Back in 2015, Sen. Troy Fraser filed SB 931, which would have eliminated the state’s Renewable Portfolio Standard (RPS) and the potential for any future Competitive Renewable Energy Zones (CREZ) - designated regions where transmission lines can be more easily built to serve the renewable energy industry. These zones have been incredibly important to the development of renewable energy in Texas, particularly wind energy. Somewhat ironically, the legislation that enabled CREZ development in 2005 was SB 20, which was sponsored by none other than Troy Fraser.
After passing the Senate on a 21-10 vote, fortunately, SB 931 was stopped in the House with pressure from a coalition of citizens, environmental groups, energy transmission companies, and renewable energy developers and companies.
End of story right? Wrong.
The Public Utility Commission (PUC) has published rules that would declare CREZ over, done with, and dusted. Known in PUC language as “Project 45124”, the proposed rules include a provision that eliminates the potential for the PUC to ever approve another CREZ even though the Legislature never passed SB 931.
In response, the Sierra Club has filed formal comments arguing that the PUC is overstepping its jurisdictional boundaries by removing future CREZ decisions from its rules.
Moreover, it is likely that Texas will need more large-scale transmission capacity in the future because of the large amount of new solar and wind projects being developed in West Texas and the eventual implementation of the federal Clean Power Plan, but it is unlikely that the PUC will approve new CREZ in the immediate future.
Nevertheless, now is not the right time to make major decisions like removing the PUC’s ability to approve new lines. CREZ is an important policy tool that has helped integrate more than 15,000 Megawatts of wind in Texas’s electric grid.
After considering comments and reply comments, the PUC is expected to act on its proposed rulemaking next month.
Photo: Texas Tribune