May 29 marked the official end of the 88th regular session of the Texas Legislature. It was an especially active session for the energy industry, which saw the passage of several bills that, if signed into law by Gov. Greg Abbott, will have significant and long-term impacts on the oil and gas, renewable energy, and power sectors in Texas. Generally speaking, legislation in this area focused on enhancing the reliability of the Electric Reliability Council of Texas (ERCOT) power region by favoring and incentivizing dispatchable power, such as natural gas power plants, more than non-dispatchable power, such as wind and solar facilities. Businesses operating in these sectors should be aware of the recent legislative developments to best position themselves to take advantage of their benefits and ensure compliance with new requirements.

Laws Impacting the Oil and Gas Sector

Produced Water

New laws intended to update Texas’ water infrastructure and create new sources of water supply may also impact what happens with “produced water”—water generated through oil and gas production operations.