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HB 1500 (Holland) Relating to the continuation and functions of the Public Utility Commission of Texas and the Office of Public Utility Counsel, and the functions of the independent organization certified for the ERCOT power region; increasing an administrative penalty. In addition to PUCT and ERCOT being called before the Sunset Advisory Commission in 2029, the following electricity amendments were among those added:

Training required for PUCT commissioners on law, budgeting, and ethics prior to acting as commissioner, including sitting commissioners
Public testimony is required to be an agenda item for every open meeting
Violation of voluntary mitigation plans (for generators) can result in fines up to $1 million per violation; VMPs must be reviewed at least every two years
Generators must notify ERCOT of the reason for unscheduled interruptions of service and makes the reasons public
An allowance is granted to generators for transmission interconnection costs; establishing the allowance evaluates the potential to reduce consumer costs, “historical generation interconnection costs”, and any other factor commissioners deem appropriate; any costs of interconnection above the allowance are at the expense of the generator
A “segmentation” study will be performed on TDU systems to determine how outages can be spread more equitably across electric customers
Evaluating backup power systems as a solution is part of that study
All ERCOT protocol revisions must meet with PUCT approval; PUCT direction to ERCOT cannot be verbal but must be memorialized in writing or through a case or rulemaking, except in emergencies
Dispatchable reliability reserve service (DRRS) shall be developed by ERCOT as an ancillary service; requires 4 hours of deliverability at high sustained limit (eliminates battery storage) within two hours of being called
PUCT will deliver a report to the Legislature by December 1st of each year outlining the annual costs of “backing up dispatchable and non-dispatchable…generation”
“Generation reliability requirements” (39.1592) apply to generation with interconnection agreements on or after 1/1/2027
These newer units, as part of the generation owner’s portfolio, must meet dispatchability requirements up to their “seasonal average generation capability” – failure to meet the performance requirements results in ERCOT penalties
ERCOT and TAC (ERCOT stakeholder committee) must determine if the reliability services result in a net savings to consumers
PUCT will determine who pays for reliability services – either unreliable generators or load-serving entities or both; PUCT has broad discretion
The PUCT evaluation shall be submitted to the Legislature by 12/1/26
The “net cost to the ERCOT market” cannot exceed an inflation-adjusted $1 billion annually; the program cannot benefit REP-affiliated generators
ERCOT and the IMM will submit a report to the PUCT and Legislature on the costs and benefits of this program
A “Grid Reliability Legislative Oversight Committee” is formed (4 senators, 4 house members) and will meet twice per year
Several new reports are to be prepared by the PUCT and ERCOT for the Legislature
The renewable portfolio standard legislation is repealed, including transmission construction and the mandatory purchase of renewable energy credits by REPs, except for solar renewable energy credits that remain a mandatory purchase for two years
RECs will continue to be available on a voluntary purchase basis
Renewable generators may be required by PUCT to install reactive power control capabilities
HB 1500 passed both chambers and is now heading to the Governor’s desk

HB 1515 (Clardy) Relating to the continuation and functions of and certain programs subject to rules adopted by the Texas Economic Development and Tourism Office

HB 1515 passed both chambers and is heading to the Governor’s desk

HB 1535 (Clardy) Relating to the San Antonio River Authority, following recommendations of the Sunset Advisory Commission; altering the terms of office of the members of the board of directors of the authority. Signed by the Governor 5/24

The bill directs the authority to develop a more comprehensive strategic plan and to establish guidelines for evaluating/selecting projects
Includes a prohibition preventing staff from serving on an affiliated non-profit board
Aligns board elections with the uniform election date in November and changes the fiscal year to begin October 1
The board members will transfer from 6 year to 4 year terms and includes training requirements
Changes the Sunset review date to 2035
The bill has been signed by the Governor and is now effective

HB 1540 (Holland) Relating to the San Jacinto River Authority, following recommendations of the Sunset Advisory Commission; specifying grounds for the removal of a member of the board of directors

The bill extends Sunset review date to 2035 requires authority to adopt a public engagement policy
Amends board member terms to 4 years and adds the governor shall designate a director to serve as the president of the board
The bill includes a removal process for a board member and training requirements
HB 1540 passed both chambers and is heading to the Governor’s desk

HB 1550 (Goldman) Relating to the continuation and functions of the Office of State-Federal Relations

HB 1550 passed both chambers and is heading to the Governor’s desk

HB 1555 (Clardy) Relating to the Upper Guadalupe River Authority, following the recommendations of the Sunset Advisory Commission; altering terms of the board of directors; specifying grounds for the removal of a member of the board of directors

The bill extends the Sunset review date to 2035
Amends board member terms to 4 years and adds the governor shall designate a director to serve as the president of the board
Requires the board to appoint a general manager and develop/implement policies that clearly separate responsibilities of the board/general manager
Adds a procedure for removal of a board member and includes training requirements
HB 1555 has been signed by the Governor and will be effective on September 1

HB 1565 (Canales) Relating to the functions of the Texas Water Development Board and continuation and functions of the State Water Implementation Fund for Texas Advisory Committee

The bill extends the Sunset review date and continues the SWIFT Advisory Committee to 2035
Authorizes TWDB to use a risk-based approach to project review and requires agency to develop/collect/analyze metrics for the project review process
Authorizes regional water planning groups to use drought worse than the drought of record as the baseline for planning
Applies a standard Sunset good government provision on board member training; eliminates three unnecessary reporting requirements
HB 1565 has been signed by the Governor and will be effective on September 1

HB 1620 (Holland) Safety net; Relating to the review date for certain governmental entities subject to the sunset review process

HB 1620 passed both chambers and is heading to the Governor’s desk

SB 1397 (Schwertner) Relating to the continuation and functions of the Texas Commission on Environmental Quality

The bill Continues TCEQ and the Texas Low-Level Radioactive Waste Disposal Compact Commission until 2035
Creates a specific air quality standard permit for temporary concrete batch plants that operate in or adjacent to the right-of-way of a public works project
Extends the comment period and the deadline for requesting a contested case hearing for applications for the air quality standard permit for concrete batch plants
Creates a new requirement that TCEQ provide outreach and education to the public on participating in air, water, and waste permitting
Maintains requirements that public notice of permit applications be published in a newspaper, and that applications be placed in a public place
Requires TCEQ to post all permit applications on its website, however TCEQ can exempt supporting materials that are too large to post online
Authorizes TCEQ to ask permit applicants to provide security at public meetings
Requires holders of temporary or open-ended permits to annually report their status to TCEQ unless their permit already includes a reporting requirement
Changes compliance history statutes to require TCEQ to speciate among major, moderate, and minor violations when determining repeat violator status; and authorize the executive director to suspend or reclassify an entity’s compliance history for exigent circumstances
Increases the maximum daily penalty from $25,000 to $40,000 only if the violation involves an actual release that exceeds levels protective of human health or the environment or an unauthorized diversion, taking, or storage of state water that causes harm; the person previously committed the same violation; and the commission determines that the person could have reasonably anticipated and avoided the violation
Creates an Enforcement Diversion Program for Small Businesses and Local Governments in which those who qualify could avoid enforcement in exchange for accepting onsite technical assistance and training from TCEQ staff; major violations or a violation that resulted in an imminent threat to public health would not qualify
Requires the Environmental Flows Advisory Group to periodically review the environmental flow standards for each river basin and bay system
Requires TCEQ to develop unenforceable best management practices for aggregate production operations
SB 1397 has passed both chambers and is now heading to the Governor’s desk

SB 1414 (Johnson) Relating to the temporary regulation of the practice of veterinary medicine by the Texas Department of Licensing and Regulation

SB 1414 has passed both chambers and is now heading to the Governor’s desk

SB 1424 (Perry) Relating to the continuation and functions of the State Soil and Water Conservation Board and the Texas Invasive Species Coordinating Committee

Continues the TSSWCB and TISCC for 12 years; includes a limited scope review of the Dam Structural Repair Grant Program during the 2026-2027 biennium
Requires TSSWCB develop/adopt one clear set of overall priorities/goals/metrics for the Dam Structural Repair Grant Program; including updating the 10-year plan for dam funding
Requires board to ensure local match requirements for state-funded dam upgrades/repairs
Updates standards for training, complaints, and separation of duties between board/staff
SB 1424 has passed both chambers and is now heading to the Governor’s desk

SB 1445 (Paxton) Relating to the continuation and functions of the Texas Commission on Law Enforcement; authorizing a fee

SB 1445 has passed both chambers and is now heading to the Governor’s desk

SB 1727 (Schwertner) Relating to the continuation and functions of the Texas Juvenile Justice Department, the functions of the office of independent ombudsman for the Texas Juvenile Justice Department, and the powers and duties of the office of inspector general of the Texas Juvenile Justice Department

SB 1727 has passed both chambers and is now heading to the Governor’s desk

SB 2040 (Springer) Relating to the continuation and transfer of the regulation of willed body programs to the Texas Funeral Service Commission, the regulation of willed body programs, non-transplant anatomical donation organizations, and anatomical facilities, and the creation of the State Anatomical Advisory Committee; requiring registration; authorizing fees; authorizing an administrative penalty

SB 2040 has passed both chambers and is now heading to the Governor’s desk

SB 2592 (Paxton) Relating to the Lavaca-Navidad River Authority, following the recommendations of the Sunset Advisory Commission; altering terms of the board of directors; specifying grounds for the removal of a member of the board of directors

The bill extends the Sunset review date to 2035
Amends board member terms to 4 years and specifies an annual appointment process ensuring no more than three board member slots are up for appointment at a time
SB 1727 has passed both chambers and is now heading to the Governor’s desk