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A BILL TO BE ENTITLED
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AN ACT
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relating to the state goal for energy efficiency. | 
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       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
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       SECTION 1.  Subsection (a), Section 39.905, Utilities Code,  | 
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is amended 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  | 
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efficiency incentive programs in a market-neutral,  | 
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nondiscriminatory manner but will not offer underlying competitive  | 
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services; | 
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             (2)  all customers, in all customer classes, will have  | 
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a 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; | 
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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 for  | 
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residential and commercial customers equivalent to at least: | 
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                   (A)  10 percent of the electric utility's annual  | 
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growth in demand of residential and commercial customers by  | 
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December 31, 2007; | 
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                   (B)  15 percent of the electric utility's annual  | 
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growth in demand of residential and commercial customers by  | 
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December 31, 2008, provided that the electric utility's program  | 
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expenditures for 2008 funding may not be greater than 75 percent  | 
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above the utility's program budget for 2007 for residential and  | 
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commercial customers, as included in the April 1, 2006, filing;  | 
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[and] | 
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                   (C)  20 percent of the electric utility's annual  | 
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growth in demand of residential and commercial customers by  | 
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December 31, 2009, provided that the electric utility's program  | 
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expenditures for 2009 funding may not be greater than 150 percent  | 
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above the utility's program budget for 2007 for residential and  | 
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commercial customers, as included in the April 1, 2006, filing; | 
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                   (D)  30 percent of the electric utility's annual  | 
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growth in demand of residential and commercial customers by  | 
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December 31, 2010; and | 
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                   (E)  50 percent of the electric utility's annual  | 
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growth in demand of residential and commercial customers by  | 
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December 31, 2015; | 
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             (4)  each electric utility in the ERCOT region shall  | 
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use its best efforts to encourage and facilitate the involvement of  | 
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the region's retail electric providers in the delivery of  | 
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efficiency programs and demand response programs under this  | 
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section; | 
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             (5)  retail electric providers in the ERCOT region, and  | 
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electric utilities outside of the ERCOT region, shall provide  | 
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customers with energy efficiency educational materials; and | 
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             (6)  notwithstanding Subdivision (3) [Subsection 
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(a)(3)], electric utilities shall continue to make available, at  | 
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2007 funding and participation levels, any load management standard  | 
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offer programs developed for industrial customers and implemented  | 
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prior to May 1, 2007. | 
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       SECTION 2.  The following provisions of the Utilities Code  | 
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are repealed: | 
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             (1)  Subsection (b-2), Section 39.905; and | 
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             (2)  Section 39.913. | 
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       SECTION 3.  This Act takes effect immediately if it receives  | 
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a vote of two-thirds of all the members elected to each house, as  | 
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provided by Section 39, Article III, Texas Constitution.  If this  | 
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Act does not receive the vote necessary for immediate effect, this  | 
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Act takes effect September 1, 2009. |