Renewable Energy and Energy Mandates

The Facts

* Subsidies for renewable energy in Texas are expected to total $12.9 billion for the 10-year period 2006-15. 

* Subsidies for CREZ lines should run about $6.5 billion, the federal PTC about $4.1 billion, and the state’s RECs about $560 million.

* The Texas Renewable Portfolio Standard (RPS) mandates 10,000 MW of renewable capacity by 2025, of which 500 MW must be from non-wind sources. 

* The backup generation and grid-related costs of wind energy could increase ERCOT’s system production costs by $1.82 billion per year. 

Recommendations

* Eliminate the Renewable Portfolio Standard.

* Support elimination of the federal production tax credit.

* Require all electrical generators to meet the same standards, including renewable energy sources.

* Eliminate the 50% natural gas mandate.