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The Texas Legislature meets in a regular session every two years, convening on the second Tuesday in January of every odd-numbered year in Austin. These biennial sessions are limited to 140 days. The governor has the authority to call special sessions as necessary, which cannot exceed 30 days. The 89th Texas Legislature is set to meet Jan. 14 through June 2. On the first day of prefiling, Nov. 12, 2024, Texas legislators filed 1,511 bills and resolutions.
The New Mexico Legislature convenes in Santa Fe on the third Tuesday in January of each year. The Legislature holds 60-day sessions in odd-numbered years and 30-day sessions in even-numbered years. The 57th Session of the New Mexico Legislature will open on Jan. 21 and adjourn March 22. Lawmakers will begin prefiling bills on Jan. 2.
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Top Priority: BUDGET
Lawmakers in both the Lone Star State and the Land of Enchantment are first and foremost focused on passing a state budget.
Texas legislators will have about $20 billion in unspent money going into the 89th Legislative Session, reported Texas Comptroller Glenn Hegar, the state’s chief financial officer; Hegar released this estimate on Dec. 12.
“The Legislature will have a lot of tools in the toolbox next session to deal with issues, whether it’s road infrastructure, water infrastructure, electrical grid infrastructure, public education, or higher education,” Hegar said. “I do think that those are some of the big pillar issues that they’re going to work on.”
The 88th Texas Legislature’s House Bill 1 appropriated $321.3 billion in total spending for the state’s budget during the 2024-25 biennium. As of press time, Hegar had not yet released his official biennial estimate for the 89th Legislative Session.
On Dec. 12, New Mexico Gov. Michelle Grisham released her budget recommendation of $10.9 billion in recurring spending for FY26, which is an increase of 5.3 percent over current year spending. The budget calls for an additional $172 million for state employee pay raises, which includes additional compensation for New Mexico educators. The executive recommendation maintains reserves at 30.4 percent.
“This year’s budget provides strategic investments in infrastructure, clean energy transition, and an expansion to early childhood services, making a more affordable and accessible health care system,” Grisham stated.
Industry Voice
Since 1961, the Permian Basin Petroleum Association (PBPA) has served as “the voice of the Permian Basin, ” shared Stephen Robertson, PBPA executive vice president. This includes communicating legislative concerns and supporting pro-industry measures.
“We will always endeavor to ensure that the safe and responsible development of our natural resources remains possible so that the Permian Basin remains the greatest place to live, work, create jobs, and raise a family,” Robertson declared. “Our goals will be to promote industry practices and develop those that need regulatory permitting and support, protect the industry from continued anti-oil legislation, and help ensure a vibrant energy industry for generations to come.”
Lone Star State
While prefiling has been underway for several months, as of press time early filings had not yet raised any red flags, Robertson said.
The PBPA does predict a legislative focus on water management with regard to long-term goals for the beneficial reuse of produced water.
“This will include a clear and consistent regulatory permitting structure that allows for final markets of the treated water as well as clarity on ownership and liability to encourage operators to move pilot projects into practical ones,” Robertson detailed.
On another note, oilfield theft by organized actors continues to be a challenge for industry operators.
“In addition to our recent development of best safety practices, we are working on determining how to deploy resources and work with the wide stakeholder community that includes local, state, and federal law enforcement and prosecutors as well as regulatory agencies and operators,” Robertson reported.
On Nov. 22, 2024, Texas Sen. Kevin Sparks prefiled Senate Bill 494, which would require the Railroad Commission of Texas to develop a theft of petroleum products task force. The task force would have to include at least one representative from the oil and gas industry, at least one representative from an energy trade association, and representatives from local, state, and federal law enforcement agencies.
With the session yet to gavel in, additional issues will rise to the top of the watchlist as ceremonial actions conclude and hearings begin to take shape.
Land of Enchantment
On an interesting note, for the first time in the state’s history, the New Mexico Legislature will include a majority of women, filling 60 of the 112 total seats.
There will be 10 new faces in the House, and 17 first-time senators, a few of whom are former House members.
With the new faces comes a strong focus on educating lawmakers on industry issues, Robertson noted.
The PBPA has been privy to draft language on a few prefiled bills, Robertson said, and several red flags have been raised.
“Early indicators reveal a focus that could mean statewide setbacks for oil and natural gas operations,” Robertson continued. For example, lawmakers will likely address changes to financial assurance for operations, changes to the Reclamation Fund, bills related to the use of pre- and polyfluoroalkyl substances (PFAS), attempts to codify the governor’s executive orders on climate change, increases in the royalty rate at the State Land Office, and bills on a Strategic Water Supply.
Poised and Ready
The PBPA Legislative Committee meets weekly to review all bills filed and determine whether or not a position should be taken.
“Engaging in PBPA’s Texas and New Mexico legislative committees is a fantastic way for our members to help advocate for the industry,” Robertson shared. “Participating in committee conversations is a great way to help PBPA staff understand our members’ needs.”
While PBPA staff members take on the large majority of advocacy activities in Austin and Santa Fe on behalf of the membership, there will be opportunities for members to come to the state capitals of Texas and New Mexico, as legislators greatly appreciate hearing directly from those being impacted by their proposals, Robertson added.
PBPA will host a PBPA Day in Austin, yet to be determined, and hopes to do the same in Santa Fe.
For more information, go to https://pbpa.info/.
Related: Legislative Sessions: Making our Case on Multiple Fronts