Update: Top Legislative Energy Bills

As the 2011 Legislative Session is well underway, there are three bills that may be of interest to you that are gaining traction at the Capitol. Why is this important to you? If passed, these bills have far reaching impacts to our industry.

1)  Senate Bill 15, introduced by Sen. Troy Fraser, would create a Texas Energy Policy Council to recommend a new energy strategy for the state.

• The Council would consist of 11 members and be made up of representatives from the House, Senate, PUC, RRC, TCEQ, and ERCOT, as well as representatives from the academic community, and would be tasked with long-term planning and management of Texas’ energy resources.
• Before the hearing, the introduced version of the bill underwent revision. The most significant revision was that in the committee substitute, language was removed that directed the PUC to identify the heaviest air polluting power plants and recommend closure of at least 4,000 MW of capacity.
  • Click here to read the full text of the bill

2)  Senate Bill 1590, introduced by Sen. Steve Ogden, would cap the state’s annual economic development investment (or liability, depending on your perspective).

• The bill prohibits school districts from entering Chapter 313 agreements unless the comptroller of public accounts approves the agreement. Chapter 313 agreements currently enable school districts to grant tax breaks to investments in their local areas, such as wind farms and refineries.
• Testimony on this bill was heard in the Senate Finance Committee last week and the business community came out in full force and testified that hindering economic development in Texas will not be good for the state, long-term.
  • Click here to read the full text of the bill

3)  House Bill 3328, introduced by Rep. Jim Keffer, would require the disclosure of fluids used in hydraulic fracturing.

• In general, there doesn’t seem to be strong opposition to this bill from industry or environmentlists. However, some industry representatives are asking that trade secrets need not be disclosed and that the driller be held harmless if it receives incorrect information from the fluid manufacturer.
• Some environmental groups argue that disclosure of the ingredients used in fracking fluids will not solve the inherent environmental problems.
  • Click here to read the full text of the bill

Do you think these bills are good for Texas?  Please post your comments below!