Constitutional amendments would create funds for broadband, electric grid upgrades

With a simple Yes or No vote, voters will decide whether Texas will establish special funds to finance upgrades to the electric grid and expand broadband internet service.

Propositions 7 and 8 are among 14 proposed amendments to the Texas Constitution on the Nov. 7 ballot.

Sunday’s edition of the Gazette looked at Propositions 1 and 2. An overview of Propositions 3 and 4 was published in Monday’s edition. Propositions 5 and 6 were discussed in Tuesday’s edition.

PROPOSITION 7

Ballot title: The constitutional amendment providing for the creation of the Texas energy fund to support the construction, maintenance, modernization, and operation of electric generating facilities. Author: Sen. Charles Schwertner “Winter Storm Uri revealed the failures in our electricity market, specifically the lack of reliability. … S.B. 2627 creates a completion bonus and zero interest loan for new dispatchable generation resources directly targeted at ‘steel in the ground.’ It also provides low-interest loans for existing dispatchable generators as a mechanism for generators to access capital needed to maintain and make necessary improvements to existing generation resources,” Schwertner said in the bill analysis.

Summary: SJR 93 would establish the Texas energy fund — a special fund in the state treasury outside the general revenue fund and administered by the Public Utility Commission of Texas or its successor. Money in the Texas energy fund could be used only by PUC or its successor to provide loans and grants to finance or incentivize the construction, maintenance, modernization and operation of electricity-generating facilities necessary to ensure the reliability or adequacy of an electric power grid in the state.

The proposed amendment would require PUC to allocate money from the fund for loans and grants to eligible projects for electricity-generating facilities that serve as backup power sources and in each region of the state that is part of an electric power grid in proportion to that region’s load share.

The fund would have at least four financing sources — money credited, appropriated or transferred to the fund by or as authorized by the Legislature; revenue that the Legislature dedicates for deposit to the fund; returns received from the investment of the money in the fund; and gifts, grants and donations contributed to the fund.

Supporters: North Texas Commission; Valero Energy Corp.; Conocophillips; Texas Pipeline Association; Texas Association of Manufacturers; Lyondellbasell; Olin; Texas Constitutional Enforcement; Texas Oil and Gas Association; BASF Corp.; Ovintiv; Samsung; Dow; Occidental Petroleum; Texas Chemical Council; Koch Companies; Enterprise Products; Targa Resources; Tarrant Regional Water District; Texas Twister

Opposers: ONEOK Inc.; Texas Advanced Energy Business Alliance; Texas Consumer Association; Environment Texas; Woori Juntos

“We need, and Texans want, more clean energy, not less. There is strong support for more wind and solar energy, more battery storage, more energy efficiency, and more interconnection with the national grid. Unfortunately, the Legislature ignored these solutions to strengthen our electric grid while protecting consumers and the environment,” said Luke Metzger, executive director of Environment Texas.

PROPOSITION 8

Ballot title: The constitutional amendment creating the broadband infrastructure fund to expand high-speed broadband access and assist

in the financing of connectivity projects.

Author: Rep. Trent Ashby et al.

“According to recent studies conducted by the state broadband development office, almost 2.8 million Texas households, or roughly seven

million Texans, lack broadband Internet access. This means that nearly a quarter of Texans do not have the quality of Internet access necessary to attend online classes, see a healthcare provider from their living room, complete an online job application, start a business online, or access digital marketplaces from their kitchen table. These barriers negatively affect Texans’ quality of life and limit economic opportunities for the people of Texas and the state overall,” Ashby said in the bill analysis.

Summary: HJR 125 would create the broadband infrastructure fund — a special fund in the state treasury outside the general revenue fund, administered by the Texas Comptroller of Public Accounts. The proposed amendment would authorize the Comptroller to transfer money from the broadband infrastructure fund to another fund as provided by general law, and the state agency that administers the fund to which any money is transferred could use the money without further appropriation only for the expansion of access to and adoption of broadband and telecommunications services.

The broadband infrastructure fund would expire on Sept. 1, 2035, unless extended by adoption of a joint resolution of the Legislature. Immediately before the expiration of the fund, any remaining money would be transferred to the state general fund.

Supporters: Texas Cable Association; AARP Texas; County Judges and Commissioners Association of Texas; Texas 2036; North Texas Commission; Goodwill Central Texas; Comcast; Independent Bankers Association of Texas; Conference of Urban Counties; Texas Association of Goodwills; City of San Antonio; Texas PTA; Methodist Healthcare Ministries; Verizon; T-mobile; Texas REALTORS; United Ways of Texas; Texas Farm Bureau; Opportunity Austin; Texas Telephone Association; AT&T; Nextlink Internet; Travis County Commissioners Court; Texas Municipal League

Opposers: Texas For Liberty