State Senator Sparks Files Third 89th Priority Legislative Package on Grid Reliability

FOR IMMEDIATE RELEASE Contact: Mattie Garland
Monday, February 3, 2025 mattie.garland@senate.texas.gov
Ph: 512-463-0131
STATE SENATOR SPARKS FILES THIRD 89th PRIORITY
LEGISLATIVE PACKAGE ON GRID RELIABILITY
[Austin, TX] – Senator Kevin Sparks (R-Midland) announced his third legislative priority package, aimed at
securing Texas’ electric grid. As the Texas energy sector undergoes a major transformation, facing rising demand
and a rapidly changing landscape, ensuring the grid’s stability is more critical than ever. Senator Sparks’
legislative package on grid reliability addresses population expansion, transmission planning, reliable generation,
and correcting federal interference. Senator Sparks 89th Legislative Priorities on ‘Grid Reliability’ consists of the
following pieces of legislation:
SB 715: Consistent Reliability Requirements: Removes the bifurcated timeline structure regarding the
reliability requirement, so the new standard will be followed by all grid participants.
SB 391: Permian Basin Transmission Planning: Updates the Electric Reliability Council of Texas’ Permian
Basin Reliability Plan for the region every five years.
SB 714: Market Distortion Solution: Eliminates or compensates for market distortion in electricity pricing
caused by the benefits renewable energy receives from the federal subsidies.
SB 970: Texas Energy Fund Prioritization: Prioritizes cost-effective, reliable baseload generation for the Texas
Energy Fund.
“My legislative package focuses on securing the electric grid and ensuring the state keeps up with the growing
generation demand and provides affordable, reliable, and responsible energy for every Texan,” stated Senator
Sparks. “I look forward to working on compensating for the influx of federal energy subsidies that have distorted
the market and reforming the Texas Energy Fund to protect Texans from the soaring electricity costs caused by
short-term fixes. Investing in dispatchable natural gas is a step toward improving energy efficiency, and we must
leverage technology that serves the best interests of ratepayers.”
“We extend our heartfelt gratitude to Senator Kevin Sparks for his unwavering leadership and dedication to
advancing Texas' energy infrastructure. Together, we are paving the way for a brighter, more resilient future." -
Doug Robison, Founder and CEO - Natura Resources
The following pages detail each bill regarding background, key provisions, and statements of supports.

SB 715 – CONSISTENT RELIABILITY REQUIREMENTS
Background
In February 2021, Winter Storm Uri led to a surge in power demand, prompting the Electric Reliability Council of
Texas (ERCOT) to implement rolling blackouts across the state to prevent a catastrophic total blackout. Following
Winter Storm Uri, the 88th Texas Legislature made numerous changes to the electric industry to secure the state’s
power sector. It moved up the sunset dates for the Public Utility Commission of Texas (PUC), which has complete
authority to oversee ERCOT. HB 1500 reauthorized the PUC and attached additional measures, including requiring
ERCOT generators (other than battery storage) to execute a generation interconnection agreement on or after January
1, 2027, and meet specific performance standards annually or else pay a fine. Generators will need to demonstrate their
ability to produce power when called upon by ERCOT. The PUC is required to set the applicable performance standard
for each resource type and establish the scale of financial penalties for noncompliance.
Key Provisions
This bill removes the 2027 timeline for the reliability requirement in HB 1500 so the new reliability standard will
be followed by everyone.
Statements of Support
“The 88th Legislature took major steps towards ensuring the reliability of our grid with the passage of HB 1500,
most importantly the necessity for new generators to meet a reliability requirement. It is crucial that all generators,
not just new ones, are held to this same standard. SB 715, filed by Senator Kevin Sparks, will do just that. TPPF
commends Senator Sparks for his work on this issue. This is the reform that Texans badly need to keep the grid
up and energy prices down.” - Greg Sindelar, CEO - Texas Public Policy Foundation

SB 391 – PERMIAN BASIN RELIABILITY TRANSMISSION PLANNING
Background
The Permian Basin has long played a vital role in establishing Texas as a leader in energy production, contributing
significantly to the state, nation, and global energy markets. However, infrastructure has not kept pace with the region's
rapidly growing energy demands, highlighting the need for a proactive strategy to ensure the electric grid is prepared
to meet current and future demands. The 88th Texas Legislature passed HB 5066 by Rep. Geren, which created a
specific statutory provision requiring the PUC to direct ERCOT to develop a one-time reliability plan for the Permian
Basin Region by January 30, 2024. The plan addressed growing concerns over insufficient transmission access in the
Permian Basin and laid the groundwork for critical infrastructure upgrades and increased investment in transmission
and distribution capacity. ERCOT evaluated the transmission facilities needed to serve the Permian Basin region based
on the 2030 and 2038 load forecasts provided by the Transmission and Distribution Service Providers and filed the
Permian Basin Reliability Plan on July 25, 2024.
Key Provisions
This bill amends the Utilities Code for the ERCOT power region to update this reliability plan every five years.
Statements of Support
“As Texas continues to grow, it is imperative that we are prepared to meet the demand. We are building on the
work done last session to ensure our grid’s reliability and continue to foster Texas’ energy dominance.
Transmission lines are critical to our grid’s stability and necessary for the Permian Basin to continue being a
worldwide leader in energy production – this legislation provides the framework to meet these needs.” - Eddie
Morales, Texas State Representative - Texas House District 74
“Electric transmission infrastructure has long been a priority for Permian Basin Petroleum Association members
and we greatly appreciate Sen. Sparks’ leadership. This bill ensures that despite recent success, we continue to
have a forward looking view to develop the infrastructure necessary to power the Permian Basin for those that
live, work, create jobs, and raise their families.” - Ben Shepperd, President - Permian Basin Petroleum
Association
“TIPRO is pleased to support Senate Bill 391, and we greatly appreciate Senator Sparks for his leadership on this
ongoing priority. With load demand for the oil and natural gas industry already unmet and expected to increase
significantly over the next decade, this plan will provide critical investment in transmission, related infrastructure,
and capacity. A five-year review will help to ensure that we effectively address future demand and everchanging
market conditions in the Permian, the epicenter of oil and natural gas development.”- Ed Longanecker, President
- Texas Independent Producers & Royalty Owners Association
“The oil and gas we produce in the Permian is of increasing national and global significance. The expansion of
electric power availability in the Permian Basin is critical to the continued development of those energy resources,
and to our members' ability to grow production. We applaud and support Senator Sparks' efforts to bring this to
fruition by providing the necessary legislative framework to bring that power to the Permian.” - Karr Ingham,
President - Texas Alliance of Energy Producers

SB 714 – MARKET DISTORTION SOLUTION
Background
The Production Tax Credit (PTC) is a federal subsidy that allows owners and developers of renewable energy
facilities, mainly wind, to claim a tax credit for each kilowatt-hour (kWh) of electricity they generate. The tax
credits can be received for ten years after the facility begins production. To obtain the full production tax credit
of 2.6 cents per kWh or full investment tax credit of 30 percent, projects over 1 megawatt (MW) must satisfy
apprenticeship and prevailing wage requirements. Despite wind and solar representing 46 percent of the federal
renewable electricity-related subsidies, it only makes up a small fraction of total energy generated — wind
represents 3.5 percent, and solar represents 2 percent. As a result, the renewable energy industry relies more
heavily on subsidies compared to other forms of energy production.
Key Provisions
This bill requires the PUC and ERCOT to adjust rates based on the benefit wind energy receives from the PTC.
Furthermore, it ensures that the price of producing and maintaining capacity are assumed by the parties imposing
the costs and not the taxpayers. SB 714 will provide needed transparency on market distortions from the federal
government for renewables.
Statements of Support
“SB 714 is a critical step toward improving reliability in the ERCOT grid by addressing the market distortions
caused by federal tax credits for intermittent energy sources like wind and solar. By ensuring that the costs of
unreliable generation are borne by those resources, this legislation promotes a more balanced and resilient energy
market for Texas.” - Hon. Jason Isaac, CEO - American Energy Institute and Former Texas State
Representative
SB 970 – TEXAS ENERGY FUND PRIORITIZATION
Background
The Texas Energy Fund (TEF) was created by the 88th Texas Legislature through SB 2627, the Powering Texas
Forward Act, to provide grants and loans to finance the construction, maintenance, modernization, and operation
of electric facilities in Texas. The TEF offers funding opportunities for electric generation projects inside and
outside the ERCOT power region through four programs. Currently, the TEF In-ERCOT Generation Loan
Program and Completion Bonus Grant Program require new generation capacity for projects to add a minimum
of 100 MW to the ERCOT grid. Its programs include grants and loans for projects inside and outside the ERCOT
region. The high number of applicants for the TEF In-ERCOT Loan Program underscores the urgent need to
expand funding to keep up with the state's growing energy demand. The TEF must be reformed to prioritize cost-
effective, reliable baseload generation.
Key Provisions
This bill directs the commission to prioritize the award of a grant or loan with a generation capacity of at least
750 MW.
Statements of Support
“Senator Kevin Sparks’ SB 970 is a critical step toward strengthening Texas’ electric grid by ensuring Texas
Energy Fund resources support reliable, high-capacity generation.” - Hon. Jason Isaac, CEO - American
Energy Institute and Former Texas State Representative