89R24081 CS-D
By: Louderback, Darby, Garcia of Bexar, H.B. No. 3778
Lalani
A BILL TO BE ENTITLED
AN ACT
relating to the use of geothermal energy as a dispatchable
generation resource.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 34, Utilities Code, is
amended by adding Section 34.01015 to read as follows:
Sec. 34.01015. APPLICABILITY. For the purposes of this
chapter:
(1) a generating facility is considered to be
dispatchable if the facility's output can be controlled primarily
by forces under human control; and
(2) a geothermal energy generation facility is
considered to be dispatchable.
SECTION 2. Section 34.0104, Utilities Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) The commission may use money in the fund without further
appropriation to provide loans to finance upgrades to existing
dispatchable electric generating facilities providing power for
the ERCOT power region that result in a net increase of at least 100
megawatts of capacity for each facility or the construction of
dispatchable electric generating facilities providing power for
the ERCOT power region that each have a generation capacity of at
least 100 megawatts. [For the purposes of this section, a
generating facility is considered to be dispatchable if the
facility's output can be controlled primarily by forces under human
control.] An electric energy storage facility, other than a
geothermal energy conservation well, is not eligible for a loan
under this section.
(a-1) Notwithstanding Subsections (a) and (b)(1), the
commission may use money in the fund, without further
appropriation, to provide loans to finance the construction of
geothermal energy generation facilities and geothermal energy
conservation wells in the ERCOT power region that have a generation
capacity of at least 10 megawatts.
SECTION 3. Sections 34.0105(a) and (c), Utilities Code, are
amended to read as follows:
(a) The commission shall provide, using money available in
the fund for the purpose without further appropriation, a
completion bonus grant for the construction of dispatchable
electric generating facilities in the ERCOT power region. [For the
purposes of this section, a generating facility is considered to be
dispatchable if the facility's output can be controlled primarily
by forces under human control.] An electric energy storage
facility, other than a geothermal energy conservation well, is not
eligible for a grant under this section.
(c) The commission may provide a grant under this section
only for construction of a facility that:
(1) will have a generation capacity of at least 100
megawatts or at least 10 megawatts for a geothermal energy
generation facility or geothermal energy conservation well; and
(2) does not meet the planning model requirements
necessary to be included in the Capacity Demand and Reserves Report
of the independent organization certified under Section 39.151 for
the ERCOT power region before June 1, 2023.
SECTION 4. Section 39.159(a), Utilities Code, is amended to
read as follows:
(a) For the purposes of this section:
(1)[,] a generation facility is considered to be
dispatchable if the facility's output can be controlled primarily
by forces under human control; and
(2) a geothermal energy generation facility and a
geothermal energy conservation well are considered to be
dispatchable [non-dispatchable if the facility's output is
controlled primarily by forces outside of human control].
SECTION 5. This Act takes effect September 1, 2025.