80R9942 TAD-D
 
  By: Straus H.B. No. 3693
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to energy demand, energy load, energy efficiency
  incentives, energy programs, and energy performance measures.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter D, Chapter 11, Education Code, is
  amended by adding Section 11.171 to read as follows:
         Sec. 11.171.  SOLAR ELECTRIC GENERATION FOR PUBLIC SCHOOL
  BUILDINGS. (a)  The trustees of an independent school district
  shall ensure that any new public school built in the district is
  designed for and constructed with solar electric generation panels
  on the rooftops of the school. The trustees may provide for the
  addition of solar electric generation panels to the rooftops of any
  existing public school in the district or for a new building on the
  property of a public school to be designed for and constructed with
  solar electric generation panels.
         (b)  The trustees of an independent school district shall
  contract with the public utility, retail electric provider,
  municipally owned utility, or electric cooperative providing
  electricity to the district so that:
               (1)  surplus electricity produced by a school
  building's solar electric generation panels is made available for
  sale to the electric transmission and distribution system; and
               (2)  the net value of that surplus electricity is
  credited to the district.
         SECTION 2.  Section 447.009, Government Code, is amended by
  adding Subsection (b-1) to read as follows:
         (b-1)  A state agency or institution of higher education that
  occupies a building or facility located in an air quality
  nonattainment area or affected county, as those terms are defined
  in Section 386.001, Health and Safety Code, shall include in the
  plan described in Subsection (a)(1) a goal to reduce energy
  consumption in its buildings and facilities located in those areas
  by five percent per year for five years beginning January 1, 2008.
  In each year in which the goal applies, the agency or institution
  shall issue a report to the state energy conservation office
  detailing the agency's or institution's progress in reaching the
  goal. The state energy conservation office shall include in its
  annual evaluation under Section 388.006, Health and Safety Code,
  the information provided to the office by an agency or institution
  regarding the progress.  This subsection expires January 2, 2013.
         SECTION 3.  Subchapter A, Chapter 2165, Government Code, is
  amended by adding Sections 2165.008 and 2165.009 to read as
  follows:
         Sec. 2165.008.  PROHIBITION ON USE OF INCANDESCENT LIGHT
  BULBS. A state agency in charge and control of a state building or
  of state grounds may not use incandescent light bulbs when
  replacing a light bulb in the state building or on the state
  grounds.
         Sec. 2165.009.  ENERGY EFFICIENCY MECHANISMS IN STATE
  BUILDINGS. A state agency in charge and control of a state building
  shall adopt rules, in coordination with appropriate state agencies,
  to retrofit the building with energy efficiency mechanisms,
  including energy-efficient facilities or appliances and
  insulation, windows, or other building additions designed to reduce
  energy use.
         SECTION 4.  Sections 388.003(a) and (b), Health and Safety
  Code, are amended to read as follows:
         (a)  To achieve energy conservation in this state, the State
  Energy Conservation Office shall adopt an energy code for
  single-family residential construction and an energy code for all
  other residential, commercial, and industrial construction. The
  office shall ensure that the adopted energy codes will result in
  energy conservation to an extent that meets or exceeds the
  conservation to be achieved by the codes prescribed by Subsection
  (b) and shall periodically review and consider for adoption the
  most recent revision of those codes.
         (b)  Until the energy codes are revised as provided by
  Subsection (a):
               (1)  [single-family residential construction,] the
  energy efficiency chapter of the International Residential Code, as
  it existed on May 1, 2001, is adopted as the energy code in this
  state for single-family residential construction; and
               (2)  [.
         [(b)     To achieve energy conservation in all other
  residential, commercial, and industrial construction,] the
  International Energy Conservation Code as it existed on May 1,
  2001, is adopted as the energy code for use in this state for all
  other residential, commercial, and industrial construction.
         SECTION 5.  Section 388.005(c), Health and Safety Code, is
  amended to read as follows:
         (c)  Each political subdivision shall establish a goal to
  reduce the electric consumption by the political subdivision by
  five percent each year until December 31, 2012 [for five years,
  beginning January 1, 2002].
         SECTION 6.  Section 388.008, Health and Safety Code, is
  amended by adding Subsection (d) to read as follows:
         (d)  The laboratory, in coordination with other state
  agencies, shall adopt rules to expand the home energy ratings
  program to ensure a residential building can receive an energy
  efficiency rating at the request of an owner or a resident of a
  single-family or multi-family residence.
         SECTION 7.  Chapter 388, Health and Safety Code, is amended
  by adding Section 388.013 to read as follows:
         Sec. 388.013.  ENERGY AUDIT PROGRAM. The commission shall
  coordinate with other state agencies to establish an energy audit
  program for owners and other residents of single-family and
  multi-family residences.
         SECTION 8.  Subtitle C, Title 5, Health and Safety Code, is
  amended by adding Chapter 392 to read as follows:
  CHAPTER 392. APPLIANCE EFFICIENCY STANDARDS
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 392.001.  DEFINITIONS. In this chapter:
               (1)  "Ballast" means a device used with an electric
  discharge lamp to obtain necessary circuit conditions involving
  voltage, current, and waveform, for starting and operating the
  lamp.
               (2)  "Bottle-type water dispenser" means a water
  dispenser that uses a bottle or reservoir as the source of potable
  water.
               (3)  "Commercial hot food holding cabinet" means a
  heated, fully enclosed compartment with one or more solid or glass
  doors that is designed to maintain the temperature of hot food that
  has been cooked in a separate appliance.
               (4)  "Compact audio product," also known as a mini,
  mid, micro, or shelf audio system, means an integrated audio system
  encased in a single housing that includes an amplifier and radio
  tuner with attached or separable speakers that can reproduce audio
  from magnetic tape, compact disc, DVD, or flash memory.
               (5)  "Digital versatile disc" or "DVD" means a
  laser-encoded plastic medium capable of storing a large amount of
  digital audio, video, or computer data.
               (6)  "DVD player" means a digital versatile disc player
  that:
                     (A)  is a commercially available electronic
  product encased in a single housing that includes an integral power
  supply; and
                     (B)  is designed to decode digitized video signals
  on a DVD.
               (7)  "DVD recorder" means a digital versatile disc
  recorder that:
                     (A)  is a commercially available electronic
  product encased in a single housing that includes an integral power
  supply; and
                     (B)  is designed for the production or recording
  of digitized video signals on a DVD.
               (8)  "Energy Star Program" means the United States
  Environmental Protection Agency's Energy Star Program.
               (9)  "High-intensity discharge lamp" means a lamp in
  which:
                     (A)  light is produced by the passage of an
  electric current through a vapor or gas;
                     (B)  the light-producing arc is stabilized by bulb
  wall temperature; and
                     (C)  the arc tube has a bulb wall loading of
  greater than three watts per square centimeter.
               (10)  "Metal halide lamp" means a high-intensity
  discharge lamp in which the major portion of the light is produced
  by radiation of metal halides and their products of dissociation.
               (11)  "Metal halide lamp fixture" means a fixture
  designed to be operated with a metal halide lamp and a ballast for a
  metal halide lamp.
               (12)  "Portable electric spa" means a factory-built
  electric spa or hot tub, supplied with equipment for heating and
  circulating water.
               (13)  "Residential pool pump" means a pump used to
  circulate and filter residential swimming pool water to maintain
  the water's clarity and sanitation.
               (14)  "Single-voltage external AC to DC power supply"
  means a device that:
                     (A)  is designed to convert line voltage
  alternating current input into lower voltage direct current output;
                     (B)  is able to convert to only one direct current
  output voltage at a time;
                     (C)  is intended to be used with a separate
  end-use product that constitutes the primary power load;
                     (D)  is contained in a physical enclosure separate
  from the end-use product;
                     (E)  is designed to be connected to the end-use
  product by a removable or hard-wired electrical connection, cable,
  cord, or other wiring;
                     (F)  has a nameplate output power less than or
  equal to 250 watts;
                     (G)  does not have a fixed or removable battery or
  battery pack that physically attaches directly to the power supply
  converter unit; and
                     (H)  does not have:
                           (i)  a battery chemistry or type selector
  switch and indicator light; or
                           (ii)  a battery chemistry or type selector
  switch and a state of charge meter.
               (15)  "State-regulated incandescent reflector lamp"
  means a lamp that:
                     (A)  is not colored or designed for rough or
  vibration service applications;
                     (B)  has an inner reflective coating on the outer
  bulb to direct the light;
                     (C)  has a standard E26 (Edison 26 millimeter)
  medium screw base;
                     (D)  has a rated voltage or voltage range at least
  partially within the range of 115 to 130 volts; and
                     (E)  is one of the following types:
                           (i)  a blown parabolic aluminized reflector
  (BPAR) lamp, bulged reflector (BR) lamp, elliptical reflector (ER)
  lamp, or a lamp with a similar bulb shape with a diameter equal to or
  greater than 2.25 inches; or
                           (ii)  a reflector (R) lamp, a parabolic
  aluminized reflector (PAR) lamp, or a lamp with a similar bulb shape
  with a diameter of 2.25 to 2.75 inches.
               (16)  "Walk-in freezer" means a refrigerated space a
  person can walk into that:
                     (A)  has a total frozen storage area of less than
  3,000 square feet;
                     (B)  operates at a temperature at or below 32
  degrees Fahrenheit; and
                     (C)  is connected to a self-contained or remote
  condensing unit.
               (17)  "Walk-in refrigerator" means a refrigerated
  space a person can walk into that:
                     (A)  has a total chilled storage area of less than
  3,000 square feet;
                     (B)  operates at a chilled temperature above 32
  degrees Fahrenheit; and
                     (C)  is connected to a self-contained or remote
  condensing unit.
               (18)  "Water dispenser" means a factory-made assembly
  that mechanically cools and heats potable water and that dispenses
  the cooled or heated water by integral or remote means.
         Sec. 392.002.  APPLICABILITY; EXEMPTIONS. (a) This chapter
  applies to the following new products sold, offered for sale, or
  installed in this state:
               (1)  bottle-type water dispensers;
               (2)  commercial hot food holding cabinets;
               (3)  compact audio products;
               (4)  DVD players and recorders;
               (5)  metal halide lamp fixtures;
               (6)  portable electric spas;
               (7)  residential pool pumps;
               (8)  single-voltage external AC to DC power supplies;
               (9)  state-regulated incandescent reflector lamps;
               (10)  walk-in refrigerators and freezers; and
               (11)  any other products that are designated by the
  comptroller in accordance with Section 392.102.
         (b)  This chapter does not apply to:
               (1)  a new product manufactured in this state and sold
  outside the state;
               (2)  a new product manufactured outside this state and
  sold at wholesale inside the state for final retail sale and
  installation outside the state;
               (3)  a product installed in a mobile manufactured home
  at the time of the home's construction;
               (4)  a product designed expressly for installation and
  use in a recreational vehicle;
               (5)  a commercial heated glass merchandizing cabinet,
  drawer warmer, or cook-and-hold appliance for hot food;
               (6)  a compact audio product that:
                     (A)  can be independently powered by internal
  batteries;
                     (B)  has a powered external satellite antenna; or
                     (C)  can provide a video output signal;
               (7)  a DVD recorder that has an electronic programming
  guide function that provides an interactive, onscreen menu of
  television listings and downloads program information from the
  vertical blanking interval of a regular television signal;
               (8)  a refrigerated warehouse;
               (9)  a chilled-space product designed and marketed
  exclusively for medical, scientific, or research purposes;
               (10)  a single-voltage external AC to DC power supply
  that requires United States Food and Drug Administration listing
  and approval as a medical device; or
               (11)  an incandescent reflector lamp that is rated at:
                     (A)  50 watts or less with a diameter of 30/8 or
  40/8 inches and is one of the following types: BR30, ER30, BR40, and
  ER40;
                     (B)  65 watts with a diameter of 30/8 or 40/8
  inches and is one of the following types: BR30, BR40, and ER40; or
                     (C)  45 watts or less with a diameter of 20/8
  inches (R20 lamps).
  [Sections 392.003-392.050 reserved for expansion]
  SUBCHAPTER B. EFFICIENCY STANDARDS
         Sec. 392.051.  MINIMUM EFFICIENCY STANDARDS FOR CERTAIN
  APPLIANCES. Not later than September 1, 2008, the comptroller, in
  consultation with the state energy conservation office, shall adopt
  rules establishing minimum efficiency standards for each type of
  new product described by Section 392.002(a).
         Sec. 392.052.  NEW OR INCREASED EFFICIENCY STANDARDS. (a)
  The comptroller may adopt rules to establish increased efficiency
  standards for a product listed in Section 392.002(a) or to
  establish standards for a product not listed in that subsection.
         (b)  In considering new or increased standards, the
  comptroller, in consultation with the state energy conservation
  office, shall prescribe new or increased efficiency standards if
  the comptroller determines that the standards would:
               (1)  serve to promote energy conservation in this
  state; and
               (2)  be cost-effective for consumers who purchase and
  use the new product.
         Sec. 392.053.  EFFECTIVE DATE OF STANDARDS. A standard
  established under this subchapter takes effect on the first
  anniversary of the date the rule establishing the standard is
  adopted.
         Sec. 392.054.  BOTTLE-TYPE WATER DISPENSERS. A bottle-type
  water dispenser designed for dispensing both hot and cold water may
  not have standby energy consumption greater than 1.2 kilowatt-hours
  per day, as measured in accordance with the test criteria contained
  in version 1 of the "Energy Star Program Requirements for Bottled
  Water Coolers," except that Section D, "Timer Usage," of those test
  criteria may not be used to test units with an integral, automatic
  timer.
         Sec. 392.055.  COMMERCIAL HOT FOOD HOLDING CABINETS. (a) A
  commercial hot food holding cabinet must have a maximum idle energy
  rate of not greater than 40 watts per cubic foot of interior volume,
  as determined by the "idle energy rate-dry test" in ASTM F2140-01,
  "Standard Test Method for Performance of Hot Food Holding
  Cabinets," copyright 2007 ASTM International.
         (b)  Interior volume must be measured in accordance with the
  method shown in the "Energy Star Program Requirements for
  Commercial Hot Food Holding Cabinets" as in effect on August 15,
  2003.
         Sec. 392.056.  COMPACT AUDIO PRODUCTS. A compact audio
  product may not use more than two watts in standby-passive mode for
  a product without a permanently illuminated clock display and four
  watts in standby-passive mode for a product with a permanently
  illuminated clock display, as measured in accordance with
  International Electrotechnical Commission (IEC) test method
  62087:2002-2003(E), "Methods of measurement for the power
  consumption of audio, video, and related equipment."
         Sec. 392.057.  DVD PLAYERS OR RECORDERS. A DVD player or
  recorder may not use more than three watts in standby-passive mode,
  as measured in accordance with International Electrotechnical
  Commission (IEC) test method 62087:2002-2003(E), "Methods of
  measurement for the power consumption of audio, video, and related
  equipment."
         Sec. 392.058.  METAL HALIDE LAMP FIXTURES. A metal halide
  lamp fixture designed to be operated with a lamp that has a wattage
  rating of 150 to 500 watts may not contain a ballast to operate the
  lamp known as a "probe-start metal halide ballast" that:
               (1)  does not contain an igniter; and
               (2)  starts the lamp by using a third starting
  electrode probe in the arc tube.
         Sec. 392.059.  PORTABLE ELECTRIC SPAS. A portable electric
  spa may not have a standby power greater than 5(V2/3) watts where V
  equals the total volume in gallons. Standby power must be measured
  in accordance with the test method for portable electric spas
  contained in Section 1604, Title 20, California Code of
  Regulations, as of December 2006.
         Sec. 392.060.  RESIDENTIAL POOL PUMP MOTORS. (a) A
  residential pool pump motor may not be a split-phase or capacitor
  start-induction run type motor.
         (b)  A residential pool pump motor with a capacity of one
  horsepower or more must have the capability of operating at more
  than one speed with a low speed having a rotation rate that is not
  more than one-half of the motor's maximum rotation rate.
         (c)  Pool pump motor controls must have the capability of
  operating the pool pump at more than one speed. The pump's default
  circulation speed must be the lowest speed, and the pump's high
  speed override capability must be governed by a control device that
  allows the higher circulation speed to operate only for a temporary
  period not to exceed one normal cycle.
         Sec. 392.061.  SINGLE-VOLTAGE EXTERNAL AC TO DC POWER
  SUPPLIES. (a) A single-voltage external AC to DC power supply must
  meet the minimum energy efficiency and maximum energy consumption
  requirements provided by the following table:
 
Nameplate Output Power        Minimum Energy
 
  Efficiency in Active Mode
 
0 to < 1 watt      0.49 * Nameplate Output
 
=1 watt and =49 watts      0.09*Ln(Nameplate Output Power) + 0.49
 
> 49 watts      0.84
 
 
       Maximum Energy
 
  Consumption in No-Load Mode
 
0 to < 10 watts      0.5 watts
 
= 10 watts and =250 watts      0.75 watts
         Where Ln (Nameplate Output) = Natural Logarithm of the
  nameplate output expressed in watts
         (b)  These standards apply to single-voltage external AC to
  DC power supplies that are sold individually and to those that are
  sold as a component of or in conjunction with another product.
         (c)  For purposes of this section, the efficiency of a
  single-voltage external AC to DC power supply must be measured in
  accordance with the test methodology specified by the Energy Star
  Program "Test Method for Calculating the Energy Efficiency of
  Single-Voltage External AC-DC and AC-AC Power Supplies (August 11,
  2004)," except that tests shall be conducted at 115 volts only.
         Sec. 392.062.  STATE-REGULATED INCANDESCENT REFLECTOR
  LAMPS.  A state-regulated incandescent reflector lamp must meet the
  minimum average lamp efficacy requirements for federally regulated
  incandescent reflector lamps contained in 42 U.S.C. Section
  6295(i)(1)(A), as in effect on January 1, 2007.
         Sec. 392.063.  WALK-IN REFRIGERATORS AND FREEZERS. (a)  A
  walk-in refrigerator or freezer must have:
               (1)  automatic door closers that firmly close all
  reach-in doors and that firmly close walk-in doors not wider than 3
  feet 9 inches and not higher than 6 feet 11 inches that have been
  closed to within one inch of full closure;
               (2)  wall, ceiling, and door insulation resistance
  values of at least R-28 for refrigerators and R-32 for freezers,
  except for glazed portions of doors and structural members;
               (3)  a floor insulation resistance value of at least
  R-28 for freezers;
               (4)  for a single-phase evaporator fan motor rated at
  less than one horsepower and at less than 460 volts, an
  electronically commutated motor;
               (5)  for a condenser fan motor rated at less than one
  horsepower:
                     (A)  an electronically commutated motor;
                     (B)  a permanent split capacitor-type motor; or
                     (C)  a polyphase motor of one-half horsepower or
  more; and
               (6)  except as provided by Subsection (d), for all
  interior lights, light sources with an efficacy of 40 lumens per
  watt or more, including ballast losses.
         (b)  In addition to the requirements under Subsection (a), a
  walk-in refrigerator or freezer with transparent reach-in doors
  must have the following:
               (1)  transparent reach-in doors or windows in walk-in
  doors for a walk-in freezer of triple-pane glass with
  heat-reflective treated glass or gas fill;
               (2)  transparent reach-in doors or windows in walk-in
  doors for a walk-in refrigerator of double-pane or triple-pane
  glass with heat-reflective treated glass and gas fill;
               (3)  for an appliance that has an anti-sweat heater
  without anti-sweat heat controls, a total door rail, glass, and
  frame heater power draw of not more than 7.1 watts per square foot
  of door opening for a freezer and 3.0 watts per square foot of door
  opening for a refrigerator; and
               (4)  for an appliance that has an anti-sweat heater
  with anti-sweat heat controls and the total door rail, glass, and
  frame heater power draw is more than 7.1 watts per square foot of
  door opening for a freezer or 3.0 watts per square foot of door
  opening for a refrigerator, anti-sweat heat controls that reduce
  the energy use of the anti-sweat heater in an amount corresponding
  to the relative humidity in the air outside the door or to the
  condensation on the inner glass pane.
         (c)  The comptroller may delay implementation of Subsection
  (a)(4) on a determination that the specified motors are available
  only from one manufacturer or in quantities insufficient to serve
  the needs of the walk-in industry for evaporator-fan applications.
         (d)  A walk-in refrigerator or freezer may have interior
  light sources with an efficacy of less than 40 lumens per watt,
  including ballast losses, if the lights are used in conjunction
  with a timer or device that turns the lights off whenever the
  refrigerator or freezer is unoccupied for a period not to exceed 15
  minutes.
  [Sections 392.064-392.100 reserved for expansion]
  SUBCHAPTER C.  IMPLEMENTATION AND MODIFICATION OF EFFICIENCY
  STANDARDS
         Sec. 392.101.  PRODUCT COMPLIANCE.  (a)  A new product
  described by Section 392.002(a) may not be sold or offered for sale
  in this state unless the efficiency of the new product meets or
  exceeds the applicable efficiency standards prescribed by the rules
  adopted under Subchapter B.
         (b)  On or after the first anniversary of the date the sale or
  offering for sale of a new product becomes subject to an efficiency
  standard adopted under this chapter, that product may not be
  installed for compensation in this state unless the efficiency of
  the product meets or exceeds the applicable efficiency standards
  prescribed by the rules adopted under Subchapter B.
         Sec. 392.102.  APPLICATION FOR WAIVER. For purposes of this
  chapter, the comptroller may apply for a waiver of federal
  preemption in accordance with federal procedures under 42 U.S.C.
  Section 6297(d) to authorize state efficiency standards for a
  product regulated by the federal government.
  [Sections 392.103-392.150 reserved for expansion]
  SUBCHAPTER D. TESTING, CERTIFICATION, LABELING, AND ENFORCEMENT
         Sec. 392.151.  PRODUCT TESTING.  (a)  The manufacturer of a
  new product subject to an efficiency standard adopted under this
  chapter shall test samples of the product in accordance with the
  test procedures adopted under this chapter.
         (b)  The comptroller, in consultation with the state energy
  conservation office, by rule shall adopt test procedures for
  determining a product's energy efficiency if Subchapter B does not
  provide for the procedures. The comptroller shall adopt test
  methods approved by the United States Department of Energy or, in
  the absence of those test methods, other appropriate nationally
  recognized test methods.
         (c)  The comptroller may adopt revised test procedures when
  new versions of test procedures become available.
         Sec. 392.152.  PRODUCT CERTIFICATION. (a)  Except as
  provided by Subsection (c), the manufacturer of a new product
  subject to an efficiency standard adopted under this chapter shall
  certify to the comptroller that the product is in compliance with
  that standard according to test results.
         (b)  The comptroller shall adopt rules governing the
  certification of products under this section and shall coordinate
  certification by this state with the certification programs of
  other states and federal agencies with similar standards.
         (c)  Subsection (a) does not apply to a manufacturer of
  single-voltage external AC to DC power supplies, walk-in
  refrigerators, or walk-in freezers.
         Sec. 392.153.  PRODUCT LABELING.  (a)  The manufacturer of a
  new product subject to an efficiency standard adopted under this
  chapter shall identify each product offered for sale or
  installation in this state as being in compliance with this chapter
  by means of a mark, label, or tag on the product and packaging at the
  time of sale or installation.
         (b)  The comptroller shall adopt rules governing the
  identification of products and packaging under this section. The
  rules must to the greatest practical extent be coordinated with the
  labeling programs of other states and federal agencies with
  equivalent efficiency standards. The comptroller shall allow the
  use of existing marks, labels, or tags that connote compliance with
  the efficiency requirements of this chapter.
         Sec. 392.154.  COMPTROLLER TESTING FOR EFFICIENCY STANDARDS
  COMPLIANCE. The comptroller may test products subject to an
  efficiency standard adopted under this chapter for compliance with
  the applicable efficiency standards. If a product tested is found
  not to be in compliance with the standards, the comptroller shall:
               (1)  impose against the manufacturer of the product an
  assessment in an amount sufficient to recover the costs of
  purchasing and testing the product; and
               (2)  make information available to the public on any
  product found to be not in compliance with the standards.
         Sec. 392.155.  INSPECTIONS.  The comptroller may have
  periodic inspections conducted of a distributor or retailer of new
  products covered by Section 392.002 subject to an efficiency
  standard adopted under this chapter to determine compliance with
  this chapter.  The inspections must be conducted at reasonable and
  convenient hours.  Notice must be given before an inspection may be
  conducted.
         Sec. 392.156.  COMPLAINTS.  The comptroller shall
  investigate a complaint received concerning a violation of this
  chapter and shall report the results of the investigation to the
  attorney general.
         Sec. 392.157.  ATTORNEY GENERAL ENFORCEMENT. The attorney
  general may institute proceedings to enforce this chapter.
         Sec. 392.158.  VIOLATIONS AND PENALTIES.  (a)  The
  comptroller shall issue a warning to a person for the person's first
  violation of this chapter.
         (b)  A person's second and subsequent violations are subject
  to a civil penalty of not more than $250.
         (c)  Each violation constitutes a separate violation, and
  each day that a violation continues constitutes a separate
  violation.
         (d)  A penalty assessed under this section is in addition to
  costs assessed under Section 392.154.
         Sec. 392.159.  RULES FOR IMPLEMENTATION AND ENFORCEMENT.
  The comptroller may adopt additional rules necessary to ensure the
  proper implementation and enforcement of this chapter.
         SECTION 9.  Subchapter H, Chapter 151, Tax Code, is amended
  by adding Section 151.333 to read as follows:
         Sec. 151.333.  ENERGY EFFICIENT PRODUCTS. (a) In this
  section, "energy efficient product" means a product that has been
  designated as an Energy Star qualified product under the Energy
  Star program jointly operated by the United States Environmental
  Protection Agency and the United States Department of Energy.
         (b)  This section applies only to the following energy
  efficient products:
               (1)  an air conditioner the sales price of which does
  not exceed $6,000;
               (2)  a clothes washer;
               (3)  a ceiling fan;
               (4)  a dehumidifier;
               (5)  a dishwasher;
               (6)  an incandescent or fluorescent lightbulb;
               (7)  a programmable thermostat; and
               (8)  a refrigerator the sales price of which does not
  exceed $2,000.
         (c)  The sale of an energy efficient product to which this
  section applies is exempted from the taxes imposed by this chapter
  if:
               (1)  the product is purchased for noncommercial home or
  personal use; and
               (2)  the sale takes place during:
                     (A)  the period described by Section
  151.326(a)(2) for the sale of certain clothing and footwear;
                     (B)  a period beginning at 12:01 a.m. on the
  Saturday preceding the last Monday in May (Memorial Day) and ending
  at 11:59 p.m. on the last Monday in May; or
                     (C)  a period around July 4, as follows:
                           (i)  if July 4 occurs on a Saturday, a period
  beginning at 12:01 a.m. on the previous Friday and ending at 11:59
  p.m. on the following Sunday;
                           (ii)  if July 4 occurs on a Sunday, a period
  beginning at 12:01 a.m. on the previous Saturday and ending at 11:59
  p.m. on the following Monday;
                           (iii)  if July 4 occurs on a Monday or
  Tuesday, a period beginning at 12:01 a.m. on the previous Saturday
  and ending at 11:59 p.m. on July 4; or
                           (iv)  if July 4 occurs on a Wednesday,
  Thursday, or Friday, a period beginning at 12:01 a.m. on July 4 and
  ending at 11:59 p.m. on the following Sunday.
         (d)  A retailer is not required to obtain an exemption
  certificate stating that an energy efficient product to which this
  section applies is purchased for noncommercial home or personal use
  unless more than two items of the product are purchased at the same
  time.
         SECTION 10.  Section 31.004, Utilities Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  The commission shall provide information to school
  districts regarding how a school district may finance the
  installation of solar electric generation panels for school
  district buildings.
         SECTION 11.  Section 39.002, Utilities Code, is amended to
  read as follows:
         Sec. 39.002.  APPLICABILITY. This chapter, other than
  Sections 39.155, 39.157(e), 39.203, 39.903, [and] 39.904, and
  39.9054, does not apply to a municipally owned utility or an
  electric cooperative. Sections 39.157(e), 39.203, and 39.904,
  however, apply only to a municipally owned utility or an electric
  cooperative that is offering customer choice. If there is a
  conflict between the specific provisions of this chapter and any
  other provisions of this title, except for Chapters 40 and 41, the
  provisions of this chapter control.
         SECTION 12.  Section 39.905, Utilities Code, is amended by
  amending Subsections (a), (b), (d), and (e) and adding Subsections
  (a-1), (a-2), (a-3), (c-1), (g), (h), and (i) to read as follows:
         (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, year-round [and] access to, and assistance in choosing
  energy efficiency alternatives, incentive programs, and other
  choices from the market that allow each customer to reduce energy
  consumption, peak demand, or 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 from residential and small commercial customers;
               (4)  the commission ensures the development of
  cost-effective and market-based load response programs;
               (5)  each electric utility will promote demand response
  programs to all customer classes; and
               (6)  each transmission and distribution utility will
  meet at least 40 percent of the annual growth in demand through a
  combination of energy efficiency measures and load management by
  December 31, 2013.
         (a-1)  The commission shall:
               (1)  ensure timely and reasonable cost recovery for
  utility expenditures made to acquire cost-effective energy
  efficiency to meet the goal provided by Subsection (a), provided
  that the amount a utility recovers in a period may not be greater
  than an amount equal to 100 percent above the utility's efficiency
  program expenditures for the previous period;
               (2)  establish a performance incentive for utilities
  that make an additional three percent incremental expenditure to
  acquire energy efficiency above the goal provided by Subsection
  (a)(3); and
               (3)  identify in the report provided under Section
  31.003 any potential barriers to acquiring additional increases in
  energy efficiency and any statutory changes necessary to eliminate
  those barriers.
         (a-2)  The commission shall reward a transmission and
  distribution utility that exceeds the goal provided by Subsection
  (a)(6) and shall penalize a transmission and distribution utility
  that fails to achieve the goal. The commission may not penalize a
  transmission and distribution utility that fails to achieve the
  goal if the reason for not achieving the goal is outside of the
  utility's control.
         (a-3)  The commission shall review the potential for energy
  and demand savings each biennium, establish interim goals, and
  adjust standard offer and incentive programs to ensure that
  progress is made toward achieving the goal provided by Subsection
  (a)(6) and that the programs are achieving the maximum
  cost-effective energy efficiency equivalent that can be obtained
  below avoided costs and within the program guidelines established
  by the commission. This subsection expires January 1, 2014.
         (b)  The commission shall provide oversight and adopt rules
  and procedures, as necessary, to ensure that the utilities can
  achieve the goal of this section. The commission shall ensure that
  costs associated with programs provided under this section are
  borne by the customers who receive services under the programs.
         (c-1)  The commission, as necessary to allow an electric
  utility to achieve the goals provided by this section, may allow the
  utility to vary the structure and delivery of standard offer
  programs offered in the utility's service area markets based on the
  characteristics of each market to compensate for the differences
  between urban and rural service area markets. The commission may
  allow special programs to be developed to serve rural areas.
         (d)  The commission shall adopt the following
  market-transformation program options that the utilities may
  choose to implement in order to satisfy the goal in Subsection
  (a)(3):
               (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;
               (5)  providing energy monitoring equipment to
  customers to allow the customers a better understanding of the
  amount and time of energy use;
               (6)  customer energy management and demand response
  controls;
               (7)  rental or lease property retrofit programs; and
               (8)  high performance buildings.
         (e)  An electric utility may use money approved by the
  commission for energy efficiency programs to perform necessary
  research and development to foster continuous improvement and
  innovation in the application of energy efficiency technology and
  energy efficiency program design and implementation. Money the
  utility uses under this subsection may not exceed 10 percent of the
  amount the commission approved for energy efficiency programs in
  the utility's most recent full rate proceeding.
         (g)  The commission and the comptroller jointly by rule shall
  develop a program through which customers may receive a refund of
  not more than three percent of the taxes the customer paid for
  electric services taxable under Chapter 151, Tax Code. To be
  eligible for the program, a customer may not participate in a
  program under Subsection (a)(3) and must engage in energy
  efficiency measures that reduce electric energy consumption,
  increase the efficiency of electric energy production, or reduce
  peak demand. Rules adopted under this section must provide for a
  tax refund for energy efficiency measures described by this
  subsection that were taken on or after January 1, 2005.
         (h)  Not later than October 1, 2007, the commission shall
  implement an emergency energy efficiency and load management
  program to ensure that adequate reserve margins are maintained
  through December 31, 2011. The programs implemented under this
  subsection shall target:
               (1)  high use areas;
               (2)  high growth areas; and
               (3)  customers that use the largest amount of
  electricity.
         (i)  Each biennium, the commission shall:
               (1)  review the expenditures for efficiency and load
  management programs for transmission and distribution utilities;
  and
               (2)  adjust rates to ensure that expenditures for
  efficiency are recovered in a timely process.
         SECTION 13.  Subchapter Z, Chapter 39, Utilities Code, is
  amended by adding Sections 39.9051, 39.9052, 39.9053, and 39.9054
  to read as follows:
         Sec. 39.9051.  ENERGY EFFICIENCY FOR MUNICIPALLY OWNED
  UTILITIES. (a) In this section, "municipally owned utility" has the
  meaning assigned by Section 11.003.
         (b)  It is the goal of the legislature that:
               (1)  municipally owned utilities will administer
  energy savings incentive programs;
               (2)  all customers, in all customer classes, have a
  choice of and access to energy efficiency alternatives that allow
  each customer to reduce energy consumption, peak demand, or energy
  costs; and
               (3)  each municipally owned utility will provide
  incentives sufficient for municipally owned utilities to acquire
  additional cost-effective energy efficiency.
         (c)  The governing body of a municipally owned utility shall
  provide oversight and adopt rules and procedures, as necessary, to
  ensure that the utility can achieve the goal of this section.
         (d)  After a municipally owned utility adopts customer
  choice by decision of the governing body pursuant to Chapter 40, the
  commission shall provide oversight and adopt rules and procedures,
  as necessary, to ensure that the municipally owned utility can
  achieve the goal in this section in a market-neutral,
  nondiscriminatory manner. The commission shall, to the greatest
  extent possible, include existing energy efficiency programs
  already adopted by the municipally owned utility.
         Sec. 39.9052.  ENERGY EFFICIENCY FOR ELECTRIC COOPERATIVES.
  Each electric cooperative shall administer energy efficiency
  programs providing all customer classes with access to energy
  efficiency alternatives. Energy efficiency programs shall be
  approved by the governing body of the electric cooperative.
         Sec. 39.9053.  GOAL FOR COMBINED HEATING AND POWER.  (a) It
  is the goal for the state that by January 1, 2023, 3,750 megawatts
  of generation capacity from combined heating and power technology
  be installed in the state.
         (b)  The commission shall establish biannual goals for
  increasing the number of megawatts of energy produced by combined
  heating and power technology to meet the goal provided by
  Subsection (a).
         (c)  The commission by rule shall establish a program to
  encourage electric utilities to comply with this section.
         (d)  The commission by rule shall establish fair
  interconnection standards, standby charges, insurance
  requirements, capacity factors, and buyback rates for excess energy
  produced.
         (e)  The commission, with the assistance of ERCOT, shall
  establish procedures that allow excess energy produced by combined
  heat and power technology to be aggregated and sold in the wholesale
  market.
         Sec. 39.9054.  CREDIT FOR SURPLUS SOLAR GENERATION BY PUBLIC
  SCHOOLS. (a) An electric utility, retail electric provider,
  municipally owned utility, or electric cooperative shall provide
  for net metering and contract with an independent school district
  so that:
               (1)  surplus electricity produced by a school
  building's solar electric generation panels is made available for
  sale to the electric transmission grid and distribution system; and
               (2)  the net value of that surplus electricity is
  credited to the district.
         (b)  The commission by rule shall require that credits for
  electricity produced by a school building's solar electric
  generation panels reflect the value of the electricity at the time
  of day that it is made available for sale to the electric
  transmission grid and distribution system.
         SECTION 14.  Section 11.171, Education Code, as added by
  this Act, does not apply to the construction or design of a school
  building the planning process for which began before the effective
  date of this Act.
         SECTION 15.  (a) The efficiency standards prescribed by
  rules adopted under Subchapter B, Chapter 392, Health and Safety
  Code, as added by this Act, apply only to the sale or offer of sale
  of a new product to which that chapter applies that occurs on or
  after January 1, 2009.
         (b)  Notwithstanding Subsection (a) of this section:
               (1)  a new residential pool pump that does not meet the
  efficiency standards contained in Sections 392.060(b) and (c),
  Health and Safety Code, as added by this Act, may be sold in this
  state through December 31, 2009; and
               (2)  a new single-voltage external AC to DC power
  supply made available by a manufacturer directly to a consumer or to
  a service or repair facility after and separate from the original
  sale of a product requiring the power supply as a service part or
  spare part is not required to meet the standards of Section 392.061,
  Health and Safety Code, as added by this Act, until January 1, 2013.
         SECTION 16.  Section 151.333, Tax Code, as added by this Act,
  does not affect taxes imposed before the effective date of this Act,
  and the law in effect before the effective date of this Act is
  continued in effect for purposes of the liability for and
  collection of those taxes.
         SECTION 17.  This Act takes effect September 1, 2007.