Policy Overview

In March 2021, the state of Texas introduced three pieces of legislation that would preempt local climate and energy policy. These bills replicated efforts in other states, including Arizona and Tennessee, that began in 2020 as part of a larger, coordinated movement to counter the electrification movement taking hold in cities in California, Massachusetts, and the Pacific Northwest. While the exact wording of the introduced bills varied slightly, they shared the common aspect of giving the state authority over local regulations. All three bills are brief and under two pages long. One of them, House Bill 17, passed in May 2021 and successfully prohibited local authorities from restricting energy and infrastructure based on the type of energy source.

Senate Bill 1261 was introduced in March 2021 and did not pass in the Texas Legislature. It proposed to codify that the state of Texas has exclusive jurisdiction over the regulation of greenhouse (GHG) emissions, such that the state would have the authority to preempt local policies on such matters. As introduced, the legislation stated that “a municipality or other political subdivision may not enact or enforce an ordinance or other measure that directly or indirectly regulates greenhouse gas emissions.”

House Bill 1501 was introduced in March 2021, with the stated intent of restricting sub-state governmental entities from banning the use of fossil gas or propane in residential and commercial buildings. It did not pass.

House Bill 17 was introduced in March 2021 and signed into law by the Governor in May 2021. HB17 outlawed municipalities’ ability to ban or limit utility services and the construction of buildings or infrastructure based on the type of energy source. Similarly, it restricted additional charges on infrastructure based on energy sources. However, the bill maintained the ability of local authorities to choose their own utility services for their own properties.

Policy Status

Texas passed HB 17, a gas ban preemption bill, in May 2021. As of December 2024, at least 26 states including Texas have preemption laws, and several other states have introduced similar bills.

Policy Status

Passed - Texas passed HB 17, a gas ban preemption bill, in May 2021.

Evidence Profile

Key

opposing not supporting mixed/unclear
supporting strongly supporting

Policy Engagement Overview

Overview of engagement:

  • Oil and gas companies directly engaged on these three bills with negative positions, as witnesses during committee hearings in May 2021.

  • Notably, CenterPoint Energy engaged on similar preemption bills in other states and, as reported by S&P Global, discussed the possibility of preemption bills in Texas as early as June 2020.


SB1261 Engagement

  • Several oil and gas companies supported SB1261, which would have given the state authority to regulate GHG emissions over local authorities, and directly advocated for it in the Texas House and Senate in May 2021.

  • CenterPoint Energy, Valero Energy, and Koch Industries had representatives serve as witnesses for the bill during its consideration in the Legislature, according to House and Senate Committee Reports.


HB1501 Engagement

  • Several oil and gas companies supported HB1501 in April and May 2021. HB1501 would have restricted the banning of fossil gas or propane in buildings.

  • Phillips 66 registered as a witness in support of the bill during the April 2021 committee hearing.

  • CenterPoint Energy registered as a witness in support of the bill during its consideration in both the House and Senate.

HB17 Engagement

  • Several companies directly advocated for HB 17 during May 2021 committee hearings in the Texas House and Senate. HB17 outlaws municipalities’ ability to ban or limit utility services and the construction of buildings or infrastructure based on the type of energy source.

  • Dow Inc and CenterPoint Energy both had representatives serve as witnesses for the bill during its consideration in the Legislature, according to the House Committee Report.

  • The Texas Association of Business (TAB) stated support for the bill in a 2021 LinkedIn post, stating it “applauds Governor Greg Abbott for signing HB 17 into law, prohibiting Texas cities from banning natural gas as a fuel source for new construction and utility services.” TAB also highlighted the bill in its legislative session recap.

Policy Status

Passed - Texas passed HB 17, a gas ban preemption bill, in May 2021.

Evidence Profile

Key

opposing not supporting mixed/unclear
supporting strongly supporting