The bill amends Section 256.103(b) of the Transportation Code to revise the allocation of grants distributed from the transportation infrastructure fund among counties. The changes include a reduction in the percentage allocated based on oil and gas production taxes from 20% to 15%, and a decrease in the percentage for horizontal well completions from 45% to 40%. Additionally, the bill introduces new categories for grant allocation, including 10% for regularly producing horizontal wells and 5% for regularly producing vertical wells, both of which are to be distributed among adjacent counties that have applied for grants.

These adjustments aim to better reflect the current landscape of oil and gas production in Texas and ensure that funding is more equitably distributed based on recent production data. The bill is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Transportation Code 256.103 (Transportation Code 256)