With the session’s signature issue—school vouchers—seemingly settled, lawmakers have turned their attention to deadlines and their domino effects, including a coveted spot on the intent calendar, required for a bill to make it to the chamber floors.
The 89th Regular Session convened on Jan. 14. Upcoming deadlines include:
- May 12:House bill first reading deadline.
- May 15:House bill second reading deadline.
- May 16:House bill third reading deadline.
- May 23:Senate bill first reading deadline.
- May 27:Senate bills’ second readings in the House.
- May 28:Final votes on Senate bills.
- June 2:Sine die (last day of the 89th Regular Session).
- June 22:Governor’s signature deadline.
- 1:Effective date for most new laws.
Highlights to date include the following:
A total of 8,694 bills were filed, including 5,634 in the House of Representatives and 3,060 in the Senate.
The General Appropriations Bill, or the budget bill, was sent to a conference committee in mid-April, where conferees appointed by each chamber will hammer out differences between proposed budgets. The Senate signed off on a $336 billion spending plan in March, and the House approved some $337 billion in April for the next two-year cycle. The two budgets are largely aligned; however, an amendment filed by Rep. Mary González eliminated funding for the Texas Lottery Commission and for economic development and tourism, cutting some $1 billion total; both of those items remain funded in the Senate budget draft.
In a historic first, both chambers approved legislation that would create a $1 billion private school voucher program, Gov. Greg Abbott’s top legislative priority.
“This is an extraordinary victory for the thousands of parents who have advocated for more choices when it comes to the education of their children,” Abbott stated.
The Senate concurred with changes passed by the House, giving Senate Bill 2, Providing School Choice, a clear path to Abbott’s desk.
“Following the Texas Senate’s acceptance of House amendments to S.B. 2, educational choice will soon be the law of the land in Texas,” Patrick declared.
On April 23, Abbott signed the first law of this year’s legislative session, a bill creating a new regulation-cutting agency inspired by Elon Musk’s federal Department of Government Efficiency (DOGE). Senate Bill 14, which passed both the House and Senate with bipartisan support, establishes the “Texas Regulatory Efficiency Office” at a cost of $22.8 million over the next five years.
“Texas can have our own DOGE,” Abbott announced after signing the bill. “What this law is going to do is make government more efficient and less costly.”
Industry-Related Issues
From the start of the 140-day session, the overall goal of the Permian Basin Petroleum Association (PBPA) has been to “support legislation that promotes the safe and responsible development of the natural resources found in the Permian Basin,” said PBPA Executive Vice President Stephen Robertson. “At the same time, we vehemently oppose bills that threaten the prosperity the Permian Basin generates for Texas, America, and our allies abroad.”
With regard to the state budget, advocates for the oil and gas industry have kept a watchful eye on funding for the Railroad Commission of Texas in its efforts to address abandoned wells, the Public Utility Commission in its work to promptly permit transmission lines for the Permian Basin, and the Texas Commission on Environmental Quality in its crucial role of promoting the beneficial reuse of treated produced water, transitioning pilot projects to commercial viability by hiring experts to process those permits, Robertson added.
Other priority issues include oilfield theft and legislative efforts aimed at strengthening the Railroad Commission’s role in coordinating with the industry, the Department of Public Safety’s efforts to organize law enforcement and investigate criminal activity, and the laws that prosecute the organized criminal elements plaguing oil and gas operators across the state.
Once again, lawmakers have prioritized water, and industry experts remain committed to expanding the use of treated produced water in industrial and agricultural applications, as well as for land discharge, Robertson stated.
“Unlocking markets for safely treated produced water offers substantial benefits, but achieving this requires regulatory permitting, clear liability protections for permit holders, and proper funding for state agencies tasked with overseeing these technical permits,” Robertson detailed. “Texas has the potential to unlock millions of barrels of safe, treated produced water, but we must diligently build the legal frameworks that incentivize operators to invest private capital in these initiatives.”
Finally, the devastation of last year’s Smokehouse Creek Fire in the Texas Panhandle has prompted a legislative focus on clarifying the processes by which oil and gas operators and landowners interact with the Public Utility Commission, the Railroad Commission, and utilities to ensure that best practices for powering and de-powering aging facilities are implemented promptly.
“No oil and gas operator wants to be the cause of a fire, and we know our members take great care in getting their assets electrified and interconnected,” Robertson stated. “Establishing a clear process for all parties to address field-related issues is essential. At the same time, we recognize that oil and gas operators are not the sole parties responsible for wildfires and they can also be victims of poor electrical practices. By working together, we can find reasonable solutions to help prevent future wildfires.”
Legislative Tracking
With only one bill having made it to the governor’s desk as of press time, the fate of most legislation is still difficult to predict. The following bills are among those being tracked by the PBPA and other industry advocates:
Senate Bill 1150—Relating to the plugging of and reporting on inactive wells subject to the jurisdiction of the Railroad Commission of Texas; authorizing an administrative penalty.
On April 22, the Senate approved a plan to deal with the 160,000 inactive wells dotting the state before they become abandoned “orphan” wells.
“Sometimes these wells can be revitalized, using new techniques or technologies to extract more oil,” stated a Senate progress report. “When abandoned by operators, they are left to the effects of time and nature, and to the Railroad Commission to clean up.”
In their 2024 report, the Railroad Commission estimated nearly 9,000 such wells exist in Texas.
“We need to address those that have reached the end of their lifespan and could potentially pose a risk to health, safety, natural resources, agriculture, livestock, and wildlife,” said Sen. Mayes Middleton, sponsor of S.B. 1150, which would require oil and gas operators to either reactivate or plug an orphan well after 15 years of inactivity. The new requirements would be phased in slowly beginning in 2027, giving state regulators and operators time to plan for implementation.
“We have worked diligently on Senate Bill 1150 and its House companion, House Bill 2766, to address lawmakers’ concerns about the growing number of inactive wells, which could become the next generation of abandoned wells,” Robertson remarked. “That said, we remain vigilant in protecting operators with strong track records of moving inactive wells back into service, as well as small operators who may struggle to find crews to plug wells. We continue to advocate for our members’ concerns. The Legislature has made it clear that they seek a legislative solution to this issue, and we are working in good faith to address their concerns while representing the diverse perspectives of our members.”
As of press time, S.B. 1150 had passed the Senate and was in the House Energy Resources Committee.
Oilfield Theft Package
Sen. Kevin Sparks cited oilfield theft as one of his legislative priorities and filed the following legislation:
Senate Bill 494: Industry & Law Enforcement Task Force: Forms a statewide task force to examine the impact of organized oilfield theft and provide recommendations to address these ongoing challenges and enhance coordination between energy stakeholders and law enforcement agencies.
As of press time, this bill had passed the Senate and was in the House Energy Resources Committee.
Senate Bill 1320: Organized Oilfield Theft Prevention Unit: Creates a specialized Department of Public Safety (DPS) unit that will target criminal organizations profiting from the oil and gas industry, particularly in the Permian Basin.
As of press time, this bill had passed the Senate and was in the House Energy Resources Committee.
Senate Bill 1806: Energy Resources Theft Reform: Authorizes trained law enforcement officers to inspect cargo tanks transporting petroleum products on public roads or railroads and collect samples for forensic analysis. The bill also enhances penalties for unlawful appropriation of petroleum products and equipment, and establishes criminal penalties for operating disposal wells without a permit.
As of press time, this bill had passed the Senate and was in the House Energy Resources Committee.
“Protecting our energy resources is essential to the Permian Basin and the state as a whole,” Sparks said. “Oilfield theft has been a persistent problem throughout Texas, impacting the state for years, and it’s time we take a collaborative approach to fighting organized criminal activity through the establishment of an industry task force and a DPS prevention unit, and by increasing penalties to deter these crimes and strengthen prosecution efforts.”
Next month’s legislative update will include a detailed report on new laws that have the potential to affect the oil and gas industry.
To follow the progress of specific bills filed, go to https://capitol.texas.gov/.
For additional information, go to www.pbpa.info.
Julie Anderson is editor of County Progress Magazine and is past editor of Permian Basin Oil and Gas.
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