By Elle Nicholson.
A multitude of energy-related bills have been filed in the 89th Texas Legislative Session, but one particular bill has gained notoriety rarely seen amongst energy bills. Senator Lois Kolkhorst’s Senate Bill 819 has triggered significant backlash from a variety of opponents due to the widespread negative consequences it would have for the state. If passed, the bill would place stringent restrictions on large-scale wind and solar generation, applying to all wind and solar facilities exceeding 10 MW generating capacity.
The latest version of SB 819 stipulates that applications for the interconnection of these facilities to the grid are to be permitted unless the Public Utility Commission of Texas (PUC) decides that the harm “substantially outweighs” the benefit of installing the facility. To be approved, solar arrays must be sited at least 100 feet from property lines and 200 feet from homes. Wind turbines must be sited at least the distance of twice the turbine’s height, including the blades, from property lines.
The required setbacks are certain to curtail new wind and solar development in Texas because they greatly restrict where renewable projects could be built, ignoring the unique characteristics of individual applications. They would also limit the expansion of existing facilities. Furthermore, the proposed circumstances under which the PUC could reject an application are both arbitrary and vague, leaving applicants at the mercy of the Commission and creating potential for discriminatory decision-making. And in addition to negatively impacting the application process, the bill’s strict regulations would dissuade investors from financing projects that could be rejected on a whim. In short, SB 819 would effectively bring the booming renewables industry in Texas to a screeching halt.
Passage of this bill would result in a host of undesirable impacts for Texans. Firstly, it would have worrisome implications for the power grid. ERCOT’s growth breakdown from the fall of 2024 forecasted summer peak load to double by 2030, an increase from last summer’s peak 86 GW to 148 GW. More recently, ERCOT’s monthly update for March 2025 revised the 2030 forecast to a staggering 208 GW. To meet this demand, Texas must construct new generation from a variety of sources rapidly enough that the generators can be operating smoothly by the summer of 2030.
ERCOT is planning to add 63 GW of new utility-scale generating capacity to its portfolio in 2025, with solar comprising 52% of the energy and wind comprising another 12%. From there, renewables are expected to become even more dominant in the state. The U.S. Energy Information Administration (EIA) projects wind and solar generating capacity in Texas to double by 2035, which demonstrates the pivotal role renewables will play in meeting rising energy demand. If SB 819 passes, the legislation will thwart existing plans for projects, forcing developers to choose between starting over at a different site or dropping the project completely. At the same time, many investors will balk at the newly instituted requirements and withdraw funding from the projects. These scenarios will result in the abandonment of a large percentage of planned and future projects, making it very difficult for ERCOT to meet growing demand.
Moreover, SB 819 would be economically detrimental to Texans. Rural landowners – ironically the very people Senator Kolkhorst is claiming the bill would protect – would be immediately affected. An example of this was brought forward by a Panhandle rancher in the bill’s Senate committee hearing. In his testimony, the man explained that his native Armstrong County’s sole source of revenue is wind and solar farms. Energy consultant Doug Lewin found that already built and expected projects in Armstrong County will bring over $100 million of revenue to the county throughout their spans of operation, benefiting both local landowners and schools. This rancher’s testimony highlights the importance of renewables to rural areas of the state where resources are scarce and shows that SB 819 would drain these communities of income. As another rancher and farmer said while giving his testimony, “We don’t need to be punishing the small counties because we don’t have oil and gas. This is the only revenue we’ve got since 1900, and that was the railroad track.”
Rural communities would not be the only Texans to suffer, however, as the economic harm caused by the legislation would extend to the entire state. In total, Texas’ existing and planned renewable energy and storage projects will generate nearly $50 billion in lifetime tax revenue and landowner payments, contributing substantially to the state’s economy. SB 819 would therefore stifle the growth of a crucial sector of the Texas economy, unfairly penalizing citizens by blocking a major source of revenue. Additionally, former Texas Land Commissioner Jerry Patterson warned in his testimony against the bill that restricting renewables would drive up electricity prices. In the past two years, renewables have saved Texans around $11 billion on their electric bills, so by restricting renewable growth, SB 819 would increase energy costs for consumers.
In summary, SB 819 would enforce significant siting setbacks and allow the PUC to arbitrarily discriminate against renewable technology while deterring subsequent investment into renewable projects. Instead of protecting Texans as it purports to do, this bill would endanger the power grid, threaten rural livelihoods, flatten economic growth, and raise utility bills. Thus, to use Senator Kolkhorst’s own language, it is abundantly clear that the harms of the bill’s provisions “substantially outweigh” the benefits.
Pictured: Senate Committee hearing for SB 819 with Senator Lois Kolkhorst (right)