BILL ANALYSIS

S.B. 2322

By: King

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

As established by the 88th Legislature, the Texas Jobs, Energy, Technology, and Innovation (JETI) program is a public school district maintenance and operations appraised tax value limitation program, based on qualifying job creation and capital investment. The JETI program is designed to be a competitive site selection tool communities can leverage to attract businesses to relocate and expand in Texas. The bill sponsor has informed the committee that dispatchable electric generation facilities are eligible for this program as a means of encouraging generation facilities to expand and produce more energy and improving the strength of the Texas grid, that applicants must pass a compelling factor test whereby the comptroller of public accounts finds that a JETI agreement is a compelling factor in a site selection determination for a project, and that, in the absence of the agreement, the applicant would not make the proposed investment in Texas. However, the bill sponsor has informed the committee that the decision to construct electric generation facilities is often not based on a competitive site selection process and that in Texas ERCOT indicates where generation facilities are allowed to be interconnected, leaving the generation companies without the option of alternative sites and rendering these electric generation facilities unable to use this program as intended. S.B. 2322 seeks to exclude certain energy generation facilities from the compelling factor test required by a JETI agreement.

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. 2322 amends the Government Code, with respect to the findings required to be made by the comptroller of public accounts in order to recommend for approval an application for an agreement to limit the taxable value of eligible property for school district maintenance and operations property tax purposes under the Texas Jobs, Energy, Technology, and Innovation Act, to make inapplicable to a facility related to the provision of utility services, including an electric generation facility that is considered to be dispatchable because the facility's output can be controlled primarily by forces under human control, the requirement that the comptroller find that the agreement to limit the taxable value of the eligible property used as part of the project is a compelling factor in a competitive site selection determination and that, in the absence of the agreement, the applicant would not make the proposed investment in Texas.

S.B. 2322 applies only to an agreement entered into under the Texas Jobs, Energy, Technology, and Innovation Act pursuant to an application submitted under that act on or after the bill's effective date.

EFFECTIVE DATE

September 1, 2025.