Austin, Texas –The Texas House of Representatives this week voted overwhelmingly to approve House Joint Resolution 82, legislation that through a constitutional amendment would create the “Generate Recurring Oil Wealth for Texas Fund” or “GROW” fund to dedicate existing state revenue paid by oil and gas severance taxes for specific reinvestment in energy-producing communities. If passed, GROW funds may only be used in areas of the state from which oil and gas are produced, and only are to be allocated to address infrastructure needs in the manner provided by general law. The following statement can be attributed to Ed Longanecker, president of the Texas Independent Producers & Royalty Owners Association (TIPRO) regarding the advancement of this legislation:
“TIPRO commends state lawmakers for their support of this critical resolution that will help direct tax revenue generated by the oil and natural gas industry to the very counties where production is occurring to support local issues impacting the energy sector, including constructing new highways and maintaining public roads, enhancing education related resources and creating more opportunities for the workforce.
On behalf of TIPRO and its members, I was pleased to testify in support of House Joint Resolution 82 before the House Appropriations Committee earlier in the legislative session. As I stated to legislators, in 2020 the Texas oil and gas industry had a direct Gross Regional Product, which is essentially GDP for a region of study, of $278 billion, or 15 percent of the Texas economy.
Having a long-term solution to address infrastructure degradation, road repair and maintenance in energy-producing areas will ensure that our industry can operate in a safe and efficient manner, protecting the health and safety of our workers, all individuals that utilize Texas roadways and the communities in which we operate, while continuing to support the economic benefits provided by the Texas oil and natural gas industry.
TIPRO looks forward to working with members of the Texas Senate to encourage passage of this important measure.”