DALLAS PAPER: TEXAS POLS BLOCK ENERGY BILL GOOD FOR TEXAS

The national Renewable Electricity Standard (RES) in the energy bill, passed by the House but rejected by the Senate in this past summer’s floor battles, calls for US utilities to obtain 15% of their electricity from renewable sources by 2020. Though politicians like these Texas senators and congressmen who represent Old Energy (the fossil fuels and nuclear industries) are resisting it, New Energy’s inevitability is becoming apparent.

Big Utilities also oppose the RES provision on the grounds that some states don’t have the resources to get to 15% renewables. This article quotes Senator Jeff Bingaman (D-NM) verifying that there is indeed a compromise provision threatening to win the day for the RES that would allow utilities to meet 4% of the requirement with energy efficiency measures.

Here’s the bigger point: For any state with wind resources, no recalcitrant Old Energy lobby, and utilities with vision, all the economic benefits of wind energy development are there for the taking.

Interesting politics: (1) Texas state legislators have already expressed the will of the state’s citizens by passing a state RES in 1999 and then upgrading it in 2005. (2) Texas Congressman Neugebauer (discussed in this article) represents a district with the state’s biggest wind farm. Yet he opposes the RES. What industry provides his biggest campaign contributions? Oil and gas. (OpenSecrets.org)

Bill benefiting Texas wind farms generates opposition
Dave Michaels, November 8, 2007 (Dallas Morning News)

WHO
Senators John Cornyn and Kay Bailey Hutchison (R-Texas), Representative Joe Barton (R-Texas)

Texas' potential wind energy resources, especially in the panhandle, central and west, are huge. The Texas Railroad Commission leveraged every political incentive for oil. Shouldn't they do the same for wind?

WHAT
Among the most open opponents to behind-the-scenes compromises being worked out in Congress to get an energy bill in front of the president before Christmas, the Texas senators’ and congressman’s opposition to the bill is in defense of fossil fuel interests in their state. But in fighting the RES provision, Hutchison and Cornyn are thwarting development of Texas’ huge New Energy investment in wind power.

WHEN
- Texas became the biggest wind energy provider in the US in 2006 and remains so this year.
- In 2007, huge money interests including those representing Microsoft founder Bill Gates, investment guru Warren Buffet and oil entrepreneur T. Boone Pickens invested in vital new transmission systems as well as wind power developments.
- Demand for New Energy is expected to outstrip supply by 2010.

WHERE
- The big Texas wind energy developments are in the panhandle and the west-central part of the state.
- Some of the huge “power” ranches, like the Kenedy Ranch in south Texas, are making plans for big turbine installations.
- Nolan County alone would rank 7th among NATIONS for wind production.

WHY
- Texas has 2000+ wind farms.
- Texas would benefit enormously from an RES because the standard would put Texas’ wind-generated electricity in high demand.
- Because demand is expected to be greater than supply, it is likely a national RES guaranteeing the continued demand would also bring more investment to Texas.
- Hutchison, with gubernatorial ambitions, is adamantly defending the state’s oil and gas producers’ tax incentives against being shifted to New Energy incentives.
- Barton wants more incentives for nuclear and “clean” coal development.
- Texas RES requires the state’s utilities to get 5000 megawatts of electricity (6-8%) by 2015.
- The Electric Reliability Council of Texas (ERCOT) admits the state desperately needs new transmission to get to 15% renewable sources. The RES would spur that build-out. It would also spur solar energy development in the state.

Opponents of the RES claim it will raise electricity rates. This US Energy Information Agency study found exactly the opposite. (click to enlarge)

QUOTES
- Andrew Kolchins, director, Evolution Markets: “This is the increased revenue stream these wind developers need to build more wind…"
- Hutchison: "I can't let a bill go without assurances that those tax increases that target the production of gasoline will be eliminated…"
- Tom "Smitty" Smith, director/Austin office, Public Citizen: "Hutchison and Cornyn's failure to advocate for this is inexplicable and is harming the potential economic boom that could come from additional renewable energy from across the state…"
- Barton: "If you're going to do a renewable portfolio and mandate it, make it something that is more ecumenical, that does not pick winners and losers…"
- Michael Frohlich, spokesman for Texas Rep. Neugebauer: "He is a big advocate of wind-powered energy…But at the same time, the future of these renewables is so uncertain, he's not going to support any kind of mandate."
- Bill Bojorquez, vp, ERCOT: "Wind and solar kind of complement each other…"