79R4311 JJT-F

By:  Carona                                                       S.B. No. 712



A BILL TO BE ENTITLED

AN ACT

relating to the legislature's goal for energy efficiency in this 
state and related energy efficiency programs.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  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 the 
customer's energy consumption, peak demand, or [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 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, 2007 [2004].
	(c)  A standard offer program under Subsection (a)(3) must be 
neutral with respect to technologies, equipment, or fuels and must 
to the extent possible facilitate the full participation of 
emerging technologies, including thermal, chemical, and mechanical 
technologies and electrical energy storage technologies.
	(d)  The commission shall establish market transformation 
programs for:
		(1)  energy-smart schools;                                             
		(2)  appliance retirement and recycling;                               
		(3)  air conditioning system tune-ups; and                             
		(4)  the use of trees or other landscaping for energy 
efficiency.    
	SECTION 2.  This Act takes effect September 1, 2005.