BILL ANALYSIS

C.S.H.B. 4811

By: Anchía

State Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

After Winter Storm Uri, both the Federal Energy Regulatory Commission and the North American Electric Reliability Corporation recommended improving energy efficiency for grid resiliency in the ERCOT power region. Currently, there is no single entity tasked with evaluating potential opportunities in energy efficiency to ensure a reliable, dependable, and affordable power supply for Texas. With hundreds of millions of dollars in federal funds available to states like Texas for energy efficiency, the state is in a unique position to stabilize the power grid and reduce risk and costs. C.S.H.B. 4811 seeks to create the Texas Energy Efficiency Council to foster collaboration, coordination, and communication to enhance the state's energy efficiency performance and strategically utilize the state's resources to optimize the benefits of energy efficiency programs in Texas.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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. 4811 amends the Utilities Code to establish the 16-member Texas Energy Efficiency Council (TEEC) in the Public Utility Commission of Texas (PUC) to do the following:

· provide a statewide collaborative approach to promoting energy efficiency;

· measure, evaluate, and report on energy efficiency performance in Texas;

· monitor and make recommendations for energy efficiency programs in Texas;

· monitor and facilitate opportunities for coordination and leveraging of federal funding that can be used by state agencies and political subdivisions for the purposes of enhancing energy efficiency;

· provide a central repository for information on statewide energy efficiency performance and opportunities to participate in energy efficiency programs in Texas; and

· promote continuous improvement in energy efficiency performance in Texas.

The bill requires a program administrator to establish measurable performance criteria and share the results with TEEC when creating or implementing an energy efficiency program.

C.S.H.B. 4811 sets out the following as the composition of TEEC:

· the following nine ex officio members:

o the presiding officer of the Texas Commission on Environmental Quality (TCEQ);

o the chief executive officer of ERCOT;

o the presiding officer of the PUC;

o the comptroller of public accounts;

o the director of the Texas Department of Housing and Community Affairs (TDHCA);

o the executive director of the Texas Economic Development and Tourism Office;

o the chairman of the Texas Water Development Board (TWDB);

o the director of the Energy Systems Laboratory at the Texas A&M Engineering Experiment Station; and

o the chief executive of the Office of Public Utility Counsel; and

· seven public members appointed by the presiding officer of the PUC as follows:

o one member must have experience in the field of engineering;

o one member must have experience in the field of industrial operation;

o one member must have experience in the field of environmental stewardship;

o one member must have experience in the field of electric utility operation;

o one member must have business experience in the implementation of energy efficiency programs;

o one member must have experience in the field of public or private finance; and

o one member must have experience in the field of law or business.

The bill establishes that all 16 members serve as voting members and authorizes each of the ex officio members to appoint a designee to serve in their place. The bill requires appointments to be made without regard to the race, color, disability, sex, religion, age, or national origin of the appointees.

C.S.H.B. 4811 provides for the administration and operation of TEEC, including with respect to the following:

· designation of the presiding officer of the PUC or the employee designated by the presiding officer to serve as presiding officer of TEEC;

· reimbursement of members' expenses;

· terms of office for appointed members and the manner for filling a vacancy on TEEC; and

· TEEC meetings.

The bill authorizes the presiding officer of TEEC to designate a person to represent an appointed member in any meeting if the person meets the specified qualifications. The bill requires the PUC to provide TEEC with administrative support, including meeting space and staff necessary to assist TEEC in carrying out its duties. The bill exempts TEEC from state law governing state advisory committees.

C.S.H.B. 4811 establishes the following as grounds for removal of a member from TEEC:

· an ex officio member not maintaining during their service on TEEC the required qualifications of that member's position;

· a member, because of illness or disability, being unable discharge their duties for a substantial part of their term; or

· a member being absent from more than half of the regularly scheduled TEEC meetings that the member is eligible to attend during a calendar year without an excuse approved by a majority vote of TEEC.

The bill establishes that the validity of a TEEC action is not affected by the fact that the action is taken when a ground for removal of a TEEC member exists. If the presiding officer has knowledge that a potential ground for removal exists, the officer must notify the appointing authority and the attorney general that a potential ground for removal exists.

C.S.H.B. 4811 requires TEEC to measure, evaluate, and report energy efficiency performance in Texas and to monitor energy efficiency programs in Texas. The bill authorizes TEEC to submit to a program administrator recommendations on means to encourage greater energy efficiency on a regular basis and to submit to a program administrator that administers an energy efficiency program recommendations to assure better coordination between local, state, federal, and private energy efficiency programs for the purposes of energy efficiency.

C.S.H.B. 4811 requires TEEC to do the following:

· use the website of the State Energy Conservation Office (SECO) and the website of the PUC for the publication of information as required by the bill's provisions;

· develop a list of currently operating energy efficiency programs in Texas and publish the list on the official websites; and

· work with SECO and the PUC to develop and publish on the agencies' official websites a user-friendly page that allows a consumer to search by the consumer's address energy efficiency programs available in the consumer's service area.

The bill requires SECO and the PUC to each provide a link on their websites to the user-friendly page.

C.S.H.B. 4811 requires TEEC to prepare a report on energy efficiency performance in Texas and to submit the report to the legislature not later than October 1 of each even-numbered year. The report must include the following:

· a comprehensive review of the list of energy efficiency programs, including initial capital investment, ongoing operating expenses, and energy savings benefits of the programs;

· statewide energy efficiency performance by sector and county; and

· recommendations for improving energy efficiency programs in Texas.

In addition, the report may include the following:

· criteria developed by TEEC for evaluating and measuring energy efficiency programs in Texas;

· opportunities for continuous improvement in energy efficiency performance in Texas; and

· recommendations for creating new energy efficiency programs in Texas.

The bill requires TEEC to publish the report on the official websites of SECO and the PUC.

C.S.H.B. 4811 exempts TEEC from state open meetings law and state public information law, except that information written, produced, collected, assembled, or maintained under law or in connection with the transaction of official business by TEEC or an officer or employee of TEEC is subject to the requirement to disclose information for legislative purposes in the same manner as public information.

C.S.H.B. 4811 defines the following terms for purposes of the bill's provisions:

· "energy efficiency program" as a program designed to increase efficient energy use, reduce energy consumption during periods of peak energy demand, optimize energy consumption, identify and realize the benefits of energy efficient building design standards, or fund the implementation of energy cost reduction measures;

· "measure" as a direct measurement or modeling of energy efficiency performance over a 12-month period; and

· "program administrator" includes any of the following entities that administer an energy efficiency program:

o a state agency, including the PUC, the TWDB, SECO, the TCEQ, and TDHCA;

o a political subdivision; or

o a private or public provider of electricity, gas, or water utility service, including an electric cooperative or municipally owned utility.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2023.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 4811 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

Whereas in the introduced TEEC was established as a standalone entity, the substitute establishes TEEC instead in the PUC.

The substitute includes a definition for "measure," which was absent from the introduced. Additionally, the substitute revises the definition of "energy efficiency program" as set out in the introduced by omitting from the definition the specification that the program uses state or federal funding to accomplish its goals.

With respect to TEEC meetings, the substitute omits the provisions in the introduced authorizing TEEC to meet at times TEEC considers appropriate other than the required annual meetings called by the presiding officer and authorizing the presiding officer to call a meeting on the officer's motion.

The substitute makes a technical correction with respect to appointed TEEC members whose terms expire on February 1 of each year.

Whereas the introduced required the biennial performance report to include statewide energy performance by sector and geographic region, the substitute requires the report to include that performance by sector and county.