Frequently Asked Questions (FAQ)

Below you will find answers to frequently asked questions (FAQs) regarding the energy sector roadway improvements.
Q: What is the impact of HB 1025 on energy sector roads?

A: HB 1025 is a supplemental bill passed during the 83rd Legislative Session. The bill allocates $450 million to be divided between state roads and county roads damaged in the energy development areas. $225 million will be allocated to TxDOT projects, and $225 million will be distributed to counties through grants.

Q: What is the purpose of Senate Bill 1747?

A: The bill, authored by Senator Carlos Uresti and sponsored by Representative Jim Keffer, creates a grant program for county roads in the energy development areas and authorizes TxDOT to administer the program.

Q: How will funding for each county be determined?

A: SB 1747 outlines provisions for which funding will be distributed by formula, taking into consideration weight tolerance permits, oil and gas production taxes, the number of well completions submitted to the Railroad Commission, and the volume of oil and gas waste injected per county.

Q: What must a county provide to TxDOT in order to be considered for funding?

A: A county must provide a road condition report, a list and scope of transportation infrastructure projects, and matching funds of 20% of the amount of the grant, or 10% if determined to be economically disadvantaged.

*Please note: Any expenditure made by the county prior to the implementation of the bill will not be reimbursed by TxDOT or be used to satisfy a part of the county's matching fund.

Q: What is required of the county when creating a County Energy Transportation Reinvestment Zone (CETRZ)?

A: Creating a CETRZ requires several steps that are set out in Senate Bill 1747.

In general, a county must:

  1. Hold a public hearing on the creation of the zone;
  2. Adopt a commissioners court order establishing the CETRZ and describing the boundaries of the zone;
  3. Create an advisory board;
  4. Determine the amount of the tax increment and establish a tax increment account;
  5. Dedicate or pledge all of the increase in the appraised value of real property located in the CETRZ to their projects.

Creating a TRZ is a formal legal process. A county will need to rely on its own legal advice or advice provided by a county association for the establishment and operation of the TRZ.

Q: When will counties be able to apply for funds?

The department will accept applications Feb. 7-14, 2014.