This is a pre-COVID-19 photo of the Texas Capitol's interior.
Well, it’s time to realize that the 87th Texas Legislature will not last forever. There are now less than 60 days left until “Sine Die,” which is scheduled for May 31. There are also only about 30 days (May 10) for the House to get a bill out of committee, which means offices and bills are running against real deadlines for having a hearing and getting a vote reported out of committee, and then over to the Calendars Committee and placement on the House floor. In fact, for major bills, May 13 is the last day to pass a bill on the House floor on second reading so... Probability says that the vast majority of the 4,500 House bills will never see a floor vote, including some of our priorities.
The Senate is always a bit “looser” in its rules (after all they suspend the rules all the time) but even the Senate has some basic rules it cannot bend, and deadlines are approaching. I bet you most of the 2,500 senate bills don’t make it to the Senate floor either.
So what’s happening? Let’s start with the budget.
The budget bill has arrived, with the Senate unanimously passing a massive $250.7 billion in state, federal, and other funds, including $117.9 billion in so-called “General Revenues” that come mainly from state sales tax, and slightly increases state revenue spending by 2.6 percent - well, within Texas’s “pay-as-you-go” constitutional spending limits. In fact, according to Senator Nelson, the bill’s main author, the state has another $420 million or so it could spend if it wanted to.
Sierra Club priorities did not get funded as much as we had hoped. While the Texas Commission on Environmental Quality (TCEQ) got an extra $3.6 million for air monitoring, it fell short of the agency’s (and the Sierra Club’s) request… slightly. Similarly, while we pressed for more money for well plugging at the Railroad Commission of Texas (RRC), the Senate budget actually cuts money for the plugging of abandoned oil and gas wells, though there is some expectation that the House will be considerably more generous. The Senate funded the Texas Parks and Wildlife Department substantially, including some money for park acquisition.
The total funding for the Texas Emissions Reduction Plan (TERP) is also unclear, in part due to negotiations between various parties about how much of the fees that go into the account will be spent on clean air programs, and how much on “congestion mitigation” at the Texas Department of Transportation. There are various bills being discussed that could change the methods of finance of TERP, and also at issue is whether all $250 million per year will be spent on clean air programs, or some smaller amount.
That being said, it was somewhat of a surprise when Cyrus Reed’s name came up (our Conservation Director) twice on the Senate floor during the budget discussion. First whenSenator Nichols in his presentation on TCEQ’s budget said he wanted to “thank Cyrus Reed” and that all TERP monies would be going to the TERP programs, to which Senator Menendez said “Cyrus Reed must be doing flips.”
Also not included in the Senate version of the budget is any money from the $1.9 trillion aid package approved by Congress in early March. The state is expected to receive just under $17 billion in direct aid, with another $10 billion going directly to local municipalities and a $12.2 billion chunk of funds for education spending. According to Nelson, because the rules around that money are still being developed, the plan is to pass a separate bill on federal funding that might include a process for how the money could be spent, including how the Legislature could weigh in on that decision even if there is not a session going on.
So the budget is done, right? Nope, it’s half done. The Senate will send over SB 1 to the House and the House will… largely ignore it, and pass their own budget. In fact, the Committee on Appropriations has already written their budget and are just waiting to send it to the House floor. That budget we believe will be slightly larger and will include more money for TERP, air monitoring, well plugging, and money for park acquisition.
Post-Uri bills
Both chambers have passed multiple bills, but they are not the same. While the House passed HB 10, 11, 12, 13, 16 and 17(the last one opposed by the Sierra Club, the City of Austin, City of Dallas and many other environmental groups), the Senate passed SB 3 and SB 2154. The House is being clear that it prefers to deal with individual issues related to the storm rather than one large bill, and so the path is murky. A bill on the gas supply -- HB 14 -- just got out of committee, but still uses kid gloves on requiring the oil and gas industry to actually do anything to prevent future problems in the gas supply.
SB 3 is generally supported by the Sierra Club, but it contains a poison pill -- a section that would make renewable energy projects pay for “ancillary services and power reserves,” a significant departure from our energy market that would directly impact the costs of renewable energy. In addition, that same provision is being considered in separate legislation -- SB 1782 by Senator Kelly Hancock, and HB 4466 by Rep. Phil King. The Sierra Club has been joining with our solar and wind friends in opposing the bills.
Separately, bills telling cities it can’t limit, restrict, discriminate or ban gas appliances or hook-ups continue to move, including HB 17 which passed the House last week, and HB 1501 by Rep. Jay Dean of Longview, which has a hearing this week. One bright spot was we worked with the bill author of HB 17, Rep. Joe Deshotel, and Rep. Chris Turner, to put a conversation on the record that the intent of the bill was not to impact programs designed to promote energy efficiency, energy storage, and renewable energy, but only to prevent cities from banning gas use. We will continue to oppose this legislation.
Also being discussed in both the House and Senate are bills related to “securitizing” costs related to Uri through ratepayer backed bonds and then paying them back through ratepayers. While Sierra Club has not opposed these bills, we are insisting that the bills include good consumer protections, the potential for consumers to oppose the proposals through the Public Utility Commission or through Boards of Directors (such as at electric cooperatives) and include funding for energy efficiency and demand response so that consumers can more directly benefit.
Of greater concern to consumers is HB 4378 by Chairman Chris Paddie, which would create a so-called “capacity” market in Texas in which power generators get paid just for existing - likely extending the life of dirty coal and gas plants -- and an even sillier proposal by Warren Buffett to create a Texas Energy Power Reserve consisting of 10,000 MW of new gas plants with a guaranteed return on investment for… You guessed it: Warren Buffett.
In related news, it appears that the Public Utility Commission will finally have a new commissioner with Governor Greg Abbott nominating Will McAdams, a longtime political operative in the Lone Star state, to the commission. McAdams has worked for three state senators, worked for Speaker Dennis Bonnen last legislative session, and was working for the Association of General Contractors this legislative session. He will likely be confirmed by the state Senate in the coming weeks.
Some movement on good water bills
Two of our main priority bills this session involving the Texas Parks and Wildlife Department and water have received some positive response. First, HB 2225 is a bill by Rep. Tracy King, the Chairman of the House Committee on Natural Resources. It would give TPWD an expanded role in promoting the state water trust - which can hold surface water rights - to ensure adequate water flow for Texas’ rivers and streams. The bill had a hearing and has been approved unanimously by the committee and should get to the House floor soon. Second, HB 2716, also by Rep. Tracy King, would allow the TPWD to be involved in participating in permit decisions on wastewater discharge permits and water rights to better protect Texas waterways. The bill had a great hearing with only some opposition from industry, which apparently doesn’t want the state defending water quality.
Another good bill -- HB 2990 by Rep. Morales Shaw -- also had an excellent hearing in King’s committee, and would require all proposed water rights permits, wastewater discharge permits, and waste permits to be put online by the Texas Commission on Environmental Quality to promote better transparency and good government and an ability for members of the public to be able to learn about proposals in their community.
Wait what about other Sierra Club priority bills?
Well one of the bills we are supporting -- HB 2221 by Canales - known as the Electric Transportation Act -- had a good, positive hearing in State Affairs last week. The bill would set in motion a series of changes in law designed to get Texas ready for the increasing electrification of our transportation sector. We are working closely with TxETRA -- the Texas Electric Transportation Resources Alliance -- of which we are a member on getting the bill onto the House Floor.
On other issues we are trying (but need your support). While we had a good hearing on a well bonding bill (HB 2868) bills related to flaring and enforcement of the rampant air pollution of the oil and gas industry have yet to receive hearings in the House Committee on Energy Resources. Another issue we have prioritized -- safety and environmental standards for above ground storage tanks -- is finally getting some attention with Senator Carol Alvarado’s SB 900 getting a hearing this week. While we think SB 900 is a necessary first step, we are pushing her office to expand the bill to cover more tanks, and include specific enforcement and compliance standards so that disasters like ITC, Magellan and TPC don’t happen again.
In addition, while only one of the bills we are supporting on energy efficiency -- HB 1533 by Rep. Ron Reynolds -- has received a hearing. We are pushing hard to get hearings and move other bills on energy efficiency, including SB 243 and HB 4556, that would create a one percent energy savings goal for the state. With more than 200 deaths from Uri, we need to prioritize weatherizing homes and businesses, not just power plants. Sign our petition here if you haven’t already and pass it around!