By: Morales of Maverick H.B. No. 5617       A BILL TO BE ENTITLED   AN ACT   relating to the utilization of the Texas Energy Fund to support   dispatchable electric generation using treated fluid oil and gas   waste.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 34, Utilities Code, is amended to add the   following subchapter:   SUBCHAPTER C. TEXAS ENERGY FUND UTILIZATION   DEFINITIONS(a)  "Treated fluid oil and gas waste" has the meaning   assigned by Section 121.001(2), Natural Resources Code.          (b)  "Dispatchable electric generation" means power   generation resources that can be dispatched on demand to ensure   grid reliability and stability, as referenced in Section 34.002,   Utilities Code.          (c)  "High renewable energy generation areas" refer to   regions where renewable energy sources, such as wind and solar,   constitute a significant portion of the energy mix, creating   economic challenges for dispatchable generation, as identified by   the Public Utility Commission of Texas under Section 34.010,   Utilities Code.          TEXAS ENERGY FUND UTILIZATION:  (a)  Section 34.007,   Utilities Code, is amended to authorize the Texas Energy Fund   Administrator to allocate funds for projects that:                (1)  Utilize treated fluid oil and gas waste as the   primary water source for dispatchable electric generation; and                (2)  Are located in high renewable energy generation   areas to mitigate economic challenges faced by dispatchable power   plants competing with renewable energy sources.          (b)  Chapter 481, Government Code, is amended to include the   following provision under Section 481.078:                (1)  The Texas Energy Fund shall consider projects   meeting the criteria outlined in Subsection (a) when evaluating   economic incentives for new energy infrastructure investments.          SECTION 3.  FUNDING MECHANISM AND PROJECT APPROVAL: (a) The   Public Utility Commission of Texas shall oversee the integration of   these criteria into the administration of the Texas Energy Fund   under Chapter 34, Utilities Code.          (b)  The Texas Energy Fund Administrator, in coordination   with the Texas Commission on Environmental Quality and the Railroad   Commission of Texas, shall establish project application   guidelines within 180 days of the effective date of this Act.          (c)  Funds allocated under this Act shall be used for   infrastructure development, operational incentives, and   feasibility studies for eligible projects.          SECTION 4.  IMPLEMENTATION AND REGULATORY OVERSIGHT: (a) The   Public Utility Commission of Texas shall develop guidelines and   evaluation metrics to assess project eligibility under this Act.          (b)  Within 180 days of enactment, the Texas Energy Fund   Administrator shall establish procedures to consider applications   for projects that meet the criteria outlined in Section 2.          (c)  The Public Utility Commission shall conduct an annual   review to assess the impact of these incentives on dispatchable   generation investments and report findings to the legislature.          SECTION 5.  EFFECTIVE DATE: This Act takes effect   immediately upon passage by a two-thirds majority vote of both   houses, as provided by Section 39, Article III, Texas Constitution.   If this Act does not receive the necessary votes, it takes effect   September 1, 2025.