The Texas Energy Fund

 

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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

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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.

On Wednesday, January 1, 2025, the PUCT will begin accepting applications for the Completion Bonus Grant Program. Interested parties may begin their application in the TEF Portal on that date.

Detailed information on program eligibility, evaluation, and grant award processes can be found here.

Outside ERCOT Grant Program

The Outside ERCOT Grant (OEG) 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.

On February 13, 2025, the PUCT adopted new 16 TAC §25.512 establishing procedures for applying for the OEG Program, project eligibility, and grant award and payment process information.

To be eligible for an OEG, an applicant must be an existing electric utility, electric cooperative, municipally owned utility (MOU), or river authority that owns or manages transmission or distribution infrastructure or one or more electric generating facilities within Texas outside ERCOT, or own a qualifying facility under PURA, in addition to other criteria. More information on applying to the program and key dates 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

• The Public Utility Commission of Texas hosted a virtual workshop on November 13, 2024, to solicit input on the Texas Backup Power Package Program. Written comments were filed after the workshop to the PUCT Interchange using Project Number 57236.
• The PUCT solicited input from January 23rd to February 14th, 2025, on the Texas Backup Power Package Program Research Entity Final Report authored by Patrick Engineering, Inc., a RINA Company. Written comments were filed on the PUCT Interchange under Project Number 57236. Comments submitted may inform rulemaking for the Texas Backup Power Package Program. The Patrick Engineering Final Report and PUCT's request for comments were posted on January 23, 2025, and may be found here: Filings 57236.
• The PUCT hosted an in-person workshop on March 20th, 2025 at 1:30 P.M. Central Time to solicit input on the Texas Backup Power Package Program Research Entity Final Report authored by Patrick Engineering, Inc., a RINA Company. An archived recording of the workshop is available here on the PUCT website. Written comments on the report may be filed to the PUCT Interchange using Project Number 57236 until April 3rd, 2025.

 

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.