Diana Liebmann in Law360: Texas Plan To Ax Renewables Standard Imperils Development

04/17/2015

Renewable energy developers will have to reconfigure project financing and may shy away from placing new projects in Texas if state lawmakers approve a proposal to eliminate the state's renewable portfolio standard and shut down the market for trading renewable energy credits, lawyers say.

The Texas Senate this week passed S.B. 931 after bill sponsor Sen. Troy Fraser, R-Horseshoe Bay, said Texas has been so wildly successful in developing wind and solar power that it no longer needs a renewable energy requirement enshrined in state law. But critics of the bill say it sends the message that Texas is closed for business to renewable development and that it could scare off new wind and solar farms.

Diana Liebmann of Haynes and Boone LLP said that, with Fraser's support, she expects S.B. 931 to pass the majority Republican House. But the fights over the Texas power supply will have just begun, she said.

"We're so far past the RPS we have now that having it go away really only sends a signal that we're not requiring anything special for renewables from the state of Texas," Liebmann said. "Some people will say that's because our work is done here, and some people will say it's because we're backing away. But the projects that are sited here will continue."

Excerpted from Law360. To read the full article, click here (subscription required).

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