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The infrastructure bill and the power grid

Of interest.

President Joe Biden’s $2 trillion infrastructure plan could help rebuild Texas highways and ports and push broadband into rural parts of the state, where up to 31 percent of residents do not have access to high-speed internet.

It could help Texas weatherize the grid in a way that wouldn’t stick consumers with the bill as well as guard the Gulf Coast against hurricanes and address racial disparities that have made Latino and Black communities particularly vulnerable to natural disasters.

The infrastructure pitch is the president’s latest attempt to offer up money for things Republican leaders in Texas have been looking for funds to cover, as well as some that state lawmakers have been reluctant to take on.

But the president’s latest proposal also comes with a heavy emphasis on clean energy that some Texas Republicans have framed as an attack on the state’s oil industry, and Biden is calling for corporate tax increases to foot the bill.

[…]

Though Biden outlined the package in Pittsburgh on Wednesday, the pitch may as well have been aimed at Texas.

“As we saw in Texas and elsewhere, our electrical power grids are vulnerable to storms, catastrophic failures and security lapses to tragic results,” Biden said, pledging to “put hundreds of thousands of people to work” rebuilding a “modern, resilient and fully clean grid” and capping hundreds of thousands of dry oil and gas wells, many in Texas.

[…]

The infrastructure bill could also help pick up the tab — if not cover completely — the cost of weatherizing Texas’ power grid, which state lawmakers are so far requiring the industry to cover. Consumer advocates have warned those costs would then be passed down to consumers.

So far the White House has not detailed specific projects, but the plan calls for $100 billion to be spent on energy projects, including upgrades to electrical grids. [Michael Webber, an energy resources professor at the University of Texas at Austin] said given that Texas accounts for about 8 percent of the U.S. population and 10 percent of the GDP, a proportionate slice of that $100 billion would cover the estimated $8 to $10 billion price of weatherizing the grid.

But the president’s push for green energy in the infrastructure package already has state leaders pushing back.

The Texas Legislature is working to counteract tax credits for clean energy Biden would extend as his proposal aims for 100 percent carbon-free electricity by 2035. The state Senate passed a bill this week adding fees on solar and wind electricity production in the state in hopes of boosting fossil fuels.

More far-reaching proposals for clean energy in the plan could have major implications for the Texas oil and gas industry. Republicans are calling it Biden’s latest attack on fossil fuels after moves to end the Keystone XL pipeline and pause drilling on federal lands.

As Biden is calling for pouring $174 billion to juice the electric vehicle market and another $213 billion to retrofit 2 million homes and businesses to increase energy efficiency, he is also proposing spending $16 billion plugging oil wells — an endeavor Webber said could be a multi-billion dollar industry in Texas offering plenty of jobs to oil workers worried about Biden’s clean energy bent.

“This is a multi-hundred million to multi-billion dollar economic opportunity,” he said. “If you’re looking to be angry, you could be angry about what this might do to oil and gas — but I would say actually it’s a pretty good opportunity.”

As a reminder, right now this is the Infrastructure Plan That Is Not Yet A Bill, though the House is now working on what it will look like as legislation. The Texas Senate has passed its bill to overhaul the electricity market, which has some good things in it as well as that dumb and petty attack on renewable energy, which last I checked was still big business in Texas. The fact that Biden’s plan includes ending tax subsidies to fossil fuel companies will I’m sure have heads exploding all over the state. I have to assume that federal funds to cover the cost of weatherizing the grid would be scooped up and used, though never acknowledged and certainly not voted for by Republicans.

It’s hard to know how any of this will play out, given that we don’t have a piece of legislation yet, and we very much have to take into account the whole filibuster obstacle in the Senate. I have read elsewhere that the legislative calendar is such that this would all need to be done by late summer, so to say the least it’s a race. As a reminder, if you want to know more about the plan, see Slate and the Trib.

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