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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a natural gas local distribution |
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company to offer energy conservation programs. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 104, Utilities Code, is amended by |
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adding Subchapter J to read as follows: |
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SUBCHAPTER J. NATURAL GAS ENERGY CONSERVATION PROGRAMS |
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Sec. 104.401. DEFINITIONS. In this subchapter: |
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(1) "Energy conservation program" means a program that |
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promotes energy conservation or energy efficiency. |
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(2) "Local distribution company" means a gas utility |
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that operates a retail gas distribution system. |
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Sec. 104.402. ENERGY CONSERVATION PROGRAM AUTHORITY. (a) |
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A local distribution company may offer to customers and prospective |
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customers and provide to customers an energy conservation program |
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in the manner provided by this subchapter. |
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(b) The railroad commission has exclusive original |
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jurisdiction over energy conservation programs implemented by |
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local distribution companies. |
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(c) A political subdivision served by a local distribution |
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company that implements an energy conservation program approved by |
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the railroad commission under this subchapter may not limit, |
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restrict, or otherwise prevent an eligible customer from |
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participating in the energy conservation program based on the type |
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or source of energy delivered to the customer. |
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Sec. 104.403. ENERGY CONSERVATION PROGRAM COST RECOVERY. |
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(a) A local distribution company may recover costs prudently |
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incurred to implement one or more energy conservation programs if: |
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(1) the company applies to the railroad commission at |
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least once every three years under this subchapter for review and |
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approval of the company's energy conservation programs; and |
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(2) the railroad commission approves cost recovery for |
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the company's energy conservation programs. |
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(b) The railroad commission by rule shall require a local |
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distribution company that implements an energy conservation |
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program under this subchapter to submit to the railroad commission |
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an annual report on: |
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(1) the performance of the company's energy |
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conservation programs for the preceding year; and |
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(2) the company's planned energy conservation programs |
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for the upcoming year. |
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(c) An application submitted under Subsection (a) must |
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include: |
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(1) a summary of and objectives for the local |
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distribution company's energy conservation programs; |
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(2) a description of each program; |
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(3) a proposed budget for each program; and |
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(4) the projected consumption reduction or cost |
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savings for each program. |
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(d) The railroad commission by rule shall: |
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(1) determine a cost recovery mechanism for timely |
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recovery of all costs incurred in implementing an energy |
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conservation program, including: |
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(A) costs incurred to design, market, implement, |
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administer, and deliver an energy conservation program; and |
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(B) an amount equal to the reduction in the local |
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distribution company's marginal revenues due to the lower sales or |
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demand resulting from the energy conservation program; and |
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(2) ensure that costs associated with an energy |
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conservation program are allocated to the customer classes eligible |
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for participation in the energy conservation program. |
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(e) Energy conservation programs proposed under this |
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section may be combined in a portfolio to provide incentives and |
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services to encourage energy conservation. The portfolio: |
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(1) must be designed to overcome barriers to the |
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adoption of energy-efficient equipment, technologies, and |
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processes and be designed to change customer behavior as necessary; |
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and |
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(2) may include measures such as: |
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(A) direct financial incentives; |
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(B) technical assistance and information, |
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including building energy performance analyses performed by the |
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local distribution company or a third party approved by the |
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company; |
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(C) discounts or rebates for products; and |
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(D) weatherization for low-income customers. |
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(f) A local distribution company may purchase carbon |
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offsets or credits to meet stated conservation objectives in the |
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company's energy conservation programs and is entitled to recover |
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the costs of the carbon offsets or credits through a purchased gas |
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adjustment for operational emissions or as a regulatory asset for |
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recovery in a future proceeding. |
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(g) A proceeding filed under this section is not a |
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ratemaking proceeding for the purposes of Section 103.022. |
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(h) A local distribution company implementing an energy |
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conservation program under this subchapter shall reimburse the |
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railroad commission for the utility's proportionate share of the |
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railroad commission's costs related to administration of reviewing |
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and approving or denying cost recovery applications under this |
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subchapter. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |