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Study ways to increase energy production in Texas.
Texas has been a major oil and gas producer. Our economy has
benefited much since during the early 1980s severance taxes from
oil and gas production provided the state with one-fourth of its
revenue. Presently, though, with the decline in the price of
oil and gas, severance tax revenue only provides the state with
five percent of its revenue. This trend has caused Texas to become
an energy importer rather than a energy exporter. The situation
need to be reversed and this subcommittee will look at approaches
to resolve the trend.
Study the issue of "environmental externalities" when
The issue of environmental externalities (EE) came to the fore
during the 74th Legislature when H.B. 1060 effectively prohibited
it from being considered when determining the cost of power generation
or rates. Environmental externalities are the social costs and
benefits of any production activity that are not recognized in
the cost structure of the product or recovered in the product
price from the consumers, yet are carried or enjoyed by society.
The power generation industry has been the
focus of attention on this issue. Proponents of EE say that certain
pollution costs are present, but excluded in the cost calculation
of the electric utilities. Opponents of EE say that consideration
of it would force a shift to more expensive and less reliable
forms of energy production.
Study the effectiveness of severance tax incentives to promote
oil and gas production activities.
Texas has enjoyed considerable growth due to energy production,
yet the 1980s saw a decline in world prices while Texas energy
resources and production diminished. To counter the effects,
tax incentives were introduced.
Conduct active oversight of agencies under
the committee's jurisdiction.
House Rule 3, Section 11, gives the Texas House of Representatives
Energy Resources Committee jurisdiction over the following agencies:
The Railroad Commission of Texas
The Office of the Interstate Oil Compact Commissioner for Texas
The Office of Interstate Mining Compact Commissioner for Texas
The Texas Energy Coordination Council
The Texas Committee on Energy Policy
The Office of Southern State Energy Board Member for Texas