BILL ANALYSIS

 

 

 

C.S.S.B. 2268

By: Schwertner

State Affairs

Committee Report (Substituted)

 

 

 

BACKGROUND AND PURPOSE

 

The Texas Energy Fund was created to support new generation infrastructure in the state through loans and grants administered by the Public Utility Commission (PUC). However, the bill sponsor has informed the committee that the PUC's ability to disburse initial loan funds, currently limited to a deadline of December 31, 2025, may restrict flexibility in funding energy projects in response to market needs, and that, while current law provides confidentiality protections for application materials, the office of the attorney general (OAG) has interpreted those protections narrowly. Specifically, the bill sponsor has informed the committee that OAG has limited protection to documents included in the initial application and has excluded materials submitted throughout the review process or developed by the PUC and its consultants, leaving proprietary and commercially sensitive information to disclosure under state public information law. C.S.S.B. 2268 seeks to address both the flexibility and confidentiality concerns identified in the administration of the Texas Energy Fund by extending the PUC's authority to disburse initial loan funds after December 31, 2025, if market factors justify an extension, and by clarifying that any information submitted at any time for the purpose of enabling the PUC to make a determination on the award of a grant or loan is confidential and not subject to disclosure under state public information law.

 

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

 

C.S.S.B. 2268 amends the Utilities Code to authorize a construction loan provided to a municipally owned utility, or an instrumentality of a municipal corporation established for the benefit of a municipally owned utility, to be in the form of a public security, as defined by reference to the Public Security Procedures Act, issued by the loan applicant if the public security is payable on a parity basis with other debt of the loan applicant secured by a senior lien on net revenues of the facility or the loan applicant's utility system. This authorization applies to a loan the application for which was submitted under statutory provisions relating to loans for the ERCOT power region to the Public Utility Commission of Texas (PUC) before the bill's effective date if the application is pending before the PUC on the bill's effective date.

 

C.S.S.B. 2268, with respect to the prohibition against outstanding loans provided under Public Utility Regulatory Act provisions relating to loans for the ERCOT power region and grants provided under statutory provisions relating to completion bonus grants, considered together, supporting the addition or construction of more than 10,000 megawatts of generation capacity, removes the specification of the completion bonus grants, considered together. The bill replaces the prohibition against the PUC disbursing the initial funds for a loan under Public Utility Regulatory Act provisions governing loans for the ERCOT power region after December 31, 2025, with an authorization for the PUC to disburse those initial funds after that date if the PUC determines that market factors necessitate an extension of the deadline for disbursement of initial funds. The bill authorizes an applicant to request disbursement of initial funds after December 31, 2025, and requires the PUC to approve or deny the request on a case-by-case basis.

 

C.S.S.B. 2268 replaces provisions establishing that information submitted to the PUC in an application for a grant for facilities outside the ERCOT power region, for a loan for the ERCOT power region, or for a completion bonus grant, as applicable, is confidential and not subject to state public information law with provisions establishing that information submitted to the PUC at any time for the purpose of enabling the PUC to make a determination on the award of a grant or loan, as applicable, is confidential and not subject to state public information law.

 

C.S.S.B. 2268 prohibits completion bonus grants provided under applicable state law from supporting the construction of more than 10,000 megawatts of generation capacity.

 

C.S.S.B. 2268 establishes that information submitted to the PUC at any time for the purpose of enabling the PUC to make a determination on the award of a grant or loan under statutory provisions relating to Texas Power Promise backup power packages is confidential and not subject to disclosure under state public information law.

 

EFFECTIVE DATE

 

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

 

COMPARISON OF SENATE ENGROSSED AND SUBSTITUTE

 

While C.S.S.B. 2268 may differ from the engrossed in minor or nonsubstantive ways, the following summarizes the substantial differences between the engrossed and committee substitute versions of the bill.

 

The substitute includes the following provisions absent from the engrossed:

·       provisions replacing provisions establishing that information submitted to the PUC in an application for a grant for facilities outside ERCOT power region, for a loan for ERCOT power region, or for a completion bonus grant, as applicable, is confidential and not subject to state public information law with provisions establishing that information submitted to the PUC at any time for the purpose of enabling the PUC to make a determination on the award of a grant or loan, as applicable, is confidential and not subject to state public information  law.

·       a provision establishing that information submitted to the PUC at any time for the purpose of enabling the PUC to make a determination on the award of a grant or loan under statutory provisions relating to Texas Power Promise backup power packages is confidential and not subject to disclosure under state public information law.