Climate and Energy Overview
Texas is a proud leader in energy production, innovation, and economic growth. As the Texas Forward Party, we believe in advancing a responsible, forward-looking energy policy that addresses the urgent challenges of climate change while securing the energy needs of our growing population and thriving economy.
Climate change is a real and pressing concern that demands practical, science-based solutions. Rising temperatures, extreme weather events, and shifting environmental patterns pose long-term risks to our communities, economy, and way of life. Texas has already experienced these impacts firsthand — from stronger hurricanes to devastating droughts and wildfires. We cannot afford to ignore the evidence or delay action.
At the same time, Texas is home to a booming population and expanding industries that drive increasing demand for energy. Fossil fuels — including oil and natural gas — have long been the backbone of our economy and remain essential to meeting our energy needs in the near and medium term. We recognize the critical role they continue to play in providing reliable power, supporting jobs, and ensuring national and economic security.
The Texas Forward Party believes we must lead the nation with a balanced and realistic energy strategy that includes:
Investing in innovation to reduce direct greenhouse gas emissions (GHG) from fossil fuels through methane emissions reduction and efficiency improvements, as well as indirect GHG emissions through carbon capture and sequestration.
Expanding renewable energy including wind, solar and battery storage — where Texas already leads — to diversify our energy mix and reduce environmental impact.
Modernizing our electric grid to ensure reliability, resilience, and the integration of new technologies.
Expanding electricity demand response initiatives, which incentivize consumers to reduce power usage during peak demand times, can alleviate stress on the grid and prevent blackouts.
Preparing for the future workforce by investing in education and job training programs for energy workers in both traditional and emerging energy sectors.
Pursuing an “all of the above” strategy for additional sources of electricity supply. ERCOT has forecast electricity demand to nearly double by 2030. To accommodate that growth, Texas must take advantage of every opportunity to increase supply.
The transition to a lower-emission future will not happen overnight — and it cannot come at the expense of our economic stability or energy security. The Texas Forward Party is committed to a pragmatic approach that builds on Texas’s strengths and embraces innovation.
The Texas Forward Party is dedicated to bridging the gap between environmental responsibility and energy security. Together, we can lead the way in addressing climate change while ensuring that Texas remains an energy powerhouse for generations to come.
Future Policy Recommendations
Electricity Supply Policy Recommendations
Aggressively pursue installation of renewable energy generation wind, solar and storage both short duration (batteries) and longer term (underground pumped storage).
Require large loads (AI data centers, crypto mining) to contract for their own supply via long term PPAs (Power Purchase Agreements).
In the face of significant demand increases, data center owners will likely commit to fifteen-year supply agreements somewhat above the current market price to secure a long-term hedge and contain energy price risk
The increased price on Day 1 adds to the economic viability of new generation facilities.
The offtake commitment by the data center owner greatly reduces/eliminates performance risk thereby facilitating securing financing and at a lower interest rate.
ERCOT gains the right to curtail power to the data center at some predefined terms – market conditions and price.
Implement a net metering program for residential solar. Currently residential solar owners do not know how much and at what price they will be able to sell excess power if they will be able to sell it at all. Defining those unknowns will reduce the risk and enhance the economics of installing rooftop residential solar.
Provide funding for additional transmission lines where need and conversion of standard voltage transmission lines to EHV – Extra High Voltage transmission.
Require transparency of EROCT’s ECRS (ERCOT Contingency Reserve Service) implemented in 2023.
Under this program ERCOT compensated generators for standby capacity during supply shortfalls.
ERCOT’s market monitor, Potomac Economics, maintains ERCOT spent way too much on ECRS in 2023- $12 billion. ERCOT reports spending significantly less.[1]
It may be a useful ancillary service, but we are not sure because with insufficient transparency we don’t know what it costs.
Consider connection to SPP (Southwest Power Pool) and MISO (Midcontinent ISO).
This will enable ERCOT draw power from neighboring grids in times of extreme grid stress (Winter Storm Uri).
This will also allow generators to potentially obtain higher prices when there is significant oversupply in ERCOT.
There is a downside to this. Connecting to neighboring grids will bring with it Federal regulation which will compromise one of the advantages of ERCOT’s price only market – the ability to quickly bring new capacity online, primarily renewables.
Electricity Demand Policy Recommendations
Historically the ERCOT grid was most susceptible to supply short falls during extreme summer heat. Significant additions to renewable energy capacity, primarily solar, and storage (almost 10,000 megawatts added since 2021) have largely mitigated the summer risk. An 800 sq. ft apartment with resistance heat (electricity) uses as much electricity at 15 degrees as a 2,500 sq. ft. house at 100 degrees. Because of the increased prevalence of colder winter storms with lower than historical temperatures and longer duration combined with Texas heats too many poorly insulated homes and apartments with inefficient resistance heating, the primary risk to ERCOT grid reliability is now in the winter.
Provide subsidies for installation of cold climate heat pumps designed to operate efficiently at temperatures as low as – 22°F. Standard heat pumps start to lose their efficiency and use more energy below 40°F.
Increase insulation requirements for new residential housing, both houses and apartments.
Promote a robust residential demand response program. Homeowners are compensated for reducing energy consumption when called upon.
Encourage/subsidize distributed generation and micro grids. Distributed generation refers to producing electricity using smaller-scale, decentralized energy systems. close to where it is consumed.
How will these proposed subsidies be funded?
Use unused funding from the Texas Energy Fund (TEF). In the last Legislative, session the Legislature created the $5 billion TEF. In the just ended Legislative session an additional $5 billion was added to the fund. Many of the applications initially submitted pursuant to TEF have been withdrawn citing various reasons including supply chain constraints (turbines have a five-year delivery lag), cost uncertainty, permitting challenges, and project viability. That is evidence the program is not working and much of that funding will likely not be spent. Also, with all the opportunities above, why put all our eggs in one basket?
Some of the initiatives are self-funding. TAB (Texas Association of Business) estimates the saving for switching from resistance heating to heat pumps to be $ 400 per year, per household.
TAB estimates $87 per year savings per household for demand response, even for non-participants in the form of lower prices.
Environmental Policy Recommendations
Plugging inactive and orphaned oil and gas wells in a timely manner to prevent contamination and safety hazards. Inactive and orphaned wells—wells that are no longer producing and have no responsible operator—pose significant risks to groundwater, soil, and air. When left unplugged, they can leak hydrocarbons, brine, and other contaminants into aquifers or the surface environment.
Enforcing strict oversight of proper wastewater disposal. Saltwater disposal wells (SWDs) are used to dispose of wastewater from oil and gas operations by injecting it underground. However, excessive injection volumes or poor site selection can cause underground pressure to build up, potentially triggering earthquakes. Additionally, regulators should ensure that operators are held accountable for any surface damage to landowners’ property.
Reducing methane emissions from oil and gas operations, regardless of whether EPA’s regulations remain in place. Methane is a potent greenhouse gas and a major contributor to climate change. Even if federal EPA regulations are rolled back or weakened, Texas regulators can lead by example, by implementing strong state-level controls.
Promoting and regulating carbon capture, utilization and storage to ensure it is safe, transparent, and protective of communities. Carbon capture, utilization, and storage (CCUS) involves capturing CO₂ emissions from industrial processes or power plants and injecting them underground for long-term storage. While CCUS is seen as a promising tool to reduce greenhouse gas emissions, it must be implemented responsibly.
[1 ] Potomac Economics, IMM Report, Presented at: ECCOT Reliability and Markets Committee Meeting, David Patton, Ph.D. December 18-19, 2023, page 14.
https://www.ercot.com/files/docs/2023/12/11/13%20Independent%20Market%20Monitor%20(IMM)%20Report.pdf
