Committee hears cleanup bill for shallow closed-loop geothermal systems; leaves measure pending

Senate Bill 8 79, introduced to clarify implementation of last session's transfer of closed-loop geothermal jurisdiction to the Railroad Commission, received resource and industry testimony and was left pending for the author to obtain a formal definition.

The bill's author said the change would exempt shallow closed-loop permit-by-rule geothermal injection wells—commonly used for residential or small commercial HVAC systems—from the drilling and financial-assurance requirements intended for larger production wells. A Railroad Commission resource witness (Scott Larson, Assistant General Counsel for the Railroad Commission) told the committee he would provide the committee with the agency's working language for what constitutes "shallow," which is not a single fixed depth in existing materials but instead is tied to regulatory factors including particulate/contaminant thresholds.

Industry testimony came from Ben Seabree of the Texas Geothermal Energy Alliance, who said the bill is a "cleanup bill" to prevent permit-by-rule HVAC systems from being overly burdened by financial-assurance forms and drilling-permit fees that were meant for deeper electricity-generating projects. Seabree described the distinction this way: "This applies to commercial and residential installers where they use the heat from the earth at shallow depth ... It's a cleanup bill to clean up some unintended consequences." He added that the technology and industry involve both shallow closed-loop HVAC use and deeper closed-loop systems designed for electricity generation.

After questions about drafting clarity and the request for agency-provided definitions, the author asked that the bill be left pending so staff can prepare an accurate committee substitute in time for a future hearing. The committee left SB 8 79 pending.