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Clean Coal Among the Energy Sector Winners in the Lege
Texas Energy Report - June 2, 2009

June 2, 2009
CLEAN COAL AMONG THE ENERGY SECTOR WINNERS IN THE LEGE
By Texas Energy Report
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. KelSeliger, 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.