BILL ANALYSIS Senate Research Center S.B. 2268 89R13928 CS-D By: Schwertner Business & Commerce 4/8/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT S.B. 2627, enacted by the 88th Legislature, created the Texas Energy Fund (TEF) to support the development of new dispatchable generation in Texas. Pursuant to the provisions of the TEF In-ERCOT loan program, the Public Utility Commission of Texas (PUC) is directed to identify eligible projects for loan consideration, execute loan agreements with qualified applicants, and ensure the initial disbursement of loan funds to awardees by December 31, 2025. Since the initiation of the TEF In-ERCOT loan program, unforeseen market-related challenges, such as supply chain disruptions and permitting delays, have impacted the timelines of several otherwise qualified projects. As a result, some applicants have expressed concern regarding their ability to meet the statutory deadline for the initial loan disbursement. S.B. 2268 seeks to address these concerns by giving the PUC discretion to disburse initial TEF loan funds after December 31, 2025, on a case-by-case basis, where market factors constitute justification for extending the deadline. S.B. 2268 would provide a necessary degree of flexibility in the administration of the TEF loan program, ensuring that qualified applicants adversely affected by market factors beyond their control remain eligible to participate. As proposed, S.B. 2268 amends current law relating to disbursement of initial funds under the Texas Energy Fund. 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 34.0104(1), Utilities Code, as follows: (1) Prohibits the Public Utility Commission of Texas (PUC) from disbursing, rather than authorizes the PUC to disburse, the initial funds for a loan under Section 34.0104 (Loans for the Electric Reliability Council of Texas Power Region) after December 31, 2025, if the PUC determines that market factors necessitate an extension of the deadline for disbursement of initial funds. Authorizes an applicant to request disbursement of initial funds after December 31, 2025. Requires the PUC to approve or deny the request on a case-by-case basis. SECTION 2. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 2268
89R13928 CS-D By: Schwertner
Business & Commerce
4/8/2025
As Filed
Senate Research Center
S.B. 2268
89R13928 CS-D
By: Schwertner
Business & Commerce
4/8/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
S.B. 2627, enacted by the 88th Legislature, created the Texas Energy Fund (TEF) to support the development of new dispatchable generation in Texas. Pursuant to the provisions of the TEF In-ERCOT loan program, the Public Utility Commission of Texas (PUC) is directed to identify eligible projects for loan consideration, execute loan agreements with qualified applicants, and ensure the initial disbursement of loan funds to awardees by December 31, 2025.
Since the initiation of the TEF In-ERCOT loan program, unforeseen market-related challenges, such as supply chain disruptions and permitting delays, have impacted the timelines of several otherwise qualified projects. As a result, some applicants have expressed concern regarding their ability to meet the statutory deadline for the initial loan disbursement.
S.B. 2268 seeks to address these concerns by giving the PUC discretion to disburse initial TEF loan funds after December 31, 2025, on a case-by-case basis, where market factors constitute justification for extending the deadline. S.B. 2268 would provide a necessary degree of flexibility in the administration of the TEF loan program, ensuring that qualified applicants adversely affected by market factors beyond their control remain eligible to participate.
As proposed, S.B. 2268 amends current law relating to disbursement of initial funds under the Texas Energy Fund.
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 34.0104(1), Utilities Code, as follows:
(1) Prohibits the Public Utility Commission of Texas (PUC) from disbursing, rather than authorizes the PUC to disburse, the initial funds for a loan under Section 34.0104 (Loans for the Electric Reliability Council of Texas Power Region) after December 31, 2025, if the PUC determines that market factors necessitate an extension of the deadline for disbursement of initial funds. Authorizes an applicant to request disbursement of initial funds after December 31, 2025. Requires the PUC to approve or deny the request on a case-by-case basis.
SECTION 2. Effective date: September 1, 2025.