials; and |
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(6) notwithstanding Subsection (a)(3), electric |
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utilities shall continue to make available, at 2007 funding and |
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participation levels, any load management standard offer programs |
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developed for industrial customers and implemented prior to May 1, |
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2007. |
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(b) The commission shall provide oversight and adopt rules |
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and procedures to ensure that the utilities can achieve the goal of |
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this section, including: |
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(1) establishing an energy efficiency cost recovery |
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factor for ensuring timely and reasonable cost recovery for utility |
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expenditures made to satisfy the goal of this section; |
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(2) establishing an incentive under Section 36.204 to |
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reward utilities administering programs under this section that |
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exceed the minimum goals established by this section; |
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(3) providing a utility that is unable to establish an |
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energy efficiency cost recovery factor in a timely manner due to a |
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rate freeze with a mechanism to enable the utility to: |
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(A) defer the costs of complying with this |
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section; and |
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(B) recover the deferred costs through an energy |
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efficiency cost recovery factor on the expiration of the rate |
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freeze period; |
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(4) ensuring that the costs associated with programs |
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provided under this section and any shareholder bonus awarded are |
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borne by the customer classes that receive the services under the |
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programs; [and] |
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(5) ensuring the program rules encourage the value of |
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the incentives to be passed on to the end-use customer; |
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(6) ensuring that programs are evaluated, measured, |
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and verified using a framework established by the commission that |
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promotes effective program design and consistent and streamlined |
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reporting; and |
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(7) ensuring that an independent organization |
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certified under Section 39.151 allows load participation in all |
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energy markets for residential, commercial, and industrial |
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customer classes, either directly or through aggregators of retail |
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customers, to the extent that load participation by each of those |
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customer classes complies with reasonable requirements adopted by |
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the organization relating to the reliability and adequacy of the |
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regional electric network and in a manner that will increase market |
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efficiency, competition, and customer benefits. |
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(d) The commission shall establish a procedure for |
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reviewing and evaluating market-transformation program options |
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described by this subsection and other options. In evaluating |
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program options, the commission may consider the ability of a |
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program option to reduce costs to customers through reduced demand, |
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energy savings, and relief of congestion. Utilities may choose to |
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implement any program option approved by the commission after its |
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evaluation in order to satisfy the goal in Subsection (a), |
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including: |
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(1) energy-smart schools; |
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(2) appliance retirement and recycling; |
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(3) air conditioning system tune-ups; |
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(4) the installation of variable speed air |
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conditioning systems, motors, and drives; |
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(5) the use of trees or other landscaping for energy |
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efficiency; |
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(6) [(5)] customer energy management and demand |
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response programs; |
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(7) [(6)] high performance residential and commercial |
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buildings that will achieve the levels of energy efficiency |
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sufficient to qualify those buildings for federal tax incentives; |
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(8) commissioning services for commercial and |
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institutional buildings that result in operational and maintenance |
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practices that reduce the buildings' energy consumption; |
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(9) [(7)] programs for customers who rent or lease |
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their residence or commercial space; |
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(10) [(8)] programs providing energy monitoring |
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equipment to customers that enable a customer to better understand |
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the amount, price, and time of the customer's energy use; |
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(11) [(9)] energy audit programs for owners and other |
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residents of single-family or multifamily residences and for small |
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commercial customers; |
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(12) [(10)] net-zero energy new home programs; |
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(13) [(11)] solar thermal or solar electric programs; |
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[and] |
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(14) [(12)] programs for using windows and other |
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glazing systems, glass doors, and skylights in residential and |
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commercial buildings that reduce solar gain by at least 30 percent |
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from the level established for the federal Energy Star windows |
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program; |
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(15) data center efficiency programs; and |
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(16) energy use programs with measurable and |
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verifiable results that reduce energy consumption through |
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behavioral changes that lead to efficient use patterns and |
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practices. |
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(h) For an electric utility operating in an area not open to |
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competition, the utility may achieve the goal of this section by: |
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(1) providing rebate or incentive funds directly to |
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customers to promote or facilitate the success of programs |
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implemented under this section; or |
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(2) developing, subject to commission approval, new |
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programs other than standard offer programs and market |
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transformation programs, to the extent that the new programs |
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satisfy the same cost-effectiveness requirements as standard offer |
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programs and market transformation programs. |
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(i) For an electric utility operating in an area open to |
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competition, on demonstration to the commission, after a contested |
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case hearing, that the requirements under Subsection (a) cannot be |
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met in a rural area through retail electric providers or |
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competitive energy service providers, the utility may achieve the |
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goal of this section by providing rebate or incentive funds |
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directly to customers in the rural area to promote or facilitate the |
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success of programs implemented under this section. |
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(j) An electric utility may use energy audit programs to |
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achieve the goal of this section if: |
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(1) the programs do not constitute more than three |
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percent of total program costs under this section; and |
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(2) the addition of the programs does not cause a |
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utility's portfolio of programs to no longer be cost-effective. |
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(k) To help a residential or nongovernmental nonprofit |
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customer make informed decisions regarding energy efficiency, the |
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commission may consider program designs that ensure, to the extent |
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practicable, the customer is provided with information using |
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standardized forms and terms that allow the customer to compare |
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offers for varying degrees of energy efficiency attainable using a |
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measure the customer is considering by cost, estimated energy |
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savings, and payback periods. |
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SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is |
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amended by adding Section 39.9054 to read as follows: |
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Sec. 39.9054. ENERGY EFFICIENCY PLANS AND REPORTS; PUBLIC |
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INFORMATION. (a) An electric utility shall submit electronically |
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an energy efficiency plan and report in a searchable form |
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prescribed by the commission on or before April 1 of each year. The |
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commission by rule shall adopt a form that will permit the public to |
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easily compare information submitted by different electric |
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utilities. The plan and report must: |
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(1) provide information on the utility's performance |
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in achieving energy efficiency goals for the previous five years; |
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(2) describe how the utility intends to achieve future |
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goals; and |
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(3) provide any other information the commission |
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considers relevant. |
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(b) On the Internet website found at |
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http://www.puc.state.tx.us, the commission shall publish |
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information on energy efficiency programs, including: |
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(1) an explanation of the goal for energy efficiency |
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in this state; |
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(2) a description of the types of energy efficiency |
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programs available to certain classes of eligible customers; |
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(3) a link to the plans and reports filed as prescribed |
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by Subsection (a); and |
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(4) a list of persons who install or provide energy |
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efficiency measures or services by area. |
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(c) This section does not require the commission to warrant |
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that the list required to be displayed under Subsection (b) |
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constitutes a complete or accurate list of all persons who install |
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energy efficiency measures or services in the marketplace. |
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SECTION 3. Subsection (b-2), Section 39.905, Utilities |
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Code, is repealed. |
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SECTION 4. This Act takes effect September 1, 2011. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1125 passed the Senate on |
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April 21, 2011, by the following vote: Yeas 31, Nays 0; and that |
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the Senate concurred in House amendments on May 17, 2011, by the |
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following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1125 passed the House, with |
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amendments, on May 11, 2011, by the following vote: Yeas 99, |
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Nays 34, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |