Issues

Wise energy policy not only involves adding new sources, but improving conservation practices. We are a fast-growing state with finite resources, and we must carefully manage our consumption to ensure we protect our air quality while producing enough energy to power our economy.

Members of the 80th Legislature, aware of the critical need for better energy conservation in our state, passed meaningful legislation on this issue. Working together, State Representative Joe Straus and State Senator Troy Fraser sponsored an omnibus energy efficiency bill which establishes goals and rules for both the public and private sectors on how Texas can set an example in energy efficiency.

The legislation requires the Texas Public Utility Commission (PUC) to conduct a study of energy efficiency programs and come up with recommendations based on the findings of that study. The study will address whether utility funding in competitive markets should continue and if energy efficiency is best provided by these competitive markets. The PUC will be required to come up with any remedies to potential barriers to increased participation by retail electric providers, including any recommended regulatory or statutory changes to eliminate such barriers.

Multiple new programs and incentives for schools and other government-owned buildings to enhance energy efficiency have now been established. School districts, institutions of higher education and political subdivisions are required to reduce their annual electric consumption by 5%. The PUC will now assist school districts with information on ways to finance the installation of solar electric generation for school district buildings. Public schools will receive a credit for any surplus solar generation.
 

State government is now required to develop and purchase energy efficiency products and appliances for use in state buildings. Vending machines located in a building owned or leased by the state are required to use an internal energy-saving or energy-management device. The use of more energy efficient lighting, equipment and appliances in educational and housing facilities, state agencies, and government buildings is also now a requirement.

The PUC will also develop and implement programs to educate and assist consumers about electric energy use and ways to increase energy efficiency. A new Sales Tax Holiday has also been created for energy-efficiency products designated as “Energy Star qualified” sold during the Memorial Day weekend. Finally, the energy efficiency goal for electric utilities has been raised from 10 percent of annual demand growth to 15 per¬cent in 2008 and 20 percent in 2009. This includes the goal that electric utilities in the ERCOT re¬gion shall work with retail electric providers to encourage involvement in energy efficiency programs. Electric utilities located outside the ERCOT shall provide customers with energy efficiency educational materials.

Another piece of legislation, sponsored by State Senator Kip Averitt and State Representative Dennis Bonnen, which largely focused on air emissions, also included energy efficiency requirements. As a result of its passage, the State Energy Conservation Office has now been authorized to adopt new edi¬tions of the international energy conservation code. Institutions of higher education and state agen¬cies have now been added to a list of political subdivisions required to implement certain energy efficiency programs with the goal of reducing electric consumption by five percent annually for six years. The Texas Building and Procurement Com¬mission, a state agency, is to develop a list of equipment and appliances that meet energy efficiency standards and assist state agencies in selecting products from that list.