The energy policy of the state of Texas possesses the Texas Renewable Portfolio Standard (RPS). The RPS requires companies that sell electricity to retail customers to support renewable energy generation. This is accomplished in two steps. First, the state establishes that a set amount of electricity be generated through renewable resources - the portfolio standard. Then, the standard requires that each provider obtain new renewable energy capacity based on the their market share of energy sales times the renewable capacity goal. For example, a competitive retailer with 10 percent of the Texas retail electricity sales in 2009 would be required to obtain 200 megawatts of renewable energy capacity. If a company does not posses renewable energy sources, it can purchase credits from other companies.
This RPS program was started in in 1999 and mandated that Texas power generators collectively generate 2,000 megawatts (MW) of additional renewable energy by 2009. This goal was met by 2005 and Governor Perry supported and signed legislation to set new goals of 5,880 MW by 2015 and 10,000 MW in 2025. Under this program and others, Texas has become the largest wind power generating state in the nation.
To assist in distributing this power to the state, Governor Perry organized a private-public partnership with electricitry companies. Those companies committed $10 billion to wind power generation and the state's Public Utilities Commission agreed to assist in the construction of transmission lines from the windy western planes to the cities.
Early in his career, Rick Perry was state chairman for Senator Al Gore's 1988 presidential campaign. At the time, Senator Gore was already an outspoken environmentalist and promoting many of the green policies seen today. Governor Perry has credited that experience with prompting his change the next year to the Republican party. By 2007, Governor Perry was mocking VP Gore's policies and opinions on global warming an carbon dioxide.
Governor Perry is not only critical of Vice President Gore's views, but has stated that there is no evidence of man-made global warming. He has been a strong and vocal opponent of cap-and-trade policies as unnecessary and harmful to the economy. He has been a vocal opponent of the regulation of greenhouse gases through the EPA and their backing of findings by the IPCC that greenhouse gases represent a danger to Texas.
Despite opposing man-made global warming, Governor Perry has not only greatly expanded the Renewable Portfolio Standard, he pledged $10 billion in funds to wind energy in 2006. He has also pushed for clean air buses and other activities to reduce pollution.
Governor Perry has been supportive of coal factories and signed an executive order in 2005 to expedite the permit process for new coal electricity facilities.
Although he supports all alternative forms of energy, Governor Perry has spoken out against ethanol mandates. He partially blames the mandate for increased food prices. He applied for a 50% waiver from the mandate, which was later denied.
Support for Senator Gore's Presidency
Al Gore was elected to the House of Representatives in 1978 where he served three terms until winning the Senate Seat from Tennessee in 1984. In 1986, Congressman Gore held the first held Congressional hearings on climate change. Senator Gore’s reputation on environment issues was so solidified by 1988 that the first President Bush (Sr) took to the habit of calling him "ozone man".
In that same year (1988), Senator Gore sought but not obtain the Democratic nomination for President of the United States. During that time, Rick Perry served as state chairman of Senator Gore’s presidential campaign. At the time, Rick Perry was a Democratic State Senator.
Texas Renewable Portfolio Standard
The Texas Renewable Portfolio Standard (RPS) requires companies that sell electricity to retail customers to support renewable energy generation. This is accomplished in two steps. First, the state establishes that a set amount of electricity be generated through renewable resources - the portfolio standard. Then, the standard requires that each provider obtain new renewable energy capacity based on the their market share of energy sales times the renewable capacity goal. For example, a competitive retailer with 10 percent of the Texas retail electricity sales in 2009 would be required to obtain 200 megawatts of renewable energy capacity.
This program was started in in 1999 through Texas States Senate Bill 7. It stated that qualifying renewable energy sources include solar, wind, geothermal, hydroelectric, tidal energy, and biomass. At the time, the portfolio mandated that Texas power generators collectively generate 2,000 megawatts (MW) of additional renewable energy by 2009.
SB20
In 2005, Texas passed SB20. This legislation increased the state's total renewable-energy mandate to 5,880 MW by 2015 and a target of 10,000 MW in 2025. This was due in part to Texas meeting it's 2009 goal in 2005. Senate Bill 20 requires that about 5 percent of the state’s energy come from renewable sources by 2015 and sets a goal of 10 percent by 2025. The bill also requires that 500 megawatts be produced by renewable sources other than wind, such as biomass and solar power. Governor Perry signed in the increased mandate into law, and on August 1, 2005 released a statement praising the legislation.
The more we can rely on wind, water and sunlight to power our homes and businesses, the less dependent we will be on foreign oil and the better our economy will be in the long run because of greater stability. And by taking steps now to reduce pollution we can ensure that the Texas of tomorrow is one where our children are free to live safer, healthier and happier lives.
Renewable Energy Credits
The RPS provides for a Renewable Energy Credit (REC) trading program. To meet the RPS targets, utility companies may buy or trade RECs. One REC represents one megawatt-hour of qualified renewable energy that is generated and metered in Texas.
The renewable energy capacity required by the electricity sellers can be provided directly or through the REC market. If a utility earns extra credits, it can sell the credits to utilities who need credits to meet the RPS requirements. This enables electricity providers that do not own or purchase enough renewable energy capacity to purchase credits instead of capacity.
RECs are issued quarterly, based on meter readings. The REC market is administered by ERCOT, the Texas electric grid operator. Penalties for non-compliance with the RPS requirements are enforced by the PUCT. The PUCT has the authority to cap the price of RECs and may suspend the standard if necessary to protect the reliability and operation of the grid.
Clean Air and Fuel for Buses
In June of 2002, Governor Perry directed the department of Transportation for Texas to take appropriate measures to move a portion of the bus fleet to cleaner burning diesel fuels, and to move a portion of the fleet to zero emission vehicles.
Clean Air Press Conference * Note: Gov. Perry frequently departs from prepared remarks. Tuesday, June 04, 2002 • Austin, Texas • Speech
Six months ago, I asked my staff, the staff at the Texas Natural Resource Conservation Commission, and the staff at Texas Department of Transportation to develop an action plan to further address air quality in Southeast Texas and the other urban areas of our state.
In 1999, I worked to help pass Senate Bill 7, which established incentives for clean energy and mandated reductions in sulfur dioxide and nitrogen oxide from power plants, including grandfathered power plants.
Last session the Legislature passed and I signed into law two bills designed to strengthen environmental protection in Texas and to make our air cleaner.
House Bill 2912 eliminated the loophole that has allowed grandfathered industries to avoid meeting the more stringent air quality standards of the Texas Clean Air Act for three decades.
And Senate Bill 5 created the Texas Emissions Reduction Plan to provide incentives for purchases of low-emission and alternative-fuel vehicles, as well as retrofitting diesel engines and buying efficient household equipment. This legislation was designed to lower emissions across the state. Unfortunately, a federal court threw out key provisions that funded this important initiative.
Since that time, I have been working with key state officials to develop new measures to help clean up the air.
We are here today to announce a strong and effective program to begin improving air quality in the Houston Area.
It is crucial that individual citizens, community leaders, and corporate executives understand not only the serious environmental challenges we face, but also the cost of failure.
Failing to meet clean air standards will not only undermine public health, it could halt all our highway construction in the Houston area.
The current State Implementation Plan for clean air identifies general categories of actions which we intend to take over the next six years to the meet federal standards established by the Environmental Protection Agency. But I believe there needs to be more effort to convert our good intentions into action.
That is why I have ordered the following actions:
Effective immediately, the Texas Department of Transportation will begin burning emulsified diesel fuel in 75% of its fleet located in the Houston District.
By January 2003, TxDOT will develop rules stipulating that all contractors working on Southeast Texas projects use emulsified diesel in all off road equipment.
Emulsified diesel fuel is cooler burning, and results in lower emissions.
We expect these actions will reduce nitrogen oxide emissions among TxDOT vehicles by at least 19 percent.
These actions will also remove at least 5.8 tons daily of nitrogen oxide from the air we breathe in the Houston area. And we are going to confirm these results with sound science to provide proof that we are reducing air pollution.
Today I am also asking the leaders of cities, counties, school districts, and transit authorities to consider adopting the same air quality improvement actions as TxDOT.
If everyone cooperates, we could remove at least an additional 12 tons of nitrogen oxide from the air in Southeast Texas.
Such efforts not only will mean healthier Texans, but it will also give the Texas Natural Resource Conservation Commission more flexibility to address less effective means of meeting air quality standards.
Emulsified diesel will cost more initially. But the cost of these actions is small compared to the cost of increased health care, delayed transportation improvements, and restricted economic growth.
This is just the first step. I have also asked TxDOT to develop a plan to:
Convert as much of its fleet as is practical to zero emissions systems – such as gas-electric hybrid vehicles, fuel cells and compressed natural gas – and purchase for off road application the lowest exhaust emission engines available.
I have asked TXDOT to develop a financial assistance package for local governments to help with the unexpected higher cost of using emulsified diesel, converting to more emissions efficient engines, and purchasing new emissions efficient equipment. TxDOT will use federal Congestion Mitigation Air Quality funds to underwrite the cost of this financial assistance package.
I have asked the leaders of cities, counties, school districts, and transit authorities to examine their plan for air quality mitigation projects currently in place but behind schedule, and to redirect any available funds toward the purchase of emulsified diesel fuel and emissions efficient equipment. (can we merge this in the earlier statement about asking them to play ball?)
Finally, I have asked TxDOT to take the lead in forming an air quality working group to include local government leaders, other state agency executives, and federal agency executives to meet monthly to identify and implement additional actions to address air quality.
With these steps, I am confident that Texas will continue to improve the health and quality of life of all Texans, protect our highway transportation projects and ensure continued economic vitality.
Governor Directs TxDOT to Start Using Cleaner Diesel Fuel in Houston District Fleet Tuesday, June 04, 2002 • Press Release
HOUSTON – Gov. Rick Perry today directed the Texas Department of Transportation (TxDOT) to immediately begin using cleaner diesel fuel in 75 percent of its Houston district fleet to help improve air quality in Southeast Texas.
The directive is one of a series of moves outlined by the governor to strengthen the state’s plan to bring the Houston region into compliance with federal ozone standards by 2007.
“With these steps, I am confident that Texas will continue to improve the health and quality of life of all Texans, protect our highway transportation projects and ensure continued economic vitality,” Perry said.
The governor also directed TxDOT to establish rules by January stipulating all contractors working on Southeast Texas projects to use cleaner burning emulsified diesel fuel in off-road equipment.
Perry said switching to emulsified diesel fuel would remove about 5.8 tons of nitrogen oxide, a major component of air pollution, from the air each day. That would amount to a reduction in emissions of at least 19 percent.
“Emulsified diesel will cost more initially,” Perry said. “But the cost of these actions is small compared to the cost of increased health care, delayed transportation improvements and restricted economic growth.”
Perry said the actions were developed after he asked his staff, the Texas Natural Resource Conservation Commission and the Texas Department of Transportation to examine ways to improve air quality in Southeast Texas and other urban areas in the state. Other actions announced by Perry include:
Requiring TxDOT to develop a plan to convert as much of its fleet as is practical to zero emissions systems, such as gas-electric hybrid vehicles and compressed natural gas, and purchase off-road equipment with the lowest emission engines available.
Urging cities, counties, school districts and transit authorities to adopt the new guidelines set out for TxDOT. The governor also directed TxDOT to collect data about the cost, emissions and efficiency of using emulsified diesel fuel versus fuels used by the rest of the TxDOT fleet and provide that information to local officials in urban areas.
Directing TxDOT to develop a financial assistance package to help local governments start using cleaner diesel fuels, convert to more efficient engines and purchase emissions efficient equipment. TxDOT will use federal Congestion Mitigation Air Quality funds to pay for the program.
“If everyone cooperates, we could remove at least an additional 12 tons of nitrogen oxide daily from the air in Southeast Texas,” Perry said. “Such efforts not only will mean healthier Texans but will also give the Texas Natural Resource Conservation Commission more flexibility to address less effective means of meeting air quality standards.”
The governor also directed TxDOT to form an air quality work group that includes local, state and federal officials to identify and implement additional actions to improve air quality.
“I need citizens, community leaders and corporate executives to understand both the serious challenge we face and the cost of failure,” Perry said. “Failing to meet clean air standards will not only undermine public health, it could halt all our highway construction in the Houston area.”
Air pollution poses a threat to people with respiratory problems and can worsen heart disease, lung cancer and asthma. Texas also could face the loss of hundreds of millions of dollars in federal funding for transportation projects if the state fails to meet the 2007 deadline for achieving compliance with federal ozone standards.
Executive Order - Coal Plants
On October 27, 2005 Governor Perry signed an executive order which contained a provision to fast track permits for coal power plants.
RP49 – Relating to an electric customer education choice campaign, electric conservation by state agencies, and diversity of energy supply.
Thursday, October 27, 2005 • Executive Order
BY THE GOVERNOR OF THE STATE OF TEXAS Executive Department Austin, Texas October 27, 2005 WHEREAS, the State of Texas is committed to a strong and robust retail electric market where customers have their choice of providers offering the best product at the most competitive price; and WHEREAS, it is critically important that electric customers are aware that they may enjoy the benefits of electric competition without experiencing a disruption in their electric service; and WHEREAS, The State of Texas is committed to containing the cost expended by state agencies for energy; and WHEREAS, production of electricity is highly dependent on the use of natural gas; and WHEREAS, because the cost of natural gas has increased by more than 300 percent in the past five years, the cost of electricity has also increased dramatically; and WHEREAS, due to population increases, the energy demand in the State of Texas is expected to increase 31 percent by the year 2025; and
WHEREAS, the State of Texas is blessed with vast and untapped sources of energy that can be used to diversify and stabilize the cost of energy to the people of Texas;
NOW, THEREFORE, I, Rick Perry, Governor of the State of Texas, by virtue of the power and authority vested in me by the constitution and laws of the State of Texas, do hereby order the following:
Electric Customer Education Campaign.The Public Utility Commission ("PUC") shall administer a public education campaign to make customers aware of retail electric choice.
The PUC shall have the sole discretion to determine the focus of the campaign, which shall emphasize that service will remain reliable if customers switch to a competitive retail electric provider.
The Electric Customer Education Choice Campaign ("Campaign") shall begin no earlier than January 1, 2006.
The Campaign shall be funded by private dollars. The PUC shall ensure that those funds are used for the benefit of the public.
State Agency Energy Savings Program.Each state agency shall develop a plan for conserving energy and shall set a percentage goal for reducing its usage of electricity, gasoline, and natural gas.
Each state agency shall submit the energy conservation plan to the Office of the Governor and the Legislative Budget Board no later than December 1, 2005.
Each state agency shall report back to the Office of the Governor and the Legislative Budget Board with goals achieved, and ideas for additional savings on a quarterly basis. The first quarterly report shall be due no later than April 1, 2006.
Each state agency shall post its report in a conspicuous place on its internet site for public inspection.
Diversity of Energy Supply.In order to encourage diversity of energy supply, the Texas Commission on Environmental Quality ("Commission") shall apply the full resources of the agency to prioritize and expedite the processing of environmental permit applications that are protective of the public health and environment and propose to use Texas’ natural resources to generate electrical power.
The Commission shall coordinate with national, state, and local agencies as needed at its discretion in order to avoid any delays in the permit issuance.
The Texas State Office of Administrative Hearings ("SOAH"), shall hold a preliminary hearing no later than one week after the required 30 day public notice for any electric generating facility that has been issued a draft permit by the Commission.
SOAH shall designate parties as provided by law and shall set a schedule that returns a proposal for decision to the Commission in no more than six consecutive months from the date of the referral. The Commission shall require immediate notice to be provided within 48 hours of referral, including direct referral to SOAH.
The Commission shall give priority to a proposal for decision issued by SOAH as described above and shall consider this proposal for decision at its earliest agenda meeting, as allowed by law.
The Commission and SOAH are requested to explain any delays that may result in a failure to comply with this order on a monthly basis to the Governor, the Lieutenant Governor, and the Speaker of the House of Representatives.
This executive order supersedes all previous orders in conflict or inconsistent with its terms and shall remain in effect and in full force until modified, amended, rescinded, or superseded by me or by a succeeding Governor. Given under my hand this the 27th day of October, 2005. RICK PERRY Governor ATTESTED BY: ROGER WILLIAMS Secretary of State
Historic Investment in Wind Power
In September and October of 2006, Governor Perry issued two press statements noting a historic investment of $10 billion in wind power projects to assist in mechanisms to transport the energy from the western production areas to the cities. He notes that wind power is a zero-emission power source, and that for every 1000 megawatts generated by new wind sources, we will reduce carbon dioxide emissions by six million tons over the next 20 years.
Gov. Rick Perry's Remarks Regarding Wind Energy * Note: Gov. Perry frequently departs from prepared remarks. Friday, September 29, 2006 • Speech
Thank you Dean (Dean Orsak, SMU Engineering). I am delighted to be on the SMU campus in this state-of-the-art engineering building that is clean and green.
This is a landmark day as the State of Texas partners with private industry to make an historic investment of more than $10 billion in new wind energy infrastructure that will diversify our energy production, clean up our air, and help Texas surpass our renewable energy goals. When I say we are partnering with the private sector, I mean it in the best sense of the word: private companies are putting up all the money instead of taxpayers, and the State of Texas will ensure we build the transmission capacity needed to deliver this zero-emission power source to Texans’ homes. For every 1000 megawatts generated by new wind sources, we will reduce carbon dioxide emissions by six million tons over the next 20 years.
Let me talk about the source of this power for a moment. Texas is blessed with an abundant supply of wind energy, and that’s not even counting all the hot air my opponents’ have been generating. West Texas and the gulf coast are a fertile source of wind energy. And the great thing about wind energy is that the costs are very small once you have paid for putting the turbine in the ground. Unlike oil, you don’t run out at a certain location over time. As the companies with me today invest billions of dollars in wind energy infrastructure, the Public Utility Commission is committed to building the transmission lines needed over the next few years to capture this green power and get it to the market. Wind energy infrastructure is also less disruptive to landowners because it allows for concurrent use. In other words, putting up a wind turbine doesn’t stop a rancher from grazing cattle.
I am proud of our state’s commitment to renewable energy production. We are on the leading edge of developing renewable sources of energy and a more diversified energy economy which is key to keeping costs down. Earlier this summer Texas surpassed California as the nation’s leader in wind generation capacity. We have spent more than $300 million on clean technologies as part of the TERP program, reducing nitrogen oxide emissions by 75,000 tons. And we are a finalist for the world’s first near-zero emissions coal power plant. This announcement also bodes well for the growth of the Texas economy. Over the last three years we have added 650,000 jobs, transformed a record budget deficit into a record budget surplus, and attracted more business expansions and relocations than any state in the nation. With this $10 billion announcement, the economic ripple will be more like a tidal wave as these companies pour millions of dollars into wages and salaries for Texas workers.
Today’s announcement is an important chapter in our continuing commitment to cleaning our air and diversifying our energy supply. In fact, this cheaper form of energy could reduce energy costs by as much as $5 billion over the next ten years as we reduce our dependence on natural gas. This is a monumental investment that will make our air cleaner and our people healthier. To discuss this commitment further is the chairman of the PUC, Paul Hudson.
Perry Announces Major Energy Diversification Plan
Private Sector to Invest $10 Billion; PUC to Construct Transmission Lines Monday, October 02, 2006 • Press Release
DALLAS – Gov. Rick Perry today announced a major public-private initiative to further diversify the state’s energy supply by expanding wind-generated energy.
“This is a landmark day as the State of Texas partners with private industry to make a historic investment of more than $10 billion in new wind energy infrastructure that will diversify our energy production, clean up our air and help Texas surpass our renewable energy goals,” Perry said.
Private companies have agreed to the capital investments in wind energy generation while the Public Utility Commission directs the construction of additional transmission lines to capture and deliver the zero-emission power.
“I am proud of our state’s commitment to renewable energy production,” Perry said. “We are on the leading edge of developing renewable sources of energy and a more diversified energy economy which is key to keeping costs down.”
Perry, who was joined at the announcement by executives of several companies that have committed to building wind energy infrastructure, emphasized the benefits wind energy has on the environment.
For every 1000 megawatts generated by new wind sources, Texas will reduce carbon dioxide emissions by six million tons over the next 20 years.
Perry also noted that the announcement bodes well for further growth of the Texas economy.
“Over the past three years we have added 650,000 jobs, transformed a record budget deficit into a record budget surplus, and attracted more business expansions and relocations than any state in the nation,” Perry said.
“With this $10 billion announcement, the economic ripple will be more like a tidal wave as these companies pour millions of dollars into wages and salaries for Texas workers.”
Texas has abundant wind energy, particularly in West Texas and along the gulf cost. In 2001 Texas added more wind power capacity than all other states combined, and earlier this summer Texas surpassed California as the nation’s leader in wind generation capacity.
The planned expansion of wind-generated energy builds on initiatives Perry developed in 2003 with the creation of the Texas Energy Planning Council. The council was charged with developing a long-term energy plan for the state, including exploring alternative and renewable sources of energy. The council’s report, issued in December 2004, recommended that by 2025, 10 percent of the state’s power needs come from renewable sources and that the PUC takes steps to overcome transmission obstacles that limit the development of renewable energy sources.
“This is a monumental investment that will make our air cleaner and our people healthier,” Perry said.
Global Warming Bandwagon
In September of 2007, Governor Perry spoke to a group of California Republicans. He mocked Vice President Gore's views on global warming and referred to the issue as a bandwagon that people were jumping off of daily.
I've heard Al Gore talk about man-made global warming so much that I'm starting to think that his mouth is the leading source of all that supposedly deadly carbon dioxide.
Virtually every day another scientist leaves the global warming bandwagon. ... But you won't read about that in the press because they have already invested in one side of the story. I'm not saying we shouldn't be good stewards of our environment. We should. I am just saying when politics hijack science, it quells true scientific debate and can have dire consequences for our future.
Opposition to Ethanol Mandate
Governor Perry opposes the federal ethanol mandate. He has stated that the grain based fuel mandate is partly to blame for the rising food prices due to the pressure placed on corn prices and cattle feed prices. In April of 2008 he asked the Environmental protection agency for a 50% waiver from the fuel requirement. In August of that year, the EPA denied that request. In May of 2008, he wrote an editorial discussing his views on ethanol.
Federal Ethanol Mandate Hurts Texans Tuesday, May 27, 2008 • Austin, Texas • Editorial
Texas plays a vital role in both feeding and fueling our country. We are the number one beef-producing state and a top ten producer of our nation’s poultry, egg and dairy goods. Our state is also a leading contributor to the nation’s domestic fuel supply, working hard to reduce America’s dependence on foreign fuel. Our state’s public and private sector are investing considerable resources into researching, developing and providing incentives for renewable fuel production. But we can only do so much under the current restrictions.
The high price of corn is hitting Texans at the grocery checkout and making things tough on our livestock industry. I believe the high price of corn is due in large part to a federally mandated increase in the amount of corn-based ethanol that is blended into our nation’s fuel supply. Some simple math can explain the problem: more corn for ethanol means less corn for our kitchen tables and less feed for our livestock.
In fact, the U.S. Department of Agriculture estimates that this year 30 to 35 percent of our nation’s corn supply will be siphoned away for ethanol production, and the problem will only get worse. This year’s renewable fuel standard (RFS) mandates that nine billion gallons of corn-based ethanol be blended into fuel supply regardless of market forces. It will further require 15 billion gallons to be produced by 2015.
Escalating corn prices are proof that this arbitrary government standard is artificially inflating prices instead of allowing free-market forces to work. Before this well-intentioned but misguided mandate was established in 2005 (and later expanded in 2007), a bushel of corn cost roughly $2. Today, that cost has tripled to nearly $6. Multiply that by the billions of bushels needed to feed our families and our livestock and you can easily see why global food prices have increased 83 percent over the past three years. If costs continue their upward acceleration, our livestock industry will continue to suffer and faces permanent damage in the very near future.
We need relief and we need it now.
Last month I asked the Environmental Protection Agency (EPA) for a 50 percent waiver from the grain-based RFS mandate. So far, Washington is listening: the EPA recently opened a comment period to allow input from all stakeholders. I sincerely hope that the voices of our congressional and state delegations will be joined with all impacted Texans in a unified request for this waiver before our economy suffers further harm. Although many factors play into increasing feed and food prices, a partial waiver from the RFS mandate is the quickest, most effective way to bring relief to our farmers, ranchers and consumers.
The mandate is not just hurting Texas. The impact of this errant policy is showing around the world, providing a grim preview of what the future may hold if changes are not made. While Texans are financially strained at the grocery store, other countries have experienced food riots unlike any seen in the last 30 years. Something that strains our robust economy can be a death blow to less stable economies in other countries.
If we think that the federal government’s short-sighted policies toward energy exploration and fuel refining have played a key role in the current fuel crisis, why would they be any better when regulating the allocation of a key agricultural staple like corn? If you think it’s bad for foreign countries to control our fuel, imagine what it would be like if they control our food supplies.
Beyond the issue of inflated costs, the federal mandate raises another important issue: government interference in the free market. No matter how well-intentioned, any government mandate that benefits one industry to the detriment of millions of consumers is bad policy. Our state’s robust economy is largely due to the free-market policies we have in place, including lower taxes, a reasonable regulatory climate and limitations on runaway litigation.
Those approaches and innovative Texas businesses should be trusted to solve our current energy challenges. Non-food bioproducts such as algae, switchgrass, jatropha and camelina are promising energy alternatives that have no impact on food production and the environment. Algae, in particular, can produce significantly more biofuel per acre - by a factor of 10 or more - than any other available source, and has strong potential to produce both diesel and jet fuel. In fact, a $4 million grant was recently awarded through our Texas Emerging Technology Fund to Texas AgriLife Research at Texas A&M University to further develop this technology.
I can only imagine the progress that would be made in such areas if we could focus on the acceleration of other biofuel production technology that takes up less land, requires fewer resources and is ultimately more cost efficient.
The immediate issue at stake is how to alleviate the financial strain Texas’ families and livestock industry face due to increased food prices. A waiver of RFS levels is the best way to reduce those costs before permanent damage is done to both our state and nation. I hope you’ll join me in pressing Washington for this waiver.
Cap-and-Trade Could Harm Texas Economy
In June of 2009, Governor Perry issued a press statement noting his views that a cap-and-trade program could severely harm the Texas economy.
Gov. Perry: Cap and Trade Could Severely Hurt Texas' Economy Hosts roundtable with state, industry leaders Tuesday, June 09, 2009 • Austin, Texas • Press Release
Gov. Rick Perry today stated his concern about the impact of proposed cap and trade legislation and possible regulation of CO2 by the Environmental Protection Agency (EPA) on Texas’ energy industry and economy. The governor hosted a roundtable discussion with state and industry leaders to discuss their concerns about the proposed regulations.
“The threat to our energy industry and economy as a whole comes from the Waxman-Markey energy bill, which emphasizes cap and trade agreements and would end up being the largest tax increase in the history of our country. Equally as concerning are the EPA’s efforts to have CO2 identified as a toxic substance, naming it and other natural gases such as methane a threat to public health,” Gov. Perry said. “We are in trouble if a federal agency is free to impose burdensome regulations in a way that harms family farms, job-creating factories and even large buildings such as hospitals and churches. These two key factors have serious implications for our state, economy, and citizens, who will have to stretch their dollars to pay more for energy in a time of tight budgets for no clear benefit to public health.”
Implementing these regulations would cripple Texas’ energy sector, irreparably damaging both the state and national economies and severely impacting national oil and gas supplies. Texas’ energy industry fuels the nation, supplying 20 percent of the nation’s oil production, one-fourth of the nation’s natural gas production, a quarter of the nation’s refining capacity, and nearly 60 percent of the nation’s chemical manufacturing. The Texas energy industry employs nearly 375,000 Texans with $35 billion in total wages.
The governor noted that the federal government is conducting hearings on the regulations, none of which are in the south or near Texas, the nation’s energy capitol. Rather than adopting the EPA’s suggestion to make traditional energy sources more expensive, Gov. Perry has proposed making alternative energy technologies less expensive, thereby encouraging widespread commercial use and removing barriers to innovation and competition. Modernizing the national energy grid to support wind and solar energy transmission, facilitating investments in the development of carbon capture and sequestration technologies, and removing barriers to investment in nuclear generation would reduce carbon emissions while encouraging competitiveness, innovation and growth in alternative energy sources.
Diversifying the state’s energy portfolio remains a priority for Gov. Perry. Texas has already installed more wind power than any other state and all but three countries, and provided new transmission lines that will move more than 18,000 megawatts across the state- more than all other states current capacity combined. Texas has also attracted more than 9,000 megawatts of energy from the development of next generation nuclear power plants. The state is also looking to add new clean coal plants which will capture and sequester carbon dioxide emissions or use the carbon dioxide to increase production from Texas oil fields.
The governor was joined by Texas Comptroller Susan Combs, Railroad Commissioner Michael Williams, Public Utility Commission Chairman Barry Smitherman, Texas Commission on Environmental Quality Commissioner Bryan Shaw and representatives from industry leaders from across the state for the discussion.
The EPA and Greenhouse Gases
In December of 2009, the EPA ruled that carbon dioxide was a danger to the environment. This action was immediately opposed by Governor Perry. On December 7, Governor Perry stated that it was unconscionable that unelected bureaucrats at the EPA have declared carbon dioxide a public danger despite a lack of scientific evidence to support their ruling. Two days later, Governor Perry sent a letter to EPA Administrator Lisa Jackson asking her to withdraw the ruling. On February 16, 2010 Governor Perry announced that the state of Texas was filing suit in federal court to prevent the implementation of the policy stating that it painted a target on the backs of Texans and was in violation of the tenth amendment. On March 10, 2010 Governor Perry sent a letter to members of Congress urging them to oppose the EPA regulation of carbon dioxide, and in May of 2010, Governor Perry spoke about these issues while speaking about the economy of Texas.
In June of 2010, Governor Perry stated that the endangerment ruling would circumvent the progress Texas was making on air quality and harm the Texas economy. In late June of 2010, Governor Perry moved forward with a federal suit against the EPA's over-ruling of a 16 year old clean air act in Texas to enforce the carbon dioxide endangerment finding.
Statement by Gov. Rick Perry Regarding EPA Ruling on Carbon Dioxide Monday, December 07, 2009 • Austin, Texas • Press Release
Gov. Rick Perry today issued the following statement regarding the Environmental Protection Agency’s (EPA) ruling on the danger of carbon dioxide:
“It is unconscionable that unelected bureaucrats at the EPA have declared carbon dioxide a public danger despite a lack of scientific evidence to support their ruling. This action should be of grave concern to all Americans, especially Texans, in light of the recent “Climategate” scandal, which uncovered data had been manipulated and destroyed in order to falsely show a preordained result.
“We have already seen a sweeping expansion of federal authority, federal takeovers and federal spending under the Obama Administration. Today’s ruling continues a pattern of aggressive federal encroachment into every farm, business, church and household in America.
“EPA’s own data shows that Texas’ carbon dioxide emissions have fallen more than any other state this decade due in large part to a regulatory environment that has encouraged the use of alternative sources of energy and cleaner power generation through flexible and science based permitting and monitoring. The federal government should be following Texas’ model of innovation and competition, not burdensome and costly mandates.”
Gov. Perry Urges EPA to Withdraw Ruling on Danger of Carbon Dioxide Washington Making the American Dream Harder to Realize Wednesday, December 09, 2009 • La Porte, Texas • Press Release
Gov. Rick Perry today sent a letter to Environmental Protection Agency (EPA) Administrator Lisa Jackson urging her to withdraw the EPA’s recent ruling on the danger of carbon dioxide, especially in light of the recent “Climategate” scandal, which uncovered data had been manipulated and destroyed in order to falsely show a preordained result. The governor was also joined in La Porte today by state officials and energy industry leaders to highlight the negative implications of Washington’s continued intrusion into the lives of Texans by sacrificing jobs, negatively impacting our energy industry and compromising our economic strength as they pursue one-size-fits all energy regulations.
"The unelected bureaucrats at the EPA have effectively and unilaterally ended any honest debate on this vital issue," Gov. Perry said. "A cap and tax system would force Texans to bear more than their share of negative effects, including an average increase in annual living costs of approximately $1,200 per household and the loss of hundreds of thousands of jobs. I’m a firm believer that Washington’s one-size-fits all approaches don’t work, whether you’re talking energy policies, health care reform or economic development."
Meanwhile, the governor noted that Texas has reduced carbon emission levels more than just about every other state in the country while expanding our economy and managing a growing state population, and without the sweeping mandates and draconian punishments that Washington applies to just about every challenge.
This week, the EPA declared carbon dioxide a public danger despite a lack of scientific evidence to support the ruling. In fact, EPA leadership has previously admitted that the job-killing, high-cost regulations associated with this declaration would neither lower world-wide carbon levels, nor affect global temperatures. Additionally, this ruling coincided with the opening day of the United Nations Climate Change Conference in Copenhagen, and comes just weeks after the leak of emails from leading environmental researchers indicating the manipulation of data used to support the theory of global warming.
“Allowing politics to hijack science is not just a scandal because it exposes hypocrisy, but because it impacts the real lives of 24 million Texans,” said Railroad Commissioner Michael Williams. “Our family farms, small businesses, friends and neighbors who pave roads and generate power, single moms and working Texas families will all be hit by a Copenhagen Climate Tax ordered upon us by the United Nations, or an EPA-generated regulatory scheme that will have the same negative impact without the consent of Congress.”
Implementing the regulations associated with proposed federal legislation such as the Waxman-Markey or Kerry-Boxer bills would amount to the single largest tax increase in U.S. history, significantly increasing the cost of living for all Texas families. These bills would also cripple Texas’ energy sector, costing hundreds of thousands of jobs and irreparably damaging both the state and national economies and severely impacting national oil and gas supplies. In fact, the legislation includes funds to pay displaced workers in the energy and manufacturing fields, underwrite their healthcare and provide for job retraining for up to three years. Other provisions will also reduce the chance of home ownership for many Americans by creating a nationalized building code that could ultimately price some new homebuyers out of the market entirely.
“As I have said consistently, CO2 regulations will impose great costs on Texas and Texans, without any guarantee of a measurable environmental benefit,” said TCEQ Chairman Bryan Shaw. “Whether you look at the startling comments contained in the ‘Climategate’ documents or the greatly scaled back goals of the Copenhagen global warming summit, it is abundantly clear that the science of global warming is far from settled.”
Rather than adopting misguided legislation or allowing the EPA to overly regulate every sector of the economy, Gov. Perry has proposed the federal government follow Texas’ lead by making alternative energy technologies less expensive, thereby encouraging widespread commercial use and removing barriers to innovation and competition. Modernizing the national energy grid to support wind and solar energy transmission, facilitating investments in the development of carbon capture and sequestration, and removing barriers to investment in nuclear generation would reduce carbon emissions while encouraging competitiveness, innovation and growth in alternative energy sources.
“The Texas way generates results. Cap and trade or EPA regulation will cost trillions with no guarantee of results, except lost jobs and higher electricity prices,” said PUC Chairman Barry Simtherman. “Texas’ rational energy policy has resulted in the development of more than 30,000 megawatts of clean burning natural gas generation and more than 9000 megawatts of wind energy. We did this to diversify and secure our energy supplies and lower electricity prices, but it had the side effect of decreasing CO2 emissions from the power sector more than any other state since 2004.”
Diversifying the state’s energy portfolio remains a priority for Gov. Perry. Texas has already installed more wind power than any other state and all but four countries, and is developing new transmission lines that will move more than 18,000 megawatts across the state – nearly as much as all other states’ current capacity combined. Texas has attracted more than 9,000 megawatts of energy from the development of next generation nuclear power plants. The state is also looking to add new clean coal plants, which will capture and sequester carbon dioxide emissions or use carbon dioxide to increase production from Texas oil fields.
Texas Takes Legal Action Against Federal Government Over EPA CO2 Mandates Tuesday, February 16, 2010 • Austin, Texas
Gov. Rick Perry, Attorney General Greg Abbott and Agriculture Commissioner Todd Staples today announced that the state is taking legal action in the U.S. Court of Appeals challenging the Environmental Protection Agency’s (EPA) endangerment finding for greenhouse gases.
“Texas is aggressively seeking its future in alternative energy through incentives and innovation, not mandates and overreaching regulation,” Gov. Perry said. “The EPA’s misguided plan paints a big target on the backs of Texas agriculture and energy producers and the hundreds of thousands of Texans they employ. This legal action is being taken to protect the Texas economy and the jobs that go with it, as well as defend Texas’ freedom to continue our successful environmental strategies free from federal overreach.”
In July of 2009, the EPA denied a petition put forth by Texas to challenge the findings of endangerment from the emission of greenhouse gases. Governor Perry released a press statement noting his disappointment at the ruling.
Statement by Gov. Rick Perry on the EPA’s Denial of Texas Petition Thursday, July 29, 2010 • Austin, Texas
Gov. Rick Perry today issued the following statement regarding the EPA's denial of a Texas petition challenging the EPA's 2009 endangerment finding for greenhouse gases, which would lead to further mandates and regulations on Texas businesses and place Texas jobs at risk:
"I'm disappointed, but hardly surprised, given this administration's ongoing disregard for Texas air quality successes and Texas jobs. The State of Texas will continue to fight this federal overreach by unelected bureaucrats through appropriate legal action, which I hope will allow us to continue our effective environmental programs while protecting countless Texas jobs."
Statements on 2010 Campaign Website
Issues - 10th Amendment and the Fighting Intrusive Washington Policies
Folks in Washington should take a closer look at the Tenth Amendment of the U.S. Constitution, which clearly states the preeminence of states’ rights in the structure of our country. The time has come to assert those rights, and remind the federal government that it was created to serve states, not the other way around. Left unchecked, Washington will continue digging our country into a hole of debt, increased government intrusion and the loss of personal liberty.
Cap and Trade. Gov. Perry has actively opposed the cap-and-trade legislation pending before the U.S. Senate and already passed by the House of Representatives. As states learn more about the devastating impact this bill will have on their state and citizens – from job losses, raising energy prices, and increased taxes on goods and services Texans depend upon – Texans need to urge their Senators to vote against what would be the largest tax increase on Americans in history, including an average increase in annual living costs of approximately $1,200 per Texas household.
Rather than adopting misguided legislation or allowing the EPA to overly regulate every sector of the economy, Gov. Perry has proposed the federal government follow Texas’ lead by utilizing incentives to make alternative energy technologies less expensive and removing barriers to innovation and competition. Modernizing the national energy grid to support wind and solar energy transmission, facilitating investments in the development of carbon capture and sequestration, and removing barriers to investment in nuclear generation would reduce carbon emissions while encouraging competitiveness, innovation and growth in alternative energy sources. Texas’ efforts have made it the largest wind energy producer in the nation and all but four other countries, and a leader in other clean energy sources including solar, biofuels, nuclear and clean coal. At the same time, Texas has reduced carbon emission levels more than any other state except Louisiana and more than any other nation except Germany.
Gov. Perry on the Environment and Natural Resources
Under Gov. Perry, Texas is moving aggressively to create a diverse portfolio of energy sources, including renewable, natural gas, coal and nuclear power to meet the needs of our growing population in an eco-sensitive manner. Texas is a national leader in reducing emissions and known pollutants and advancing renewable energy sources. Texas has done so while balancing the need for environmental improvements with fostering economic growth, new investment and job creation.
Renewable Energy. Texas has installed more wind power than any other state, and more than all but four other countries. We are also a leader in solar, biofuel, clean coal and nuclear efforts. Texas continues to foster new, clean energy technology by using market incentives and stable regulation, not costly mandates and taxes.
The Texas Emissions Reduction Plan. In lieu of sweeping federal mandates, Gov. Perry authorized an incentive-driven Texas Emissions Reduction Plan, which has reduced ozone levels in Texas cities by 22 percent since its adoption.
The Western Debate
In October of 2011, Governor Perry participated in the Western Debate in Las Vegas. He speaks about his support for energy indepence through increased exploration. He also stated that he opposed the Yucca mountain project for waste depository.
COOPER: We've been talking about Herman Cain's plan. Let's talk about Governor Romney's plan.
Governor Perry, you have said that Governor Romney was an abject failure at creating jobs when he was governor of Massachusetts. If you've read his 59-point plan, has it changed your mind?
PERRY: Well, here's the nine that we need to get focused on. And it's not 999, it's not 59. It's that 9 percent unemployment in this country. And that's where we've got to get focused in America, is how to create an environment where the men and women get back to work.
It's the reason I laid out a plan, Newt, this last week to get this energy that's under our feet. We've got 300 years of resources right under our feet in this country. Yet we've got an administration that is blockading our ability to bring that to the surface, whether it's our petroleum, our natural gas, or our coal. And 1.2 million jobs could be put to work.
Americans who are sitting out there listening to this conversation tonight, somebody wants someone on this stage to say: Listen, we got an idea here how to get you to work and take care of your family and have the dignity of a job. And that's exactly what I did with my plan, laid it out where Americans understand we don't have to wait on OPEC anymore. We don't have to let them hold us hostage. America's got the energy. Let's have American energy independence.
...
PERRY: Well, let me address Herman's issue that he just talked about.
COOPER: Actually, I'd rather you answer that question.
PERRY: I understand that. You get to ask the questions, I get to answer like I want to. And Herman talked about --
COOPER: That's actually a response, that's not an answer, but go ahead.
PERRY: -- the issue of how we get this country back working. And truly, the plan that I laid out last week, where we talk about the energy industry and this treasure trove that we have under this country, and we need to recognize that the administration that we have today is blocking mining that could be going on in the state of Nevada. I talked to Brian Sandoval before I came in here today. You have an administration that is killing jobs because they want to move us to a green energy. You have a secretary of energy who has basically said he wants to see gas prices up close to the European model. The president himself said electricity rates are necessarily going to skyrocket.
That's what we've got to stop. That's the reason we got to have a president of the United States that understands that if you get Americans working, and it addresses these issues that we have in this country, then the fastest way to do it is open up these federal --
COOPER: Time.
PERRY: -- plants, to pull back those regulations, and get America working again.
...
COOPER: Governor Perry?
PERRY: You know, from time to time, Mitt and I don't agree. But on this one, he's hit it, the nail, right on the head. And I'll just add that when you think about France, who gets over 70 percent of their energy from nuclear power, the idea that they deal with this issue, that their glassification, and that the innovation -- and, Congressman Paul, you're correct when it comes to allowing the states to compete with each other. That is the answer to this.
We need to have a -- a -- a discussion in -- in this country about our 10th Amendment and the appropriateness of it, as it's been eroded by Washington, D.C., for all these many years, whether it's health care, whether it's education, or whether it's dealing with energy. We don't need to be subsidizing energy in any form or fashion, allow the states to make the decision. And some state out there will see the economic issue, and they will have it in their state.
Statements on Official Website
Energy
More than perhaps any other state, Texas is associated with energy production. From images of oil-soaked wildcatters watching gushers come in to sprawling fields of wind turbines, Texas has been a national leader in energy production and innovation. Gov. Perry has worked diligently to ensure our state’s energy resources can accommodate the needs of our rapidly-growing population and spur greater prosperity.
Expansion of Renewable Energy
Summary of Achievement
Texas is a world leader in wind power, with more wind power installed than any other state and all but four other countries. The state has also made a commitment to modernizing its transmission grid to enable the movement of more than 18,000 megawatts of wind power from West Texas to the major population centers in the eastern and central parts of the state. Texas has also invested more than $1 million from the Texas Enterprise Fund to support solar energy manufacturing and has invested more than $4.5 million from the Emerging Technology Fund to support the commercialization of the next generation of solar energy technologies.
The Challenge
As one of the fastest growing states and healthiest economies in the country, Texas must continue to meet its growing demand for electricity. The Electric Reliability Council of Texas (ERCOT) forecasts that peak demand will grow at approximately two percent per year between now and 2025, requiring almost a 50 percent increase in generation capacity by that date. Texas is also highly dependent on natural gas-fired electric generation can also lead to higher electricity prices during periods of volatility in natural gas prices.
Action / Initiative
The Governor has made diversifying the energy mix of Texas’ electricity market one of his major priorities, and renewable energy, in conjunction with the next generation of cleaner coal plants, energy efficiency, and new nuclear plants, plays a key role in that diversification. Fostering the renewable energy industry in Texas has led to reduced reliance on natural gas generation as well as tremendous economic development opportunities in the rural areas of our state.
Senate Bill 20, signed by Governor Perry in 2005, contained a critical commitment to expand the state’s transmission grid in order to maximize the ability to move wind power from West Texas to the rest of the state. This unique commitment has provided needed certainty to renewable energy developers and, in conjunction with Texas’ abundant wind resources, competitive marketplace for electricity, and stable regulatory structure, has made Texas the easiest state to develop renewable energy. Texas has also utilized its economic development tools to provide incentives for companies to locate solar manufacturing in the state and commercialize the next generation of solar energy technologies. Texas also expects to add several large solar and biomass electric generation facilities in the coming years. As a result, Texas is home to the two largest wind farms in the world, the Roscoe Wind Farm (781 megawatts) and the Horse Hollow wind farm (750 megawatts).
The Outcome
Governor Perry has created an environment conducive to the development of renewable energy. Renewable companies continue to move to Texas, investing billions of dollars in capital. Texas is also successfully diversifying its portfolio of electric generation facilities.
Implementation of Competition in Energy Market
Summary of Achievement
In 2002, Texas’ wholesale energy generation and retail electric markets fully opened to competition. A competitive market has increased consumer options and improved quality of service, as well as facilitated the development of alternative energy sources.
The Challenge
Prior to 1995, the State of Texas regulated its energy industry. Consumers bore the entire risk for development of new generation capacity. The regulated market was slow to react to changes in prices or demand and limited innovation and efficiency, and falling generation reserve margins in the late 1990s threatened Texas’ economic success.
Action / Initiative
In 1995, the Legislature introduced competition into the wholesale generation market, and it followed in 2002 with opening the retail electric market. The electric market in Texas is seen as one of the most successful examples of a competitive market in the world.
The Outcome
Texans in the competitive areas of the state currently have their choice than 20 retail electricity providers, dozens of choices of pricing plans, and more options to buy renewable energy than anywhere else in the country. Most Texans in the competitive areas of the state have choices of products that are cheaper than the last electricity prices consumers paid under regulation.
More than 120 power plants have been built in the state since 1995, adding more than 43,000 megawatts of new capacity, including nearly 9,000 megawatts of wind power. Another 21 plants are under construction, and more than 27,000 megawatts are under development, including more new nuclear plants than any other state – over 9,000 megawatts.
While electricity prices in Texas are highly influenced by natural gas prices, new efficient power plants and efforts to diversify the state’s energy mix through adding wind power and non-natural gas generation has resulted in electricity prices rising less than the price of natural gas.
Increasing Energy Efficiency
Summary of Achievement
New, energy-efficient technology increases the ability of consumers to decrease their energy expense. Lower energy use decreases the need for all or a portion of the additional generation resources. Texas has provided incentives for energy efficiency and currently meets at least 20% of its growth in energy demand from energy efficiency, including building more Energy Star rated homes than any other state.
The Challenge
As one of the fastest growing states and healthiest economies in the country, Texas must continue to meet its growing demand for electricity. The Electric Reliability Council of Texas (ERCOT) forecasts that peak demand will grow at approximately two percent per year between now and 2025, requiring almost a 50 percent increase in generation capacity by that date. Texas is also highly dependent on natural gas-fired electric generation can also lead to higher electricity prices during periods of volatility in natural gas prices.
Action / Initiative
In 2007, Governor Perry signed HB 3693, comprehensive energy efficiency legislation, into law. This legislation provides incentives and tax credits for utilities and consumers to build energy efficient homes, retrofit old buildings, replace inefficient air conditioners and lighting systems, and other steps to reduce help consumers reduce their energy costs.
The Outcome
Texas’ energy efficiency programs have been ranked among the most cost-effective in the nation, and Texas continues to expand the use of new energy efficiency technology to help meet the energy needs of our growing economy.
Opposing Harmful Cap & Trade Legislation
Summary of Achievement During his tenure in office, Gov. Perry has presided over one of the largest expansions of renewable energy and energy efficiency in the history of Texas, as well as dramatic expansions in Texas’ natural gas production. Texas has proven that it is possible to foster new, renewable energy technologies without devastating the traditional energy industry.
The Challenge Unfortunately, the federal government doesn’t understand this, and is embarking on radical attempts to intervene in energy markets and pick winners among the variety of energy technologies. Legislative monstrosities like the Waxman-Markey and Kerry-Boxer cap and trade bills are being debated, and unelected bureaucrats at the EPA are threatening to impose draconian new regulations on Texas businesses, farms and families. If successful, these efforts would devastate the Texas economy, raise energy prices, result in the single largest tax increase in American history, and make our nation less secure and more dependent on foreign sources of oil.
Action / Initiative Governor Perry established an advisory panel comprised of the leaders of Texas’ state agencies that oversee energy and environmental regulations in the state. In coordination with this panel, Governor Perry filed comments with the EPA strongly urging the agency against regulating greenhouse gases under the Federal Clean Air Act, due to the devastating impact it would have on the Texas economy and energy industry.
The Outcome The federal government has not yet acted on any of these potentially disastrous plans. Governor Perry will continue to call attention to the damage they could do to the state and federal economies.
According to a study by the Heritage Foundation, the damage could be extensive:
By 2035, electricity prices in Texas will rise by $1,726 per year for the average residential customer.
By 2035, gasoline prices will rise by $1.28 per gallon (not b/c of supply demand issues, but essentially taxes).
Gross State Product will decline $11 billion as soon as 2012 and by $44 billion in 2035.
In 2012, 128,000 jobs will be lost and accelerating after 2020 to nearly 200,000 by 2035.
Texas A&M Agricultural and Food Policy Center
Even with generous assumptions of the ability for farms to earn “CO2 offsets” that businesses can purchase in lieu of cutting emissions, 23 out of 26 representative Texas farms in their study were worse off under cap-and-trade. All rice farms, dairies, and ranches modeled were worse off. Six out of seven cotton operations were worse off in all cases, with one operation being very slightly better off under one scenario. 6 out of eight feedgrain/oilseed operations were worse off, in some cases substantially.
National Black Chamber of Commerce/API/CRA International
Loss of 181,000 jobs by 2015, accelerating to 341,000 by 2030.
Household purchasing power falls by $1,430 by 2015 and nearly $1,800 by 2030 per household.
Gross state product falls by 0.5% by 2015 and 1.6% by 2030.
Electricity prices rise by 1.7 cents per kWh ($204 per year for average residential customer) by 2015 and 4.5 cents per kwh ($540 per year) by 2030.
State taxes fall by $1.1 billion by 2015 and more than $2 billion per year by 2030
National Association of Manufacturers/American Council for Capital Formation/SAIC
Loss of 196,000 jobs by 2030.
Decline in disposable income of $1,103 per household by 2030.
Reduction in Gross State Product of $5 billion by 2020 and $41 billion by 2030.
Increase in electricity prices of 10% by 2020 and 54% by 2030.
Increase in gasoline prices of 11% by 2020 and 26% by 2030.
By 2030, low income customers will spend more than 21% of their income on energy, up from 17% with no cap and trade bill.
University of Texas Bureau of Economic Geology
Texas could lose as many as 270,000 jobs by 2015 and 400,000 by 2030.
Gross State Product declines by as much as $70 billion by 2030.
ERCOT Study Annual increase in wholesale power costs of approximately $10 billion, or $27 per month ($324 per year) for a residential customer by 2013. Due to carbon dioxide emissions limits, there will likely be an increase in the demand for and the price of natural gas. At a higher gas price of $10 per MMBtu annual power costs would increase by $20 billion, or $54 per month (or $648 per year) for a residential customer by 2013. While reductions in energy use due to higher prices and increased wind power already under development in Texas may reduce the impacts of the cap and trade bill, they would not completely offset the impact.
