Meeting Summary - 03/31/2025 House Energy Resources
Grid Monitor AI
03/31/2025
▶️1 - HB1647 Landgraf | et al.
HB1647 aims to address petroleum product theft by directing the Railroad Commission to establish a task force.
The task force would meet quarterly and focus on improving coordination among law enforcement and analyzing the long-term economic impact of oilfield theft.
The bill includes a component for recommending law enforcement training programs related to petroleum theft.
Michael Lozano, representing the Permian Basin Petroleum Association, expressed support for the bill, emphasizing the need to organize industry efforts within the Railroad Commission's scope.
Lozano highlighted the potential to use Railroad Commission data to develop strategies against financial crimes related to oil theft.
Ed Longanecker, president of the Texas Independent Producers and Royalty Owners Association, also supported the bill, advocating for a comprehensive approach to combat the increasing trend of oil field theft.
Longanecker called for increased penalties, resources for law enforcement, effective training, and improved stakeholder communication as part of the solution.
Chairman Landgraf stressed the seriousness of oil field theft and the importance of the task force and related legislation in addressing the issue.
The discussion concluded with no objections, and HB1647 was left pending.
Representative Zwiener introduced HB2612, aiming to create a Carbon Dioxide Sequestration Policy Council under the Railroad Commission.
The purpose of the bill is to handle issues in carbon capture and to position Texas as a leader in energy through structured legislative recommendations.
The Railroad Commission applied for Class VI primacy, enabling state-level permitting for CCS injection projects, potentially accelerating industry growth.
A study indicated potential economic benefits of $1.8 billion, 7,500 jobs, and $33.4 million in revenue from carbon capture projects.
Issues such as pore space ownership, long-term liability, and carbon accounting need addressing for industry advancement.
Dr. Timothy A. Meckel from the Bureau of Economic Geology spoke neutrally, citing the bill's tasks as complex and needing clearer definitions, particularly regarding lifecycle analysis and regulatory compliance.
Colin Leyden from the Environmental Defense Fund supported HB2612, emphasizing the growth and importance of CCS for Texas's energy future.
Julie Range of Commission Shift Action, also in support, stressed the need for comprehensive evaluation of safety risks associated with CCS, citing past incidents like the 2020 CO2 pipeline burst in Mississippi.
The committee substitute for HB2612 was withdrawn, and the bill was left pending without objection.
Introduction of HB3125 by Representative Guerra, focusing on creating a geothermal energy workforce education and training initiative with the Texas Workforce Commission and Texas Higher Education Coordinating Board.
Emphasis on the need for a skilled workforce to support the emerging geothermal energy industry in Texas.
Testimonies from various stakeholders supporting HB3125, highlighting geothermal reservoirs in regions like Hidalgo County and the potential for lowering energy costs in areas like McAllen.
Significant advocacy for leveraging existing wells for geothermal energy production.
Recognition of the Department of Defense's interest in geothermal as a secure, onsite energy solution for military bases.
Testimony about the advancements in geothermal technology and potential for Texas to lead in this energy revolution.
Emphasis on the need to educate a workforce to keep pace with geothermal advancements.
Discussions on the broad applications and benefits of geothermal energy, including national security implications and commercial scalability.
Conclusion by Representative Guerra reinforcing geothermal's potential in Texas, encouraging collaborative investment.
HB3158 updates the Railroad Commission of Texas fee structure for oil and gas waste disposal permits to ensure consistent regulatory funding.
The Railroad Commission has modernized its regulatory framework due to increased oil and gas waste volumes, including an update to pollution prevention rules and expansion of the Environmental Permitting and Support (EPS) unit.
The EPS unit is underfunded; currently, only waste haulers are charged fees, which burdens taxpayers.
HB3158 introduces application fees for permits ranging from $500 to $3,000 to address the funding gap and align with other permitting programs.
The bill removes outdated references to surface water discharge permits now regulated by the Texas Commission on Environmental Quality.
Julie Range from Commission Shift Action supports HB3158, emphasizing the importance of managing the disposal of produced water, which contains various harmful substances.
Range suggests increasing fees to cover costs and recommends stronger testing requirements to include PFAs and radioactive material to prevent environmental contamination.
Discussion on whether testing requirements should include a certification system.
Chairman Darby closes the discussion; HB3158 is left pending without objection.
Representative Guerra introduced HB3240 which proposes the establishment of a Texas geothermal energy production policy council within the Texas Railroad Commission.
The purpose of the council is to study the development of geothermal and energy industries in Texas and make policy framework recommendations.
The bill is inspired by the previously successful HB2847 regarding hydrogen energy.
Geothermal energy was highlighted as a clean, renewable, and reliable energy source that can operate independently of weather conditions.
Marco Vega, general manager of McAllen Public Utility, expressed support for HB3240 citing its benefits for reliable energy supply, especially during extreme weather conditions.
Cyrus Reed from the Lone Star Chapter Sierra Club supported the bill but suggested adding language to ensure the regulatory framework addresses safety and environmental impacts, particularly on water and land.
Dario Guerra of McAllen echoed support for the bill, emphasizing the need for representation from South Texas in the council.
Ken Wisian of the Bureau of Economic Geology discussed Texas's leadership potential in geothermal energy and stressed the need for comprehensive oversight and policy development.
The bill was left pending with no objections, and it was acknowledged as a potential future direction for Texas energy.
Representative Dyson introduced HB3516 concerning the Railroad Commission of Texas and its administrative law judges and technical examiners.
Current public information laws do not provide the same deliberation disclosure exceptions for administrative law judges at the Railroad Commission as they do for the State Office of Administrative Hearings.
There is a requirement for a ruling from the Office of the Attorney General on whether certain communications can be disclosed when a public information request is submitted.
The current situation inhibits open communication among staff due to fear of disclosure.
HB3516 proposes adding an exception to ease communication and deliberation processes within the Railroad Commission's hearings division.
No witnesses were registered to testify on HB3516, and the bill was left pending with no objections.
HB3707 aims to address oil field theft by expanding definitions to include illegal transport, purchase, and storage of petroleum.
Penalties are increased based on the value of the stolen goods, ranging from third-degree felony to first-degree felony.
The bill includes provisions for law enforcement to dispose of stolen petroleum safely and hold funds in trust during criminal proceedings.
Support from Michael Lozano, representing the Permian Basin Petroleum Association, highlighting the bill's benefits in managing crude and increasing penalties.
Support from Ed Longanecker, President of TIPRO, focusing on the comprehensive approach and the forfeiture strategy to aid law enforcement.
No objections or further questions, and HB3707 is left pending.
