85R12397 JXC-F     By: Reynolds H.B. No. 3175       A BILL TO BE ENTITLED   AN ACT   relating to the funding through greenhouse gas emissions fees of   energy efficiency programs administered by certain utilities;   authorizing a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 382.0621(f), Health and Safety Code, is   amended to read as follows:          (f)  The commission may impose operating fees for emissions   of greenhouse gas only:                (1)  to the extent the fees are necessary to cover the   commission's additional reasonably necessary direct costs of   implementing Section 382.05102; or                (2)  as authorized under Section 382.0623.          SECTION 2.  Subchapter C, Chapter 382, Health and Safety   Code, is amended by adding Section 382.0623 to read as follows:          Sec. 382.0623.  GREENHOUSE GAS EMISSIONS FEE. (a)  In this   section, "carbon dioxide equivalent" means the amount of carbon   dioxide by weight that would produce the same global warming impact   as a given weight of another greenhouse gas, based on the best   available science.          (b)  The commission shall adopt, charge, and collect an   annual fee on each facility permitted under Section 382.05185 that   is subject to federal greenhouse gas reporting requirements.     Except as provided by Subsection (d), the fee is in the amount of $5   per ton of carbon dioxide equivalent emitted from the facility each   year.          (c)  Not later than April 15 of each year, a facility   described by Subsection (b) shall submit to the commission each   annual report required by federal greenhouse gas reporting   requirements.  The commission shall use a report received under   this section to compute the total amount of the fee to be imposed on   the reporting facility.          (d)  The commission by rule may provide for an automatic   annual increase in the amount of the fee imposed under this section   in the manner provided for increasing operating permit fees by   Section 382.0621(c).          (e)  The commission shall deposit fees collected under this   section to the credit of a greenhouse gas emissions fee account   established in the general revenue fund.  The fees collected may be   appropriated only for the purposes of Section 39.9053, Utilities   Code.          SECTION 3.  Section 39.905, Utilities Code, is amended by   amending Subsection (f) and adding Subsection (f-1) to read as   follows:          (f)  Each [Unless funding is provided under Section 39.903,   each] unbundled transmission and distribution utility shall   include in its energy efficiency plan a targeted low-income energy   efficiency program [as described by Section 39.903(f)(2)], and the   savings achieved by the program shall count toward the transmission   and distribution utility's energy efficiency goal. The commission   shall determine the appropriate level of funding to be allocated to   both targeted and standard offer low-income energy efficiency   programs in each unbundled transmission and distribution utility   service area. The level of funding for low-income energy   efficiency programs shall be provided from money approved by the   commission for the transmission and distribution utility's energy   efficiency programs. The commission shall ensure that annual   expenditures for the targeted low-income energy efficiency   programs of each unbundled transmission and distribution utility   are not less than 10 percent of the transmission and distribution   utility's energy efficiency budget for the year. A grant received   by an unbundled transmission and distribution utility under Section   39.9053 may be considered as part of the utility's energy   efficiency budget.  A targeted low-income energy efficiency program   must comply with the same audit requirements that apply to federal   weatherization subrecipients. In an energy efficiency cost   recovery factor proceeding related to expenditures under this   subsection, the commission shall make findings of fact regarding   whether the utility meets requirements imposed under this   subsection. The state agency that administers the federal   weatherization assistance program shall participate in energy   efficiency cost recovery factor proceedings related to   expenditures under this subsection to ensure that targeted   low-income weatherization programs are consistent with federal   weatherization programs and adequately funded.          (f-1)  For the purposes of Subsection (f), a "low-income   energy efficiency program" is a program that offers assistance to   an electric customer:                (1)  whose household income is not more than 125   percent of the federal poverty guidelines; or                (2)  who receives benefits under the supplemental   nutrition assistance program established under Chapter 33, Human   Resources Code.          SECTION 4.  Subchapter Z, Chapter 39, Utilities Code, is   amended by adding Section 39.9053 to read as follows:          Sec. 39.9053.  ENERGY EFFICIENCY FUNDING. (a)  The   commission by rule shall establish a grant program through which   electric utilities, municipally owned utilities, and electric   cooperatives may receive money from the greenhouse gas emissions   fee account to assist those utilities with meeting goals   established under and implementing programs under Sections 39.905,   39.9051, and 39.9052.          (b)  Except as provided by Subsection (c), the commission   shall make grant money available to an electric utility,   municipally owned utility, or electric cooperative in proportion to   the percentage of electric energy consumed by the retail customers   in this state that are served by the electric utility, municipally   owned utility, or electric cooperative.          (c)  The commission shall allocate at least 50 percent of the   money provided under Subsection (a) each year for programs   described by Section 39.905(f).          SECTION 5.  The Texas Commission on Environmental Quality   may not provide for an increase in the amount of the fee established   by Section 382.0623, Health and Safety Code, as added by this Act,   to occur before August 31, 2018.          SECTION 6.  This Act takes effect September 1, 2017.