Texas House Bill HB634

Texas 2009 - 81st Regular

Caption

Relating to establishing a carbon dioxide "cap and trade" program to enable participation in the Regional Greenhouse Gas Initiative.

Impact

The implementation of HB 634 is expected to fulfill Texas's commitment to address climate change through regulated emissions. It opens the door for electric generating facilities in the state to engage in a trading market for carbon allowances, promoting economic incentives for reducing emissions. Moreover, proceeds from the auctioning of carbon allowances are mandated to benefit consumers, focusing on energy efficiency, mitigating adverse impacts, and promoting renewable energy technologies. This dual approach aims to balance environmental goals with economic factors affecting consumers.

Summary

House Bill 634 focuses on establishing a carbon dioxide 'cap and trade' program in Texas to enable participation in the Regional Greenhouse Gas Initiative. The bill seeks to create a structured framework for regulating carbon dioxide emissions from fossil fuel-fired electric generating facilities across the state. It mandates the Texas Commission on Environmental Quality to develop rules to limit and gradually reduce emissions, aligning with regional frameworks aimed at combating climate change.

Contention

One point of contention surrounding HB 634 revolves around the balance of environmental regulation versus economic impact. Supporters argue that the cap and trade system offers a pragmatic approach to reduce emissions while allowing market mechanisms to foster innovation in clean energy technologies. Critics, however, may express concerns regarding the potential economic burden on electricity consumers and businesses in the fossil fuel sector, questioning whether the anticipated benefits will outweigh these costs. Overall, the discourse highlights the ongoing debate about the role of governmental regulations in achieving sustainable environmental outcomes.