HB 5617

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