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A BILL TO BE ENTITLED
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AN ACT
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relating to electric energy efficiency goals and programs. |
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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) and (d) and adding Subsections (a-1), |
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(a-2), (c-1), (g), and (h) 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 savings |
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incentive programs in a market-neutral, nondiscriminatory manner |
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but will not offer underlying competitive services; |
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(2) all customers, in all customer classes, have a |
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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, peak demand, or energy costs; [and] |
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(3) each electric utility will provide, through |
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market-based standard offer programs or limited, targeted, |
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market-transformation programs, incentives sufficient for retail |
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electric providers and competitive energy service providers to |
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acquire additional cost-effective energy efficiency equivalent to |
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at least 10 percent of the electric utility's annual growth in |
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demand; and |
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(4) each transmission and distribution utility will |
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meet at least 50 percent of the annual growth in demand through a |
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combination of energy efficiency measures and load management by |
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December 31, 2013. |
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(a-1) The commission shall review the potential for energy |
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and demand savings each biennium, establish interim goals, and |
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adjust standard offer and incentive programs to ensure that |
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progress is made toward achieving the goal provided by Subsection |
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(a)(4) and that the programs are achieving the maximum |
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cost-effective energy efficiency equivalent that can be obtained |
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below avoided costs and within the program guidelines established |
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by the commission. This subsection expires January 1, 2014. |
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(a-2) The commission shall reward a transmission and |
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distribution utility that exceeds the goal provided by Subsection |
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(a)(4) and shall penalize a transmission and distribution utility |
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that fails to achieve the goal. The commission may not penalize a |
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transmission and distribution utility that fails to achieve the |
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goal if the reason for not achieving the goal is outside of the |
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utility's control. |
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(c-1) The commission, as necessary to allow an electric |
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utility to achieve the goals provided by this section, may allow the |
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utility to vary the structure and delivery of standard offer |
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programs offered in the utility's service area markets based on the |
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characteristics of each market to compensate for the differences |
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between urban and rural service area markets. The commission may |
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allow special programs to be developed to serve rural areas. |
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(d) The commission shall adopt [the following] |
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market-transformation program options that the utilities may |
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choose to implement in order to satisfy the goal in Subsection |
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(a)(3). The options may include: |
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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; [and] |
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(4) the use of trees or other landscaping for energy |
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efficiency; |
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(5) rental or lease property retrofit programs; and |
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(6) high performance buildings. |
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(g) Not later than October 1, 2007, the commission shall |
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implement an emergency energy efficiency and load management |
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program to ensure that adequate reserve margins are maintained |
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through December 31, 2011. The programs implemented under this |
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subsection shall target: |
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(1) high use areas; |
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(2) high growth areas; and |
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(3) customers that use the largest amount of |
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electricity. |
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(h) Each biennium, the commission shall: |
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(1) review the expenditures for efficiency and load |
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management programs for transmission and distribution utilities; |
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and |
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(2) adjust rates to ensure that expenditures for |
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efficiency are recovered in a timely process. |
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SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is |
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amended by adding Section 39.9055 to read as follows: |
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Sec. 39.9055. (a) It is the goal for the state that by |
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January 1, 2023, 3,750 megawatts of generation capacity from |
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combined heating and power technology be installed in the state. |
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(b) The commission shall establish biannual goals for |
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increasing the number of megawatts of energy produced by combined |
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heating and power technology to meet the goal provided by |
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Subsection (a). |
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(c) The commission by rule shall establish a program to |
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encourage electric utilities to comply with this section. |
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(d) The commission by rule shall establish fair |
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interconnection standards, standby charges, insurance |
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requirements, capacity factors, and buyback rates for excess energy |
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produced. |
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(e) The commission, with the assistance of ERCOT, shall |
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establish procedures that allow excess energy produced by combined |
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heat and power technology to be aggregated and sold in the wholesale |
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market. |
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SECTION 3. This Act takes effect September 1, 2007. |