House Bill No. 5524 proposes the establishment of the Palangana Energy District in Texas, which will be governed by a board of directors consisting of at least seven members. The bill outlines the district's powers, including the ability to exercise eminent domain, issue bonds, and impose assessments, fees, and taxes to fund its operations. The district is specifically designed to enhance energy security and promote economic development in a county with a population between 8,000 and 12,000 that is located near the Texas-Mexico border.

The bill includes provisions for the management and operation of the district, including the eligibility criteria for directors, the process for filling vacancies, and the authority to impose assessments and taxes. Notably, the district can only finance projects through assessments if a petition is filed by property owners representing a majority of the assessed value. Additionally, the district must hold elections to obtain voter approval before imposing ad valorem taxes. The bill takes effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

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