Jun 5, 2009
CLEAN COAL (and Wind) AMONG THE ENERGY SECTOR WINNERS IN THE TEXAS LEGE
CLEAN COAL (and Wind) AMONG THE ENERGY SECTOR WINNERS IN THE LEGE
Measures to aid solar power, retail electricity consumers don't fare near as
well.
The coal and wind industries fared pretty well in the recently completed
legislation session while the solar sector and the consumer advocates fell
short of attaining most of the goals they had set for 2009.
It’s still too soon for a complete assessment, but one day after the session
gaveled to a close some pieces of the puzzle relating to energy are
beginning to emerge. Here’s look at what we know so far:
CLEAN COAL – Advocates for developing state-of-the-art facilities that can
capture and sequester at least 70 percent of the carbon-dioxide emissions
put together a strong alliance of pro-business and pro-environment lawmakers
early on to push for tax incentives for such projects. There was some
pushback from an equally unlikely coalition of conservative budget writers
and social service liberals who worried about lost tax revenues that could
be traced back to such projects.
The result was the passage of legislation that gives up to $100 million in
franchise tax credits for the first three projects that can deliver on the
requirement, which were expanded to place limits on other pollutants as
well. It also provides for a 75 percent, 30-year severance tax exemption for
oil that is recovered with the aid of sequestered CO2.
“House Bill 469 is going to be the blueprint for coal-fired electric
generation plants in the future for the world,” said Sen. Kel Seliger, a
co-author of the legislation carried in the House by Weatherford Republican
Phil King.
WIND POWER – This sector fared well with a late-filed bill that ensured the
continuance of local property tax abatements for job-creating projects. The
wind industry pushed strong for the passage of H.B. 3676, which deals with
the complex formula local school districts follow for abating taxes, saying
it builds on previously passed policies that have put Texas in the lead in
wind generation.
Critics of the process argued that local school districts can afford to be
excessively generous with their abatements because the state can be counted
on to make them whole without accounting for the payments in lieu of taxes.
But a provision was added to help ensure its passage that givse the
Comptroller’s Office authority to make sure the projects actually deliver on
the promised jobs.
SOLAR – The effort to put solar power on the same plane as wind power hit
some late-session turbulence and fell victim to the slowdown in the House
over opposition to voter ID legislation. S.B. 541 would have set a goal for
the state to produce 1,500 megawatts from solar, bio-mass, geothermal and
small-scale wind sources by 2020.
S.B 545 would have imposed a 20-cents-a-month surcharge on homeowners --
plus $2 a month for commercial enterprises and $20 a month for large
industrial users to fund a $100 million a year pool for solar-power
incentives. The money would pay for up to one-third the cost for installing
solar-generating devices. This bill almost made it over the line as an
amendment to related legislation but died in the House when Houston Democrat
Sylvester Turner effectively talked it to death as a key deadline for
passing bills loomed.
CONSUMERS – Early on, a key House committee chairman said 2009 would become
known as “the session of the consumer.” The prediction did not hold.
The chairman, Carrollton Republican Burt Solomons of the powerful State
Affairs Committee, was hoping to pass legislation that would have put some
limits on the deregulated electric market, but it was killed on a
parliamentary maneuver. Another bill by House Energy Resources Committee
Chairman Jim Keffer to allow cities to effectively “bulk purchase”
electricity at lower retail rates never made it to the floor for a vote.
Consumers could claim at least some gains. A bill requiring common terms be
used on monthly utility bills is awaiting Gov. Rick Perry’s signature as is
one requiring internet telecasts of Public Utility Commission meetings.
From the Energy Report
http://www.texasenergyreport.com/
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