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A recently enacted law in Texas, which went into effect in mid-June, declares the landowner or the owner of surface rights as the holder of subsurface geothermal energy and associated resources. If the surface and mineral rights of the land have been separated, the owner of the surface estate prevails.

As of September 1, 2023, in ance with Senate Bill 786 of the 88th Legislature, all geothermal wells are under the jurisdiction of the Commission, including closed-loop geothermal wells that use the earth as a heat sink to heat or cool a structure.

The water and the working fluid are kept separated during the whole process, so there are little or no air emissions. Currently, two types of geothermal resources can be used in binary cycle power plants to generate electricity: enhanced geothermal systems (EGS) and low-temperature or co-produced resources.

Although Texas's geothermal resources are mainly less than 100°C (212°F) near the Earth's surface, power generation is considered possible when higher temperature resources are available within reasonable depths—generally 120°C (248°F) within 4 km (13,123 ft).

Senate Bill 785 in Texas has become law, amending the Natural Resources Code to identify ownership of geothermal resources and associated byproducts. A new law in the state of Texas, U.S. has now bestowed ownership of geothermal energy to the landowner or the owner of the surface estate of the land.