Senate Bill 541, by Senator Kirk Watson (D-Austin), would increase the amount of wind generated energy in Texas over the next decade, and would also encourage the development of other forms of renewable energy, like solar, geothermal and biomass generation.
Since Texas has failed to generate and keep renewable energy manufacturing jobs, Watkins introduced the “Made in Texas” Renewable Portfolio Standard bill.
The bill, modeled after the spirit of a Michigan law that allows extra credit to be given to companies that purchase renewable energy credits from energy produced in Michigan. The “Made in Texas” Renewable Portfolio Standard bill allows the PUC to adopt rules accommodating a similar incentive for renewable energy generated in Texas that uses equipment and technology that is made in Texas.
The bill calls on the PUC to adopt rules to encourage energy companies to install Made-in-Texas equipment and rewards manufacturers who build in Texas and put Texans to work. It covers all forms of renewable energy the goal to encourage manufacturers to set up shop in Texas.
The bill would create two tiers of green energy standards in the state. Tier 1 covers large scale wind farms like those throughout west Texas. Tier 2 covers wind generation under 150 kilowatts and includes biomass, solar, and geothermal energy.
The bill would increase the goal of tier 1 renewable Texas energy capacity by 5,000 megawatts by 2015, and 10,000 megawatts by 2025. The goals for tier 2 generation are more modest, 1,500 megawatts by 2020. But by expanding solar development, Texas will be better prepared for possible federal regulation on greenhouse gas emissions by building the sort of energy that Congress will likely encourage.
Utilities that are required to purchase renewable energy could elect to pay an alternative fee rather than generating tier 1 or tier 2 energy. This fee would go toward the solar rebate program passed by the Senate earlier this year. Should the program fail by 2016, the bill gives the Public Utilities Commission flexibility to cancel the program. Consequently, alternative payments made under the program would be applied as rebates on residential and industrial electric bills.
The bill will likely see a final vote later this week.
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