H.B. No. 5479 amends Section 39.905 of the Utilities Code to enhance energy efficiency goals and programs in Texas. The bill mandates that electric utilities administer energy efficiency programs in a market-neutral manner, ensuring all customers have access to these alternatives. It establishes specific annual demand reduction targets for utilities based on their customer base size, with goals increasing by three percent annually starting in 2027. Additionally, the bill requires that at least 15 percent of a utility's energy efficiency budget be allocated to low-income energy efficiency programs. The commission is tasked with overseeing these initiatives, including establishing cost recovery factors and providing incentives for utilities that exceed their goals.

The legislation also introduces provisions for utilities to notify the commission every two years and defines the criteria for "hard-to-reach areas." Individuals contesting a utility's notice must prove that requirements can be met through alternative providers in these areas. The bill allows utilities to access information on low-income customers, contingent on reimbursement for costs and confidentiality agreements. Furthermore, it removes previous limitations on the percentage of total program costs that energy audits can represent, and the Public Utility Commission of Texas is required to adopt rules for these changes by September 1, 2025, unless a two-thirds vote for immediate effect is achieved.

Statutes affected:
Introduced: Utilities Code 39.905 (Utilities Code 39)