Texas lawmakers push for oil tax funds to fix damaged infrastructure

In Texas, heavy truck traffic from the fracking boom has led to severe damage to the infrastructure in the Permian Basin, resulting in the deterioration of roads and increased demand for public services. In response to these issues, State Representatives Tom Craddick and Brooks Landgraf have sponsored legislation to redirect a portion of oil and gas taxes to support infrastructure repairs and other community needs. Their bills aim to address challenges faced by 32 eligible counties and coastal counties engaged in oil transport, facilitating better services in healthcare, education, and public safety. Craddick's House Bill 265 is nearly identical to a proposal he introduced in 2019, while Landgraf's House Bill 188 seeks to allocate funds for oil field cleanup and emissions reduction. The proposed legislation emphasizes that addressing the fallout from years of oil and gas production is crucial not only for local communities but also for the energy industry's future productivity. Failure to rehabilitate the damaged infrastructure could hinder further development in the oil and gas sector, according to experts. The bills propose redirecting varying amounts from oil revenues; Landgraf's proposal allocates $500 million for these causes, whereas Craddick's would gather up to $250 million. A significant portion of the remaining funds will support the Property Tax Relief Fund that aids school districts. This funding strategy indicates a shared responsibility between the oil sector and Texas taxpayers in dealing with environmental and infrastructural challenges. Supporters, including oil companies and environmental groups, are urging lawmakers to adopt a solution that increases revenue contributions from the oil and gas industry rather than relying solely on tax revenues from residents. As Landgraf notes, the benefits of the proposed measures extend beyond the energy-producing regions, potentially fostering statewide improvements. Consequently, he hopes to build broader support for the legislation to ensure equitable distribution of benefits across Texas.