Expanded Texas Energy Fund to Include Subsidies to Private Entities: House of Bad Cards

HB 5623 proposes to expand the authority of the Public Utility Commission (PUC) to administer grants from the Texas Energy Fund for energy efficiency projects that benefit retail electric customers. While the objective of promoting energy efficiency and reducing electricity demand may seem prudent on the surface, the mechanism and scope of the bill raise significant policy and fiscal concerns that ultimately warrant a vote against the legislation.

First and foremost, the bill marks a substantial shift in the purpose of the Texas Energy Fund - from its original role of supporting electric generation infrastructure to funding consumer-focused, demand-side projects. This change in direction reallocates limited resources from system-level grid resiliency toward individual or localized efficiency upgrades. Such a reorientation risks diluting the fund's primary focus on ensuring reliable electric supply, especially in the wake of past grid failures.

To oversee this, the PUC would need to hire additional staff, amend contracts, and absorb operational and technology costs to execute the grant program - at a projected a recurring cost of nearly $2.46 million annually.

GOP Platform Conflict: Principle 9 opposes subsidies; Plank 78 opposes corporate welfare; Plank 62 emphasizes fiscal responsibility.

RV#2329: Yea 66 (R 7, D 59) - Nay 75 (R 74, D 1)
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Yea - Allen; Anchia; Bernal; Bhojani; Bowers; Bryant; Buckley; Bucy; Campos; Canales; Cole; Collier; Cortez; Darby; Davis, A.; Davis, Y.; Dutton; Fairly; Flores; Gamez; Garcia Hernandez; Garcia, J.; Garcia, L.; Geren; Gonzalez, J.; Gonzalez, M.; Goodwin; Guerra; Guillen; Hinojosa; Howard; Hunter; Johnson; Jones, J.; Jones, V.; Lalani; Longoria; Lopez, R.; Lujan; Manuel; Martinez; Martinez Fischer; Meza; Moody; Morales, C.; Morales, E.; Morales Shaw; Munoz; Ordaz; Perez, M.; Perez, V.; Plesa; Raymond; Reynolds; Rodriguez Ramos; Romero; Rose; Rosenthal; Talarico; Thompson; Turner; Vo; Walle; Ward Johnson; Wu; Zwiener

Nay - Alders; Ashby; Barry; Bell, C.; Bell, K.; Bonnen; Bumgarner; Button; Cain; Capriglione; Cook; Craddick; Cunningham; Curry; Dean; DeAyala; Dorazio; Dyson; Frank; Gerdes; Harless; Harris Davila; Harrison; Hayes; Hefner; Hernandez; Hickland; Holt; Hopper; Hull; Isaac; Kerwin; King; Kitzman; LaHood; Lambert; Landgraf; Leo Wilson; Little; Lopez, J.; Louderback; Luther; McLaughlin; McQueeney; Metcalf; Meyer; Money; Morgan; Noble; Olcott; Oliverson; Orr; Patterson; Paul; Phelan; Pierson; Richardson; Schatzline; Schoolcraft; Shaheen; Shofner; Slawson; Smithee; Spiller; Swanson; Tepper; Tinderholt; Toth; Troxclair; VanDeaver; Vasut; Villalobos; Virdell; Wharton; Wilson

Absent - Gates; Lowe

Present, Not Voting - Burrows; Harris

Please note: the following statements by legislators do not affect the vote count that was recorded.

David Lowe: "When Record No. 2329 was taken, I was in the house but away from my desk. I would have voted no." (view other statements of vote for this Rep)

Gary Gates: "When Record No. 2329 was taken, I was in the house but away from my desk. I would have voted no." (view other statements of vote for this Rep)

Jay Dean: "When Record No. 2329 was taken, I was shown voting no. I intended to vote yes." (view other statements of vote for this Rep)

J. M. Lozano: "When Record No. 2329 was taken, I was excused because of important business. I would have voted no." (view other statements of vote for this Rep)

(Bill summary provided in part by Texas Policy Research)