79R7935 JJT-F

By:  Flores                                                       H.B. No. 2730



A BILL TO BE ENTITLED

AN ACT

relating to energy conservation and efficiency.                               
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 39.903(e), Utilities Code, as amended by 
Chapters 1394, 1451, and 1466, Acts of the 77th Legislature, 
Regular Session, 2001, is reenacted and amended to read as follows:
	(e)  The system benefit fund shall provide funding solely for 
the following regulatory purposes and in the following order of 
priority:
		(1)  programs to assist low-income electric customers 
by providing the 10 percent reduced rate prescribed by Subsection 
(h);
		(2)  customer education programs, including programs 
designed to educate residential and business customers about cost 
savings and other benefits of energy efficiency and conservation,
administrative expenses incurred by the commission in implementing 
and administering this chapter, and expenses incurred by the office 
under this chapter;
		(3)  programs to assist low-income electric customers 
by providing the targeted energy efficiency programs described by 
Subsection (f)(2);
		(4)  the school funding loss mechanism provided by 
Section 39.901; and      
		(5)  programs to assist low-income electric customers 
by providing the 20 percent reduced rate prescribed by Subsection 
(h).
	SECTION 2.  Section 39.905, Utilities Code, is amended to 
read as follows:   
	Sec. 39.905.  GOAL FOR ENERGY EFFICIENCY.  (a)  It is the 
goal of the legislature that:
		(1)  electric utilities will administer energy savings 
incentive programs in a market-neutral, nondiscriminatory manner 
but will not offer underlying competitive services;
		(2)  all customers, in all customer classes, have a 
choice of and access to energy efficiency alternatives and other 
choices from the market that allow each customer to reduce energy 
consumption and reduce energy costs; and
		(3)  each electric utility will provide, through 
market-based standard offer programs or limited, targeted, 
market-transformation programs, incentives sufficient for retail 
electric providers and competitive energy service providers to 
acquire additional cost-effective energy efficiency equivalent to 
at least 15 [10] percent of the electric utility's annual growth in 
demand.
	(b)  The commission shall provide oversight and adopt rules 
and procedures, as necessary, to ensure that the goal of this 
section is achieved [by January 1, 2004].
	SECTION 3.  This Act takes effect September 1, 2005.