BILL ANALYSIS

Senate Research Center	S.B. 1762
	By: Blanco
	Business & Commerce
	3/20/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

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. Unlike traditional geothermal wells used for direct power generation, these wells are focused on energy conservation and management, ensuring efficient utilization of geothermal heat. While these wells manage thermal energy, they do not function as battery energy storage systems, which store electrical energy rather than heat.

Stakeholders have raised concerns regarding the current statutory definition of a geothermal energy conservation well, that the term 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 clarifies the statutory language to explicitly reflect that distinction.

As proposed, S.B. 1762 amends current law relating to geothermal energy conservation wells.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 89.047(a)(1-a), Natural Resources Code, to define "geothermal energy conservation well" and to delete the existing definition of "energy conservation well." 

SECTION 2. Amends Section 89.047(f), Natural Resources Code, to make a conforming change.

SECTION 3. Effective date: upon passage or September 1, 2025.