A Republican-authored proposal in the Texas Legislature seeks to open up state funds aimed at encouraging fossil fuel development to a form of renewable energy.
The bill, which passed unanimously out of committee in the Texas House late Wednesday and now heads to the floor for consideration, could provide a runway for state incubation of next-generation geothermal energy, which uses oil and gas drilling methods to extract heat from the earth to provide low-carbon, round-the-clock energy.
Along with another bill still in committee, the legislation could also serve as a lifeline for the flagging Texas Energy Fund (TEF), a $5 billion low-interest loan program originally aimed at encouraging more fossil fuel generation.
The fund was created in 2023 to incentivize the building of new gas plants, with a stated aim of shoring up the grid by bringing on flexible power generation that could be turned on and off as needed.
But at least seven companies have withdrawn their applications from the TEF since the beginning of the year, largely citing an inability to procure gas turbines in time to meet the terms of the loan. The fund has so far failed to develop the 10 gigawatts of power it was intended to add to the Texas grid.
Click here to read the full article by Saul Elbein in "The Hill".
