Anti-Renewables Legislative Proposals in Texas

Mayer Brown - Tax Equity Times
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Mayer Brown - Tax Equity Times

There are several state legislative proposals in Texas that could have adverse impacts on the development and operation of renewable energy projects in Texas.

House Bill 4466 would require the Public Utilities Commission to assess the intermittent wind and solar projects with ERCOT’s cost of ancillary services required to reliably operate the system.  Similarly, Senate Bill 1278 would mandate the Public Utilities Commission to require intermittent resources to purchase ancillary services and replacement power to manage net load variability.  The legislation would effectively shift costs of Winter Storm Uri to wind and solar (rather than creating a capacity market, dealing with the inability to deliver natural gas and therefore operate gas-fired projects, weatherization issues, etc.).

Here is a statement from ACORE on the proposals.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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