The end of the Texas legislative session had several highlights for the state’s energy industry, with key bills poised to bring positive change – including two bills that passed, and one that failed to pass. Among the top three bills that garnered attention and support from the energy sector are:
WIN: House Bill 5: Texas Jobs, Energy, Technology & Innovation Act
The Texas legislature successfully passed HB 5, introduced by Representative Todd Hunter (R-Corpus Christi), to establish a modernized economic development program aimed at attracting capital-intensive projects related to manufacturing, national security, grid reliability, and supply chain infrastructure. The program allows school districts to offer temporary property tax discounts to companies seeking to bring jobs and investments to local communities.
To ensure transparency and accountability – a criticism of the previous program – HB 5 incorporates provisions on reporting requirements for companies to disclose the number of jobs created and wages paid as a result of the program. Moreover, the bill introduces consequences for projects that fail to meet the minimum job requirements, ensuring that companies are held accountable for their commitments.
Dale Petroskey, CEO of the Dallas Regional Chamber, praised the significance of economic development tools like those introduced by House Bill 5, saying that “economic development tools like the one House Bill 5 establishes are a vital piece of Texas and the Dallas Region’s winning economic formula.”
HB 5 was signed into law by Governor Abbott on June 9, with supporters remarking that the new law provides a robust framework for attracting high-impact projects and stimulating economic growth and emphasizes the state’s commitment to fostering a business-friendly environment while upholding transparency and accountability standards.
HB 5 “…will help Texas bolster our state’s economic security by helping to reestablish our global manufacturing dominance, reshore our supply chain, and ensure electric grid reliability. The limited, temporary, school M&O property tax discounts included in the economic development program HB 5 creates are imperative to attract new capital investment and the long-term benefits they bring,” said Tony Bennett, president and CEO of the Texas Association of Manufacturers.
WIN: House Bill 2374 / Senate Bill 1017: Cities Cannot Ban Gas Engines
HB 2374 / SB 1017 prohibit local governments from adopting or enforcing rules or ordinances that would restrict access to gasoline, diesel, or any other fuel source. The legislation comes in response to bans on natural gas stoves, gasoline-powered vehicles, and gasoline-powered leaf blowers, among others, in states like California and New York, and safeguards against local governments in Texas directly or indirectly prohibiting or restricting the use, sale, or lease of engines based on their fuel source.
Representative Brooks Landgraf, the bill’s author, said of the legislation: “I’m committed to defending the rights and liberties of every Texan, especially the hard-working West Texans who elected me to be their voice in the Texas House,” Landgraf said. “West Texas might be the last place on earth where someone might try to ban gasoline-power engines, but many who live and work in some large Texas cities are seeing the engine ban train coming down the tracks to the detriment of their families and businesses. HB 2374 will serve as bulwark against politicians who want to undermine the individual liberties of Texans.”
State Senator Brian Birdwell emphasized the essential role of oil and natural gas in meeting Texas’ and the nation’s energy needs. “Oil and natural gas are an essential part of meeting the energy needs of both our state and nation. California style restrictions on engines or fuel sources that limit consumers and business owners from being able to access the energy sources they need have no place in Texas.”
Governor Abbott signed the bill into law on May 15.
For a more in-depth look at HB 2374, click here.
MISS: Senate Bill 2107 / House Bill 4484: Carbon Storage
SB 2107 and HB 4484 by Senator Robert Nichols and Representative Greg Bonnen would have established a framework in Texas to encourage carbon storage projects.
Supporters of carbon storage argue that Texas – the undisputed leader of oil and gas in the U.S. – is falling behind other states in the fairly new area of carbon capture, utilization and storage (CCUS). Encouraging CCUS projects, supporters say, will help Texas remain the leader by creating more jobs in the energy sector and encouraging technology and innovation that can protect the environment.
“Twelve other states have already passed legislation related to carbon capture, and Texas has lagged other states in the development of this emerging industry. But this industry is Texas’ to lose because of our wealth of expertise, ideal geology, and diverse industrial base,” Todd Staples, president of the Texas Oil & Gas Association, said of the policy proposal.
