| 1 | 1 | | By: Sparks S.B. No. 2810 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to the utilization of the Texas Energy Fund to support |
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| 9 | 9 | | dispatchable electric generation using treated fluid oil and gas |
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| 10 | 10 | | waste. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Chapter 34, Utilities Code, is amended to add the |
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| 13 | 13 | | following subchapter: |
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| 14 | 14 | | SUBCHAPTER C. TEXAS ENERGY FUND UTILIZATION |
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| 15 | 15 | | DEFINITIONS(a) "Treated fluid oil and gas waste" has the meaning |
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| 16 | 16 | | assigned by Section 121.001(2), Natural Resources Code. |
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| 17 | 17 | | (b) "Dispatchable electric generation" means power |
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| 18 | 18 | | generation resources that can be dispatched on demand to ensure |
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| 19 | 19 | | grid reliability and stability, as referenced in Section 34.002, |
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| 20 | 20 | | Utilities Code. |
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| 21 | 21 | | (c) "High renewable energy generation areas" refer to |
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| 22 | 22 | | regions where renewable energy sources, such as wind and solar, |
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| 23 | 23 | | constitute a significant portion of the energy mix, creating |
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| 24 | 24 | | economic challenges for dispatchable generation, as identified by |
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| 25 | 25 | | the Public Utility Commission of Texas under Section 34.010, |
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| 26 | 26 | | Utilities Code. |
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| 27 | 27 | | TEXAS ENERGY FUND UTILIZATION: (a) Section 34.007, Utilities |
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| 28 | 28 | | Code, is amended to authorize the Texas Energy Fund Administrator |
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| 29 | 29 | | to allocate funds for projects that: |
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| 30 | 30 | | (1) Utilize treated f1uid oil and gas waste as the |
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| 31 | 31 | | primary water source for dispatchable electric |
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| 32 | 32 | | generation; and |
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| 33 | 33 | | (2) Are located in high renewable energy generation |
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| 34 | 34 | | areas to mitigate economic challenges faced by |
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| 35 | 35 | | dispatchable power plants competing with renewable |
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| 36 | 36 | | energy sources. |
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| 37 | 37 | | (b) Chapter 481, Government Code, is amended to include the |
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| 38 | 38 | | following provision under Section 481.078: |
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| 39 | 39 | | (1) The Texas Energy Fund shall consider projects |
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| 40 | 40 | | meeting the criteria outlined in Subsection (a) when |
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| 41 | 41 | | evaluating economic incentives for new energy |
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| 42 | 42 | | infrastructure investments. |
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| 43 | 43 | | SECTION 3. FUNDING MECHANISM AND PROJECT APPROVAL: (a) The |
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| 44 | 44 | | Public Utility Commission of Texas shall oversee the integration of |
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| 45 | 45 | | these criteria into the administration of the Texas Energy Fund |
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| 46 | 46 | | under Chapter 34, Utilities Code. |
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| 47 | 47 | | (b) The Texas Energy Fund Administrator, in coordination |
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| 48 | 48 | | with the Texas Commission on Environmental Quality and the Railroad |
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| 49 | 49 | | Commission of Texas, shall establish project application |
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| 50 | 50 | | guidelines within 180 days of the effective date of this Act. |
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| 51 | 51 | | (c) Funds allocated under this Act shall be used for |
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| 52 | 52 | | infrastructure development, operational incentives, and |
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| 53 | 53 | | feasibility studies for eligible projects. |
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| 54 | 54 | | SECTION 4. IMPLEMENTATION AND REGULATORY OVERSIGHT: (a) The |
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| 55 | 55 | | Public Utility Commission of Texas shall develop guidelines and |
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| 56 | 56 | | evaluation metrics to assess project eligibility under this Act. |
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| 57 | 57 | | (b) Within 180 days of enactment, the Texas Energy Fund |
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| 58 | 58 | | Administrator shall establish procedures to consider applications |
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| 59 | 59 | | for projects that meet the criteria outlined in Section 2. |
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| 60 | 60 | | (c) The Public Utility Commission shall conduct an annual |
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| 61 | 61 | | review to assess the impact of these incentives on dispatchable |
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| 62 | 62 | | generation investments and report findings to the legislature. |
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| 63 | 63 | | SECTION 5. EFFECTIVE DATE: This Act takes effect |
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| 64 | 64 | | immediately upon passage by a two-thirds majority vote of both |
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| 65 | 65 | | houses, as provided by Section 39, Article III, Texas Constitution. |
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| 66 | 66 | | If this Act does not receive the necessary votes, it takes effect |
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| 67 | 67 | | September 1, 2025. |
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