Federal Regulation of Greenhouse Gas Emissions a Practical Certainty: How Will the Texas Energy Industry Survive-Maybe Thrive?

This article asks the policy question: How is the Texas Legislature preparing to protect the Texas energy industry from the federal regulation of greenhouse gas emissions? The article begins with an explanation of why federal regulation of greenhouse gas emissions appears to be a practical certainty. In 2007, a 5-4 U.S. Supreme Court majority held the Environmental Protection Agency must regulate greenhouse gas emissions or find some reason rooted in the Clean Air Act why it should not act. This article will explore this decision, as well as the executive order that followed and the American Clean Energy and Security Act of 2009. This article next discusses the implications of three bills passed into law by the 81st Legislature relating to carbon capture and sequestration (CCS) technology. House Bill 1796 provides for a carbon dioxide repository in subsurface geologic formations off the coast of Texas. House Bill 469 provides for the creation of clean energy projects, in which coal plants sequester carbon dioxide into geologic formations for permanent storage. Senate Bill 1387 establishes a regulatory framework for the implementation of CCS technology in Texas. Finally, this article analyzes three bills relating to renewable energy that failed to be enacted. These bills serve as a foundation-and possibly an indication- of legislative initiatives to come in the following sessions. House Bill 1243 would have allowed customers of retail electric providers to sell back to the grid surplus energy generated from renewable energy sources. Senate Bill 541 would have updated renewable energy source goals and modified the Texas Renewable Energy Credit trading program. Senate Bill 545 would have provided incentives for investment in solar energy generation, as well as reduced the initial costs of implementatio