Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Geothermal Energy Policy topic
No spam. Unsubscribe anytime.
Senate committee clarifies geothermal power as dispatchable, supporters urge TEF eligibility
Summary
House Bill 37,78 would explicitly classify geothermal generation and geothermal energy storage as dispatchable and eligible for the Texas Energy Fund; industry leaders and defense‑related witnesses urged codification so projects can secure financing and be recognized for firm, 24/7 power.
Senator Menendez explained House Bill 37,78 would clarify two points in statute: that geothermal electricity is a dispatchable resource and that geothermal energy storage (geothermal conservation wells) may be eligible under the Texas Energy Fund (TEF).
Ben Seabree, general counsel for the Texas Geothermal Energy Alliance, told the committee the bill “clarifies the two issues in existing law” and that the intent of the Legislature was to exclude batteries from certain TEF eligibility while not excluding geothermal systems. Lance Cook, chief technology officer for Sage Geosystems, described next‑generation geothermal technology that “inject[s] the water in the hot rocks and we generate electricity,” opening “vast areas of Texas” to geothermal development and said financing is constrained by uncertainty in statutory treatment.
Barry Smitherman, Texas Geothermal Energy Alliance chair, argued geothermal provides 24/7 firm power analogous to nuclear: “generation assets including generation facilities and conservation wells provide 24/7, 3 60 5 firm on off power that is not dependent upon the weather,” and said Department of Defense interest and federal tax incentives make the resource strategically important.
David Gordon of the Public Utility Commission confirmed that TEF implementation rules do not explicitly exclude geothermal when developers demonstrate dispatchability, but committee members and industry witnesses said codifying dispatchability in statute would reduce ambiguity for lenders and project partners. The committee closed public testimony and left the bill pending.
Actions
Public hearing taken; bill left pending.
Why it matters
If clarified, geothermal projects could qualify for TEF support and federal incentives with less legal and financing uncertainty; proponents argued this would accelerate firm, emissions‑free generation capacity in Texas.
