Legislative Bills affecting the Texas Market


A couple of legislative proposals with the possibility of significantly affecting Texas renewable energy development if enacted are advancing through the Texas Legislature. Members may want to contact legislators representing districts where they have or are developing projects, or other members with whom they have connections, to let them know how these proposals could affect their interests.

HB 2129 and HB 360

These two bills would extend the expiration date of certain tax limitation and abatement provisions of the Texas Tax Code that have stimulated renewable energy development and job growth. HB 2129 would extend authority to limit the appraised value of qualifying property under a certain type of agreement with a public school district under Chapter 313 of the Tax Code until December 31, 2032. HB 360 would extend the ability of certain taxing entities to provide tax abatement agreements to qualifying property owners under Chapter 312 of the Tax Code, until September 1, 2029. The Texas House passed both bills on 4/9/19, and the Texas Senate has referred both to the Senate Natural Resources & Economic Development Committee for hearings.

SB 2232

This bill would direct the PUC and ERCOT to study and identify the effects that renewable energy subsidies have on the ERCOT market, and would require the PUC to propose a range of potential actions to eliminate the identified effects of renewable energy subsidies through policies that can mitigate or offset the subsidy impacts. The bill would require the scope of the study to address renewable energy subsidies’ effects on peak price formation, negative pricing, ancillary services, congestion, reserve margins, and transmission and distribution costs. The bill passed in the Senate on 4/24/19, and it is set for hearing in the House State Affairs Committee on May 8th.