Bill Text: TX SB552 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to the creation of the Energy Efficiency Coordination Council and to statewide energy efficiency; providing penalties.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-04-19 - Left pending in committee [SB552 Detail]
Download: Texas-2011-SB552-Introduced.html
82R7446 YDB-F | ||
By: Carona | S.B. No. 552 |
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relating to the creation of the Energy Efficiency Coordination | ||
Council and to statewide energy efficiency; providing penalties. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle E, Title 4, Government Code, is amended | ||
by adding Chapter 470 to read as follows: | ||
CHAPTER 470. ENERGY EFFICIENCY COORDINATION COUNCIL | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 470.001. DEFINITIONS. In this chapter: | ||
(1) "Council" means the Energy Efficiency | ||
Coordination Council. | ||
(2) "Director" means the director of the council. | ||
(3) "Energy efficiency program" means any program | ||
designed, implemented, regulated, or administered for the purpose | ||
of reducing the use of energy by: | ||
(A) a state agency; | ||
(B) an institution of higher education; | ||
(C) a utility provider; or | ||
(D) an entity designated by a person described in | ||
Paragraph (A), (B), or (C). | ||
(4) "Energy efficiency service provider" means a | ||
private contractor or other provider of energy efficiency products | ||
or services in this state. | ||
(5) "Institution of higher education" has the meaning | ||
assigned by Section 61.003, Education Code. | ||
(6) "Presiding officer" means the presiding officer of | ||
the council. | ||
(7) "State agency" means an agency, department, | ||
commission, or office of the executive branch of state government. | ||
(8) "Utility provider" means: | ||
(A) a municipal, cooperative, or other electric | ||
utility or retail electric provider; | ||
(B) a water or wastewater utility; or | ||
(C) a gas utility. | ||
Sec. 470.002. APPLICATION OF SUNSET ACT. The council is | ||
subject to Chapter 325 (Texas Sunset Act). Unless continued in | ||
existence as provided by that chapter, the council is abolished and | ||
this chapter expires September 1, 2023. | ||
Sec. 470.003. APPLICATION OF PUBLIC INFORMATION; OPEN | ||
MEETINGS. The council is subject to Chapters 551 and 552. | ||
[Sections 470.004-470.050 reserved for expansion] | ||
SUBCHAPTER B. COUNCIL | ||
Sec. 470.051. ESTABLISHMENT. The council is established to | ||
maximize energy efficiency statewide while protecting the | ||
environment. | ||
Sec. 470.052. COUNCIL MEMBERSHIP. (a) The council is | ||
composed of the following 15 members: | ||
(1) 11 ex officio members as follows: | ||
(A) the chairperson of the Texas Commission on | ||
Environmental Quality; | ||
(B) the chief executive officer of the Electric | ||
Reliability Council of Texas; | ||
(C) the chairperson of the Public Utilities | ||
Commission of Texas; | ||
(D) the chairperson of the Railroad Commission of | ||
Texas; | ||
(E) the director of the State Energy Conservation | ||
Office; | ||
(F) the executive director of the Texas | ||
Department of Housing and Community Affairs; | ||
(G) the executive director of the Texas | ||
Facilities Commission; | ||
(H) the executive administrator of the Texas | ||
Water Development Board; | ||
(I) the presiding officer of the Water | ||
Conservation Advisory Council; | ||
(J) the executive director of the Texas | ||
Department of Rural Affairs; and | ||
(K) the director of the Energy Systems Laboratory | ||
at the Texas Engineering Experiment Station of The Texas A&M | ||
University System; and | ||
(2) four public members as follows: | ||
(A) one member appointed by the lieutenant | ||
governor to represent low-income ratepayers; | ||
(B) one member appointed by the governor at the | ||
recommendation of the speaker of the house of representatives to | ||
represent residential ratepayers; | ||
(C) one member appointed by the lieutenant | ||
governor to represent either commercial or industrial ratepayers; | ||
and | ||
(D) one member appointed by the governor at the | ||
recommendation of the speaker of the house of representatives to | ||
represent an environmental organization. | ||
(b) The four public members must be appointed with the | ||
advice and consent of the senate. | ||
(c) Appointments to the council shall be made without regard | ||
to the race, color, disability, sex, religion, age, or national | ||
origin of the appointees. | ||
(d) The ex officio members and the appointed members serve | ||
as voting members of the council. | ||
Sec. 470.053. TERMS; VACANCY. (a) Appointed members of the | ||
council serve staggered six-year terms, with the terms of one or two | ||
members, as applicable, expiring on February 1 of each odd-numbered | ||
year. | ||
(b) A vacancy in the office of an appointed member of the | ||
council shall be filled for the unexpired term in the same manner as | ||
the original appointment. | ||
Sec. 470.054. ELIGIBILITY OF PUBLIC MEMBERS. A person may | ||
not be a public member of the council if the person or the person's | ||
spouse: | ||
(1) is registered, certified, or licensed by a | ||
regulatory agency as a utility provider or energy efficiency | ||
service provider; | ||
(2) is employed by or participates in the management | ||
of a business entity or other organization regulated by or | ||
receiving money from the council; | ||
(3) owns or controls, directly or indirectly, more | ||
than a 10 percent interest in a business entity or other | ||
organization regulated by or receiving money from the council; or | ||
(4) uses or receives a substantial amount of tangible | ||
goods, services, or money from the council other than compensation | ||
or reimbursement authorized by law for council membership, | ||
attendance, or expenses. | ||
Sec. 470.055. CONFLICT OF INTEREST. (a) In this section, | ||
"Texas trade association" means a cooperative and voluntarily | ||
joined statewide association of business or professional | ||
competitors in this state designed to assist its members and its | ||
industry or profession in dealing with mutual business or | ||
professional problems and in promoting their common interest. | ||
(b) A person may not be a public member of the council and | ||
may not be a council employee employed in a "bona fide executive, | ||
administrative, or professional capacity," as that phrase is used | ||
for purposes of establishing an exemption to the overtime | ||
provisions of the federal Fair Labor Standards Act of 1938 (29 | ||
U.S.C. Section 201 et seq.) if: | ||
(1) the person is an officer, employee, or paid | ||
consultant of a Texas trade association of utility providers or | ||
energy efficiency service providers; or | ||
(2) the person's spouse is an officer, manager, or paid | ||
consultant of a Texas trade association of utility providers or | ||
energy efficiency service providers. | ||
(c) A person may not be a member of the council or act as the | ||
general counsel to the council if the person is required to register | ||
as a lobbyist under Chapter 305 because of the person's activities | ||
for compensation on behalf of a profession related to the operation | ||
of the council. | ||
Sec. 470.056. GROUNDS FOR REMOVAL. (a) It is a ground for | ||
removal from the council that an appointed member: | ||
(1) is ineligible for membership under Section 470.054 | ||
or 470.055; | ||
(2) cannot, because of illness or disability, | ||
discharge the member's duties for a substantial part of the member's | ||
term; or | ||
(3) is absent from more than half of the regularly | ||
scheduled council meetings that the member is eligible to attend | ||
during a calendar year without an excuse approved by a majority vote | ||
of the council. | ||
(b) The validity of an action of the council is not affected | ||
by the fact that it is taken when a ground for removal of a council | ||
member exists. | ||
(c) If the director has knowledge that a potential ground | ||
for removal exists, the director shall notify the presiding officer | ||
of the council of the potential ground. The presiding officer shall | ||
then notify the governor and the attorney general that a potential | ||
ground for removal exists. If the potential ground for removal | ||
involves the presiding officer, the director shall notify the next | ||
highest ranking officer of the council, who shall then notify the | ||
governor and the attorney general that a potential ground for | ||
removal exists. | ||
Sec. 470.057. APPOINTED MEMBER TRAINING PROGRAM. (a) A | ||
person who is appointed to and qualifies for office as a member of | ||
the council may not vote, deliberate, or be counted as a member in | ||
attendance at a meeting of the council until the person completes a | ||
training program that complies with this section. | ||
(b) The training program must provide the person with | ||
information regarding: | ||
(1) this chapter; | ||
(2) the programs, functions, rules, and budget of the | ||
council; | ||
(3) the results of the most recent formal audit of the | ||
council; | ||
(4) the requirements of laws relating to open | ||
meetings, public information, administrative procedure, and | ||
conflicts of interest; and | ||
(5) any applicable ethics policies adopted by the | ||
council or the Texas Ethics Commission. | ||
(c) A person appointed to the council is entitled to | ||
reimbursement, as provided by the General Appropriations Act, for | ||
the travel expenses incurred in attending the training program | ||
regardless of whether the attendance at the program occurs before | ||
or after the person qualifies for office. | ||
Sec. 470.058. PRESIDING OFFICER. The director of the State | ||
Energy Conservation Office serves as presiding officer of the | ||
council. | ||
Sec. 470.059. MEETINGS. (a) The council shall meet at | ||
least quarterly and at other times at the call of the presiding | ||
officer. | ||
(b) Each meeting of the council must be webcast and archived | ||
online. | ||
[Sections 470.060-470.100 reserved for expansion] | ||
SUBCHAPTER C. GENERAL DUTIES OF COUNCIL AND DIRECTOR | ||
Sec. 470.101. RULES. The council shall adopt rules | ||
necessary to administer this chapter and rules governing the | ||
development and implementation of the state energy efficiency plan. | ||
Sec. 470.102. PUBLIC TESTIMONY. The council shall develop | ||
and implement policies that provide the public with an opportunity | ||
to appear before the council and to speak on any issue under the | ||
jurisdiction of the council. | ||
Sec. 470.103. DIVISION OF POLICY AND DIRECTOR | ||
RESPONSIBILITIES. The council shall develop and implement policies | ||
that clearly separate the policymaking responsibilities of the | ||
council and the management responsibilities of the director and the | ||
staff of the council. | ||
Sec. 470.104. COMPLAINTS. (a) The council shall maintain a | ||
system to promptly and efficiently act on complaints filed with the | ||
council. The council shall maintain information about parties to | ||
the complaint, the subject matter of the complaint, a summary of the | ||
results of the review or investigation of the complaint, and its | ||
disposition. | ||
(b) The council shall make information available describing | ||
its procedures for complaint investigation and resolution. | ||
(c) The council shall periodically notify the complaint | ||
parties of the status of the complaint until final disposition. | ||
Sec. 470.105. USE OF TECHNOLOGY. The council shall | ||
implement a policy requiring the council to use appropriate | ||
technological solutions to improve the council's ability to perform | ||
its functions. The policy must ensure that the public is able to | ||
interact with the council on the Internet. | ||
Sec. 470.106. NEGOTIATED RULEMAKING AND ALTERNATIVE | ||
DISPUTE RESOLUTION PROCEDURES. (a) The council shall develop and | ||
implement a policy to encourage the use of: | ||
(1) negotiated rulemaking procedures under Chapter | ||
2008 for the adoption of council rules; and | ||
(2) appropriate alternative dispute resolution | ||
procedures under Chapter 2009 to assist in the resolution of | ||
internal and external disputes under the council's jurisdiction. | ||
(b) The council's procedures relating to alternative | ||
dispute resolution must conform, to the extent possible, to any | ||
model guidelines issued by the State Office of Administrative | ||
Hearings for the use of alternative dispute resolution by state | ||
agencies. | ||
(c) The council shall: | ||
(1) coordinate the implementation of the policy | ||
adopted under Subsection (a); | ||
(2) provide training as needed to implement the | ||
procedures for negotiated rulemaking or alternative dispute | ||
resolution; and | ||
(3) collect data concerning the effectiveness of those | ||
procedures. | ||
Sec. 470.107. DIRECTOR. (a) The director of the State | ||
Energy Conservation Office shall appoint a representative of the | ||
office to serve as director for the council. | ||
(b) The director shall: | ||
(1) set the date, time, and place of council meetings; | ||
and | ||
(2) provide administrative support to the council | ||
using existing resources and appropriations of the State Energy | ||
Conservation Office. | ||
(c) If the council is abolished, all materials must be | ||
transferred to the director and the state archives. | ||
Sec. 470.108. ADVISORY AND AD HOC COMMITTEES. The council | ||
may form advisory or ad hoc committees composed of individuals from | ||
the public and private sectors to review policy matters related to | ||
the council's purpose. | ||
Sec. 470.109. STANDING ADVISORY COMMITTEE. (a) The | ||
council shall establish a standing advisory committee composed of | ||
15 members. The council shall appoint one member to represent each | ||
of the following: | ||
(1) low-income communities; | ||
(2) historically disadvantaged communities; | ||
(3) the elderly; | ||
(4) local governments; | ||
(5) public schools; | ||
(6) institutions of higher education; | ||
(7) small business; | ||
(8) agriculture; | ||
(9) the nonprofit sector; | ||
(10) the environment; | ||
(11) public health; | ||
(12) the energy efficiency service industry; | ||
(13) ratepayers from the deregulated market; | ||
(14) ratepayers from the cooperative electric market; | ||
and | ||
(15) ratepayers from municipally owned utilities. | ||
(b) Each member of the standing advisory committee shall | ||
serve as liaison to the council on energy efficiency as related to | ||
the interest represented. | ||
(c) The standing advisory committee shall make | ||
recommendations to the council regarding the effect of energy | ||
efficiency programs on the interests listed in Subsection (a) and | ||
creating or improving energy efficiency programs to better serve | ||
those interests. | ||
(d) In accordance with Subchapter E, the standing advisory | ||
committee may request that persons submit documents and data to the | ||
council and seek the assistance of the staff of any state agency, | ||
utility provider, or energy efficiency service provider. | ||
(e) The standing advisory committee shall meet at least four | ||
times each calendar year. | ||
(f) The standing advisory committee is subject to Chapters | ||
551 and 552. | ||
(g) Chapter 2110 does not apply to the standing advisory | ||
committee. | ||
[Sections 470.110-470.150 reserved for expansion] | ||
SUBCHAPTER D. FINANCIAL PROVISIONS | ||
Sec. 470.151. ACCEPTANCE OF GIFTS OR GRANTS. (a) In | ||
addition to legislative appropriations, the council may accept | ||
gifts and grants from the federal government, state government, and | ||
private sources to carry out the purposes of this chapter. | ||
(b) The use of a gift or grant is subject to the limitations | ||
contained in the gift or grant. | ||
Sec. 470.152. ENERGY EFFICIENCY ACCOUNT. The energy | ||
efficiency account is a dedicated account in the general revenue | ||
fund. The account consists of: | ||
(1) appropriations of money by the legislature to the | ||
council; | ||
(2) gifts, grants, and other donations received for | ||
the account; and | ||
(3) interest earned on the investment of money in the | ||
account. | ||
[Sections 470.153-470.200 reserved for expansion] | ||
SUBCHAPTER E. STATE ENERGY EFFICIENCY PLAN | ||
Sec. 470.201. PROPOSED STATE ENERGY EFFICIENCY PLAN. (a) | ||
The director shall prepare a proposed state energy efficiency plan | ||
every six years and shall revise and update the plan biennially. | ||
(b) The state energy efficiency plan must: | ||
(1) propose strategies to correct deficiencies in | ||
energy efficiency programs and efforts throughout this state; | ||
(2) propose strategies to utilize new technology to | ||
achieve greater energy efficiency throughout this state; | ||
(3) propose strategies to involve institutions of | ||
higher education in energy efficiency, including through research | ||
and development; and | ||
(4) provide recommendations to the legislature and | ||
governor for implementation of the strategies proposed by the plan. | ||
(c) The council shall establish guidelines for the | ||
development of the state energy efficiency plan and provide | ||
guidance to the director in developing the plan. | ||
(d) The director shall consult with all appropriate energy | ||
efficiency-related state agencies before development of the state | ||
energy efficiency plan. | ||
(e) The director shall submit the proposed plan to the | ||
council for approval by a majority vote. | ||
Sec. 470.202. STATE ENERGY EFFICIENCY PROGRAMS, GOALS, AND | ||
RECOMMENDATIONS. (a) The council shall coordinate with state | ||
agencies, utility providers, energy efficiency service providers, | ||
and other organizations and persons to develop and administer | ||
energy efficiency programs. | ||
(b) The council shall set statewide savings targets for | ||
electricity, natural gas, and electric consumption that results | ||
from the diversion, transportation, delivery, treatment, or | ||
purification of water, wastewater, and storm water to reduce peak | ||
demand and overall demand for the resources by at least 20 percent | ||
not later than 2020 compared to the peak demand and overall demand | ||
for the resources in 2011. The council biennially shall: | ||
(1) assess the statewide progress toward achieving the | ||
goals; and | ||
(2) update the goals based on the statewide | ||
assessment, potential for achieving the goals, and development of | ||
new technology. | ||
(c) The council shall evaluate, review, and make | ||
recommendations for improvements to energy efficiency programs and | ||
proposed energy efficiency programs in its annual and biennial | ||
reports. | ||
(d) The council shall make recommendations for best | ||
practices for state agencies, utility providers, and energy | ||
efficiency service providers to coordinate, increase the | ||
comprehensiveness, and reduce costs in the delivery of energy | ||
efficiency products and services to customers. | ||
(e) Each state agency shall consider the council's | ||
recommendations and submit to the council written comments on the | ||
feasibility of the recommendations not later than the 180th day | ||
after the date the agency receives the council's recommendations. | ||
Sec. 470.203. COLLECTION AND SUBMISSION OF ENERGY | ||
INFORMATION. (a) The council shall: | ||
(1) collect information regarding energy savings and | ||
demand reduction by reviewing energy efficiency programs in this | ||
state; and | ||
(2) submit the information collected to: | ||
(A) the Energy Systems Laboratory at the Texas | ||
Engineering Experiment Station of The Texas A&M University System; | ||
(B) the State Energy Conservation Office; and | ||
(C) the Electric Reliability Council of Texas. | ||
(b) Each state agency, utility provider, and energy | ||
efficiency service provider shall submit information required | ||
under this chapter or council rule to the council in an electronic | ||
format and within the time required by this chapter or council rule. | ||
(c) The State Energy Conservation Office shall annually | ||
submit the following information to the Electric Reliability | ||
Council of Texas: | ||
(1) the total energy savings and demand reduction | ||
determined by the office from all available sources for use in the | ||
reliability council's annual reports; and | ||
(2) the total energy savings and demand reduction | ||
potential for use in the reliability council's long-term | ||
forecasting. | ||
(d) The Texas Engineering Experiment Station of The Texas | ||
A&M University System shall submit information on pollution | ||
reduction, including reductions in nitrogen oxides, volatile | ||
organic compounds, and carbon dioxide, that results from energy | ||
efficiency programs to the Texas Commission on Environmental | ||
Quality and the United States Environmental Protection Agency for | ||
inclusion in the state's air quality plans. | ||
Sec. 470.204. STANDARDIZED CONTRACTS, REPORTING METHODS, | ||
AND DISCLOSURE FORMS. (a) The council shall study and create: | ||
(1) standardized energy contracts, including | ||
contracts that have as a contracting party: | ||
(A) a state agency; | ||
(B) a utility provider; | ||
(C) an energy efficiency service provider; or | ||
(D) a residential consumer; | ||
(2) a standardized method of reporting information | ||
required under this chapter or council rule; and | ||
(3) a standard disclosure form for energy service | ||
efficiency providers to provide to consumers to assist consumers in | ||
making informed decisions on energy efficiency investments or | ||
purchases. | ||
(b) The disclosure form required under Subsection (a)(3) | ||
must include: | ||
(1) information on the full scope of incentives, | ||
including all utility, municipal, county, state, and federal | ||
incentives, available to a consumer for energy efficiency measures | ||
the consumer considers; | ||
(2) information on the incentives provided to an | ||
energy efficiency service provider to market an energy efficiency | ||
program offered to consumers by the provider; | ||
(3) information on any other incentives available for | ||
related energy efficiency programs, products, or services; and | ||
(4) the consumer's estimated energy savings and time | ||
required to achieve the savings. | ||
(c) An energy efficiency service provider shall provide the | ||
standard disclosure form to each consumer considering making an | ||
energy efficiency investment or purchase from the provider. | ||
Sec. 470.205. IMPLEMENTATION OF STATE ENERGY EFFICIENCY | ||
PLAN. The council shall promote the implementation of the state | ||
energy efficiency plan. | ||
Sec. 470.206. DATA COLLECTION. The director, in accordance | ||
with rules adopted by the council, shall set standards and collect | ||
and distribute data necessary to support specific state energy | ||
efficiency plan goals. | ||
Sec. 470.207. FAILURE TO SUBMIT DATA; CIVIL PENALTY. (a) | ||
If the director does not receive necessary data from a utility | ||
provider or energy efficiency service provider required to report | ||
the data under this chapter or council rule, the council shall send | ||
to the person a notice requiring the person to submit the data not | ||
later than the 30th day after the date on which the person receives | ||
the notice. | ||
(b) A person that does not submit the data during the 30-day | ||
period is subject to a civil penalty of not more than $500 for each | ||
day the entity fails to submit the data following the 30-day period. | ||
(c) The attorney general, on request of the director, shall | ||
bring an action in the name of the state to recover the civil | ||
penalty under this section. The attorney general is entitled to | ||
recover all reasonable costs of prosecuting the action, including | ||
reasonable attorney's fees, investigative costs, witness fees, | ||
deposition costs, and court costs. | ||
Sec. 470.208. INTERNET WEBSITE. The council shall create | ||
and maintain a public Internet website. The website must meet the | ||
state's minimum standards for accessibility and include: | ||
(1) each annual and biennial report produced by the | ||
council; | ||
(2) 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; | ||
(3) comprehensive information on energy efficiency | ||
that allows the website to serve as the state's main resource for | ||
all energy efficiency information; and | ||
(4) a list of every energy efficiency program reviewed | ||
by the council organized by state agency, public utility, or energy | ||
efficiency service provider with appropriate links. | ||
Sec. 470.209. ANNUAL REPORT. (a) The council annually | ||
shall prepare a report that includes: | ||
(1) information about each energy efficiency program | ||
reviewed by the council; | ||
(2) the goals of each energy efficiency program; | ||
(3) the actual results, including the costs, benefits, | ||
and emissions reductions, associated with each energy efficiency | ||
program; | ||
(4) the energy savings associated with each energy | ||
efficiency program; | ||
(5) the job creation results of each energy efficiency | ||
program; | ||
(6) an assessment of the potential for efficiency in | ||
electric, gas, and water use; | ||
(7) recommendations for program changes to increase | ||
the efficiency of energy use in this state; | ||
(8) recommendations for the standardization of data | ||
collection and reporting on the costs, benefits, and emissions | ||
reductions; | ||
(9) the likely impact of energy efficiency programs on | ||
utility rates; and | ||
(10) any other data the council by rule requires. | ||
(b) The council shall: | ||
(1) submit each annual report to: | ||
(A) each state agency with an energy efficiency | ||
program; and | ||
(B) the Electric Reliability Council of Texas; | ||
and | ||
(2) post the reports on its Internet website. | ||
(c) Each state agency, utility provider, energy efficiency | ||
service provider, or other person required to submit an annual | ||
report to the council under this chapter or council rule must submit | ||
the report not later than October 1 of each year. | ||
Sec. 470.210. BIENNIAL REPORT. (a) The council shall | ||
submit an electronic report to each member of the legislature not | ||
later than October 1 of each even-numbered year. | ||
(b) The biennial report must include: | ||
(1) an executive summary of the council's | ||
accomplishments and a link to the council's public website; | ||
(2) the information typically provided in an annual | ||
report; | ||
(3) updates to the state energy efficiency plan; | ||
(4) a comparison of the structure, goals, and results | ||
of energy efficiency programs in this state to the structure, | ||
goals, and results of energy efficiency programs of the five most | ||
populous states and of any other state the council considers | ||
appropriate; and | ||
(5) policy recommendations to the legislature that | ||
require statutory revisions. | ||
[Sections 470.211-470.250 reserved for expansion] | ||
SUBCHAPTER F. COST-EFFECTIVENESS STANDARDS FOR | ||
ENERGY EFFICIENCY PROGRAMS | ||
Sec. 470.251. SELECTION OF COST-EFFECTIVENESS STANDARDS. | ||
(a) The council shall study various methods for evaluating, | ||
measuring, and verifying the cost-effectiveness of energy | ||
efficiency programs. | ||
(b) On completion of the study, the council by rule may | ||
adopt cost-effectiveness standards. The council may: | ||
(1) adopt one cost-effectiveness standard for all | ||
state energy efficiency programs; or | ||
(2) authorize different cost-effectiveness standards | ||
for different energy efficiency programs if the council has a | ||
rational basis for the varying standards. | ||
(c) The council shall review the study, as part of the state | ||
energy efficiency plan, and may adopt or amend rules on the best | ||
practices of cost-effectiveness standards. | ||
(d) Until the council studies and adopts cost-effectiveness | ||
standards, the council shall evaluate the cost-effectiveness of | ||
energy efficiency programs in its annual reports using: | ||
(1) the criteria listed in Section 470.252; and | ||
(2) any other cost-effectiveness testing method used | ||
by a state agency in evaluating the agency's energy efficiency | ||
programs and shall include the agency's testing results in the | ||
annual report. | ||
Sec. 470.252. COST-EFFECTIVENESS STANDARD. (a) The | ||
council shall evaluate whether a state agency's or utility | ||
provider's energy efficiency program is cost-effective by | ||
determining whether the program benefits exceed the program costs. | ||
(b) Costs and benefits shall be considered regardless of | ||
whether the costs are paid for or benefits experienced by the | ||
participant, the business, the government agency, or any other | ||
individual. | ||
(c) Program costs include: | ||
(1) direct program costs, including program design, | ||
administration, incentives, implementation, marketing, | ||
measurement, and evaluation; | ||
(2) incremental costs of an energy efficiency measure, | ||
including installation, over an equivalent baseline measure for new | ||
construction; and | ||
(3) ongoing customer costs, including increased | ||
operation and maintenance costs, reduced productivity, and lost | ||
economic development opportunities, to the extent the costs can be | ||
reasonably quantified and valued. | ||
(d) Program benefits include: | ||
(1) avoided electric generation costs, including | ||
energy and capacity costs, using estimates of market prices and | ||
adjusting for line losses differentiated by time periods that | ||
influence market prices and market price reductions caused by the | ||
reduced energy demand, including peak and off-peak periods and | ||
summer and winter periods; | ||
(2) avoided transmission and distribution costs, | ||
using estimates of transmission and distribution utility marginal | ||
transmission and distribution costs, differentiated by time | ||
periods that influence costs; | ||
(3) avoided fossil fuel costs, using estimated savings | ||
in oil, gas, coal, or other fossil fuel use, at estimated fossil | ||
fuel prices; | ||
(4) other resource benefits, such as reduced water and | ||
sewer costs; and | ||
(5) non-resource benefits, including customer | ||
benefits such as reduced operation and maintenance costs, deferred | ||
replacement costs, productivity improvements, economic development | ||
benefits, reduced health care and pollution costs, and any other | ||
environmental benefits. | ||
(e) The present value of the energy efficiency program | ||
benefits shall be calculated over the projected life of the | ||
measures installed under the energy efficiency program. | ||
SECTION 2. (a) In appointing the initial appointed members | ||
of the Energy Efficiency Coordination Council created under Chapter | ||
470, Government Code, as added by this Act, the governor shall | ||
appoint one member to a term expiring February 1, 2013, one member | ||
to a term expiring February 1, 2015, and two members to terms | ||
expiring February 1, 2017. | ||
(b) The Energy Efficiency Coordination Council shall adopt | ||
rules, procedures, and forms necessary to implement Chapter 470, | ||
Government Code, as added by this Act, not later than May 1, 2012. | ||
SECTION 3. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2011. |