A qualifying cogenerator that serves a large load and a colocated desalination facility

Texas Senate Bill 2211, introduced in 2025, aimed to support the development of facilities that combine cogeneration (simultaneous production of electricity and useful heat) with desalination processes. The bill sought to amend existing definitions to include cogeneration facilities that serve large industrial loads and are co-located with desalination plants. This change was intended to encourage the use of produced water from oil and gas operations, particularly in the Permian Basin, for desalination, thereby providing a new source of water for agricultural and industrial uses. The bill was left pending in the Senate Business & Commerce Committee as of April 10, 2025.

Supporters of SB2211 highlighted its potential to address water scarcity issues in Texas by utilizing produced water from oil and gas operations for desalination. They emphasized that the bill could promote innovative solutions to manage produced water, reduce environmental concerns associated with its disposal, and provide a new source of water for agricultural and industrial purposes. Additionally, the integration of cogeneration facilities with desalination plants was seen as an efficient use of energy resources, potentially lowering operational costs and promoting sustainable industrial practices.

Critics of SB2211 raised concerns about the economic viability and environmental impact of the proposed cogeneration and desalination facilities. They questioned whether the costs associated with building and operating such facilities would outweigh the benefits, especially given the potential challenges in treating produced water to meet safety standards. Environmental advocates also expressed apprehension about the long-term sustainability of relying on produced water from oil and gas operations, suggesting that it might perpetuate dependence on fossil fuel industries and delay the transition to renewable energy sources.