We oppose efforts to further subsidize fossil fuel plants through state-backed incentives or capacity market schemes. One of our goals is to increase grid resiliency measures at private and public utilities to help Texans survive weather extremes, including Backup Power Packages approved by voters in 2023 as a part of the Texas Energy Fund (TEF). The TEF was created by the Texas Legislature through Senate Bill 2627 and provides funding opportunities for electric generation projects through four programs. With many proponents now interested in thus far unproven advanced nuclear power, we will continue to guard the taxpayer and ratepayer from schemes that would place the financial burden on those who would benefit the least.
2025 Legislative Goal Summary
- Prevent public funds from further subsidizing fossil fuel power plants through programs like those established by the Texas Energy Fund (TEF).
- Redirect state-backed incentives toward clean energy development to promote long-term grid stability and resilience.
- Challenge market schemes that disproportionately benefit fossil fuel operations and create barriers for renewable energy expansion.
- Advocate for equitable funding for responsible renewable energy projects such as wind, solar, and energy storage.
- Promote accountability and transparency in allocating public funds to ensure they serve the broader public interest.
2025 Bill Highlights
Currently, the Sierra Club Lone Star Chapter opposes:
- SB 388 - King, Phil: Relating to the legislature's goals for electric generation capacity in this state. (we oppose this bill which would limit the growth of renewable energy and incentivize fossil fuel generation)
Fossil Fuel Subsidy Facts
1. Current Legislation Subsidizes Gas Plants
The Texas Legislature allocated $7.2 billion in loans for up to 10,000 MW of gas generation under SB 2627. Using taxpayer funds to benefit a private industry in an open market is bad public policy. This program incentivizes new gas projects but excludes clean energy sources like wind, solar, or energy storage, limiting progress toward a more balanced grid.
2. The Texas Energy Fund Offers Backup Power Packages
Approved by voters in 2023, the TEF provides grants and loans for "backup power packages" designed to enhance grid resiliency during emergencies. While these packages could include gas infrastructure, they could also be used for solar and storage and large electric buses to provide backup power. The Legislature and PUCT has yet to approve any rules or funding for this program yet.
3. Advanced Nuclear Power Plants Are An Unknown
A recent report released by the Texas Advanced Nuclear Reactor Working Group made seven recommendations to the Legislature, including supporting the creation of yet another Texas Energy Fund for loans for new nuclear power plants and a grant program for the nuclear supply chain. There are more questions than answers on so-called Small Modular Reactors. Texas taxpayers should not be on the hook for subsidizing a new unproven technology that will continue to rely on radioactive waste and could have real health and environmental impacts.
4. Current Legislation Increases Costs for Renewable Projects
While Sierra Club supported the final version of HB 1500, it did include provisions that increase transmission costs and could impose “firming” requirements on renewable energy projects, further favoring fossil fuels. These policies may discourage renewable adoption, hindering Texas's transition to a resilient, clean energy grid. Fortunately, thus far rulemaking has not been overly costly or burdensome but we expect that some in the Legislature could come back with even worse proposals.
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