80R8631 TAD-F

By: Vaught H.B. No. 3809

A BILL TO BE ENTITLED

AN ACT

relating to consolidating energy efficiency programs and fees.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter Z, Chapter 39, Utilities Code, is amended by adding Section 39.911 to read as follows:

Sec. 39.911. CONSOLIDATED ENERGY EFFICIENCY PROGRAMS. (a) The commission by rule may create an energy efficiency task force to assist the commission in consolidating the development, implementation, monitoring, and funding of all energy efficiency programs required under this chapter.

(b) In consolidating energy efficiency programs, the commission shall:

(1) ensure that all retail customers have the opportunity to participate in cost-effective energy efficiency programs;

(2) require that improvements be made in the production, delivery, and use of energy efficiency programs;

(3) increase the ability to develop energy efficiency programs;

(4) promote program initiatives and market strategies that address the needs of persons or businesses facing the most significant barriers to participation in energy efficiency programs;

(5) promote coordinated program delivery, including coordinating with low-income weatherization programs, other efficiency programs, and other utility programs;

(6) consider innovative approaches to delivering energy efficiency, including strategies that encourage third party financing and customer contributions to the cost of efficiency measures;

(7) approve programs, measures, and delivery mechanisms that reflect current and projected market conditions, technological options, and environmental benefits;

(8) provide for efficient delivery of energy efficiency programs;

(9) provide for the independent evaluation of energy efficiency programs delivered under this section;

(10) require that electric utilities, retail electric providers, municipally owned utilities, and electric cooperatives deliver energy efficiency programs in an effective, efficient, timely, and competent manner;

(11) not later than January 1, 2009, and every third year after 2009, require an independent auditor to verify, and prepare a report regarding, the energy and capacity savings and cost-effectiveness of programs under this section;

(12) ensure that all energy efficiency programs are reasonable and cost-effective;

(13) provide a stable multiple-year budget and planning cycle; and

(14) promote improvement, stability, and maturation of programs and delivery resources.

(c) The commission may establish an energy efficiency fee to fund the consolidated energy efficiency program. The commission may not set the fee in an amount that would result in the collection from customers of more than $17.5 million in a state fiscal year. The commission may not authorize that more than $17.5 million be used to support energy efficiency programs in a state fiscal year.

(d) A fee imposed under Subsection (c) must be clearly and easily identified on a bill for utility service sent to a customer. A bill that includes a charge for the fee must include a notice in close proximity to the fee that provides a toll-free number for customers to obtain information about the energy efficiency programs funded by the fee.

(e) A consolidated energy efficiency fee collected by an electric utility, retail electric provider, municipally owned utility, or electric cooperative must be paid to a fund administrator appointed by the commission and deposited in the fund established under Subsection (f).

(f) The energy efficiency programs fund is a trust fund held outside the state treasury by the commission solely for the purposes provided by this section. Interest earned on the energy efficiency programs fund shall be credited to the fund.

(g) The commission shall prepare an annual report to be submitted to the legislature regarding the revenue collected and the expenditures made for programs consolidated under this section.

SECTION 2. This Act takes effect September 1, 2007.