BILL ANALYSIS

S.B. 1762

By: Blanco

State Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

A geothermal energy conservation well is a specific type of geothermal well designed to capture, transfer, or store thermal energy from underground sources for later use which, unlike traditional geothermal wells that are primarily used for direct power generation, focus on energy conservation and management. The bill sponsor has informed the committee that while these wells manage thermal energy, they do not function as battery energy storage systems, which store electrical energy rather than heat. However, the bill sponsor has further informed the committee that the current statutory definition for an energy conservation well may be misinterpreted as a type of battery storage resource. To eliminate any ambiguity and ensure that a geothermal energy conservation well is not classified as a battery, S.B. 1762 seeks to clarify current statutory language to explicitly reflect that distinction.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 1762 amends the Natural Resources Code to rename an energy conservation well as a geothermal energy conservation well for purposes of the designation by the Railroad Commission of Texas (RRC) under the orphaned well reduction program of a person as the operator of such a well who files with the RRC a factually supported claim based on a recognized legal theory to a continuing possessory right in the geologic space accessed by the well. The bill specifies that such a well is not a battery energy storage resource.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.