Texas House Bill HB3386

Texas 2021 - 87th Regular

Caption

Relating to a statewide requirement for natural gas generating capacity.

Impact

The implications of HB3386 are significant as it amends existing laws under the Utilities Code to facilitate a more substantial reliance on natural gas for electricity generation. By mandating a notable portion of energy production to come from natural gas, the bill aims to enhance energy security while potentially increasing economic growth related to the natural gas sector. Furthermore, utility companies will be required to adhere to performance standards established under this bill, promoting advancements in efficient energy production methodologies.

Summary

House Bill 3386 aims to establish a statewide requirement concerning natural gas generating capacity in Texas. The bill stipulates that 50% of the total generating capacity installed in the state must utilize natural gas. This is intended to boost local natural gas production and support energy policy aimed at ensuring a stable energy supply. Additionally, the bill empowers the Public Utility Commission to create an enforcement framework to oversee compliance by power generation companies and utilities, further entrenching natural gas as a primary energy source.

Contention

Despite its economic intentions, HB3386 is expected to spark controversy, particularly among environmental advocacy groups. Critics may argue that by prioritizing natural gas, the bill overlooks renewable energy sources, potentially setting back progress in cleaner energy initiatives. Moreover, the fluctuation in natural gas prices is addressed in the bill; specifically, if gas prices exceed $6 per 1,000 cubic feet, compliance with the 50% requirement would be suspended. This may lead to pushback regarding energy affordability and long-term sustainability in light of current and future energy needs.