Texas: Powering the Future of Energy

Did you know Texas leads the nation in energy production, generating 42% of U.S. crude oil, 27% of natural gas, and 26% of wind-powered electricity? With a primarily deregulated electricity market, 85% of residents can choose their provider, making the state a hub for energy innovation and investment.

What does this mean for you? There’s never been a better time to leverage Texas’s vast funding opportunities for clean energy, fleet modernization, and infrastructure improvements.

At a Glance - In Texas

• Texas is the top energy producer in the United States, producing 42% of total crude oil, 27% of natural gas, and 26% of wind-sourced electricity.

• Texas is one of the few states where the retail electricity market is largely deregulated. As of 2024, 85% of residents can choose their electricity provider.

• The state’s electric grid is operated by the Electric Reliability Council of Texas (ERCOT) and is not subject to Federal jurisdiction (which is limited to inter-state transmission of electricity). 

• Texas uses a biennial budget. The legislature must pass a balanced budget and prohibits carrying a deficit into the following year. The fiscal year runs from September 1 to August 31 of the following year.

• The next election cycle for statewide offices is 2026. Elections for the Texas Legislature are concurrent with elections for the U.S. Congress. The 89th Texas Legislature will convene from January 14 to June 2, 2025. Bill filling opened on November 12, 2024, and will close on March 14, 2025. 

• Texas is a right-to-work state, meaning employers cannot refuse to hire or condition employment based on whether an employee is a member of a labor union. As such, this policy environment provides fewer protections for labor unions.

Energy Hot Topics – In Texas

• Extreme weather conditions like Winter Storm Uri in February 2021, increased demand for electric vehicle charging and data centers, and the isolation of the state’s electric grid continue to shape policy conversations in the Texas Legislature.

• Lt. Gov. Patrick recently mentioned that enhancing existing grid infrastructure will be a top priority for legislators in the upcoming session, as opposed to building new infrastructure.

• Gov. Abbot and Lt. Gov. Patrick are seeking an additional $5 billion to be authorized by the Texas Legislature in the upcoming session for the Texas Energy Fund (TEF). TEF was created in November 2023 as a $5 billion low-interest loan program to incentivize building more dispatchable electric generating facilities. Texas received notice of intent to apply for $24 billion in loans and eventually selected 17 natural gas projects in August 2024.

Funding Opportunities

The Texas Commission on Environmental Quality and the Texas Emissions Reduction Program is the primary funding arm in the State of Texas. The following programs are currently available for applicants:

• Texas Clean Fleet Program - Now accepting applications through March 21, 2025.

• Texas Natural Gas Vehicle Grant Program (TNGVGP) - Now accepting applications through March 4, 2025

• New Technology Implementation Grant Program (NTIG) - Now accepting applications through March 3, 2025.

• Port Authority Studies and Pilot Projects Grant Program (PASPP) 

• Alternative Fueling Facilities Program (AFFP)

• Texas Hydrogen Infrastructure, Vehicle, and Equipment Program (THIVE)

• Rebate Grants Program

• Texas Clean School Bus Program (TCSB)

• Seaport and Rail Yard Areas Emissions Reduction Program (SPRY)

Key Officials

• Governor Greg Abbott (R): The governor makes executive and judicial appointments and has veto power on bills and budget line items. Gov. Abbott was first elected in 2014.

• Lieutenant Governor Dan Patrick (R): While counterparts in other states do not yield much influence, the Texas lieutenant governor presides over the Senate and assigns committee positions. Lt. Gov. Patrick was first elected in 2014.

• Attorney General Ken Paxton (R): The attorney general is the state’s top law enforcement officer and oversees a department of 750 attorneys that handle over 30,000 cases annually. AG Ken Paxton was first elected in 2014.

Energy Infrastructure Regulation

• Railroad Commission of Texas (RRC): This agency regulates the oil and gas industry, gas utilities, pipeline safety, safety in the liquified petroleum gas industry, and surface coal and uranium mining. The current commissioners are Christi Craddick (chairman), Jim Wright, and Wayne Christian.

• Texas Commission on Environmental Quality (TCEQ): This agency has three appointed commissioners that establish policy direction and make final determinations on contested permitting and enforcement matters. The current commissioners are John Niermann (chair), Catarina Gonzales, and Bobby Janecka.

• Public Utility Commission of Texas (PUCT): This agency regulates the state’s electric, water, and telecommunication utilities. The current commissioners are Thomas Gleeson (chair), Lori Cobos, Jimmy Glotfelty, Kathleen Jackson, and Courtney Hjaltman.

• Comptroller of Public Accounts: This officeholder collects state tax revenue and estimates the state budget. The current officeholder is Glenn Hegar (R), first elected in 2014.

• Commissioner of the General Land Office (GLO): This officeholder is responsible for managing lands and mineral rights properties owned by the state. The current officeholder is Dawn Buckingham (R), first elected in 2022.

• Texas Department of Transportation (TxDOT): This agency oversees the construction and maintenance of the state’s highway system and supports maritime, aviation, and public transit systems. Marc Williams has served as executive director since 2021.

• Texas Department of Agriculture (TDA): This agency is responsible for matters pertaining to agriculture and rural community affairs. The current officeholder is Sid Miller (R), first elected in 2014.

Legislative Branch

• Overview: Texas has a bicameral legislature, which regularly convenes for only five months (from January through May) in odd-numbered years. Both chambers are officially organized on a nonpartisan basis, with members of both parties serving in leadership positions; however, Republicans have recently not abided by that tradition. 

• House of Representatives: Each district is represented by a single member. Relevant committees include: Business & Industry; Energy Resources; Environmental Regulation; Land & Resource Management; Natural Resources; and Transportation. The outgoing Speaker of the House is Dade Phelan (R), and the current Democratic House Leader is Trey Martinez Fischer (D). 

• Senate: At least half the Texas Senate is up for election each cycle. The Lieutenant Governor and the President Pro Tempore act as the chamber’s leaders regardless of which party is in the majority; as such, there are no official majority or minority leaders. Relevant committees include: Business & Commerce; Natural Resources & Economic Development; Transportation; and Water, Agriculture & Rural Affairs. 

Judicial Branch

• Supreme Court of Texas: This is the court of last resort for civil matters. The Court consists of a Chief Justice and eight justices, all elected to six-year terms with no limits. Texas’ Supreme Court is currently composed of nine Republicans.

• Court of Appeals: Texas has 14 Courts of Appeal with intermediate appellate jurisdiction in civil and criminal cases. There are 80 bench seats, with three to 13 justices per court.

Want to learn more about Texas’ unique energy market and how you can leverage current and future funding opportunities from the Texas Commission on Environmental Quality? Reach out to chat about how we can help you unlock these opportunities through our partnership with Streamline!