Monitoring the Session

HB 3778

Louderback Bill Sets 10-Megawatt Grant Floor For Geothermal

Died in committee

Verdict: Smells

SmellsReviewed
Rep. AJ LouderbackRHouse 30
Why it's charged
Carve-out

THE TEXT

…“megawatts or at least 10 megawatts for a geothermal energy”…

Bill text, engrossed version (E)

Every other plant must reach 100 megawatts to get a completion bonus grant, but geothermal gets a 10-megawatt floor. That favor goes past the caption's promise to classify geothermal as dispatchable. Because the caption does name geothermal, this is a mild flag and not a hidden one.

Carve-out

Reviewed · 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 the use of geothermal energy as a dispatchable generation resource.

Caption from analyzed text · version E.

Summary

Every other plant needs 100 megawatts for a completion bonus grant. Geothermal needs 10!

The bill writes into state utility law that geothermal power plants count as dispatchable power, meaning their output can be controlled on demand. That makes geothermal plants, and geothermal energy conservation wells, eligible for Texas Energy Fund loans and completion bonus grants in the ERCOT region, with a lower size floor of 10 megawatts instead of the 100 megawatts other plants must meet. The state utility commission can now lend or grant fund money, without further appropriation, to smaller geothermal projects that were shut out before, starting September 1, 2025.

Labels

Labels: ACROSS THE AISLE. Joint authors: 3 Republicans, 2 Democrats. Party as the Legislative Reference Library lists it for the 89th Legislature.GOT HALFWAY. Passed the House on May 7, 2025. Died in the Senate: left pending in the Business & Commerce committee.

Receipt

The receipt

89R-HB3778 · 2025-03-05

SOLD BY

Rep. AJ LouderbackRHouse 30 Rep. Drew DarbyRHouse 72 Rep. Josey GarciaDHouse 124

+ 2 more authors

ITEM

relating to the use of geothermal energy as a dispatchable generation resource.

WHAT IT DOES

Every other plant needs 100 megawatts for a completion bonus grant. Geothermal needs 10!

The bill writes into state utility law that geothermal power plants count as dispatchable power, meaning their output can be controlled on demand. That makes geothermal plants, and geothermal energy conservation wells, eligible for Texas Energy Fund loans and completion bonus grants in the ERCOT region, with a lower size floor of 10 megawatts instead of the 100 megawatts other plants must meet. The state utility commission can now lend or grant fund money, without further appropriation, to smaller geothermal projects that were shut out before, starting September 1, 2025.

CHARGES

[x] CARVE-OUTanalysis confidence 40%

THE TEXT

…“megawatts or at least 10 megawatts for a geothermal energy”…

Bill text, engrossed version (E)

Every other plant must reach 100 megawatts to get a completion bonus grant, but geothermal gets a 10-megawatt floor. That favor goes past the caption's promise to classify geothermal as dispatchable. Because the caption does name geothermal, this is a mild flag and not a hidden one.

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version E · source

Sources

Fiscal note · version E · May 22, 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
  14. Considered in Calendars
  15. Placed on General State Calendar
  16. Read 2nd time
  17. Passed to engrossment
  18. Record vote RV#1559
  19. Statement(s) of vote recorded in Journal
  20. Read 3rd time
  21. Passed
  22. Record vote RV#1630
  23. Statement(s) of vote recorded in Journal
  24. Reported engrossed
  25. Received from the House
  26. Read first time
  27. Referred to Business & Commerce
  28. Posting rule suspended
  29. Considered in public hearing
  30. Testimony taken in committee
  31. Left pending in committee
FILED UNDER

CORPORATE WELFARE

THE TEXT

…“appropriation, to provide loans to finance the construction of”…

Bill text, engrossed version (E)

The bill opens state energy fund loans and grants to one named industry, geothermal power, at a far lower size threshold than other generators.

SIGNED FOR BY

House · 140 yea · 2 nay

Sources

House: Final passage · May 7, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

AJ Louderback

Donors

Texans for Truth and Liberty PAC$50KTexas Trial Lawyers Association PAC$28KTexans for Lawsuit Reform PAC$25K

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 27, 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 Truth and Liberty PAC$50,000.00

Texans for Truth and Liberty PAC

$50,000.00

Cash
$50,000.00
Paid by others
$0.00
Total
$50,000.00

Also funds 44 other sitting lawmakers.

Derived recipient stock · Jun 24, 2025 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 26, 2025 to Oct 6, 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: 101009033, 101071885.

Texas Trial Lawyers Association PAC$27,500.00

Texas Trial Lawyers Association PAC

$27,500.00

Cash
$27,500.00
Paid by others
$0.00
Total
$27,500.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 9, 2024 to Oct 5, 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: 100988974, 101009033, 101059497, 101071885.

Texans for Lawsuit Reform PAC$25,000.00

Texans for Lawsuit Reform PAC

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

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 · Sep 30, 2026 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: 101071885.

Money

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

×

Texans for Truth and Liberty PAC

$50,000.00

Cash
$50,000.00
Paid by others
$0.00
Total
$50,000.00

Also funds 44 other sitting lawmakers.

Derived recipient stock · Jun 24, 2025 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 26, 2025 to Oct 6, 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: 101009033, 101071885.

×

Texas Trial Lawyers Association PAC

$27,500.00

Cash
$27,500.00
Paid by others
$0.00
Total
$27,500.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 9, 2024 to Oct 5, 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: 100988974, 101009033, 101059497, 101071885.

×

Texans for Lawsuit Reform PAC

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

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 · Sep 30, 2026 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: 101071885.

Votes2

House May 7, 2025

Yea
140
Nay
2
Present, not voting
2
Absent
4
Excused
2
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 1630

HB 3778 was passed by (Record 1630): 140 Yeas, 2 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 140 (published)
  • Nay: 2 (published)
  • Present, not voting: 2 (published)
  • Absent: 4 (derived from named list)
  • Excused: 2 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 6, 2025

Yea
129
Nay
7
Present, not voting
1
Absent
11
Excused
2
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 1559

CSHB 3778 was passed to engrossment by (Record 1559): 129 Yeas, 7 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 129 (published)
  • Nay: 7 (published)
  • Present, not voting: 1 (published)
  • Absent: 11 (derived from named list)
  • Excused: 2 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses14
For
13
Against
0
On
1
Names

For

  • BASF Corporation1 registration
  • Conservative Texans for Energy Innovation1 registration
  • Environmental Defense Fund1 registration
  • Lone Star Chapter Sierra Club1 registration
  • Nueces County1 registration
  • Sage Geosystems, Inc.1 registration
  • Self1 registration
  • Self; American Energy Institute1 registration
  • Self; American Energy Works1 registration
  • Self; South Texans’ Property Rights Association1 registration
  • Self; Texas Geothermal Energy Alliance1 registration
  • Texas Association of Business1 registration
  • Texas Economic Development Council1 registration

On

  • Public Utility Commission of Texas1 registration
Sources

14 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 E · source

Sources

Fiscal note · version E · May 22, 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 E by claude-opus-5-5, Oct 22, 2026, against the published rubric.

Sources

Texas House · Filed Mar 5, 2025

05/23/2025 S Left pending in committee

Texas Legislature Online · Introduced · House Committee Report · Engrossed

Data snapshot Nov 1, 2026 at 3:11 PM CST. Grades, charges, quotes and corrections follow the published record.

Sponsors
Lois KolkhorstRSenate 18

House committee · State Affairs · Committee vote 15 aye, 0 nay · Out of committee

Senate committee · Business & Commerce · Final status: Died in committee

Subjects

Energy--Geothermal (IP9BV)

Utilities--Electric

PUBLIC UTILITY COMMISSION

Text

The text as introduced · 395 words

89R11011 CS-D

By: Louderback
H.B. No. 3778

A BILL TO BE ENTITLED

AN ACT

relating to the use of geothermal energy as a dispatchable

generation resource.

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

SECTION 1. Subchapter A, Chapter 34, Utilities Code, is

amended by adding Section 34.01015 to read as follows:

Sec. 34.01015. APPLICABILITY. For the purposes of this

chapter:

(1) a generating facility is considered to be

dispatchable if the facility's output can be controlled primarily

by forces under human control; and

(2) a geothermal generating facility is considered to

be dispatchable.

SECTION 2. Section 34.0104(a), Utilities Code, is amended

to read as follows:

(a) The commission may use money in the fund without further

appropriation to provide loans to finance upgrades to existing

dispatchable electric generating facilities providing power for

the ERCOT power region that result in a net increase of at least 100

megawatts of capacity for each facility or the construction of

dispatchable electric generating facilities providing power for

the ERCOT power region that each have a generation capacity of at

least 100 megawatts. [ For the purposes of this section, a

generating facility is considered to be dispatchable if the

facility's output can be controlled primarily by forces under human

control. ] An electric energy storage facility is not eligible for

a loan under this section.

SECTION 3. Section 34.0105(a), Utilities Code, is amended

to read as follows:

(a) The commission shall provide, using money available in

the fund for the purpose without further appropriation, a

completion bonus grant for the construction of dispatchable

electric generating facilities in the ERCOT power region. [ For the

purposes of this section, a generating facility is considered to be

dispatchable if the facility's output can be controlled primarily

by forces under human control. ] An electric energy storage

facility is not eligible for a grant under this section.

SECTION 4. Section 39.159(a), Utilities Code, is amended to

read as follows:

(a) For the purposes of this section :

(1) [ , ] a generation facility is considered to be

dispatchable if the facility's output can be controlled primarily

by forces under human control; and

(2) a geothermal generation facility is considered to

be dispatchable [ non-dispatchable if the facility's output is

controlled primarily by forces outside of human control ].

SECTION 5. This Act takes effect September 1, 2025.