The Legislative Budget Board (LBB) fiscal note for SB 1762 concludes that the bill would have no significant fiscal implication to the state. This finding reflects the limited financial impact expected from the bill’s core provision, which authorizes the Railroad Commission of Texas to designate private parties as operators of orphaned oil, gas, or geothermal wells if they can prove a continuing possessory right and submit the required documentation and a $250 fee.

The reasoning behind this conclusion is that while the bill allows for a small, fixed application fee, the resulting revenue would likely be minimal and not substantial enough to meaningfully affect the state budget. Furthermore, the bill does not authorize any new spending or programs that would require appropriations, nor does it impose substantial new duties on the Railroad Commission that would necessitate additional staffing or infrastructure investment.

Additionally, no fiscal impact is anticipated for local governments, as the bill does not delegate responsibilities or impose costs on counties or municipalities. Its implementation would be managed solely at the state level by the Railroad Commission, with voluntary participation by private entities seeking to operate eligible orphaned wells​.

In summary, SB 1762 is designed as a low-cost regulatory mechanism that facilitates private stewardship of idle energy assets, and as such, it carries minimal direct fiscal consequences for either state or local governments.

Texas Policy Research recommends that lawmakers vote YES on SB 1762 based on its targeted clarification of legal definitions and support for responsible energy innovation. The bill aims to eliminate ambiguity in the statutory classification of geothermal energy conservation wells by explicitly stating that these wells are not battery energy storage systems. This distinction is essential because geothermal conservation wells store thermal—not electrical—energy and thus require a different regulatory approach.

The Committee Substitute for SB 1762 builds on this clarification by also enhancing the Railroad Commission of Texas’s ability to designate operators for orphaned oil, gas, or geothermal wells, provided the applicant demonstrates a valid legal interest in the subsurface estate. This measure not only encourages private sector stewardship of unused wells but also promotes geothermal development as a form of dispatchable, low-emission energy storage. Importantly, the bill imposes no new regulatory burdens, contains no unfunded mandates, and generates only minimal administrative costs—all of which align with the principles of limited government and fiscal prudence.

Furthermore, the bill protects private property rights by requiring clear documentation of ownership or lease rights, and it promotes personal responsibility by allowing willing parties to assume control of otherwise inactive wells. By removing legal uncertainty and aligning the law with technological distinctions, SB 1762 facilitates cleaner energy development without expanding government authority. As such, it upholds all five core liberty principles: individual liberty, personal responsibility, private property rights, free enterprise, and limited government.

• Individual Liberty: The bill supports individual liberty by expanding opportunities for private individuals and companies to utilize geothermal resources for energy storage and dispatch without unnecessary regulatory ambiguity. By clarifying that geothermal energy conservation wells are not battery energy storage resources, the bill prevents misclassification and potentially burdensome regulation, preserving individuals’ freedom to innovate in emerging energy technologies.
• Personal Responsibility: The bill encourages individuals and companies with legal claims to step up and take responsibility for orphaned wells. By requiring a factually supported claim, a certificate of compliance, and a nominal fee, the bill ensures that only committed, legally entitled parties can assume control. This fosters a culture of stewardship, where operators voluntarily take on responsibility for the environmental and operational management of dormant energy assets.
• Free Enterprise: By creating a legal pathway for private sector operators to take over and repurpose orphaned wells, the bill unlocks new business opportunities in geothermal energy without government subsidies or direct involvement. This supports the development of a more competitive and innovative energy market, particularly in a niche area (thermal energy storage) that could enhance grid resilience and energy diversification in Texas.
• Private Property Rights: The bill directly protects private property rights by conditioning the Railroad Commission’s designation of a new operator on the applicant’s ability to demonstrate a continuing possessory interest in the mineral, geothermal, or geologic space accessed by the well. This ensures that ownership and control remain tied to valid legal interests, reinforcing the sanctity of property rights over state seizure or ambiguous claims.
• Limited Government: Importantly, the bill does not create new state programs or regulatory powers. Instead, it enables the Railroad Commission to operate more efficiently within its existing authority by facilitating private-sector solutions to the problem of abandoned wells. The fiscal note confirms there are no significant costs to the state or local governments, which underscores the bill’s alignment with limited government principles.

• HB 5568 (Same As)