Texas legislators advance House Bill 3778 to classify geothermal energy as dispatchable

In a pivotal meeting of the Texas Senate Committee on Business and Commerce on May 23, 2025, lawmakers discussed House Bill 3778, a legislative effort aimed at clarifying the status of geothermal energy within the state's energy framework. The atmosphere was charged with anticipation as committee members and witnesses gathered to address the bill's implications for Texas's energy future.

At the heart of the discussion was the assertion that geothermal energy should be recognized as "dispatchable," meaning it can be controlled and delivered on demand, similar to traditional energy sources. This clarification arose from concerns voiced by local officials, including the county judge of Matagorda County, who believed existing laws did not adequately recognize geothermal energy's capabilities. Representative Lauderback, who sponsored the bill, emphasized that the legislation aims to eliminate confusion surrounding geothermal energy's classification and ensure it is eligible for support under the Texas Energy Fund.

Ben Seabree, general counsel for the Texas Geothermal Energy Alliance, reinforced the bill's importance, stating that it does not introduce new regulations but rather clarifies existing ambiguities. He highlighted that geothermal energy is a reliable and controllable resource, essential for meeting Texas's growing energy demands. The bill also seeks to address the eligibility of geothermal energy storage, which has been clouded by language in previous legislation that primarily focused on battery systems.

Lance Cook, chief technology officer for Sage Geosystems, shared insights into the advancements in geothermal technology, noting that new methods require only heat and not water, thus expanding the potential for geothermal energy across Texas. He underscored the urgency of the bill, explaining that without clear legislative support, securing funding for innovative geothermal projects remains a significant hurdle.

Barry Smitherman, president of the Texas Geothermal Energy Alliance, added that as Texas prepares for future energy needs, every available megawatt will be crucial. He pointed out that geothermal energy, like nuclear power, offers a reliable, weather-independent energy source, which is vital for maintaining grid stability.

The committee's discussions also touched on the broader context of energy policy, with members acknowledging the need for diverse energy sources to ensure reliability and sustainability. As the meeting concluded, the sentiment was clear: House Bill 3778 represents a critical step toward integrating geothermal energy into Texas's energy landscape, potentially unlocking new opportunities for innovation and investment in the sector. The future of geothermal energy in Texas now hinges on the legislative process and the commitment of lawmakers to support this emerging resource.