By Michael G. Albrecht
June 2010
With the Deepwater Horizon catastrophe fueling fresh, national debate on U.S. energy policy, Texas’ renewable energy coalition is preparing to resume their ongoing efforts to nurture passage of renewable-enabling legislation in the upcoming 82nd session. Costs of new initiatives in the alternative energy arena will face the gauntlet of competing needs in a session severely handicapped by an estimated $18 billion state revenue shortfall.
Texas Renewable Stakeholders
The undaunted, ever hopeful coalition of groups and state legislators again leading the effort to influence passage of renewable friendly legislation include:
Texas Renewable Energy Industries Association (TREIA)
Ongoing legislative supporters in the House and Senate expected to join the uphill push in our petroleum-dominated state include:
Renewable Energy Goals
Common policy and legislative goals for 2010 and the 82nd session are clear. At the regulatory level, a major goal of the renewable community is the implementation this year of a Texas Public Utility Commission (PUC) Staff Strawman Rule and changes to the state Renewable Portfolio Standard (RPS). Prominent among these changes is the much anticipated 500 MW non-wind, renewable energy carve out, in the RPS.
Legislative goals for 2011 include, but are not limited to, the passage of a statewide solar rebate incentive, guaranteed payback rates for net metering, modifications to ratemaking standards, eliminating registration requirements for on-site renewable energy generation, homeowner association (HOA) approval for resident renewable installations, and a clearer funding mechanism for Property Assessed Clean Energy Funding (PACE ).
Laying the Legislative Groundwork in Spring and Summer 2010
Russell Smith, Executive Director of TREIA, states that the organization is proceeding methodically through its Policy Committee process to formulate strategy for the coming session. Results of those sessions will frame their efforts for the coming fall and spring.
Meanwhile, on April 29, 2010, Tom “Smitty” Smith, Director of Public Citizen’s Texas office, and Luke Metzger, Director of Environment Texas, gave presentations before a joint interim hearing of the Texas House Energy Resources and Texas Senate Committee on State Affairs. Pushing for a statewide solar rebate incentive and net metering, Public Citizen is also urging legislators to set a goal of 5,000 MW of solar and other non-wind renewables by 2025.
Smith’s presentation before the committees covered a wide swath of renewable energy proposals, many a review of those addressed in the last legislative session. These included PACE funding for solar residential costs, net-zero buildings, promoting energy efficiency measures, tapping into the geothermal baseload, the creation of a renewable energy storage portfolio, and managing energy requirements to exchange power between the grid and plug-in hybrid cars.
Across the sprawling Capitol grounds from Public Citizen offices, Environment Texas earlier this year “built a coalition of more than 80 businesses from across the state who wrote Governor Rick Perry in February in support of a statewide solar program,” according to Luke Metzger, director of the organization. Thus far, Environment Texas has not received a response from Perry’s office.
Elaborating on Environment Texas’ legislative strategy, Metzger explains that they are “keeping the issue of solar regularly before lawmakers, including having our business coalition meet with lawmakers in district meetings, keeping the issue in the media, ‘bird dogging’ politicians at campaign events, and getting solar activists to regularly call/write and e-mail their reps.”
Spearheading Environmental Defense Fund’s (EDF) legislative initiative, Colin Meehan cautions against making big assumptions about the coming Texas session. “A lot of pieces are moving,” Meehan observes, and “it might be a mistake to project out too far” pending the outcome of both the PUC rulemaking decision and also the National Energy Efficiency Enhancement Act of 2010, otherrwise known as the Bingaman Bill, in the U.S. Senate Energy and Natural Resources Committee. Changes in energy pricing formulas, energy efficiency standards for products and buildings, and smart grid deployment initiatives at the federal and state levels would impact the course of Texas legislation, Meehan advises.
Also gearing up for another vigorous session are Steve Taylor at the Solar Alliance and Cyrus Reed with the Sierra Club. Like EDF’s Meehan, both activists emphasize watching and responding to the “changing political landscape” likely to occur as the November elections take place and federal and state policy is enacted and/or modified.
All parties interviewed for this article agree that coordination will be the key to success in the coming session. All likewise agreed that the lack of strong inter-organizational coordination contributed to the failure of renewable legislation in 2009. The question remains, however, who or which entity will spearhead a consolidated 2011 Texas renewable energy campaign?
Private Sector Concerns on Renewable Legislation
On the other side of the renewable energy equation, the Texas Association of Manufacturers (TAM) is expected to continue their efforts to block or modify what they view as costly renewable initiatives in Texas. According to Gretchen Fox, media consultant with TAM, the organization supports policy initiatives that “encourage the development of market-based and cost-effective generation sources that will provide Texas with greater fuel diversity; including market-based, cost-effective renewable sources.” “TAM,” Fox continues, “supports the diversification of the state’s energy portfolio to include expanded use of sources like solar, wind, nuclear, biomass and natural gas. TAM supports expansion of these energy sources through incentives, not mandates or subsidies.”
Fox elaborates, “TAM adhered to its principles by opposing SB 541 last session because it mandated an additional 1,500 MW of non-wind renewable generation that, using conservative estimates, would have cost $6.2 billion.” Efforts to bridge renewable manufacturing sector concerns remain in a state of flux.
Legislator Resistance to Utility Rate Hikes
Key renewable legislation failed in 2009 not only because of big business opposition, but also because of late session concerns by legislators, including Rep. Sylvester Turner (D-Houston), about renewable-related energy rate increases to constituents. An 11th hour procedural motion by Turner effectively killed hard fought solar legislation.
Rep. Turner recently expanded on his position: “I support renewable and alternative forms of energy including solar. Having said that, I do not support making low income consumers subsidize alternative energy sources when they are having a difficult time paying for the cost of electricity currently. Without the full utilization of the system benefit fund or some other subsidy being provided to low-income consumers, I will have a difficult time supporting surcharge that makes it more difficult for people to pay the bill. Since last session, no one has put forth any measures to address my concerns.” According to a Turner aide, the rate hike to constituents was estimated to be 20-cents per month. Efforts continue by various entities to hammer out details that would gain the support of Turner and other legislators.
A Different Approach to Generating Public Pressure
Colin Rowan with Rowan Communication, Inc. in Austin, has established the Texas Solar website as a forum to showcase successful clean energy ventures in Texas. Rowan believes the renewable community should concentrate its lobbying efforts not on the environmental benefits but on the economic advantages of clean energy technologies for Texas. Rowan requests that case studies be sent to him via his webpage.
Supporting this premise, Rowan states, “Most conservative estimates suggest that about 10 jobs are created for each megawatt of solar that is injected into the power grid.”
Keep Texas at the Forefront of Global Energy Research, Development and Production
Rowan’s approach—echoed by other renewable advocates—emphasizes an important dynamic as we gear up for the next session: Build a strong business case for keeping Texas at the forefront of national and global energy research and production, and apply continuous public and private sector pressure on legislators, starting now and through the session. Many were willing last session; let’s keep the issue square in front of their busy eyes this one.
Renewable energy organizations should organize, coordinate, and employ all forms of conventional and new social media to ramp up that pressure.
Michael Albrecht is a TXSES Board Member
A note from Natalie Marquis, TXSES Executive Director: As a 501 (c) (3), TXSES has a very narrow margin in which to lobby directly. The by-laws of our charter state that no more than 20% of all resources, i.e., time, money, etc. can be earmarked for lobbying efforts. Historically, TXSES has steered clear of this issue by doing no lobbying, support efforts, anything. After the dismal legislative session we had in 2009, it bears reviewing our ability to impact a change and consider, both among chapters, and also as a statewide organization, how and if we should tread into these murky waters of lobbyist and political morass.