BILL ANALYSIS Senate Research Center S.B. 2322 By: King Economic Development 4/4/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Chapter 403 lays out the Texas Job, Energy, Technology and Innovation (JETI) program established by the 88th Legislature. JETI is a school district maintenance and operations (M&O) appraised tax value limitation program, based on qualifying job creation and capital investment. The JETI program is designed to be a competitive site selection tool communities can leverage to attract businesses to relocate and expand within the state of Texas. Dispatchable electric generation facilities are eligible for this program, as a means of encouraging generation facilities to expand and produce more energy, improving the strength of the Texas grid. Part of the application criteria is that site selection remain competitive throughout the entire application process, requiring companies to produce proof of the competition within the evaluation of sites. In Texas, competitive site selection is defined as a company exploring location options within Texas and another state or country. Companies are often expected to show the incentives that the other state/country has offered as proof of this competition. Applicants must pass the compelling factor test, where the agreement is a compelling factor in the site selection determination and that, in the absence of the agreement, the applicant would not make the proposed investment in this state. Electric generation facilities are often not competitive site selection situations. ERCOT indicates where generation facilities are allowed to be interconnected, leaving the generation companies without the option of alternative sites. This does not allow these electric generation facilities the option to use this program as intended. S.B. 2322 amends Section 403.609(b) to exclude energy generation facilities from the compelling factor test, expanding this use of the program to this facilities as intended. As proposed, S.B. 2322 amends current law relating to the applicability of the compelling factor test within the Texas Jobs, Energy, Technology, and Innovation Act. 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 403.609(b), Government Code, as follows: Sec. 403.609. COMPTROLLER ACTION ON APPLICATION. (a) Makes no changes to this subsection. (b) Prohibits the Comptroller of Public Accounts of the State of Texas (comptroller) from recommending an application for approval unless the comptroller finds that certain criteria are met, including that, for a project described by Section 403.602(8)(A)(i)(a) (relating to a project to construct or expand a manufacturing facility), (c) (relating to a project to construct or expand a facility related to the development of natural resources), (d) (relating to a project to construct or expand a facility engaged in the research, development, or manufacture of high-tech equipment or technology) or (ii) (relating to a project to construct or expand critical infrastructure), the agreement is a compelling factor in a competitive site selection determination and that, in the absence of the agreement, the applicant would not make the proposed investment in this state. (c)-(e) Makes no changes to these subsections. SECTION 2. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 2322
By: King
Economic Development
4/4/2025
As Filed
Senate Research Center
S.B. 2322
By: King
Economic Development
4/4/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Chapter 403 lays out the Texas Job, Energy, Technology and Innovation (JETI) program established by the 88th Legislature. JETI is a school district maintenance and operations (M&O) appraised tax value limitation program, based on qualifying job creation and capital investment. The JETI program is designed to be a competitive site selection tool communities can leverage to attract businesses to relocate and expand within the state of Texas. Dispatchable electric generation facilities are eligible for this program, as a means of encouraging generation facilities to expand and produce more energy, improving the strength of the Texas grid.
Part of the application criteria is that site selection remain competitive throughout the entire application process, requiring companies to produce proof of the competition within the evaluation of sites. In Texas, competitive site selection is defined as a company exploring location options within Texas and another state or country. Companies are often expected to show the incentives that the other state/country has offered as proof of this competition. Applicants must pass the compelling factor test, where the agreement is a compelling factor in the site selection determination and that, in the absence of the agreement, the applicant would not make the proposed investment in this state.
Electric generation facilities are often not competitive site selection situations. ERCOT indicates where generation facilities are allowed to be interconnected, leaving the generation companies without the option of alternative sites. This does not allow these electric generation facilities the option to use this program as intended.
S.B. 2322 amends Section 403.609(b) to exclude energy generation facilities from the compelling factor test, expanding this use of the program to this facilities as intended.
As proposed, S.B. 2322 amends current law relating to the applicability of the compelling factor test within the Texas Jobs, Energy, Technology, and Innovation Act.
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 403.609(b), Government Code, as follows:
Sec. 403.609. COMPTROLLER ACTION ON APPLICATION. (a) Makes no changes to this subsection.
(b) Prohibits the Comptroller of Public Accounts of the State of Texas (comptroller) from recommending an application for approval unless the comptroller finds that certain criteria are met, including that, for a project described by Section 403.602(8)(A)(i)(a) (relating to a project to construct or expand a manufacturing facility), (c) (relating to a project to construct or expand a facility related to the development of natural resources), (d) (relating to a project to construct or expand a facility engaged in the research, development, or manufacture of high-tech equipment or technology) or (ii) (relating to a project to construct or expand critical infrastructure), the agreement is a compelling factor in a competitive site selection determination and that, in the absence of the agreement, the applicant would not make the proposed investment in this state.
(c)-(e) Makes no changes to these subsections.
SECTION 2. Effective date: September 1, 2025.