TX Renewable Energy on Deathrow

Statement by Environment Texas Director Luke Metzger

Today Sen. Troy Fraser floated legislative language as an amendment to SB 483 (currently in conference committee) that would essentially destroy Texas’ renewable energy market.

Currently, Texas law requires that utilities purchase at least 5880 megawatts of renewable power by the year 2015 (5% by that year – currently they’re required to get about 1 1/2 per cent from renewables). However, in 2005, companies like Exxon, Occidental Petroleum and Temple-Inland inserted a provision into SB 20 (known as subsection M) that said all voluntary purchases of renewable energy by individual consumers, businesses and municipalities (like Austin’s Greenchoice program or the city of Houston’s recent purchase of a wind energy contract), which previously were counted above and beyond the mandate, would now count towards the mandate (making it a ceiling instead of a floor). The effect would be to lower the obligation of utilities and the industrial customers and to invalidate the green certification of such voluntary purchases (which can count towards federal clean air mandates). 

On Monday, April 30, the House overwhelmingly adopted an amendment to SB 483 by Rep. Mark Strama to repeal subsection M. As a compromise with the industrials, Rep. Strama allowed them to entirely opt out of the renewable energy program. However, the greedy members of the Texas Association of Manufacturers apparently weren’t satisfied.

Today, negotiations took a turn for the worse. Sen. Fraser, circulated language that would completely end the renewable energy program two years after the mandate is reached. This would completely destroy the Texas renewable energy market, leaving producers (and the customers that have engaged in long-term contracts) completely hanging. The price of renewable energy credits would crash and the PUC would likely stop planning for transmission for new wind projects. In addition, the language completely guts an amendment added by Rep. Wayne Christian to encourage biomass energy . 

This amendment is a recipe for turning Texas from a leader in to a laggard in renewable energy production. At a time when the public is crying out for more investments in clean, renewable energy, this amendment goes completely in the wrong direction. With global warming and air pollution threatening our future, energy prices surging and war raging in the middle east, we need to dramatically increase our use of renewable energy. The Texas Association of Manufacturers should  not be writing energy policy for the entire state of Texas. This language puts the interests of a few greedy companies squarely before the wishes of the vast majority of Texans.