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The Texas Energy Fund

 

The Public Utility Commission of Texas (PUCT) was directed by the Texas Legislature through Senate Bill 2627, the Powering Texas Forward Act, to administer the Texas Energy Fund (TEF) programs. The TEF will provide grants and loans to finance the construction, maintenance, modernization, and operation of electric facilities in Texas. Texans voted to create the TEF through a constitutional election on November 7, 2023.

Senate Bill 2627 also established the Texas Energy Fund Advisory Committee to review the structure and function of the TEF and provide input and recommendations to the PUCT. A list of committee members is available here.

 

Texas Energy Fund Programs

The Texas Energy Fund (TEF) will provide funding opportunities for electric generation projects—both inside and outside of the Electric Reliability Council of Texas (ERCOT) power region—through four programs based on an application process and award system developed by the Public Utility Commission of Texas. The Texas Legislature appropriated $5 billion to fund the TEF for Fiscal Years 2025-2026.

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For more information about each of the TEF programs (e.g., program descriptions, links to rules, general FAQ), please see the TEF FAQ.

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To see application guidance and prepare to apply for open programs, access the TEF ONLINE website.

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To upload materials and submit an application for open programs, access the TEF PORTAL.

 

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In-ERCOT Generation Loan Program

The In-ERCOT Generation Loan Program will provide low-interest loans to qualifying companies for the construction of new dispatchable electric generating facilities in the ERCOT power region or the expansion of existing facilities providing power to the ERCOT power region. Qualifying projects must add at least 100 MW of new dispatchable generation capacity to the ERCOT grid.

On March 21, 2024, the PUCT adopted new 16 TAC §25.510, which establishes the application process, project eligibility requirements, evaluation criteria, and loan terms for the In-ERCOT Generation Loan Program. Under the new rule, those seeking a TEF loan must submit a Notice of Intent (NOI) to apply between May 1, 2024, and May 31, 2024. The PUCT will begin accepting loan applications on June 1, 2024.

In-ERCOT Generation Loan Rulemaking PUCT Project No. 55826

Key Dates

In-ERCOT Generation Loan Program Application

The Texas Energy Fund (TEF) Portal will accept applications for the In-ERCOT Generation Loan Program for an eight-week window, beginning on June 1, 2024, and closing on July 27, 2024. During this time, applicants must provide detailed information on the categories found in 16 TAC §25.510. Entities must have submitted an NOI to receive an application through the TEF Portal.


Completion Bonus Grants Program

On April 25, 2024, the PUCT adopted new 16 TAC §25.511 establishing the application process and performance standard requirements for the Completion Bonus Grants Program within the TEF. New dispatchable electric generation resources that meet certain planning requirements after June 1, 2023, and interconnect to the Electric Reliability Council of Texas (ERCOT) power grid before June 1, 2029, may be eligible for a completion bonus grant.

To be eligible for a completion bonus grant, an applicant's new generating resources must provide at least 100 megawatts (MW) of new nameplate capacity in the ERCOT region, among other criteria.

Eligible facilities must meet performance standards set by the PUCT to earn annual grant payments. Completion bonus grants will be paid in installments over a 10-year period, subject to performance measured over 12-month test periods from June 1 of each year to May 31 of the following year. The amount of an award is based on program funding availability, the capacity and interconnection date of the electric generating facility for which an applicant requests a completion bonus grant, and performance during each test period.

Detailed information on program eligibility, evaluation, and grant award processes can be found here. Additional guidance for prospective applicants, including key dates, will be released later in 2024.

Outside ERCOT Grant Program

The Outside ERCOT Grant Program will provide funding for transmission and distribution infrastructure or electric generating facilities in Texas outside of the ERCOT power region. Under this program, the PUCT will award grants for the modernization of infrastructure, weatherization, reliability and resiliency enhancements, and vegetation management.

The PUCT will adopt a rule setting forth eligibility and application requirements for this program. Additional information will be posted to this page when available.

Texas Backup Power Package Program

The TEF will provide grants and loans to qualifying entities to design, procure, or install backup power packages at facilities necessary to support community health, safety, and well-being. A backup power package is a stand-alone, behind-the-meter, multiday back up power source.

On January 14, 2024, the PUCT named members of the Texas Backup Power Package Advisory Committee. The Committee is tasked to recommend criteria to the PUCT for backup power package grants. The Backup Power Package Advisory Committee will submit a recommendation report to the PUCT by October 1, 2024. Additional information will be posted to this page when available.

Backup Power Package Advisory Committee Information and Reports PUCT Project 56176

For program information, questions, or assistance, contact the TEF support team by phone at 1-866-526-2269 or email at info@txenergyfund.texas.gov.