SB 2994 Texas Senate · 89th Legislature (2025)

Relating to energy efficiency goals and programs, public information regarding energy efficiency programs, and the participation of loads in certain energy markets.

SB 2994 requires Texas electric utilities to implement energy efficiency programs that meet specific annual demand reduction targets based on their customer size (ranging from 2,500 kW for smaller utilities to 62,500 kW for the largest). These programs must be cost-effective, market-neutral, and nondiscriminatory, ensuring all customers have access to energy-saving options. The bill directly affects all Texas electric utilities by mandating measurable reductions in summer/winter peak demand through efficiency measures. It also updates public information requirements for energy efficiency programs and clarifies utility participation in energy markets. (Note: The bill was favorably reported by the Senate on May 23, 2025.)
Bill status passed 3 of 5 stages cleared
Introduction
Mar 2025
Committee Review
May 2025
Senate Passage
May 2025
House Passage
Governor
Introduced Mar 14, 2025 Last action May 23, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Engrossed · 7 edits · May 15, 2025
MODERATE
This bill amends Texas energy efficiency laws to update goal thresholds, increase annual savings targets, and clarify how utilities in competitive markets must report and achieve energy savings. It adds new exemptions for municipal utilities and cooperatives, adjusts low-income program funding requirements, and introduces mechanisms for utilities to request exemptions when meeting goals is difficult due to external factors like supply chain issues.
Scope change
The bill expands applicability by adding new subsections for municipal utilities and electric cooperatives, while modifying requirements for utilities operating in competitive markets versus non-competitive areas.
REQUIREMENT

Increased minimum energy savings goals for utilities operating in non-competitive areas, raising thresholds from 2,500 to 5,000 kilowatts for the smallest utilities and scaling up to 125,000 kilowatts for the largest.

Added new requirements for utilities in competitive markets to provide incentives for retail electric providers and competitive energy service providers to acquire additional cost-effective energy efficiency.

TIMELINE

Extended the period for annual goal increases from 2027-2028 to 2027-2030, with automatic updates beginning in 2031.

ELIGIBILITY

Added new subsections allowing municipal utilities and electric cooperatives to offer energy efficiency programs without being subject to the same regulatory requirements as investor-owned utilities.

FISCAL

Changed low-income energy efficiency program funding requirements from 10 percent to 15 percent of total energy efficiency budgets for utilities in competitive areas, with an option to request exemptions for 10 percent.

ENFORCEMENT

Created new provisions allowing utilities to request good cause exemptions from penalties if they fail to meet goals due to factors outside their control, such as supply chain interruptions or changes in building codes.

TECHNICAL

Added new subsections clarifying hearing procedures for contesting utility notices about hard-to-reach areas and establishing customer identification processes for low-income programs.

Floor votes · Senate May 15, 2025

How they voted

246
Passed
Total votes 30
May 15, 2025
D Democratic10
10 Yea
100% Yea
R Republican20
14 Yea 6 Nay
70% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
33
Key actions
9
Committee
8
Amendments
3
May 23, 2025
Lower · Passed
Reported favorably w/o amendment(s)
lower
May 19, 2025
Committee
Referred to State Affairs
lower
May 19, 2025
Introduced
Read first time
lower
May 16, 2025
Introduced
Received from the Senate
lower
May 15, 2025
Upper · Passed
Passed
upper
May 15, 2025
Upper · Passed
Passed to engrossment as amended
upper
May 15, 2025
Upper · Passed
Amended
upper
May 15, 2025
Introduced
Amendment(s) offered
upper
May 5, 2025
Upper · Passed
Committee report printed and distributed
upper
May 5, 2025
Upper · Passed
Reported favorably as substituted
upper
May 1, 2025
Upper · Passed
Vote taken in committee
upper
Apr 15, 2025
Upper · Passed
Left pending in committee
upper
Apr 15, 2025
Upper · Passed
Testimony taken in committee
upper
Apr 7, 2025
Committee
Referred to Business & Commerce
upper
Apr 7, 2025
Introduced
Read first time
upper
0 primary · 2 co-sponsors

Sponsors

No sponsor information available.