Texas Railroad Commission
The Texas Railroad Commission (RRC) will be under Sunset review. Lawmakers may propose changing the RRC’s name and have it be governed by a five-member appointed board rather than by three elected commissioners. Another proposal would modify the RRC’s method of finance to rely on industry paid fees, instead of general revenue. Lawmakers may seek to expand RRC enforcement of damage prevention to include 80,000 miles of interstate pipelines, rather than just the 160,000 miles of intrastate pipelines for which it has had enforcement authority since 2005. Other proposals may seek to strengthen RRC enforcement, including giving the RRC express authority to deny permits. Lawmakers may consider transferring responsibilities for regulating gas utilities from the RRC to the Public Utility Commission.
Spotlight on bills filed:
SB 300 – Wentworth, Jeff – Relating to changing the name of the Railroad Commission of Texas to the Texas Energy Commission.
HB 173 – Veasey, Marc – Identical to SB 300.
Energy
The 82nd Legislature may consider how to expand power generation capacity across the state. Proposals may address the proportions required for oil, natural gas, coal, nuclear energy, and renewable sources, such as wind, solar, and geothermal. Some lawmakers may advocate a State Energy Plan modeled after the State Water Plan. Some may propose an increase in energy efficiency goals, high-performance building standards, and conservation measures to meet energy demand and mitigate effects of climate change.
Lawmakers may consider expanding the mandates in the renewable portfolio standard (RPS). The RPS seeks to ensure use of renewable energy statewide by requiring a certain number of megawatts of renewable capacity to be incorporated into the electric grid. Discussions may include whether the 500-megawatt RPS target for renewable resources other than wind should be increased and mandated, and if so, whether it should include a carve-out for a particular resource, such as solar energy, and whether it should include energy efficiency goals. Proposals for an energy storage portfolio standard similar to the RPS also may emerge.
Financing alternatives may be proposed for energy efficiency measures, such as expressly authorizing retail electric providers to allow energy efficiency loans to be paid back through a customer’s utility bill. A coordinating commission may also be proposed to report on energy efficiency efforts so they can be included in the Electric Reliability Council of Texas’ long-term planning of the electric grid.
The Public Utility Commission (PUC), Electric Reliability Council of Texas (ERCOT), and the Office of Public Utility Counsel will be under Sunset review. Lawmakers may seek to give the PUC restitution authority, stronger registration and renewal authority over market participants, and authority to impose more administrative penalties. Lawmakers may propose requiring the PUC to review and approve ERCOT’s budget and use of debt financing annually. Lawmakers may consider reducing industry representation on the ERCOT board to achieve impartiality.
Spotlight on bills filed:
HB 51 – Lucio III, Eddie – Relating to energy efficiency standards for certain buildings and to high-performance design, construction, and renovation standards for certain government buildings and facilities.
Air quality
The Texas Commission on Environmental Quality (TCEQ) is under Sunset review. Some lawmakers may push to reform permitting, enforcement, and public participation at the TCEQ. Others may propose streamlining the permitting process to ensure that business and industry can comply with environmental laws and to minimize expensive procedural delays.
Lawmakers may propose that a portion of funds generated by the Texas Emissions Reduction Plan be used to pay for eight additional air quality monitors in the Barnett Shale area, where new natural gas exploration and production has occurred. Other proposals may include moving the entire uranium mining permitting process, as well as protection of water quality during oil and gas drilling, from the RRC to the TCEQ.
Spotlight on bills filed:
SB 104 – Davis, Wendy – Relating to restrictions on the release into the air of natural gas and associated vapors from a gas well.
SB 102 – Davis, Wendy – Relating to allocation of certain money in the Texas emissions reduction plan fund to air quality monitoring activities.
Water
The Texas Water Development Board will be under Sunset review. Lawmakers may consider additional bond authority for TWDB financial assistance programs to political subdivisions to meet water and wastewater infrastructure needs. They also may consider a proposed constitutional amendment to grant the TWDB “evergreen” authority to re-issue up to $6 billion in previously authorized Development Fund general obligation bonds at its discretion on a continuing basis.
Changes to the process that determines the groundwater available to meet future demands, known as desired future conditions (DFC), may be considered. Proposals may include more formally including DFC development in state water planning. Lawmakers may consider requiring TWDB to evaluate the state’s progress in meeting its water needs and requiring TWDB and TCEQ, in consultation with the Water Conservation Advisory Council, to develop gallons per capita daily reporting requirements to help gauge the progress of municipal water conservation methods as part of the State Water Plan.
Lawmakers may consider transferring responsibilities for regulating water and wastewater utilities from the TCEQ to the PUC.
Incentives for promoting technologies that more efficiently use both water and energy, without one draining the other, also may be considered.
