SB2994 - Relating to energy efficiency goals and programs, public information regarding energy efficiency programs, and the participation of loads in certain energy markets.

      By: Johnson, Blanco S.B. No. 2994       Zaffirini     A BILL TO BE ENTITLED   AN ACT   relating to energy efficiency goals and programs, public   information regarding energy efficiency programs, and the   participation of loads in certain energy markets.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 39.905, Utilities Code, is amended by   amending Subsections (a), (b), (e), (f), (g), (h), (i), and (j) and   adding Subsections (a-1), (a-2), (a-3), (f-1), (i-1), (i-2), and   (l) to read as follows:          (a)   The commission shall ensure [ It is the goal of the   legislature ] that:                (1)  electric utilities [ will ] administer energy   efficiency incentive programs in a market-neutral,   nondiscriminatory manner but will not offer underlying competitive   services;                (2)  all customers, in all customer classes, [ will ]   have a choice of and access to energy efficiency alternatives and   other choices from the market that allow each customer to reduce   energy consumption, summer and winter peak demand, summer and   winter peak net demand,  or energy costs;                (3)   each electric utility administers energy   efficiency programs that:                       (A)     cause the utility's portfolio of programs to   be cost-effective;                         (B)     for an electric utility operating in an area   open to competition, acquire the following minimum quantifiable   reductions in demand annually without the inclusion of demand   reduction achieved through load management programs:                             (i)     2,500 kilowatts for utilities with an   average of less than 300,000 total eligible residential and   commercial customers in the previous five years;                             (ii)     7,500 kilowatts for utilities with an   average of greater than 300,000 but less than 750,000 total   eligible residential and commercial customers in the previous five   years;                             (iii)     12,500 kilowatts for utilities with   an average of greater than 750,000 but less than 1.5 million total   eligible residential and commercial customers in the previous five   years;                             (iv)     37,500 kilowatts for utilities with an   average of greater than 1.5 million but less than 3 million total   eligible residential and commercial customers in the previous five   years;                             (v)     50,000 kilowatts for utilities with an   average of greater than 3 million but less than 5 million total   eligible residential and commercial customers in the previous five   years; or                             (vi)     62,500 kilowatts for utilities with an   average of greater than 5 million total eligible residential and   commercial customers in the previous five years;                       (C)     for an electric utility operating in an area   not open to competition, include demand response programs and   acquire the following minimum quantifiable reductions in demand   annually:                             (i)     5,000 kilowatts for utilities with an   average of less than 300,000 total eligible residential and   commercial customers in the previous five years;                             (ii)     15,000 kilowatts for utilities with an   average of greater than 300,000 but less than 750,000 total   eligible residential and commercial customers in the previous five   years;                             (iii)     25,000 kilowatts for utilities with   an average of greater than 750,000 but less than 1.5 million total   eligible residential and commercial customers in the previous five   years;                             (iv)     75,000 kilowatts for utilities with an   average of greater than 1.5 million but less than 3 million total   eligible residential and commercial customers in the previous five   years;                             (v)     100,000 kilowatts for utilities with an   average of greater than 3 million but less than 5 million total   eligible residential and commercial customers in the previous five   years; or                             (vi)     125,000 kilowatts for utilities with   an average of greater than 5 million total eligible residential and   commercial customers in the previous five years; and                       (D)     acquire annual energy savings of no less than   75 percent of what the utility achieved in energy savings in 2024 as   previously reported by the utility to the commission;                 (4)   each electric utility annually provides [ will   provide ], through market-based standard offer programs or through   targeted market-transformation programs, incentives sufficient for   retail electric providers and competitive energy service providers   to acquire additional cost-effective energy efficiency, subject to   cost ceilings established by the commission, for the utility's   residential and commercial customers ; and                 (5)   [ equivalent to:                      [ (A)  not less than:                            [ (i)     30 percent of the electric utility's   annual growth in demand of residential and commercial customers by   December 31 of each year beginning with the 2013 calendar year; and                            [ (ii)     the amount of energy efficiency to be   acquired for the utility's residential and commercial customers for   the most recent preceding year; and                      [ (B)     for an electric utility whose amount of   energy efficiency to be acquired under this subsection is   equivalent to at least four-tenths of one percent of the electric   utility's summer weather-adjusted peak demand for residential and   commercial customers in the previous calendar year, not less than:                            [ (i)     four-tenths of one percent of the   utility's summer weather-adjusted peak demand for residential and   commercial customers by December 31 of each subsequent year; and                            [ (ii)     the amount of energy efficiency to be   acquired for the utility's residential and commercial customers for   the most recent preceding year;                [ (4) ]  each electric utility in the ERCOT region uses   [ shall use ] its best efforts to encourage and facilitate the   involvement of the region's retail electric providers in the   delivery of efficiency programs [ and demand response programs ]   under this section, including programs for demand-side renewable   energy systems that[ :                      [ (A)     use distributed renewable generation, as   defined by Section 39.916; or                      [ (B) ]  reduce the need for energy consumption by   using a renewable energy technology, a geothermal technology [ heat   pump ], a solar water heater, or another natural mechanism of the   environment[ ;                [ (5)     retail electric providers in the ERCOT region,   and electric utilities outside of the ERCOT region, shall provide   customers with energy efficiency educational materials; and                [ (6)     notwithstanding Subsection (a)(3), electric   utilities shall continue to make available, at 2007 funding and   participation levels, any load management standard offer programs   developed for industrial customers and implemented prior to May 1,   2007 ].           (a-1)     Beginning with the 2027 calendar year, the minimum   goals in Subsections (a)(3)(B), (C), and (D) are increased by 2.5   percent each year through 2030.   Beginning with the 2031 calendar   year, the commission shall update the minimum goals with   appropriate demand reductions and energy savings.           (a-2)  The commission shall:                 (1)     allow an electric utility operating in an area   open to competition to claim energy savings and demand reduction   for energy efficiency incentive programs supporting the   requirements of Section 39.919(b)(9); and                 (2)     by rule establish a deemed savings and avoided   demand per device to be used for the purposes of Subdivision (1).           (a-3)     The commission may not allow an electric utility   operating in an area open to competition to claim energy savings and   demand reduction from demand response programs offered by a retail   electric provider.          (b)  The commission shall provide oversight and adopt rules   and procedures to ensure that the utilities can achieve the goals   [ goal ] of this section, including:                (1)  establishing an energy efficiency cost recovery   factor for ensuring timely and reasonable cost recovery for utility   expenditures made to satisfy the goals [ goal ] of this section;                (2)  establishing an incentive under Section 36.204 to   reward utilities administering programs under this section that   exceed the minimum goals established by this section;                 (3)     providing that an incentive achieved under this   section:                       (A)     may not be included in an electric utility's   revenues or net income for the purposes of establishing a utility's   rates or the utility's earnings monitoring report under Section   36.157, 36.210, or 36.212; and                       (B)     entitles the electric utility to receive an   amount equal to the net benefits realized in meeting the applicable   demand reduction and energy savings goals, provided that:                             (i)     [Text truncated for display. 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