State launches framework for PUCT emergency energy funding program

The Public Utility Commission of Texas (PUCT) has unveiled a new rule establishing the grant and loan process for a state grant program that supports power generation and emergency preparedness efforts statewide. 

The Texas Backup Power Program allows critical facilities and public entities to apply for funding for emergency backup energy generators. 

The program establishes who may apply and what the funding will support. The advisory committee and commission have gathered research, stakeholder questions and public comments since late 2024 to reach this point. 

Critical facilities like nursing homes, hospitals, water utilities and emergency response centers will soon be among those eligible to apply for the purchase and installation of backup generators. The commission also offered flexibility in eligibility by including “any other facility” identified as critical by the governing body of a political subdivision.  

Facilities may apply for grants, loans or both, but the commission rejected proposals for mandatory matching fund requirements in an effort to keep the program accessible to a variety of applicants.  

The funding will support behind-the-meter backup power systems capable of providing continuous backup power for 48 hours during emergency outage situations only. Facilities are prohibited from exporting power to the grid or participating in wholesale energy markets.  

The backup power systems must operate with a combination of fuel sources to maintain reliability during prolonged outages. Examples include natural gas or propane paired with solar panels and battery storage.  

The commission has not released an application schedule, but similar Texas Energy Fund programs began accepting applications within a few months of final rule adoption. 

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