Monitoring the Session

HB 3356

Patterson Bill Widens Grid Penalties, Then Exempts Two-Hookup Plants

Did not pass

Verdict: Smells

SmellsNeeds review
Rep. Jared PattersonRHouse 106
Both charges, and why
Carve-out

THE TEXT

“on resources with dual but separate grid interconnections that provide dispatchable generation to the ERCOT power region”…

Bill text, House committee report version (H)

This clause fully exempts one specially described class of plant from penalties. The old law exempted these plants only outside certain hours, and the bracketed text that limited the exemption is struck.

Carve-out
The hole

THE TEXT

…“the Public Utility Commission of Texas may allow the financial penalties and incentives required by that subsection to be adopted in a phased manner over multiple years”…

Bill text, House committee report version (H)

The penalties the bill widens to existing plants can be phased in over several years at the commission's discretion. That can delay the reliability requirement for the plants the bill newly covers.

The hole

Needs review · Nov 1, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to reliability requirements for certain electric generation facilities.

Caption from analyzed text · version H.

Summary

Penalties reach existing ERCOT plants. Two-hookup plants get a full pass. Phase-in “over multiple years.”

The bill makes all ERCOT power plants with a standard grid hookup agreement, that have run for at least a year and are not self-generators, subject to the state's performance standards and penalties, not just plants signing agreements in 2027 or later. It also adds new penalty exemptions for plants that can run 24 hours straight on their own or through a contract, and for plants with two separate grid hookups. Regulators must weigh rebating penalty money to consumers, and they may phase in the penalties over several years.

Labels

Labels: STALLED AFTER COMMITTEE. Voted out of the House State Affairs committee 8-7 on Apr 23, 2025. Never placed on a calendar. The bill died.

Receipt

The receipt

89R-HB3356 · 2025-02-25

SOLD BY

Rep. Jared PattersonRHouse 106 Rep. Don McLaughlinRHouse 80 Rep. Terri Leo WilsonRHouse 23

+ 21 coauthors

ITEM

relating to reliability requirements for certain electric generation facilities.

WHAT IT DOES

Penalties reach existing ERCOT plants. Two-hookup plants get a full pass. Phase-in “over multiple years.”

The bill makes all ERCOT power plants with a standard grid hookup agreement, that have run for at least a year and are not self-generators, subject to the state's performance standards and penalties, not just plants signing agreements in 2027 or later. It also adds new penalty exemptions for plants that can run 24 hours straight on their own or through a contract, and for plants with two separate grid hookups. Regulators must weigh rebating penalty money to consumers, and they may phase in the penalties over several years.

CHARGES

[x] CARVE-OUTanalysis confidence 45%

THE TEXT

“on resources with dual but separate grid interconnections that provide dispatchable generation to the ERCOT power region”…

Bill text, House committee report version (H)

This clause fully exempts one specially described class of plant from penalties. The old law exempted these plants only outside certain hours, and the bracketed text that limited the exemption is struck.

[x] THE HOLEanalysis confidence 35%

THE TEXT

…“the Public Utility Commission of Texas may allow the financial penalties and incentives required by that subsection to be adopted in a phased manner over multiple years”…

Bill text, House committee report version (H)

The penalties the bill widens to existing plants can be phased in over several years at the commission's discretion. That can delay the reliability requirement for the plants the bill newly covers.

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version H · source

Sources

Fiscal note · version H · April 24, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to State Affairs
  4. Scheduled for public hearing on . . .
  5. Considered in public hearing
  6. Testimony taken/registration(s) recorded in committee
  7. Left pending in committee
  8. Considered in public hearing
  9. Committee substitute considered in committee
  10. Reported favorably as substituted
  11. Comte report filed with Committee Coordinator
  12. Committee report distributed
  13. Committee report sent to Calendars
FILED UNDER

DATA CENTERS, WATER AND THE GRID

THE TEXT

“This section applies only to an electric generation facility in the ERCOT power region that is subject to [ for which ] a standard generator interconnection agreement”…

Bill text, House committee report version (H)

The bill widens grid reliability penalties to existing ERCOT generators and changes who escapes them and how penalty money might flow back to consumers.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Jared Patterson

Donors

Texans for Lawsuit Reform PAC$133KTexas Sands PAC$85KTexas Conservative Majority PAC$58K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 28, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$132,750.00

Texans for Lawsuit Reform PAC

$132,750.00

Cash
$100,000.00
Paid by others
$32,750.00
Total
$132,750.00
polling $32,750.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 25, 2025 to Oct 7, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100996442, 101018590, 101035748, 101067950, 101072483.

Texas Sands PAC$84,800.00

Texas Sands PAC

$84,800.00

Cash
$68,000.00
Paid by others
$16,800.00
Total
$84,800.00
polling $16,800.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 4, 2024 to Oct 15, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100976997, 101018590, 101035748, 101072483.

Texas Conservative Majority PAC$57,950.00

Texas Conservative Majority PAC

$57,950.00

Cash
$0.00
Paid by others
$57,950.00
Total
$57,950.00
canvassing $35,000.00polling $22,950.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Feb 12, 2026 to Sep 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101035748, 101067950.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texans for Lawsuit Reform PAC

$132,750.00

Cash
$100,000.00
Paid by others
$32,750.00
Total
$132,750.00
polling $32,750.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 25, 2025 to Oct 7, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100996442, 101018590, 101035748, 101067950, 101072483.

×

Texas Sands PAC

$84,800.00

Cash
$68,000.00
Paid by others
$16,800.00
Total
$84,800.00
polling $16,800.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 4, 2024 to Oct 15, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100976997, 101018590, 101035748, 101072483.

×

Texas Conservative Majority PAC

$57,950.00

Cash
$0.00
Paid by others
$57,950.00
Total
$57,950.00
canvassing $35,000.00polling $22,950.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Feb 12, 2026 to Sep 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101035748, 101067950.

Votes

No floor vote loaded for this bill.

Witnesses31
For
5
Against
24
On
2
Names

For

  • Panhandle Producers & Royalty Owners Assoc1 registration
  • Self; American Energy Institute1 registration
  • Self; American energy works1 registration
  • South Texas Electric Coop., Inc.1 registration
  • Texas Public Policy Foundation1 registration

Against

  • Advanced Power Alliance1 registration
  • Advanced Power Alliance; Texas Solar & Storage Association1 registration
  • Apex Clean Energy1 registration
  • BASF1 registration
  • City of Garland, Texas1 registration
  • Conservative Texans for Energy Innovation1 registration
  • EDF Renewables1 registration
  • Enel North America, Inc.1 registration
  • Invenergy LLC1 registration
  • Lone Star Chapter Sierra Club1 registration
  • NextEra Energy Resources1 registration
  • Orsted1 registration
  • Pattern Energy Group 2LP1 registration
  • Powering Texans1 registration
  • R Street Institute1 registration
  • RWE Clean Energy1 registration
  • Self1 registration
  • Self; Environment Texas1 registration
  • Self; Texas Advanced Energy Business Alliance1 registration
  • Self; US GREEN BUILDING COUNCIL TEXAS CHAPTER1 registration
  • Sol Systems LLC1 registration
  • Solar energy industries association1 registration
  • Texas Solar and Storage Association1 registration
  • The AES Corporation1 registration

On

  • Electric Reliability Council of Texas (ERCOT)1 registration
  • Public Utility Commission of Texas1 registration
Sources

31 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version H · source

Sources

Fiscal note · version H · April 24, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version H by claude-opus-5-5, Oct 22, 2026, against the published rubric.

Sources

Texas House · Filed Feb 25, 2025

04/29/2025 H Committee report sent to Calendars

Texas Legislature Online · Introduced · House Committee Report

Data snapshot Nov 1, 2026 at 1:49 PM CST. Grades, charges, quotes and corrections follow the published record.

Coauthors
Daniel AldersRHouse 6 Cecil Bell Jr.RHouse 3 Benjamin BumgarnerRHouse 63 Charles CunninghamRHouse 127 Mark DorazioRHouse 122 Gary GatesRHouse 28 Cody HarrisRHouse 8 Hillary HicklandRHouse 55 Janis HoltRHouse 18 Lacey HullRHouse 138 Carrie IsaacRHouse 73 Helen KerwinRHouse 58 Stan KitzmanRHouse 85 Janie LopezRHouse 37 Will MetcalfRHouse 16 Katrina PiersonRHouse 33 Keresa RichardsonRHouse 61 Alan SchoolcraftRHouse 44 Joanne ShofnerRHouse 11 Shelby SlawsonRHouse 59 Cody VasutRHouse 25

House committee · State Affairs · Committee vote 8 aye, 7 nay · Out of committee

Companion

SB 715 by Sparks (identical)

Subjects

Utilities--Electric

Utilities--General

Text

The text as introduced · 176 words

89R4457 SCR-D

By: Patterson
H.B. No. 3356

A BILL TO BE ENTITLED

AN ACT

relating to the applicability of certain generation reliability

requirements.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 39.1592(a), Utilities Code, is amended

to read as follows:

(a) This section applies only to an electric generation

facility in the ERCOT power region that is subject to [ for which ] a

standard generator interconnection agreement , [ is signed on or

after January 1, 2027, that ] has been in operation for at least one

year, and [ that ] is not a self-generator.

SECTION 2. (a) Sections 52(b) and (c), Chapter 410 (H.B.

1500), Acts of the 88th Legislature, Regular Session, 2023, are

repealed.

(b) Notwithstanding the deadline provided by Section

39.1592(b), Utilities Code, an owner or operator of an electric

generation facility to which Section 39.1592(b), Utilities Code,

applies shall make the first demonstration required by Section

39.1592(b), Utilities Code, not later than January 1, 2027.

SECTION 3. This Act takes effect September 1, 2025.