Texas 2025 89th Regular

Texas Senate Bill SB1762 Senate Committee Report / Analysis

Filed 04/07/2025

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                    BILL ANALYSIS        Senate Research Center   C.S.S.B. 1762     89R22083 ANG-F   By: Blanco         Business & Commerce         4/3/2025         Committee Report (Substituted)          AUTHOR'S / SPONSOR'S STATEMENT OF INTENT   A geothermal energy conservation well is a specific type of geothermal well designed to capture, transfer, or store thermal energy from underground sources for later use. Unlike traditional geothermal wells used for direct power generation, these wells are focused on energy conservation and management, ensuring efficient utilization of geothermal heat. While these wells manage thermal energy, they do not function as battery energy storage systems, which store electrical energy rather than heat.    Stakeholders have raised concerns regarding the current statutory definition of a geothermal energy conservation well, that the term may be misinterpreted as a type of battery storage resource.    To eliminate any ambiguity and ensure that a geothermal energy conservation well is not classified as a battery, S.B. 1762 clarifies the statutory language to explicitly reflect that distinction.   (Original Author's/Sponsor's Statement of Intent)   C.S.S.B. 1762 amends current law relating to the authority of the Railroad Commission of Texas to designate certain persons as the operator of an orphaned oil or gas well.   RULEMAKING AUTHORITY   This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.   SECTION BY SECTION ANALYSIS   SECTION 1. Amends Section 89.047(a)(1-a), Natural Resources Code, to define "geothermal energy conservation well" and to delete the existing definition of "energy conservation well."    SECTION 2. Amends Section 89.047(f), Natural Resources Code, to make a conforming change.    SECTION 3. Effective date: upon passage or September 1, 2025.

BILL ANALYSIS

Senate Research Center C.S.S.B. 1762
89R22083 ANG-F By: Blanco
 Business & Commerce
 4/3/2025
 Committee Report (Substituted)



Senate Research Center

C.S.S.B. 1762

89R22083 ANG-F

By: Blanco

Business & Commerce

4/3/2025

Committee Report (Substituted)

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

A geothermal energy conservation well is a specific type of geothermal well designed to capture, transfer, or store thermal energy from underground sources for later use. Unlike traditional geothermal wells used for direct power generation, these wells are focused on energy conservation and management, ensuring efficient utilization of geothermal heat. While these wells manage thermal energy, they do not function as battery energy storage systems, which store electrical energy rather than heat.

Stakeholders have raised concerns regarding the current statutory definition of a geothermal energy conservation well, that the term may be misinterpreted as a type of battery storage resource.

To eliminate any ambiguity and ensure that a geothermal energy conservation well is not classified as a battery, S.B. 1762 clarifies the statutory language to explicitly reflect that distinction.

(Original Author's/Sponsor's Statement of Intent)

C.S.S.B. 1762 amends current law relating to the authority of the Railroad Commission of Texas to designate certain persons as the operator of an orphaned oil or gas well.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 89.047(a)(1-a), Natural Resources Code, to define "geothermal energy conservation well" and to delete the existing definition of "energy conservation well."

SECTION 2. Amends Section 89.047(f), Natural Resources Code, to make a conforming change.

SECTION 3. Effective date: upon passage or September 1, 2025.