Texas

1
Texas

• Innovative Energy Efficiency Programs
  Legislation in the Western States
• Presented to the Western Governors Association
• Energy Efficient Buildings Workshop
• By Tom Fitzpatrick, Energy Efficiency
  Advocacy/Consulting

July 17, 2007
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Overview

• Key past legislation
• A large number of trial balloons in 80th Tx Leg.
• Focus on the omnibus energy efficiency bill,
  HB3693

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Key Prior Legislation

• SB 7, 76th Texas Leg., 1999 Electric
  Deregulation bill established an energy
  efficiency goal (10 of demand growth)
• SB 5, 77th Texas Leg., 2001 Texas Emissions
  Reduction Plan bill initiated building energy
  performance programs for emissions benefits
• Adopted building energy code
• Required electric use reduction goals in
  facilities of political subdivisions
• Allowed expansion of SB 7 (76th) efficiency
  programs
• Authorized Home Energy Rating information

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80th Texas Legislature, 2007

• In the beginning, there was optimism
• SB 12 - enhancement of air quality, including
  energy efficiency standards in state purchasing
  and energy consumption.
• SB 444 - provision of electricity in this state
  providing civil penalties.
• SB 484 - powers, duties, and composition of the
  electric utility restructuring legislative
  oversight committee.
• SB 489 - efficiency standards for certain
  appliances.
• SB 831 - energy savings performance contracts.
• SB 1357 - creation of a TexSun Solar Energy
  System Rebate Program.
• SB 1770 - development of a comprehensive energy
  plan.

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80th Texas Legislature (in the beginning)

• HB 230 - an optional premium discount for certain
  resource-efficient buildings.
• HB 269 - energy efficiency incentive programs
  administered by electric utilities.
• HB 467 - an energy efficiency products pilot
  program.
• HB 999 - adoption of energy efficiency and
  conservation standards for the design,
  construction, and renovation of public school
  instructional facilities.
• HB 1000 - exemptions from the sales tax for
  certain energy efficient products for a limited
  period.
• HB 1122 - efficiency standards for certain
  appliances providing a civil penalty.
• HB 1394 - provision of electricity in this state
  providing civil penalties.
• HB 2226 - creation of a Tex Sun solar energy
  system rebate program.

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80th Texas Legislature (in the beginning)

• HB 2355 - Reregulation of retail electric
  services. (IRP)
• HB 2362 - a greenhouse gas "cap and trade"
  program.
• HB 2567 - energy savings performance contracts.
• HB 3070 - a study of methods for increasing the
  availability of certain information on energy
  efficiency of certain residential property.
• HB 3240 - building energy performance standards.
• HB 3241 - energy efficiency incentive programs
  administered by electric utilities.
• HB 3242 - this state's goal for electric energy
  efficiency.
• HB 3244 - energy efficiency incentive programs
  administered by electric utilities.
• HB 3245 - electric energy efficiency goals and
  programs.

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80th Texas Legislature (in the beginning)

• HB 3337 - development and use of a comprehensive
  energy plan and to a corresponding temporary
  moratorium on authorizations for certain
  coal-fired electric generating facilities.
• HB 3338 - building code standards for energy
  efficiency performance.
• HB 3364 - revision of building energy efficiency
  performance standards.
• HB 3693 - energy demand, energy load, energy
  efficiency incentives, energy programs, and
  energy performance measures.
• HB 3809 - consolidating energy efficiency
  programs and fees.
• HB 3897 - establishing a goal of reducing carbon
  dioxide emissions from electric generation in
  this state to 1990 levels not later than 2020.

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80th Texas Legislature, 2007

• In the end, the pack was narrowed
• SB 12, Averitt signed 6/08/07, effective
  immediately except article 5 effective 9/1/07.
• SB 484, Fraser passed 5/23/07, effective
  immediately.
• SB 831, Ellis signed 6/16/07, effective
  immediately.
• HB 3070, Strama/Leibowitz/Anchia/Rodriquez/Berman,
  signed 6/15/07, effective 9/1/07
• HB 3693, Straus/Anchia/Crabb/ Phil King/Oliveira,
  signed 6/15/07, effective 9/1/07.

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HB 3693

• An omnibus efficiency bill
• Concensus on raising utility program goals
• Innovations in several areas of statute.
• Education Code
• school districts to establish a goal of reducing
  annual electric consumption by 5 per year for 6
  years beginning Sep. 1, 2007, and use
  energy-efficient light bulbs in instructional
  facilities.
• institutions of higher education to use energy
  efficient light bulbs in educational and housing
  facilities.

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HB 3693

• Government Code
• Texas Building Procurement Commission to
  include energy efficient equipment and appliances
  in standards agencies to purchase Energy Star
  equipment and appliances when available and
  cost-effective energy efficient light bulbs in
  state buildings energy-saving control on vending
  machines.
• Governmental entities who pay for electric,
  water or gas to record use and costs make data
  available on a public website.
• Texas Department of Housing Community Affairs
  to establish minimum energy efficiency measures
  for all housing constructed or rehabilitated with
  state or federal funding or financing assistance
  (except weatherization assistance or first-time
  home-buyer ).

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HB 3693

• Health Safety Code
• Allows a coop to provide district heating and
  cooling services to non-members.
• State Energy Conservation Office may , by rule,
  adopt later editions of International Residential
  Code or International Energy Conservation Code
  equivalent or more stringent than 2001 .
• Expands goals for reducing electric consumption
  in public facilities to state agencies and
  institutions of higher education requires all
  cost-effective energy efficiency measures goal
  to reduce electric consumption by 5 per year for
  6 years, beginning September 1, 2007 annual
  reporting to SECO.
• Allows Energy Systems Lab to develop HERS report
  format for existing homes, and develop a registry
  of completed ratings.

More
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HB 3693

• Tax Code
• Creates an annual tax holiday for certain Energy
  Star products each Memorial Day weekend (midnight
  Friday til midnight Monday) applies to air
  conditioner lt 6,000, clothes washer, ceiling
  fan, dehumidifier, dishwasher, light bulb,
  programmable thermostat, or refrigerator lt
  2,000.
• Comptroller to report to legislature before each
  regular session an assessment on energy-related
  project agreements, including job and wage
  impacts, investment impacts, and tax impacts of a
  limitation on appraised value on an
  energy-related project.

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HB 3693

• Utilities Code
• Expands energy efficiency goals for residential
  and commercial customers to
• 15 of demand growth by December 31, 2008
• 20 of demand growth by December 31, 2009
• industrial load management programs at 2007
  levels.
• Requires PUC to establish an energy efficiency
  cost recovery factor, and establish incentive
  for exceeding minimum goals.
• Net metering and advanced meter networks to be
  deployed as rapidly as possible to better manage
  energy use and control costs, and to facilitate
  demand response initiatives.

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HB 3693

• Utilities Code
• requires PUC to conduct a study and report to the
  legislature by January 15, 2009
• Estimate achievable savings by service area and
  customer class
• Quantify costs and rate impacts of meeting goals
• Determine whether a goal of 30 of demand growth
  is achievable by December 31, 2010, and whether
  50 is achievable by December 31, 2015 through
  these programs
• requires PUC to establish procedure for
  evaluating market transformation program options,
  and may consider reduced consumer costs through
  reduced demand, energy savings, and relief of
  congestion.

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HB 3693

• Utilities Code
• Expands direction to municipally owned utilities
  and electric cooperatives
• Solar electric generation by schools must be
  provided with net metering surplus must be made
  available for sale to the grid and credited to
  the district
• Distributed renewable generation (not more than
  2,000 kW) must be allowed to interconnect, and
  net metered, if equipment meets certain minimum
  criteria
• A utility must obtain approval from PUC before
  closing any transaction which merges or
  consolidates the utility or transfers a
  controlling interest or operational control of
  the utility.

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Thank You

• For more on introduced and final legislation in
  Texas, www.capitol.state.tx.us
• For more on general energy programming in Texas,
  www.seco.cpa.state.tx.us
• For more on utility regulation in Texas
  www.puc.state.tx.us/electric
• For an overview of the EE program offerings of
  investor-owned utilities in Texas
  www.texasefficiency.com
• Tom Fitzpatrick, [phone], fitz_at_io.com