Energy fund support for power plants using treated waste

The text as introduced · 474 words

By: Morales of Maverick
H.B. No. 5617

A BILL TO BE ENTITLED

AN ACT

relating to the utilization of the Texas Energy Fund to support

dispatchable electric generation using treated fluid oil and gas

waste.

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

SECTION 1. Chapter 34, Utilities Code, is amended to add the

following subchapter:

SUBCHAPTER C. TEXAS ENERGY FUND UTILIZATION

DEFINITIONS(a) "Treated fluid oil and gas waste" has the meaning

assigned by Section 121.001(2), Natural Resources Code.

(b) "Dispatchable electric generation" means power

generation resources that can be dispatched on demand to ensure

grid reliability and stability, as referenced in Section 34.002,

Utilities Code.

(c) "High renewable energy generation areas" refer to

regions where renewable energy sources, such as wind and solar,

constitute a significant portion of the energy mix, creating

economic challenges for dispatchable generation, as identified by

the Public Utility Commission of Texas under Section 34.010,

Utilities Code.

TEXAS ENERGY FUND UTILIZATION: (a) Section 34.007,

Utilities Code, is amended to authorize the Texas Energy Fund

Administrator to allocate funds for projects that:

(1) Utilize treated fluid oil and gas waste as the

primary water source for dispatchable electric generation; and

(2) Are located in high renewable energy generation

areas to mitigate economic challenges faced by dispatchable power

plants competing with renewable energy sources.

(b) Chapter 481, Government Code, is amended to include the

following provision under Section 481.078:

(1) The Texas Energy Fund shall consider projects

meeting the criteria outlined in Subsection (a) when evaluating

economic incentives for new energy infrastructure investments.

SECTION 3 . FUNDING MECHANISM AND PROJECT APPROVAL: (a) The

Public Utility Commission of Texas shall oversee the integration of

these criteria into the administration of the Texas Energy Fund

under Chapter 34, Utilities Code.

(b) The Texas Energy Fund Administrator, in coordination

with the Texas Commission on Environmental Quality and the Railroad

Commission of Texas, shall establish project application

guidelines within 180 days of the effective date of this Act.

(c) Funds allocated under this Act shall be used for

infrastructure development, operational incentives, and

feasibility studies for eligible projects.

SECTION 4 . IMPLEMENTATION AND REGULATORY OVERSIGHT: (a) The

Public Utility Commission of Texas shall develop guidelines and

evaluation metrics to assess project eligibility under this Act.

(b) Within 180 days of enactment, the Texas Energy Fund

Administrator shall establish procedures to consider applications

for projects that meet the criteria outlined in Section 2.

(c) The Public Utility Commission shall conduct an annual

review to assess the impact of these incentives on dispatchable

generation investments and report findings to the legislature.

SECTION 5. EFFECTIVE DATE: This Act takes effect

immediately upon passage by a two-thirds majority vote of both

houses, as provided by Section 39, Article III, Texas Constitution.

If this Act does not receive the necessary votes, it takes effect

September 1, 2025.