Relating to the establishment of a strategic reserve of gas and crude oil and a severance tax credit for delivering gas and oil to the reserve.
Impact
The bill will amend the Texas Tax Code to introduce a tax credit equating to the market value of gas and oil delivered to the state for its reserve. Notably, the credits cannot be applied against taxes required to fund statewide education or transportation, thus preserving essential funding sources. The establishment of such a reserve is expected to bolster state policies on energy security, while also potentially stimulating economic activity in the oil and gas sectors through the incentivization of resource contributions.
Summary
SB2553 aims to establish a strategic reserve of gas and crude oil in Texas, alongside implementing a severance tax credit for the in-kind delivery of gas and oil to this reserve. The legislation serves to enhance the state’s preparedness for energy supply disruptions and foster strategic energy storage capabilities. By allowing tax credits for deliveries made without charge, the bill encourages producers to contribute to the state’s energy reserve, effectively aligning economic incentives with public resource management.
Sentiment
The response to SB2553 has been generally positive among stakeholders in the energy sector, who view the bill as a pragmatic approach to strengthening the state’s energy resilience. However, concerns have been voiced regarding the potential impacts on environmental regulations and the management of natural resources, indicating a polarized sentiment among environmental advocacy groups and some community activists who worry about priorities being shifted toward resource extraction over conservation.
Contention
Debate around SB2553 has highlighted a fundamental concern regarding the balance between resource development and environmental stewardship. Opponents argue that establishing a large reserve could lead to increased extraction activities that may have adverse ecological implications. Conversely, supporters assert that a strategic reserve is essential for ensuring long-term energy stability, particularly in response to unpredictable global energy markets. The clash of interests indicates a broader conflict on how best to manage natural resources in a sustainable manner while also addressing economic growth.
Oil and gas; creating State Strategic Petroleum Reserve; directing appropriation; directing Corporation Commission to maintain Reserve; establishing conditions to be met for release of oil from Reserve. Emergency.
Oil and gas; creating State Strategic Petroleum Reserve; directing appropriation; directing Corporation Commission to maintain Reserve; establishing conditions to be met for release of oil from Reserve. Emergency.
Buy Low and Sell High Act This bill revises requirements concerning the Strategic Petroleum Reserve (SPR) and sets forth provisions to reduce the demand for petroleum fuel and increase fuel supply. For example, the bill directs the Department of Energy (DOE) to establish within the SPR an Economic Petroleum Reserve of up to 350 million barrels of crude oil. DOE must also establish a national network of Strategic Refined Petroleum Product Reserves to store up to 250 million barrels of gasoline and diesel fuel, which may be sold when there is a severe fuel supply interruption within the district in which the reserve is located. In addition, the bill increases the cap on the amount of barrels of petroleum distillate that may be stored in the Northeast Home Heating Oil Reserve from two million to four million. It also establishes limits on the sale and exportation of petroleum products from such reserves. Further, the bill establishes provisions concerning electrifying the transportation sector, zero-emission vehicles, and a program to increase the amount of crude oil refined in oil refineries in certain countries in the Western Hemisphere.
Relating to the establishment and administration of the Texas Strategic Bitcoin Reserve for the purpose of investing in cryptocurrency and the investment authority of the comptroller of public accounts over the reserve and certain other state funds.