BILL ANALYSIS

C.S.H.B. 2709

By: Turner

State Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Currently, electric utilities administer energy efficiency incentive programs in a market-neutral and nondiscriminatory manner.  To facilitate such programs, the Public Utility Commission of Texas (PUC) is required to establish a procedure for reviewing and evaluating energy efficiency programs and utilities are allowed to choose to implement any of several program options approved by the PUC. C.S.H.B. 2709 seeks to expand the list of programs that may be considered by utilities to include programs that are measurable and verifiable and that reduce energy consumption through behavioral changes that lead to efficient use patterns and practices. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 2709 amends the Utilities Code, in a provision authorizing an electric utility to choose to implement any market-transformation program option approved by the Public Utility Commission of Texas (PUC) after its evaluation by the PUC in order to satisfy certain energy efficiency goals of the legislature, to add energy use programs with measurable and verifiable results that reduce energy consumption through behavioral changes that lead to efficient use patterns and practices to the list of possible program options.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2011.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 2709 omits a provision contained in the original adding programs with measurable and verifiable results that inform commercial or residential consumers about energy efficient materials or methods to reduce energy consumption through behavioral changes that lead to efficient use patterns and practices to the items for which the Public Utility Commission of Texas may authorize additional incentives in establishing rates for an electric utility.

C.S.H.B. 2709 differs from the original by specifying that the energy use programs with measureable and verifiable results chosen to be implemented by an electric utility reduce energy consumption through behavioral changes that lead to efficient use patterns and practices, whereas the original specifies that such a program inform commercial or residential consumers about energy efficient materials or methods to reduce such consumption in that manner.