SCOOP: Conservatives caution that Texas bills threaten Trump's Golden Age of American energy

THE LOWDOWN:

• Texas Senate Bill 6 and Senate Bill 715, both under debate in the state House this week, are drawing sharp criticism from the right for new regulations they are set to impose on energy producers. Critics argue this will lead to increased costs for residential consumers and possibly lead to project cancellations altogether, hampering production.

• With the White House warning that “anyone standing in the way of the Golden Age of American Energy will regret it,” conservative critics have gone into overdrive arguing against these two bills.

• SB 6, known as “The Data Center Bill” mandates the installation of state-controlled “kill switches” on data centers in addition to a host of margin-narrowing regulations on producers. The measure has drawn a steady stream of conservative pushback on social media for months and is due to be voted on by Texas lawmakers this Friday.

• Concurrently, SB 715 will impose retroactive reliability requirements on wind and solar projects. Fiscal conservatives tell the Washington Reporter that the bill is a departure from Texas’ free-market energy model, risking economic growth and grid reliability.

Two bills up for consideration in the Texas State House this week are drawing fire from conservatives who argue that if passed, will hinder energy production, raise costs on Texas consumers, and stall out the Trump administration’s plan for a new Energy Golden Age in a key state.

Texas Senate Bill 6 and Senate Bill 715, both under debate in the state House this week, are drawing sharp criticism from the right for new regulations they are set to impose on energy producers. Critics argue this will lead to increased costs for residential consumers and possibly lead to project cancellations altogether, hampering production.

With the White House warning that “anyone standing in the way of the Golden Age of American Energy will regret it,” conservative critics have gone into overdrive arguing against these two bills.

SB 6, known as “The Data Center Bill” mandates the installation of state-controlled “kill switches” on data centers in addition to a host of margin-narrowing regulations on producers. The measure has drawn a steady stream of conservative pushback on social media for months and is due to be voted on by Texas lawmakers this Friday.

Concurrently, SB 715 will impose retroactive reliability requirements on wind and solar projects. Fiscal conservatives tell the Washington Reporter that the bill is a departure from Texas’ free-market energy model, risking economic growth and grid reliability.

SB 715 requires existing renewable energy facilities to secure backup power, a state-imposed mandate that critics argue undermines investor confidence by altering agreements for investments already made.

Natalie Winters, the White House correspondent for Bannon’s War Room, called SB 6 in particular a “ticking time bomb,” and said that it “must be stopped.”

Despite Texas’s reputation as one of the most conservative states in America, energy experts like Daniel Turner, the executive director of Power the Future, explained that “Texas is not quite as Texan as Texans think Texas is.”

Industry estimates suggest this could cost solar operators $1.6 billion annually, a burden likely to increase electricity bills for Texas families and businesses. “This would send the cost of electricity into the stratosphere,” Doug Lewin, an energy policy analyst, said — referring to the bill’s impact on renewable projects.

The bill’s economic impact could hit hardest in rural Republican counties, where wind, solar, and storage projects have generated over $20 billion in tax revenue and $29.5 billion in landowner payments. These funds support schools, infrastructure, and rancher incomes in counties like Menard and Bee.

Analysts warn that SB 715 could force the premature retirement of up to 5 GW of wind generation capacity by 2026, reducing tax revenue and lease payments that rural communities depend on, according to a report by Aurora Energy Research.

Texas leads the nation in wind and solar due to its abundant resources, affordable land, and competitive market. However, SB 715 shifts toward central planning, dictating power generation methods rather than letting market forces decide. The Electric Reliability Council of Texas (ERCOT) projects power demand could double in five years, driven by AI data centers, crypto mining, and manufacturing.

Critics argue that restricting renewables could lead to supply shortages, higher prices, and blackouts. “As energy demand soars from artificial intelligence, data centers, industrial expansions, and population growth, Texas must continue to embrace an all-of-the-above-and-below energy strategy to remain competitive,” Glenn Hamer, President and CEO of the Texas Association of Business, noted.

Grid reliability is improving without SB 715, thanks to storage build-out and reforms from the already passed House Bill 1500. ERCOT reported no conservation calls in 2024 or 2025 and rising reserve margins. New proposed regulations in 715 are poised to stall shovel-ready renewable projects needed to address forecast demand needs.

Supporters of SB 715 claim it ensures grid reliability by prioritizing dispatchable sources like natural gas. However, opponents like TAB argue it unfairly favors older gas plants while penalizing cleaner, market-driven technologies, distorting competition, increasing taxpayer costs, and hampering grid reliability.

As the legislative session nears its June 2 deadline, advocates of free-market solutions and an “all of the above” approach to energy production are ramping up pressure on lawmakers to reject both bills and keep the Trump energy agenda ahead of schedule