See below for a spotlight on House and Senate interim charges related to energy, natural resources, and water organized by committee.
House
Appropriations Committee
- Monitor: Monitor the implementation and associated rulemaking of legislation passed by the Committee:
- Establishing the Texas Advanced Nuclear Energy Office
- Additional grants and loans through the Texas Energy Fund
Energy Resources Committee
- Monitor: Monitor the implementation and associated rulemaking of legislation passed by the Committee:
- HB 48, relating to the creation of an organized oilfield theft prevention unit within the Texas Department of Public Safety
- HB 2663, relating to the affirmation required to be made by an operator as part of an application to the Railroad Commission of Texas for an extension of the deadline for plugging an inactive well
- Produced Water: Review the utilization of produced water in Texas. Examine efforts to develop mechanisms for beneficial reuse, barriers to deployment, and other financial impediments limiting the use of produced water. Evaluate the effectiveness of recently passed legislation to address liability concerns and streamline permitting. Make recommendations to encourage greater utilization of this resource.
- Hydrogen: Survey the state of the hydrogen industry in Texas. Review the Railroad Commission of Texas’ Hydrogen Production Policy Council recommendations and determine whether statutory changes are necessary to improve the production, transmission, and utilization of hydrogen.
- Carbon Capture, Utilization, and Storage: Evaluate the continued viability of commercial carbon capture, utilization, and storage in Texas. Analyze the effect of carbon capture projects on energy development and security. Evaluate relevant case law and statutes related to the ownership of pore space, operator liability, and environmental protections. Review how the recent attainment of Class VI primacy may impact the future development of carbon capture projects.
- Severed Well Operations: Review the procedures and administrative rules related to severed wells and the process for an operator to resume operations after a well has been severed. Make recommendations to address any relevant safety and regulatory compliance concerns regarding severed well operations.
- Seismic Activity and Injection Wells: Study the Railroad Commission of Texas’ regulation of disposal and injection wells and determine whether additional measures are needed to protect public safety and critical infrastructure. Review the efficacy of current statutes, rules, and industry practices intended to mitigate seismic activity related to injection and disposal wells.
- P-13 Water Wells Overview: Study the impact of environmental hazards caused by P-13 water wells. Determine the appropriate state agency best positioned to have primary regulatory authority over environmental hazards caused by discharges from P-13 water wells associated with oil and gas and mineral production. Review current and projected costs associated with managing these hazards and identify potential funding mechanisms necessary to plug such wells.
- Preventing Orphaned Wells: Monitor the implementation of SB 1150 and review the administrative processes and safeguards in place to ensure inactive wells are adequately and timely plugged. Identify strategies and policy recommendations to reduce the number of inactive wells that become orphaned.
- Global Energy Overview: Assess the impact of increased geopolitical uncertainty on Texas’ oil and gas industry. Consider the effects of regime changes in the Middle East, the importation of Venezuelan oil, tanker traffic risks in the Strait of Hormuz, and disruptions to the international liquefied natural gas market.
Environmental Regulation Committee
- Monitor: Monitor the implementation and associated rulemaking of legislation passed by the Committee:
- SB 2037, relating to permit application review and contested case procedures for environmental permits involving a project to construct or modify a liquefied natural gas export terminal.
- Improving the Regulatory Process: Study environmental regulations governing air, land, and water quality, waste disposal, and industrial development. Examine opportunities to streamline permitting processes, reduce unnecessary or duplicative regulatory requirements, and improve coordination among responsible agencies. Evaluate how current regulatory requirements affect economic development, infrastructure investment, and business operations across the state while ensuring environmental safeguards remain effective. Develop recommendations to improve regulatory processes, interagency coordination, and provide greater predictability for regulated entities.
Homeland Security, Public Safety, and Veteran’s Affairs Committee
- Protecting Texas Critical Infrastructure From Foreign Adversaries: Study the risks posed by remote-access technologies embedded in critical infrastructure that could enable cyber intrusion, surveillance, or disruption by foreign adversaries or other malicious actors. Evaluate whether additional safeguards are needed to strengthen oversight, prevent exploitation, and protect Texas infrastructure from security threats. Provide recommendations to enhance accountability and ensure the resilience of critical systems.
Natural Resources Committee
- Monitor: Monitor the implementation and associated rulemaking of legislation passed by the Committee:
- HJR 7, proposing a constitutional amendment to dedicate a portion of the revenue derived from state sales and use taxes to the Texas water fund and to provide for the allocation and use of that revenue;
- HB 2078, relating to the joint planning of desired future conditions in groundwater management areas;
- SB 7, relating to the oversight and financing of certain water infrastructure matters under the jurisdiction of the Texas Water Development Board; and
- SB 1169, relating to the provision of water or sewer service by public entities operating jointly or concurrently.
- Groundwater Management: Study groundwater regulation and make recommendations to ensure groundwater management is adequately focused on protecting the long-term viability of the state’s aquifers. Specifically address:
- If desired future conditions provide sufficient protection of groundwater resources, and whether impediments to achieving desired future conditions exist;
- The adequacy of groundwater conservation districts’ authority to address impacts from large-scale groundwater production projects, including export projects;
- The need for increased investment in groundwater data and modeling tools to support advanced planning, decision-making, and management; and
- How groundwater production in unregulated portions of the state impacts the aquifer management efforts of existing groundwater conservation districts.
- Innovative Water Supply Strategies: Study the feasibility of the various project types eligible under the New Water Supply for Texas Fund. Identify project impediments and strategies to increase their implementation and contribution to the state’s overall water supply.
- Brackish Groundwater Production: Monitor the status of brackish groundwater production zone (BGPZ) designations by the Texas Water Development Board and the development of brackish groundwater projects within designated BGPZs. Study the adequacy of scientific understanding of the use and development of brackish aquifers, including a review of current regulatory measures and monitoring requirements to encourage the use of brackish groundwater while ensuring that fresh groundwater resources are preserved and protected.
- Data Center Water Use and Conservation: Examine the total water usage of data center operations in Texas, including direct and indirect uses. Evaluate regulatory, permitting, and infrastructure considerations for water-efficient data center development, particularly in water-stressed regions. Consider policy options to optimize water resources and enhance water stewardship in the data center sector.
- Program Capacity: Assess the capacity of existing state and federal water infrastructure financial assistance programs, including the State Water Implementation Fund for Texas. Evaluate strategies to leverage the dedicated revenue stream established by Proposition 4 (HJR 7, 89th Regular Session) to meet identified capital needs and develop recommendations to mitigate any possible short-term funding shortfalls.
- Regional Water Planning: Study the state and regional water planning process, data used to project long-term water needs and available water supplies, criteria used to adopt water supply projects and management strategies, and progress made to address water supply deficits described within the most recent state water plan. Make recommendations to improve the state and regional water planning process.
State Affairs Committee
- Monitor: Monitor the implementation and associated rulemaking of legislation passed by the Committee:
- HB 14, relating to support for the development of the nuclear energy industry
- HB 143, relating to the authority of the Railroad Commission of Texas and the Public Utility Commission of Texas to address a failure by an operator to maintain an electrical power line serving a well site or certain surface facilities in accordance with the National Electrical Code
- HB 145, relating to risk mitigation planning and associated liability for providers of electric service
- SB 6, relating to the planning for, interconnection and operation of, and costs related to providing service for certain electrical loads and to the generation of electric power by a water supply or sewer service corporation; and
- SB 1789, relating to electric service quality and reliability; providing an administrative penalty.
- Battery Storage and Safety: Examine the current rules and regulations regarding battery storage and safety. Evaluate potential risks to communities and make recommendations to allow the continued deployment of battery storage without compromising public safety.
- Microgrids and Distributed Energy Resources: Evaluate existing aggregate distributed energy resource projects and microgrids across the state. Study existing programs, determine their efficacy, and consider how these projects improve reliability, reduce consumer costs, and support overall grid resilience. Make recommendations to improve the availability of these programs.
Trade, Workforce, and Economic Development Committee
- Supply Chain Resilience and Economic Security: Identify strategies to strengthen and secure Texas’ supply chains across critical industries, including manufacturing, energy, technology, food and agriculture, health care, and logistics. Examine vulnerabilities related to workforce availability, infrastructure capacity, domestic production, supplier concentration, and global disruptions. Identify workforce-aligned economic development policies that improve supply chain resilience, reduce dependency risks, support Texas-based production, and ensure continuity of goods and services essential to the state’s economy.
Senate
Business and Commerce Committee
- Securing Critical Infrastructure and Supply Chain Integrity: Evaluate the integrity of the supply chain for the Texas electric grid and other critical infrastructure. Identify any vulnerabilities or potential risks posed by hostile foreign entities of concern including, but not limited to, China, Russia, and Iran. Make recommendations for improvements and an ongoing evaluation process to remain vigilant in maintaining a reliable and secure Texas electric grid.
- Assessing the State of the Texas Electric Grid: Monitor rulemaking related to Senate Bill 6, 89th Legislature, including large load interconnection rules, cost allocation of transmission costs, and the progress made toward increasing confidence in Electric Reliability Council of Texas (ERCOT) load forecasts. Examine previous efforts to strengthen the reliability and resiliency of the Texas electric grid, including the Texas Energy Fund and post-Winter Storm Uri reforms at both the Public Utility Commission and ERCOT, including Senate Bills 2 and 3, 87th Legislature. Evaluate the competitiveness of the ERCOT market to determine whether further changes are necessary to support a robust energy-only market.
- Managing the Impacts of 765-kv Transmission Lines on Private Property Rights: Review the proposed 765-kv transmission line route plans to determine their impact on homes, businesses, and communities. Assess whether the current regulatory processes and timelines are sufficient in protecting landowner rights, including allowing for proper consideration of the effect of high voltage transmission lines on long-term land use, property values, and environmental factors. Recommend ways to improve transmission planning, permitting, and siting decisions for the infrastructure necessary to serve growth in the state.
- Modernizing Transmission and Enhancing Affordability: Consider proposals to improve transmission planning, construction, and ratemaking processes to protect everyday Texans from rising electricity costs. Evaluate ways to maximize existing transmission infrastructure and reduce congestion through the integration of residential distributed energy resources, energy storage, and other grid technologies. Review ERCOT’s proposed changes to its interconnection process to determine what guardrails should be enacted to increase transparency and accountability, and support continued investments in the state.
- Managing Data Center Growth: Study the adequacy of current statutory, regulatory, and infrastructure frameworks to meet the rapidly increasing demand from large electric loads, such as data centers. Recommend ways to balance economic development benefits of this growth against the impacts on landowners, private property rights, water infrastructure, and community integrity.
- Monitor: Monitor the implementation and associated rulemaking of legislation passed by the Committee:
- House Bill 14 (89th Legislature), relating to support for the development of the nuclear energy industry
Natural Resources Committee
- Ensuring Responsible Renewable Energy Decommissioning: Study the lifecycle and decommissioning of wind and solar facilities. Evaluate the adequacy of current financial assurance requirements to ensure site remediation and protect landowners from decommissioning costs. Examine the environmental impacts of disposal and recycling for wind turbine blades and solar modules, specifically addressing concerns regarding landfilling, hazardous material leaching, and component toxicity. Make recommendations to strengthen state oversight, ensuring responsible land restoration and the proper management of decommissioned materials.
- Monitor: Monitor the implementation and associated rulemaking of legislation passed by the Committee:
- Senate Bill 494 (89th Legislature), relating to the establishment of a theft of petroleum products task force;
- Senate Bill 1145 (89th Legislature), relating to the authority of the Texas Commission on Environmental Quality to issue permits for the land application of water produced from certain mining and oil and gas extraction operations;
- Senate Bill 1806 (89th Legislature), relating to the inspection, purchase, sale, possession, storage, transportation, and disposal of petroleum products, oil and gas equipment, and oil and gas waste; creating criminal offenses and increasing the punishment for an existing criminal offense;
- House Bills 48 (89th Legislature), relating to the creation of an organized oilfield theft prevention unit within the Department of Public Safety; and
- House Bill 49 (89th Legislature), relating to the treatment and beneficial use of fluid oil and gas waste and related material, including a limitation on liability for that treatment or use.
Water, Agriculture, and Rural Affairs Committee
- Assessing the Water Demands of Energy-Intensive Technologies: Examine the current water consumption rates for high-consumption cooling technologies, including data centers. Make recommendations to improve transparency for local water providers and ensure industrial growth does not compromise the affordability of water for Texas residents and agricultural producers.
- Prioritizing Utility Revenue for Infrastructure Maintenance: Study the practice of large municipalities transferring revenue from water and wastewater utilities to general funds. Assess the impact of such transfers on delays in projects, infrastructure maintenance backlogs, and water loss mitigation. Make recommendations to limit the percentage of utility revenue available for transfer and ensure ratepayer funds are dedicated exclusively to the sustainability and security of Texas water systems.
- Evaluating Desalination Viability and Regulatory Efficiency: Inventory existing facilities and review the permitting framework across relevant state agencies to improve efficiency. Assess the practicality of desalination in high-feasibility regions and identify opportunities for local-level implementation. Make recommendations to streamline the regulatory process.
Select Committee on Homeland and Border Security
- Shoring Up the Integrity of Export Fuel: Explore the current structure of export fuel in Texas and follow its path from a fuel rack or terminal to delivery. Consider the impact on state revenue of entities that falsely alter or modify the content of a load of fuel designated for export. Review the tactics utilized in the field when fuel transporters engage in tax evasion and money laundering, such as falsifying shipping documents. Make recommendations to close statutory loopholes and prohibit the transloading or blending of export fuel.
- Combating Public Corruption Tied to Fuel Crimes: Examine the impact of public corruption related to stolen and adulterated fuel loads in Texas. Consider the advantages of adding the Texas Border Prosecution Unit (BPU) to the definition of “prosecuting attorney” under the Texas Public Integrity Unit so they can assist in prosecuting and eliminating public corruption. Make recommendations to end public corruption connected to stolen or laundered fuel and other transnational crimes.
