The bill would amend the Utilities Code to establish the Texas Energy Fund and related funding mechanisms to support the construction, maintenance, and modernization of dispatchable electric generating facilities.
The bill would allow the Public Utility Commission of Texas (PUC) to provide loans for maintenance, modernization, or construction of certain dispatchable electric generating facilities in the Electric Reliability Council of Texas (ERCOT) power region through the Texas Energy Fund. The fund would consist of money transferred by law or at PUC's discretion; dedicated revenue; investment and interest earnings; and gifts, grants, and donations. Funds could be used by PUC without further appropriation to provide zero-interest loans.
The bill would direct PUC to provide a completion bonus grant for the construction of such facilities that begins before December 1, 2024 and meets certain interconnection deadlines. ERCOT will be responsible for ensuring the facilities are fully interconnected to the ERCOT power region
The bill would require that each recipient of a loan for new construction deposit into an escrow account held by the Comptroller an amount that is five percent of the estimated construction costs for the facility for which the loan was provided.
The bill provides criteria for evaluating loan applications and provides for receivership in the event a generating facility defaults on their loan.
This bill would establish the Texas Energy Fund as a special fund in the state treasury to be administered and used by the Commission and consists of money transferred or deposited, revenue from fees' assessment, or taxes imposed by the state. The bill would provide that the fund and it's accounts are kept and held by the Texas Treasury Safekeeping Trust Company on behalf of the Commission.
The bill would create the Texas Energy Fund Advisory Committee to oversee the fund and subjects the Advisory Committee to the Sunset Act and abolishment on September 1, 2035 unless continued as provided by Chapter 325, Government Code.
The bill takes effect on the date on which the constitutional amendment (SJR93) proposed by the 88th Legislature, Regular Session, 2023, providing for the creation of the Texas energy fund and the authorization of other funding mechanisms to support the construction and operation of electric generating facilities takes effect. If that amendment is not approved by the voters, this bill has no effect.