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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.

RECENT NEWS All News Releases

PUCT Selects Texas Energy Fund Loan Applicants to Advance in Review Process
August 29, 2024 | Austin, Texas | Press Release | Español

PUCT Receives 72 Applications for Texas Energy Fund Loan Program
July 29, 2024 | Austin, Texas | Press Release

PUCT Sees Strong Industry Response to Texas Energy Fund Loan Program
June 01, 2024 | Austin, Texas | Press Release

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.

TEF Interchange Filing Numbers
Filing Number Description
56896 In-ERCOT Generation Loan Program Reports and Filings
56176 Texas Backup Power Package Advisory Committee Information and Reports
57004 Outside ERCOT Grant Program Rulemaking

 

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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. The PUCT accepted applications for the In-ERCOT Generation Loan Program from June 1, 2024, to July 27, 2024. Applicants can view their application status in the Texas Energy Fund (TEF) Portal. The timing of disbursements will depend on the borrower meeting the conditions precedent and the terms identified in the loan agreement. The last day by which the PUCT will make initial disbursements for approved In-ERCOT loans will be December 31, 2025.

On August 29, 2024, PUCT identified applications to move forward to the due diligence stage of the loan application review process. More information on the projects selected to advance is available here. Applications which have advanced to due diligence are not guaranteed a loan award.

In-ERCOT Generation Loan Program Reports and Filings PUCT Project No. 56896

Key Dates

Completion Bonus Grant 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 Grant 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.

Key Dates

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.

Outside ERCOT Grant Program Rulemaking PUCT Project No. 57004

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 submitted a recommendation report to the PUCT on October 1, 2024. Additional information will be posted to this page when available.

Backup Power Package Advisory Committee Information and Reports PUCT Project 56176

Upcoming Meetings

The Public Utility Commission of Texas will host a virtual workshop on Wednesday, November 13th at 1:30 p.m. CT to solicit input on the Texas Backup Power Package Program. The workshop is open to the public. Registration is required. Register here.

Event Details:
  • Date: November 13, 2024.
  • Time: 1:30 p.m. CT
  • Location: Virtual Zoom Webinar. Register here.
  • Attendee Particiption: Interested stakeholders are invited to provide comments, limited to three minutes per person, for each topic area. Written comments may be filed to the PUCT Interchange using Control Number 57236. Comments provided during the workshop and submitted on the PUCT Interchange may be taken into consideration to inform rulemaking for the Texas Backup Power Package Program.
  • Public Comments Topics: Attendees are requested to provide input on topic areas related to the program:
    1. Critical Facility Operator Input
    2. Technology Components and Specifications
    3. Ownership Models and Financing

For more information on the Texas Energy Fund and the Texas Backup Power Package Program, please visit the TEF Online.

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.