Renewable Energy Subsidies
Legal Foundation
1999 Texas Senate Bill 7
Deregulation of energy market
1975 Texas Public Utility Regulatory Act
Creation of the Public Utility Commission
(PUC)
2005 Texas Senate Bill 20 PUC in consultation with the ERCOT to designate competitive renewable energy zones (CREZ)
1999 PUC oversees competitive retail markets of electricity
1941 Electric Utilities form the Texas Interconnected System
(TIS)
1970 TIS forms Electric Reliability Council of Texas
(ERCOT) to comply with NERC requirements
2002 ERCOT operates the grid
which connects Texas power producers
1967 US Electric Power Reliability Act
1968 Creation of North American Energy Reliability Corporation (NERC)
1992-2015 Energy Policy Act
US Production Tax Credit (PTC)
Between 2018 and 2022, under current law, tax expenditures for the renewable electricity PTC are estimated to
be $25.8 billion.
Renewable electricity production tax credit (PTC) is a per-kilowatt-hour (kWh) tax credit
Interest Groups
Opposed
Conservative Political Action Committees
Empower Texans
Texas Public Policy Foundation
Fiscally Minded Legislators
Traditional Energy Producers
Coal
Natural Gas
Oil
Support
Republican Party
Rural Legislators
Federal Agencies
Department of Energy
Environmental Protection Agency
Alternative Energy Producers
Biomass
Hydro
Wind
Solar
Democratic Party
Environmentally minded Legislators
Environmentalists
Sierra Club
State Rejects Tax Subsidies for Renewable Energy
Provisions
Business Energy Investment Tax Credit
Provides businesses with a 30% investment tax credit (ITC) in lieu of the PTC
Renewable Electric Production Tax Credit
Provides Tax incentives to Renewable Energy Producers
Chapter 313 abatements limit taxes for 10 years for school district maintenance and operations in exchange for property improvements and job creation
Chapter 312 abatements exempt all of part of the increase in property value from taxation for as long as a decade
Competitive Renewable Energy Zone transmission project
(CREZ)
1996-2005 3,600 miles of high-voltage transmission lines installed to better connect energy grids
Goals and Impacts
State funds transmissions to bring power to customers
Environmental Impact
Raise the surface temperatures of the earth
Structures change the Texas Landscape
Tall structures create "wind shadows"
Lower Carbon Dioxide emissions
Growth in renewable industries
Corporations pay taxes to local economies in the form of property taxes
Income for land owners in the form of leases or royalties
Jobs
Construction of transmission line
Support staff of the energy generators
Companies involved in installation of generators
Increases in renewable energy
Some renewable energy production is unreliable
Increase in energy choices
Market competition
Threatens existing energy producers
Reduce the incentive to invest in new power plants
Creates declining prices for energy
Loss of Jobs in aging power sources
Lower energy bills for customers
