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Bill

HB 3652

Relating to a study by the Railroad Commission of Texas regarding the creation of a strategic gas and petroleum product reserve in this state.

89th Legislature (2025) Introduced by Marc LaHood

Texas directs Railroad Commission to study feasibility of creating state strategic reserves for natural gas and petroleum to enhance energy security and market stability.

Left pending in committee
#disasterpreparedness&relief(i0211) #interimstudies(i0448) #oil&gas(i0545) #railroadcommission(v0089) #stateagencies #boards&commissions(i0749)
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Bill Summary · HB 3652

Legislative bill overview

HB 3652 directs the Railroad Commission of Texas to conduct a study examining the feasibility and logistics of establishing a state-level strategic reserve for natural gas and petroleum products. The bill does not create a reserve itself but rather authorizes and funds research into whether such a reserve is practical and beneficial for Texas.

Why is this important

Strategic reserves can provide energy security during supply disruptions, price volatility, or emergencies, potentially stabilizing markets and protecting consumers. For Texas, a major energy-producing state, such a reserve could position the state as a stabilizing force during national energy crises while potentially generating revenue from storage operations.

Potential points of contention

  • Cost and funding: The study itself requires resources, and creating an actual reserve would involve significant capital expenditure that competes with other state priorities
  • Market intervention concerns: Some argue government reserves distort free markets and create unfair competition with private storage operators already operating in Texas
  • Storage infrastructure: Texas would need to identify suitable locations (salt domes, depleted fields) and determine if existing infrastructure can be repurposed or if new construction is necessary

Compiled from official sources — confirm details with the bill’s official record.

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