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Policy Edition
On August 10th, Texas set its unofficial all-time peak demand record of 85,435 MW! The state has set 10 other peak demand records set this summer. Just one year after the state set 11 peak demand records in 2022. So it is safe to say we are all feeling the heat! In that time, ERCOT has issued several conservation alerts to the public asking for citizens to reduce their energy consumption during peak hours. As our peak demand rises, it is important to note the continued need for improved energy efficiency, demand response, and other demand-side resources to be used.
With the Legislature adjourned, the legislative implementation of bills passed this past spring falls on to the relevant state agencies. As noted in last month’s policy newsletter, the PUCT legislative implementation project has been opened in Docket No. 55156. Legislation like SB 1699 requires residential demand response programs to be developed which will help reduce our overall demand on the grid. Residential heating and cool is the top cause of peak demand in the state. In addition to legislative implementation efforts, there are upcoming opportunities for the state to improve energy efficiency programs without legislative mandate. SPEER discusses the need for more energy efficiency in the region in our most recent blog post Driving Energy Efficiency Forward.
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In This Newsletter:
- Draft Annual Statewide Energy Efficiency Portfolio Report
- ACEEE Report
- EEIP Meeting Set **Engagement Opportunity**
- 2023 SPEER Policy + Industry Workshop
- Local Policy Actions: Houston Codes update *Engagement Opportunity**
- Upcoming Events and Webinars
- What We’re Reading
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Draft Annual Statewide Energy Efficiency Portfolio Report | |
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The Public Utility Commission of Texas EM&V contractor has published the first draft of the 2022 programs Annual Statewide Energy Efficiency Portfolio Report. This is a comprehensive report which reviews the successes and challenges for the ongoing energy efficiency programs through objective data and information gathered over the 2022 program year.
For PY 2022 the Texas electric utilities reported statewide demand reductions of 592,192 kW and saved 732,844,925 kWh. These totals equate to roughly 118,439 homes and 55,823 homes respectively saving Texas energy customers almost $67 million on electric bills. All the programs have a gross cost-benefit ration of 3.6 showing that energy efficiency initiatives are practical, cost-effective, and help the lights on.
While there are a number of interesting key findings, SPEER is pleased to see an emphasis placed on heat pump technologies in both residential and commercial settings. Over the last five years heat pump project savings doubled to 22 MW and 40,849 MWh in PY 2022. See graphic below from the draft report.
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The efforts from SPEER’s heat pump work group consisting of manufacturers and implementers seeks to continue this uptick moving forward.
The report will be discussed at the fall Energy Efficiency Implementation Project meeting on September 26th . If you would like to review the draft report in its entirety, it can be found in the Docket 38578.
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ACEEE's Updated Texas Energy Efficiency & Demand Response Report | |
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In May 2023 the American Council for an Energy Efficient Economy (ACEEE) published its initial findings for energy efficiency and demand response in Texas white paper which assessed the need for the state to improve its energy efficiency and demand response programs to address reliability challenges. In August 2023, ACEEE published a follow-up to its initial findings for the white paper Energy Efficiency and Demand Response for Texas.
The white paper outlines the need for increased reliability in the state as well as proposed recommendations to address the deficiencies. The key findings found that Texas could offset roughly 14,800 MW of summer peak load and 25,300 MW of winter peak load through a six year period costing $8.4 billion. While the number is large, it is important to note wholesale electric costs were over $32 billion in 2022 alone and the legislature recently considered a proposal that could spend up to $18 billion to build new natural-gas generators.
The ten key recommendations are listed below, however the white paper goes into great detail to breakdown the costs and savings achieved for each measure.
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Efficiency measures
- Program to replace electric furnaces with ENERGY STAR® heat pumps
- Attic insulation and sealing incentive program
- Heat pump water heaters incentive program
- Smart thermostat incentive program (an efficiency program that helps enable the DR program listed below)
- Set of energy efficiency programs serving low-income homeowners and renters, including low-cost kits distributed by community groups and more comprehensive whole-home retrofit programs for single-family homes and multifamily apartments
- Small commercial and industrial retrofit program
- Monitoring-based commissioning program for large commercial buildings
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Demand response measures
- Central air conditioner/electric heating with smart thermostat control
- Water heater timing controls
- Electric vehicle managed charging
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Fall EEIP Meeting September 26th
**Engagement Opportunity**
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On September 26th the PUCT will be hosting its fall Energy Efficiency Implementation Project (EEIP) meeting from 9:30am to 3:00pm in the Commissioners’ hearing room at the William B. Travis Building in Austin. The agenda includes a review of the draft statewide energy efficiency portfolio report mentioned above, updates to the statewide technical reference manual for program year 2024, and an overview of the energy efficiency developments related to the Inflation Reduction Act.
These meetings are a great opportunity for stakeholders to hear about the programs directly from PUCT staff, EM&V contractor, and utilities operating in the state. SPEER has been an active participant in these meetings and can assist with any questions you may have.
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SPEER's Industry + Policy Workshop
2 weeks away!
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Join SPEER members, partners, and allies for two days of energy dialogue. We’ll discuss the changing energy landscape, regional grid issues, record setting demand, demand-side solutions as well as national trends. As the 88th Texas legislative session and 59th Oklahoma legislative session have concluded we will exchange thoughts on energy policies: How to improve energy efficiency adoption in the South-central region, ways to better engage stakeholders with policymakers, increasing the adoption of DERs, and much more. Our focus will be tailored to important topics facings all consumers including increasing reliability and lowering consumer energy costs as we continue the energy transition. We’ll have small discussions, panels, and experts sharing their knowledge and thoughts on these important issues and the evolving energy landscape. If you would like to attend, please register here.
SESSION HIGHLIGHT: 88th Texas Legislature Wrap-Up
The 88th Texas Legislature adjourned in May after passing several bills aimed at increasing reliability to the Texas grid. Now that the dust has settled, SPEER's Policy Manager will sit down with Representative Erin Zwiener to review the impact of bills that became law on both the supply and demand side of the energy equation, discuss her role in creating a reliable and resilient Texas grid, and what we see looking forward to the 89th Legislative session.
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Local Policy Updates
**Engagement Opportunity**
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Recent and Upcoming Local Government Policy Actions:
Houston: On August 24th, the Houston City Council Transportation, Technology, and Infrastructure Committee presented a proposal to adopt the 2021 Building Code and opened a 30 day public comment period running between August 21st to September 19th. For more information, please see the Houston City Council page.
If you are aware of upcoming policy discussions or actions in your area and would like to share them in this newsletter, please send information to noaks@eepartnership.org.
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SPEER webinar: SPEER's City Efficiency Leadership Council (CELC) is hosting webinar focused on Texas 88th Legislature Wrap Up this Thursday, August 31st from 10-11am CST. We will review current energy efficiency statutes, discuss key legislation from the 88th Legislature, next steps for implementation, and lastly what we expect to see heading into the 89th Legislature in 2025. If you are interested in attending, please register here.
Gulf Coast Power Association: SPEER's State & Local Policy Manager, Noah Oaks, will be providing a brief presentation on energy efficiency at the Gulf Coast Power Association's 38th Annual Fall Conference & Exhibition on October 4th. Following his presentation will be a panel discussion covering the need to increase efficiency programs and demand response in the state as Texas has fallen behind (many) other states in energy savings hosted by Interim PUCT Chair Jackson. While Texas was the first state to adopt an Energy Efficiency Resources Standard (EERS) the state has fallen to last place but also the most untapped potential to save energy. Register for the conference and join us!
GridNEXT Dallas: SPEER member, CleanTX, is bringing together leaders across Texas’ diverse energy economy to engage in conversations about how we can work together to create the integrated energy infrastructure of the future for Texas. This one-day event will take place in Dallas on Thursday, October 12 covering transmission landscape, flexible load, energy efficiency, transportation, and more. SPEER's Policy Manager, Noah, will be joining panelists Chris Reeder with Husch Blackwell and Samuel Davis with the Texas Land and Liberty Coalition for the Summer Lookback and 88th Texas Legislative Session Impacts discussion. Join us! Register now to mingle with energy stakeholders and discuss Texas’ Clean Energy Economy.
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TIEEN webinar: The next TIEEN collaborative webinar will take place Tuesday October 17, 2:00-3:30 pm (Central). This will be a panel discussion on the topic of Legislative and Regulatory Developments in Texas Impacting Energy Production, Efficiency, and Use. The recent Texas legislative session included several bills with significant potential impacts on both deployment of renewables and energy efficiency. Learn more and register now. | | | | |
