Texas Lawmakers Reopen 765-kV Line Fight as $1.3 Billion Data Center Tax Break Faces Repeal
Updated
Updated · The Texas Tribune · Aug 19
Texas Lawmakers Reopen 765-kV Line Fight as $1.3 Billion Data Center Tax Break Faces Repeal
2 articles · Updated · The Texas Tribune · Aug 19
Summary
A nine-hour Texas House hearing put 765-kV transmission lines and data centers under fresh scrutiny, with lawmakers signaling support for slowing approvals and revisiting the 180-day line-review process.
ERCOT told legislators Gov. Greg Abbott’s ordered audit of grid-connection requests—about 90% of them data centers—should run until December, likely delaying a first batch of roughly 250 projects.
Landowners and county officials tied the two issues together, arguing data-center demand is driving new transmission routes while counties lack authority to manage projects in unincorporated areas.
Utilities and industry groups warned delays could disrupt equipment procurement, raise costs and hinder oil, gas and manufacturing growth, rejecting claims the lines mainly serve data centers.
The hearing followed July calls from Lt. Gov. Dan Patrick and Sen. Charles Schwertner to scrap the 765-kV project, while House members also appeared ready to repeal a data-center sales-tax break now worth $1.3 billion.