SB 388 Texas Senate · 89th Legislature (2025)

Relating to the legislature's goals for electric generation capacity in this state.

SB 388 sets a goal that 50% of new electric generation capacity in Texas (after 2026) must come from natural gas power plants, which provide reliable on-demand electricity. It directly affects utilities, power companies, and electric cooperatives operating in the ERCOT grid region. The bill creates a credit system where companies that don’t meet the natural gas requirement can buy credits from others who do, with the Texas Commission on Environmental Quality responsible for setting rules on how credits are calculated and used. The law also requires new natural gas projects to meet reliability standards and prioritize sites with economic potential for natural gas development. This is a substantive policy change affecting future energy investments, not a procedural measure.

Issues: ✗ Energy ✗ Environment

Bill status passed 3 of 5 stages cleared

Introduction

Nov 2024

Committee Review

Apr 2025

Senate Passage

Mar 2025

House Passage

Governor

Introduced Nov 19, 2024 Last action Apr 22, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Engrossed · 6 edits · Mar 19, 2025

MODERATE

The bill was significantly rewritten and expanded to establish a comprehensive dispatchable generation credits trading program. The original draft focused narrowly on natural gas goals, while the new version adds nuclear generation incentives, clarifies exemptions for battery storage, and introduces new compliance mechanisms including a 'compliance premium' for nuclear facilities. The bill also adds a new section expanding the Public Utility Commission's jurisdiction over municipally owned utilities.

Scope change

The bill's scope expanded from a narrow focus on natural gas generation goals to a broader program that includes nuclear generation incentives and clarifies exemptions for battery energy storage facilities.

REQUIREMENT

Added a new requirement for the commission to award a 'compliance premium' (an additional tradable instrument) to nuclear generation facilities energized after January 1, 2026.

ELIGIBILITY

Clarified that power generation companies exclusively operating battery energy storage resources are exempt from the dispatchable generation credits program.

ENFORCEMENT

Added new subsections requiring annual reporting on compliance and establishing an annual deadline for retiring dispatchable generation credits.

JURISDICTION

Added a new section expanding the Public Utility Commission's jurisdiction over municipally owned utilities to include administering the dispatchable generation credits program and evaluating cybersecurity preparedness.

DEFINITION

Modified the definition of 'dispatchable generation' to explicitly exclude technologies considered non-dispatchable under existing law.

TIMELINE

Updated the effective date of the Act to September 1, 2025, and maintained the January 1, 2026 start date for new generation capacity requirements.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 22, 2025

Committee

Referred to State Affairs

lower

Apr 22, 2025

Introduced

Read first time

lower

Mar 20, 2025

Introduced

Received from the Senate

lower

Mar 19, 2025

Upper · Passed

Passed

upper

Mar 19, 2025

Upper · Passed

Passed to engrossment as amended

upper

Mar 19, 2025

Upper · Passed

Amended

upper

Mar 19, 2025

Introduced

Amendment(s) offered

upper

Mar 13, 2025

Upper · Passed

Committee report printed and distributed

upper

Mar 13, 2025

Upper · Passed

Reported favorably as substituted

upper

Mar 11, 2025

Upper · Passed

Vote taken in committee

upper

Mar 4, 2025

Upper · Passed

Left pending in committee

upper

Mar 4, 2025

Upper · Passed

Testimony taken in committee

upper

Feb 3, 2025

Committee

Referred to Business & Commerce

upper

Feb 3, 2025

Introduced

Read first time

upper

0 primary · 2 co-sponsors