While COVID cast the first shadow over the 2021 legislative session, the polar vortex that iced the Lone Star State Feb. 13-17 cast yet another, with both continuing to delay regular proceedings.
On Feb. 12, Gov. Abbott issued a disaster declaration in all 254 counties in response to the frigid winter storm that left millions without power and water. Rolling blackouts and icy roadways hampered efforts to meet at the Capitol and interrupted virtual hearings. On Feb. 16, Abbott declared the reform of the Electric Reliability Council of Texas (ERCOT) an emergency item for this session and called on the Legislature to investigate ERCOT over the failure of the state’s power grid to weather the storm.
On Feb. 25, the House State Affairs Committee and the Business and Commerce Committee heard testimony on “the factors that led to statewide electrical blackouts during the recent unprecedented weather event; the response by industry, suppliers, and grid operators; and changes necessary to avoid future power interruptions.”
On the same day, the Senate Business and Commerce Committee met to “examine extreme weather condition preparedness and circumstances that led to the power outages as directed by ERCOT.” Other Senate committees focused on “generator preparedness and performance, utility outage practices, natural gas supply, and the reliability of renewable generation, as well as overall ERCOT system resilience.”
Lawmakers have also spearheaded the budget process, with the Senate Finance Committee and the House Appropriations Committee conducting budget hearings. Outside of the budget, no other bills have been referred to committee by either the lieutenant governor or the speaker.
Both the House of Representatives and the Senate are adjourned and scheduled to reconvene March 2.
House Committee Assignments
Our last Capitol Update include the latest on the upper chamber’s committees. In February, Speaker Dade Phelan announced House committee assignments for the 87th Legislature.
“I have dedicated my speakership to creating a member-driven process that affords each of my colleagues a seat at the decision-making table, and have made these committee assignments to reflect their preferences, talents, and where I believe they will have the greatest impact on the issues to come before this body,” Phelan said upon releasing assignments to the 34 House committees. Twelve House members were selected to chair committees for the first time.
“The nature of this session will be anything but status quo, and the House stands to benefit from members assuming new roles and responsibilities and the fresh perspectives these appointments provide,” Phelan elaborated.
Consistent with House practice in preceding sessions, members are considered eligible to serve as a chair or vice chair in their third and second terms respectively, making 104 members eligible for a chair and 130 members eligible for a vice chair this session. Over 40 percent of the House’s membership has served less than three terms.
Committees of particular interest to the oil and gas industry include:
House Appropriations Committee
- Chair: Greg Bonnen
- Vice Chair: Mary González
Energy Resources Committee
- Chair: Craig Goldman
- Vice Chair: Abel Herrero
Land & Resources Management Committee
- Chair: Joe Deshotel
- Vice Chair: Ben Leman
Environmental Regulations Committee
- Chair: Brooks Landgraf
- Vice Chair: Alex Dominguez
To view the full list of committee assignments, go to https://house.texas.gov/_media/pdf/committees/87R-Committees-by-committee.pdf
Filed Legislation
In mid-February, Rep. Brooks Landgraf, chair of the Environmental Regulations Committee, filed House Bill 1683, dubbed the Texas Energy Independence Act, to “stop the implementation of any overreaching new federal regulations on oil and gas production in Texas.”
H.B.1683 prohibits Texas state agencies and officials from contracting with or providing assistance to any federal agency or official regarding the enforcement of a federal statute, order, rule, or regulation regulating oil and gas operations if the regulation is not already in existing state law. H.B. 1683 also prohibits any political subdivision in Texas from receiving any state grant funding if the political subdivision adopts any such rule or regulation of oil and gas operations. Finally, the bill provides a process for any Texan to be able to submit a report to the Texas attorney general regarding a political subdivision that enforces a federal regulation of oil and gas operations that is not in state law.
“This is about protecting jobs in the Permian Basin,” Landgraf shared. “Like no other time in history, American energy operations are being threatened, and Texas must be prepared to resist overreach in the oil patch. I filed H.B.1683 to defend our oil fields, and to defend Texas jobs and businesses from the tentacles of federal bureaucracy.”
House Report
Before each legislative session, the Texas House Research Organization compiles a report citing probable topics for consideration during the upcoming session. The 16-page report released in January cited the following oil- and gas-related issues:
Water: Legislators could consider proposals to address the water needs of the state’s growing population, including options for developing new water sources and markets. Discussions started by the 86th Legislature in 2019 could continue on the recycling and reuse of produced water, a byproduct of the oil and gas industry, for irrigation, industrial, and city use, and to supplement environmental flows. Proposals could include tax credits, deduction, or discounts for operators that recycle, treat, or reuse produced water. Lawmakers also could consider making regulatory changes to permit certain recycling and reuse strategies. Lawmakers also could continue monitoring groundwater regulation by reviewing the performance of groundwater conservation districts, proposing changes to existing groundwater permitting processes, and discussing different types of water ownership and related regulatory processes.
Eminent domain: The 87th Legislature could weigh proposals on eminent domain, the process by which a public or private entity may condemn private land for oil and gas pipelines, transmission lines, railroads, or other infrastructure. Proposals could include amending the Landowner Bill of Rights, requiring condemners to pay a financial penalty for making an offer to the landowner that is significantly lower than the property’s actual value, and expanding public notice and meeting requirements.
To view the report in full, go to https://hro.house.texas.gov/pdf/focus/topics87-1.pdf.
The Permian Basin Petroleum Association leadership is monitoring the session and will be working the Capitol as proceedings gain momentum. For information on the PBPA and the 87th Texas Legislature, go to www.pbpa.info.
Julie Anderson, based in Amarillo, is editor of County Progress Magazine, and is well known to many readers of Permian Basin Oil and Gas as the previous editor of this magazine.