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A BILL TO BE ENTITLED
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AN ACT
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relating to the utilization of the Texas Energy Fund to support |
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dispatchable electric generation using treated fluid oil and gas |
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waste. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 34, Utilities Code, is amended to add the |
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following subchapter: |
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SUBCHAPTER C. TEXAS ENERGY FUND UTILIZATION |
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DEFINITIONS(a) "Treated fluid oil and gas waste" has the meaning |
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assigned by Section 121.001(2), Natural Resources Code. |
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(b) "Dispatchable electric generation" means power |
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generation resources that can be dispatched on demand to ensure |
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grid reliability and stability, as referenced in Section 34.002, |
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Utilities Code. |
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(c) "High renewable energy generation areas" refer to |
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regions where renewable energy sources, such as wind and solar, |
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constitute a significant portion of the energy mix, creating |
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economic challenges for dispatchable generation, as identified by |
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the Public Utility Commission of Texas under Section 34.010, |
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Utilities Code. |
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TEXAS ENERGY FUND UTILIZATION: (a) Section 34.007, Utilities |
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Code, is amended to authorize the Texas Energy Fund Administrator |
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to allocate funds for projects that: |
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(1) Utilize treated f1uid oil and gas waste as the |
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primary water source for dispatchable electric |
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generation; and |
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(2) Are located in high renewable energy generation |
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areas to mitigate economic challenges faced by |
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dispatchable power plants competing with renewable |
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energy sources. |
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(b) Chapter 481, Government Code, is amended to include the |
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following provision under Section 481.078: |
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(1) The Texas Energy Fund shall consider projects |
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meeting the criteria outlined in Subsection (a) when |
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evaluating economic incentives for new energy |
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infrastructure investments. |
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SECTION 3. FUNDING MECHANISM AND PROJECT APPROVAL: (a) The |
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Public Utility Commission of Texas shall oversee the integration of |
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these criteria into the administration of the Texas Energy Fund |
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under Chapter 34, Utilities Code. |
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(b) The Texas Energy Fund Administrator, in coordination |
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with the Texas Commission on Environmental Quality and the Railroad |
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Commission of Texas, shall establish project application |
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guidelines within 180 days of the effective date of this Act. |
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(c) Funds allocated under this Act shall be used for |
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infrastructure development, operational incentives, and |
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feasibility studies for eligible projects. |
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SECTION 4. IMPLEMENTATION AND REGULATORY OVERSIGHT: (a) The |
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Public Utility Commission of Texas shall develop guidelines and |
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evaluation metrics to assess project eligibility under this Act. |
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(b) Within 180 days of enactment, the Texas Energy Fund |
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Administrator shall establish procedures to consider applications |
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for projects that meet the criteria outlined in Section 2. |
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(c) The Public Utility Commission shall conduct an annual |
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review to assess the impact of these incentives on dispatchable |
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generation investments and report findings to the legislature. |
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SECTION 5. EFFECTIVE DATE: This Act takes effect |
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immediately upon passage by a two-thirds majority vote of both |
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houses, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the necessary votes, it takes effect |
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September 1, 2025. |