Senate Bill 715 by Senator Sparks was discussed as a matter of pending business, with the introduction of a new committee substitute by Senator King.
The substitute intends to address concerns about potentially unfair penalties on existing dispatchable generation.
Generators can be exempt from penalties if they prove they can dispatch continuously for 24 hours.
Wind and solar facilities can also exempt themselves if they have enough energy storage or backup power.
The Public Utility Commission (PUC) is authorized to set reliability standards and establish penalties and incentives.
Switchable units, especially those operating in ERCOT and neighboring grids, will not face penalties.
Instructions were given to the PUC to phase in penalties and incentives, making legislative intent explicit.
PUC is directed to consider a variety of penalty and incentive structures for flexibility and benefit to Texas rate payers.
The substitute removes specific demonstration and implementation dates for PUC, allowing more implementation flexibility.
The substitute aims to support and promote the reliability of existing energy fleets.
▶️Senator Menéndez to Senator Sparks, SB715 - Concerns of Raising Consumer Costs
Senator Menéndez expressed worries that SB715 may act as a tax on consumers and destabilize the grid which could raise consumer costs.
Menéndez mentioned past debates on Senate Bill 7 and House Bill 1500 concerning grid reliability and consumer affordability.
Senator Sparks clarified that the bill aims to ensure reliability standards in energy sources, assigned to the Public Utility Commission (PUC), to manage electricity during peak times.
Senator Menéndez argued that Texas already benefits from low rates due to renewable energy and highlighted the absence of dispatchable energy balance.
The committee substitute for SB715 was adopted with 6 ayes and 4 nays; reported to the full senate.
Senator Middleton presented SB383 regarding offshore wind lease sales in the Gulf of Mexico.
The proposal involved a 546,000-acre offshore wind farm near the Texas coast, larger than Houston.
Concerns were raised about potential negative impacts on the Texas coast environment, wildlife, shipping commerce, and Texas ports.
Texas officials criticized the federal government for not publishing an environmental impact statement as required by NEPA.
No bids were received for leases off the coast of Galveston, and the current federal administration has paused offshore wind projects citing safety and security concerns.
SB383 aims to prevent future federal exploitation of offshore wind projects on the Texas Gulf Coast.
The bill proposes prohibiting interconnection of offshore wind facilities if they negatively impact the area, with criteria including impacts on shipping, tourism, fishing, wildlife, and potential risks from natural disasters.
The General Land Office commissioner indicated opposition to approving transmission facilities in state waters.
Public testimony on SB383 was opened, with several individuals called to speak.
Brent Bennett from the Texas Public Policy Foundation testified in support of SB383.
Emphasized the need to consider trade-offs of offshore wind when interconnecting projects.
Highlighted Texas's experience with offshore oil and gas production, stressing the importance of scrutiny for offshore wind.
Offshore wind is in early development stages and facing issues like blade failures and disruption to commercial fishing in the Northeast.
Stressed the need for reasonable expectations to mitigate hazards to the environment, industries, property rights, and communities.
Section 37.056 of the utilities code gives PUC authority over transmission line approvals based on consumer costs and environmental integrity.
Argued that transmission lines for offshore wind should undergo similar scrutiny, focusing also on the facilities they serve.
Noted that investment in electricity infrastructure for one resource reduces availability for others.
Shared that over $130 billion has been invested in wind, solar, and energy storage in Texas.
Suggested reallocating part of these investments towards reliability could have mitigated issues like the February 2021 disasters.
Urged cautious consideration of costs and benefits before investing in offshore wind infrastructure.
▶️Cyrus Reed, Sierra Club - Public Testimony SB383
Cyrus Reed from the Sierra Club presented written testimony opposing SB383.
Previous administration aimed to open offshore wind leasing; coordination took place with Gulf State officials.
Five potential areas for offshore wind identified; no bids received in certain areas cited due to non-feasibility.
Company Hecate expressed interest in building offshore south of a referenced area; the BOEM process has potentially concluded.
Reed opposes the bill for discriminating against a specific resource type by adding subjective criteria.
Emphasized the existing PUC process for transmission line CCNs, which considers various factors.
Acknowledged the need to carefully build offshore wind to avoid negative impacts on wildlife and shipping lanes.
Highlighted the future potential value of offshore wind to the ERCOT grid.
▶️Clint Winegar, Houston Pilots - Public Testimony SB383
Clint Winegar, presiding officer of the Houston Ship Pilots, testified regarding SB383.
SB383 aims to protect Texas coastal communities, the environment, and the economy by prohibiting offshore wind power facilities if they negatively affect shipping lanes.
The Houston Ship Channel is crucial, employing thousands and generating over $400 billion annually for Texas's economy.
Concerns were raised about offshore wind facilities disrupting shipping routes, and the potential risks posed by debris from damaged turbines during hurricanes and natural disasters.
SB383 emphasizes caution to prevent disturbances to vital waterways and protect the coast.
Winegar urged support for passing SB383 to safeguard Texas's resources and future.
▶️Luke Metzger, Environment Texas - Public Testimony SB383
Luke Metzger, executive director of Environment Texas, opposed SB383.
Highlight on the potential of wind energy in the Gulf to produce 66% of Texas' current electricity demand.
Emphasis on wind energy being a clean and zero-emission resource.
Wind energy could help reduce pollution harmful to people and wildlife.
Importance of minimizing impact on migratory birds and marine mammals.
Environment Texas has previously submitted comments to the Bureau of Ocean Energy Management on this matter.
Comments included concerns over shipping lanes and military considerations.
Wind energy areas were chosen to avoid impacting migratory birds and marine mammals.
Expectation that it will take at least a decade to see offshore wind turbines.
Stressing the need for more energy due to huge demand as demonstrated by ERCOT.
Texas A&M Galveston poll showed 71% of Texans support offshore wind.
Concerns over the subjective nature of the bill's language around environmental impact.
▶️Committee to Clint Winegar, SB383 - Shipping Lane Disruptions
Concerns about wind farm areas potentially disrupting shipping lanes.
Importance of ensuring safe navigation for ships accessing the port.
Confirmation that any disruptions should not hinder safe access for ship pilots boarding 8 miles offshore.
Discussion on lack of clear evidence of incidents involving ships crashing into offshore wind turbines globally.
Acknowledgment of potential safety risks but also the need to consider the trade-off between navigation challenges and benefits from offshore wind power.
Emphasis on ensuring the safety of ships entering and exiting the port.
▶️Senator Johnson to Panel, SB383 - Approval Processes
Discussion about multiple existing processes for federal approval and CCNs that the PUC grants, with accompanying public hearings.
Concerns raised about the bill proposing redundant requirements and new 'reason to believe' language that lacks scientific basis.
Existing processes at the federal level include considerations for shipping lanes, fishing areas, and endangered species, with public input opportunities.
Clarification that there is primarily a federal permitting process for offshore wind farms beyond coastal areas, not at the state level.
Mention of the importance of shipping lanes and other ocean traffic types, including recreational and deepwater sailing.
Concerns over additional maritime obstructions due to new requirements, affecting both commercial and recreational ocean use.
▶️Senator Middleton to Panel, SB383 - Concerns Surrounding Offshore Wind Power
Concerns raised by pilots and ports regarding the impact of offshore wind power on the Port Of Freeport, Port Of Houston, Port Of Beaumont, and Port Arthur.
Offshore wind structures not tested for category five storms and potential economic impact from blocked shipping channels.
Safety risks for Texas and national security, along with economic implications for the Houston Ship Channel and other ports.
Community concerns about visibility of 800-foot tall wind turbines off the coast.
Navigation issues for large shipping vessels avoiding turbines, including mechanical failures and wide turning radius.
Danger posed by debris fields and navigation difficulties after storms.
Shallow water complicating safe navigation and damage surveying.
Discussion of under-keel clearance required in Houston Ship Channel.
Request for a map indicating where not to build wind turbines to avoid obstructing important shipping lanes.
Highlighted the importance of updating Texas' 20-year-old energy efficiency rules.
Discussed how modern technologies enable consumers to reduce energy consumption and costs more effectively.
Senate Bill 2994 proposes updates to the energy efficiency framework.
Further defines the roles of transmission and distribution utilities (TDUs) and retail electric providers.
TDUs to offer services for year-round energy savings.
Retail electric providers will provide demand response programs to reduce consumption actively.
Bill sets new energy efficiency goals, requiring a 2.5% annual increase in energy savings for utilities over the next four years.
Emphasized the bill's potential to improve the state's energy efficiency program and benefit consumers by lowering electric bills.
Mark Bell expressed gratitude to Senator Johnson for introducing the bill and offered to answer questions.
▶️Norma Cortez, Texas Alliance of Retired Americans - Public Testimony SB2994
Norma Cortez represents the Texas Alliance of Retired Americans and is a retired state employee.
Discusses challenges of rising energy and grocery costs, impacting ability to maintain household on a fixed income.
Mentions difficult choices between buying medications, groceries, or paying energy bills.
Lives in a rented home with no improvements from the landlord, leading to inefficient energy usage.
Highlights issues with AC unit and increased costs due to family needs like caring for her granddaughter.
Comments on increased energy costs passed onto rate payers by utilities after a winter storm.
Calls for legislative assistance for low and fixed income residents to afford utility bills.
Urges the committee and the senate to pass SB2994 to help pay utility bills.
▶️Adrian Shelley, Public Citizen - Public Testimony SB2994
Adrian Shelley from Public Citizen speaks in support of the bill.
Energy efficiency is financially beneficial, with a cost of 5.6¢ per kilowatt, cheaper than many generation strategies.
A study highlighted a $4.9 billion investment in residential energy efficiency, saving 11,400 megawatts in winter peak and 7,650 megawatts in summer peak.
Investment in 9 million homes could lead to more efficient energy use and reduced utility bills.
Upgrading to a heat pump can save a household $300 to $500 annually.
Homes with weatherization upgrades are safer against extreme weather events.
Recommendations include stronger energy efficiency goals and a larger focus on multifamily, residential, and renter spaces.
▶️Cyrus Reed, Sierra Club - Public Testimony SB2994
Support for SB2994 and its committee substitute.
Energy efficiency is emphasized as the most effective method for meeting energy needs.
Texas ranks 36th in energy efficiency programs.
Support for removing load management from meeting goals and changing demand reduction goals to a premise count.
Approval of a statutory energy savings goal, utilities' increased flexibility, especially for low-income programs, with a minimum 15% low-income requirement within the committee substitute.
Support for ensuring cost-effectiveness over the portfolio without needing every program to be cost-effective.
Clarification on roles of retail electric providers and utilities in demand response.
Concerns about the PUC review period being extended to five years from the original three, suggesting a possible compromise of four years.
Mention of a suggestion on the performance bonus shared with the staff.
