CCS development could expand Permanent School Fund, decrease property taxes in Texas
The Bureau of Economic Geology?s Dr. Timothy ?Tip? Meckel, a research scientist studying geologic carbon storage at the University of Texas at Austin, recently testified before Texas? House Finance Committee about how CCS development could improve property taxes and increase funding for Texas schools.
Since its inception, the Texas General Land Office (GLO), which oversees state lands, has deposited over $27.3 billion to the Permanent School Fund through leases on lands and mineral holdings. As the energy industry reduces its reliance on fossil fuels, the GLO has placed increasing emphasis on the importance of new technologies like CCS to keep the Permanent School Fund afloat. According to Dr. Meckel, the GLO began supporting CCS development in 2009, giving a $1.2 million grant to the Bureau of Economic Geology (BEG) to study CCS storage on offshore lands. The deal also included $20 million in additional financial support granted to the BEG to study offshore CCS storage.
Thanks to this support, the GLO has now received $140 million in lease payments for seven CO2 storage leases since 2022. These leases could lead to an estimated $10 billion in royalties from CO2 storage offshore in the coming decades. In 2024, the GLO increased its support of CCS, opening leases for over 1 million acres?1,500 square miles?for CCS development, with the hope of further
From offsetting property taxes to creating thousands of new jobs, CCS will have a massive impact on the Texas economy, reimagining the Lone Star State?s energy industry and creating a strong economic future.
Click aquí to watch Dr. Meckel?s full testimony.
