MINUTES
SENATE COMMITTEE ON BUSINESS & COMMERCE
Tuesday, May 11, 2004
9:00 a.m.
Betty King Committee Hearing Room, 2E.20
*****
Pursuant to a notice posted in accordance with Senate Rule
11.18, a public hearing of the Senate Committee on Business &
Commerce was held on Tuesday, May 11, 2004, in the Betty King
Committee Hearing Room, 2E.20, at Austin, Texas.
*****
MEMBERS PRESENT: MEMBERS ABSENT:
Senator Troy Fraser, Chairman None
Senator Kip Averitt, Vice Chairman
Senator Kenneth Armbrister
Senator Kim Brimer
Senator John Carona
Senator Craig Estes
Senator Mike Jackson
Senator Eddie Lucio, Jr.
Senator Leticia Van de Putte
*****
The chair called the meeting to order at 9:00 a.m. There being
a quorum present, the following business was transacted:
Chairman Fraser made brief opening remarks and advised that the
Committee would be hearing testimony on Interim Charge #3,
regarding the Texas Residential Construction Commission which
was established by HB 730 in the 78th Legislative Session. The
Committee would also discuss and hear testimony on Interim
Charge #6, relating to improving the potential for further
renewable energy development and the current status of policies
encouraging the use of the renewable energy sources.
The Chairman called invited witness Stephen Thomas, Texas
Residential Construction Commission, to present his testimony on
Interim Charge #3. Mr. Thomas gave a brief update on home
builder registration; state-sponsored inspection and dispute
resolution process; limited warranties and building and
performance standards; industry task forces; Texas Star Builder
Program; voluntary certification of arbitrators and filing of
arbitration awards; Commission infrastructure; and public
information efforts.
Following Mr. Thomas' testimony, Chairman Fraser called for
public testimony. Chairman Fraser called Scott Norman, Texas
Association of Builders, to present his testimony and respond to
members' questions. Mr. Norman was the only public witness to
testify, although Ray Tonjes and Jim Frankel had filled out
cards to testify if committee members had questions of the
industry. Chairman Fraser then closed public testimony on
Interim Charge #3.
The Chairman then advised the Committee and those present that
the Committee would now begin testimony on Charge #6. Chairman
Fraser called Julie Parsley, Commissioner, Public Utility
Commission of Texas, to present her testimony. Commissioner
Parsley testified on the status of renewable energy in Texas;
effectiveness of current policies; economics associated with
renewable energy; and potential for renewable energy
development. Before completion of Commissioner Parsley's
testimony, Chairman Fraser moved at 10:13 a.m. that the
Committee stand recessed until after adjournment of the Senate;
without objection, it was so ordered.
At 11:48 a.m. the Committee reconvened. Chairman Fraser called
Commissioner Parsley to complete her testimony and respond to
members' questions.
Following Commissioner Parsley's testimony, the Chairman called
Dub Taylor, Director of the State Energy Conservation Office
(SECO). Mr. Taylor gave an overview of SECO; energy in Texas;
purchasing renewable energy; and renewable energy projects.
Upon completion of Mr. Taylor's testimony, Senator Averitt
assumed the Chair and called Adan Martinez, General Land Office
(GLO), to present his testimony. Mr. Martinez testified on past
efforts by the GLO to develop renewable energy on state lands
and current efforts by the GLO to commercialize wind generation
on state lands.
Chairman Fraser resumed the Chair and called John Fainter,
President of the Association of Electric Companies of Texas.
Mr. Fainter presented his testimony and responded to members'
questions.
Upon completion of Mr. Fainter's testimony, Chairman Fraser
called Walt Hornaday, President of Cielo Wind Power. Mr.
Hornaday presented his testimony and responded to members'
questions.
Chairman Fraser then called Tom "Smitty" Smith, Director of
Public Citizen's Texas Office. Mr. Smith presented his
testimony and responded to members' questions.
Upon completion of Mr. Smith's testimony, Chairman Fraser called
the final invited witness, Mike Sloan, Consultant representing
The Wind Coalition. Mr. Sloan provided information on the
status of the Texas wind industry and described policy needs.
Following Mr. Sloan's testimony, the Chairman called for public
testimony. Chairman Fraser called Bob King, Engineer,
SENATE COMMITTEE ON BUSINESS & COMMERCE
Minutes
Tuesday, May 11, 2004
page 3
representing Ridge Energy Group. Mr. King presented his
testimony and responded to members' questions. Mr. King was the
only public witness to testify.
Upon completion of Mr. King's testimony, Chairman Fraser moved
that public testimony be closed; without objection, it was so
ordered.
There being no further business, at 2:04 p.m. Senator Fraser
moved that the Committee stand recessed subject to the call of
the Chairman. Without objection, it was so ordered.
___________________________
Senator Troy Fraser, Chairman
___________________________
Tatum Baker, Clerk