The amendment would establish the Texas Energy Fund in the Texas Constitution to fund the construction, maintenance, modernization, and operation of electric generating facilities. The fund would be administered by the Public Utility Commission (PUC) of Texas, which would be authorized to provide loans and grants to advance the purposes of the fund. The amendment requires that the PUC allocates money to eligible projects in each region of Texas that contain an electric power grid in proportion to that region's load share.

Money in the fund would consist of money appropriated by the state legislature; investment returns from the fund; and gifts, grants, and donations contributed to the fund. The expenses of managing the fund would be paid by the fund. Money appropriated by the state legislature would be excluded from the state's appropriation limit.

The Texas State Legislature also passed Senate Bill 2627, the implementing legislation, during the 2023 legislative session. It would take effect if the amendment passes. SB 2627 would establish an advisory committee for the fund. It also details the types of projects that could be funded by the Texas Energy Fund.