Capitol Weekly

May 3, 2025

This Week

There are 2 days remaining in the session.  This week was the busiest week thus far, with Committees working late into the night, hearing hundreds of bills before the looming legislative deadlines.

SB 779 by Senator Mayes Middleton (R-Galveston) passed the Senate and is now in the House Committee on Judiciary and Civil Jurisprudence. SB 779 would prevent private parties or local governments from using public nuisance law to regulate businesses that are already regulated by the state and in compliance with state law.  Cody Vasut (R-Angleton) is the House sponsor. TCC strongly supports this legislation.

SB 2117 by Sen. Tan Parker (R-Flower Mound) passed the Senate this week and has been referred to the House State Affairs Committee. SB 2117 would establish the Texas Committee on Foreign Investment. This committee would be tasked with reviewing certain transactions involving foreign entities that may pose risks to the state’s security or its critical infrastructure.  The chemical manufacturing sector is critical infrastructure, and SB 2117 would require companies to TCC is concerned about the impact this bill could have on companies who have a presence in foreign markets.

SB 17, by Sen. Kolkhorst (R-Brenham) was sent to the House Calendars Committee. SB 17 would restrict land ownership in Texas by governments, entities, and citizens from China, Russia, Iran, and North Korea—nations deemed a national security threat. The bill prohibits the purchase of agricultural, commercial, or residential property in Texas, with enforcement authority granted to the Texas Attorney General.

On Thursday, the Senate recessed until 11:00 AM on Monday. The House adjourned on Friday and will reconvene at 11:00 AM on Monday.

TCC Legislative Priorities

SB 1 by Sen. Joan Huffman (R-Houston), the state’s budget bill, is currently in a Conference Committee of the House and Senate to reconcile differences between their versions of the bill. In addition to funding core state agencies, SB 1 includes $3 billion for additional property tax rate compression, continuing the Legislature’s effort to deliver lasting property tax relief to Texans. Rate compression provides equitable tax relief to all taxpayers.

A top priority for TCC this session is strengthening the Texas Jobs, Energy, Technology, and Innovations (JETI) Act to make the program more competitive for new industry investment in Texas. HB 105 by Rep. Ryan Guillen (R-Rio Grande City) was heard in the House Ways and Means Committee on Monday, where TCC and a broad coalition of more than 50 business organizations—including chambers of commerce and economic development corporations—testified in support. HB 105 would prioritize large capital-intensive projects of $750 million or more and modify the wage calculation to be based on county average manufacturing wages and applying only to required job for the program. TCC expects the bill to be voted out at the next committee meeting.

Extending the franchise tax credit for research and development investments is another top priority for TCC this session. SB 2206 by Sen. Paul Bettencourt (R-Houston) was unanimously passed by the Senate this week and has been referred to the House Ways and Means Committee. The bill would preserve a key incentive that supports innovation, job creation, and economic growth across Texas industries. TCC is working closely with a coalition of industry partners to secure the passage of SB 2206 in the House.

TCC’s top recycling priority, HB 4839 by Representative Armando Walle (D-Houston), was voted out of the House Environmental Regulation Committee on Friday. The Senate companion, SB 2689 by Senator Kelly Hancock (R-North Richland Hills), has been heard in the Senate Natural Resources Committee. These bills would advance sustainable recycling infrastructure and strengthen Texas’s circular economy. TCC continues to actively work with stakeholders to neutralize opposition and build the support needed to pass this important legislation. The House committee also voted out the bottle bill, HB 2048 by Rep. John Lujan (R-San Antonio).

SB 7, by Sen. Charles Perry (R-Lubbock), is a comprehensive water infrastructure bill that aims to secure Texas’s water future by establishing a permanent $1 billion annual funding stream for water projects. The bill expands the Texas Water Fund to include infrastructure development projects and improves regional and statewide water infrastructure connectivity. HJR 7, by Rep. Cody Harris (R-Palestine), proposes a constitutional amendment to dedicate a portion of state sales and use tax revenue to the Texas Water Fund. This bill aims to provide a stable and recurring source of funding for water infrastructure projects across the state. Both SB 7 and HJR 7 are currently advancing through the legislative process. SB 7 unanimously passed out of the Senate and was heard in the House Natural Resources committee last week, while HJR 7 was voted out of the House this week and is now in the Senate Finance Committee. TCC supports these bills which are critical to addressing Texas’s growing water needs and ensuring sustainable water resources for future generations.

SB 2203 by Sen. Brian Birdwell (R-Granbury) requires the State Office of Administrative Hearings (SOAH) and TCEQ to adopt rules that allows the parties in a contested case hearing to certify an issue during the discovery phase back to the TCEQ commissioners. SB 2203 was passed out of the Senate Natural Resources Committee last week and has be set for a Local/Uncontested Calendar. The House companion, HB 3249 by Rep. Drew Darby (R-San Angelo), has been voted out of the House Environmental Regulation Committee and is currently in the House Calendars Committee. TCC supports this legislation because it will provide hearing procedures to address issues that were not referred by the TCEQ to the SOAH administrative law judge to consider.

HJR 5 by Rep. Stan Lambert (R-Abilene) is a proposed constitutional amendment to enhance funding for the Texas State Technical College (TSTC) System. The bill would establish two dedicated funds for capital projects and equipment purchases for TSTC's educational programs and would provide the institution with greater financial flexibility. TSTC provide career & technical training for skilled workers pursuing career opportunities in industry. HJR 5 passed out of the House this week and has since been referred to the Senate Education Committee.

SB 1786 by Sen. Brandon Creighton (R-Conroe) would make technical corrections   for the community college funding system established by HB 8 last session. HB 8 introduced a performance-based funding model for Texas community colleges. The bill has passed both chambers and has returned to the Senate, where lawmakers will decide whether to concur with the changes made by the House. TCC supports SB 1786 as a necessary step to enhance the effectiveness of the state's investment in community college education.

SB 30 by Sen. Charles Schwertner (R-Georgetown) would address the financial impact of large legal verdicts, commonly referred to as "nuclear verdicts," in Texas. The bill seeks to implement reforms that would protect Texas citizens and businesses from the detrimental effects of inappropriately large verdicts that lead to increased insurance costs and financial instability for small and large businesses. SB 30 passed out of the Senate and is in the House Judciary and Civil Jurisprudence Committee. TCC supports SB 30 as a critical step toward fostering a fair and balanced legal environment in Texas.

SB 39 by Sen. Brian Birdwell (R-Granbury) addresses the civil liability of commercial motor vehicle owners and operators in Texas. The bill aims to clarify and potentially limit the circumstances under which these entities can be held liable in civil cases, impacting how liability is assessed in accidents involving commercial vehicles. SB 39 was passed out of the Senate last week and has been referred to House Judiciary and Civil Jurisprudence. The House companion, HB 4688 by Rep. Jeff Leach (R-Plano), is currently in the House Calendars Committee.

HB 2970 by Rep. Dennis Paul (R–Houston) would ensure that projects conducted by the Gulf Coast Protection District (GCPD) do not disrupt two-way traffic along the Houston Ship Channel. HB 2970 was voted out of the House this week and has been set for a hearing on May 7th in the Senate Natural Resources Committee. TCC supports the efforts of the GCPD  to protect Texas coastal communities from storm surge associated with hurricanes and major storm events.

Environmental

TCC continues to track environmental bills that impact permitting, enforcement, and public engagement.

Next week is the last week for House Committees to consider House Bills and the deadline for bills to be reported to the Calendars Committee is on May 12^th.  As such, it is expected that Committees will grant courtesy hearings to legislators with bills that have major opposition and have little chance of making it to the House floor.  Unfortunately, these hearings provide legislators with an opportunity to attack industries and seek media attention.  We also will see Chairman allow votes on bills for committee members that have support to get their bill out of committee.  We started to see several committees start this process this week.

HB 1730 by Rep. Penny Morales Shaw (D-Houston) was voted out of the House Environmental Regulation Committee on Friday. HB 1730 would authorize the University of Houston to study the effects of PFAS on public health. TCC was the only organization to testify against the legislation and is working to prevent the bill from advancing any further.  

HB 1682 by Rep. Penny Morales Shaw (D–Houston) was heard in the House Environmental Regulation Committee yesterday with TCC being the only organization to testify against the bill. HB 1682 would allocate a portion of civil penalties collected by the state in environmental enforcement actions initiated by local governments to a special environmental remediation fund reserved for local governments to conduct environmental remediation projects, rather than being deposited into the general revenue fund.  The bill is not expected to get out of committee.

TCC has learned that the House Environmental Regulation Committee will hold a courtesy hearing next week on HB 1674 by Rep. Helen Kerwin (R-Glen Rose), relating to PFAS testing in biosolids. TCC has engaged with Rep. Kerwin’s office to propose changes to her bill, but Rep. Kerwin was unwilling to work with us on her legislation. While HB 1674 is not expected to be voted out of the Committee, TCC will testify in opposition to voice our concerns about the legislation.

The House Environmental Regulation Committee will also hold a courtesy hearing for HB 4028 by Rep. Erin Zwiener (D–Driftwood), relating to regulations for the discharge of pre-production plastics. TCC opposes any onerous regulatory changes that exceed the capabilities of best available control technologies and that seek to circumvent existing water quality standards. The Senate companion, SB 2441 by Senator Judith Zaffirini (D-Laredo), has not received a hearing in the Senate Natural Resources Committee. TCC does not expect HB 4028 to be voted out of the Committee but will be testifying in opposition.

SB 1898 by Sen. Nathan Johnson (D-Dallas) passed out of the Senate last week and is now in the House Environmental Regulation Committee. SB 1898 would restrict the use of Aqueous Film-Forming Foam (AFFF) (firefighting foams containing PFAS) for testing or training purposes. Senator Johnson worked with TCC on changes that conform to industry model language by restricting the use of AFFF for training purposes while preserving its availability for industrial emergencies. The bill also includes our industry’s preferred definition for PFAS. While TCC supports the current version of the bill, we anticipate that the legislation will attract a great deal of attention on the House floor and likely open the door for negative debate about PFAS that is unrelated to AFFF.

HB 3868 by Rep. Brooks Landgraf (R-Odessa), makes modifications to the Texas Emissions Reduction Plan (TERP). TERP is the state’s primary tool for reducing emissions in nonattainment areas from mobile sources. Rep. Landgraf plans to incorporate two other TERP bills supported by TCC into HB 3868. HB 4519 by Rep. Claudia Ordaz (D-El Paso) streamlines the application process and aids TCEQ in administering TERP and makes efficiencies in approving grant applications. HB 4841 by Rep. Rafael Anchia (D-Dallas) creates a database that matches owners of old diesel vehicles (pre-2009 models) with potential TERP applicants to increase the rate of scrapping older vehicles with less efficient engines. This bill also directs TCEQ to promote this program.  Both bills have been heard in Committee with TCC support.

Energy

HB 14 by Rep. Cody Harris (R-Palestine) was passed out of the House last week and is now set to be considered by the Senate Business & Commerce Committee. HB 14 would promote the development of advanced nuclear reactor projects for dispatchable electric generation in Texas and establish a fund to incentivize investment in advanced nuclear energy. The bill would create the Texas Advanced Nuclear Energy Office. This Office would be tasked with overseeing nuclear initiatives, funding, and providing regulatory assistance and workforce development. TCC has been a strong proponent of this bill because it would promote clean and reliable dispatchable electricity to support our state’s population growth and energy demand growth by Texas industries. 

SB 6 by Senator Phil King (R-Weatherford) unanimously passed the Senate and is scheduled to be heard by the House State Affairs Committee on Monday. SB 6 focuses on planning for large scale electricity consumption by implementing new requirements for large loads interconnecting to the ERCOT grid.

HB 3356 by Rep. Jared Patterson (R-Frisco) and SB 715 by Sen. Kevin Sparks (R–Midland) would retroactively apply “firming” requirements to existing renewable generation, undoing key provisions of last session’s HB 1500 compromise. While HB 1500 applied only to new resources starting in 2027, these bills strike that limitation, imposing firming obligations—including during periods when renewables would not normally run—on current projects. The latest committee substitutes make the requirements more burdensome for renewable generators and exclude thermal resources entirely. TCC opposes the retroactive provisions and has solicited member input, as the bills could trigger significant cost increases under existing power purchase agreements (PPAs). HB 3356 was voted out of the House State Affairs Committee this week and is currently in the House Calendars Committee. SB 715 has passed out of the Senate Business and Commerce Committee and is expected to be heard on the Senate floor next week.

SB 819 by Sen. Lois Kolkhorst (R–Brenham) introduces significant regulatory changes for renewable energy projects in Texas by mandating new permitting processes for facilities over 10 megawatts. It also imposes setback requirements of twice the height of the turbine including blades for wind turbines and 200 feet for solar panels from property lines and establishes an annual environmental impact fee to fund a renewable energy cleanup fund. SB 819 passed the Senate and has been referred to the House State Affairs Committee.  TCC continues to receive feedback from members and remains concerned about the impact this bill will have on industry.

Last week, SB 388 by Senator Phil King (R–Weatherford) was referred to the House State Affairs Committee. The bill would require that 50% of all new generation added to the ERCOT grid be dispatchable, meaning capable of providing on-demand, reliable power. A key and controversial component of the legislation is its retroactive provision. SB 388 would apply this 50% dispatchable requirement not only to future projects, but also to those already under development or under contract. This retroactivity could significantly impact ongoing energy investments and project planning across the state.  TCC continues to work with the author of the legislation to address concerns.

HB 3157 by Rep. Drew Darby (R-San Angelo) would allow utilities to implement a charge rate to consumers before going through rate case due diligence with the PUC. HB 3069, also by Rep. Darby, would require ERCOT to look at cost savings well into the future (10 to 15 years) when approving transmission lines. The current timeline is 3 to 5 years. TCC expressed concerns to Rep. Darby and has negotiated changes to both bills that address industry concerns. Both pieces of legislation are currently in the House Calendars Committee.

HB 5247 by Rep. Charlie Geren (R-Fort Worth) establishes an alternative capital recovery process for certain utilities. TCC has negotiated changes with the bill author that address industry concerns. HB 5247 is currently in the House Calendars Committee.

HB 2868 by Rep. Will Metcalf (R-Conroe) was voted out of House State Affairs this week. TCC opposed this bill in committee. This bill would allow utilities to essentially choose their own capital structure, which is a primary driver in their profit level and one of the PUC’s core responsibilities in setting rates. Utilities fund investment through a mixture of debt and equity. They only earn a profit on equity, so they will also want to use more equity than debt. However, equity is typically much more expensive for customers—somewhere in the 9-10% range, whereas debt costs are usually more like 3-5%. TCC believe the best approach continues to be to allow the utility prove the need for an equity layer increase rather than allowing them to unilaterally make this decision. This bill shifts risks and costs to customers and reduces utility oversight, so we remain opposed.

The Senate

The Texas Senate has passed all 40 of its priority bills. However, with little time remaining in the session, only two House bills have passed the Senate thus far.

SB 783 by Senator Jose Menendez (R-San Antonio) was passed by the House this week and returns to the Senate where it is expected to concur with the House changes. SB 783 is a cleanup bill that will allow the State Energy Conservation Office (SECO) authority to adopt energy, water and high-performance building code standards for state-funded buildings, and the ability to adopt the latest energy codes of the International Code Council. TCC supports this legislation.

The House

With less than two weeks remaining for the House to consider House bills, hundreds of House bills are scheduled for consideration by the full House next week. The pace is clearly picking up and the House will continue to work later and later into the evenings over the next two weeks before the May 15^th deadline. To see a breakdown of the deadlines for action, visit here.

Next Week

Monday, May 5, 2025

The Senate Water, Agriculture, and Rural Affairs Committee will meet at 8:00 AM. You can find the full agenda here.

The House State Affairs Committee will be meeting at 8:00 AM. The agenda may be found here.

The House Ways and Means Committee will be meeting at 9:00 AM. The agenda may be found here.

The Senate State Affairs Committee will be meeting at 9:00 AM. The agenda may be found here.

The House Subcommittee on County and Regional Government will be meeting at 10:00 AM. To see the full agenda, visit here.

The Senate Local Government Committee will be meeting at 10:00 AM or upon adjournment/recess of the Senate. The full agenda may be found here.

Tuesday, May 6, 2025

The House Public Education Committee will be meeting at 8:00 AM. The agenda can be found here.

The House Intergovernmental Affairs Committee will be meeting at 8:00 AM. You can find the full agenda here.

The House Higher Education Committee will be meeting at 8:00 AM. To see the full agenda, visit here.

The House Licensing and Administration Procedures Committee will be meeting at 10:30 AM or upon adjournment of the House. The full agenda may be found here.

Wednesday, May 7, 2025

The House Judiciary and Civil Jurisprudence Committee will be meeting at 7:00 AM. The agenda may be found here.

The Senate Transportation Committee will be meeting at 8:00 AM. The agenda may be found here.

The House Trade, Workforce and Economic Development Committee will be meeting at 8:00 AM. The agenda may be found here.

The House Natural Resources Committee will be meeting at 8:00 AM. The agenda may be found here. 

The House State Affairs Committee will be meeting at 8:00 AM. The full agenda may be found here.

The Senate Natural Resources Committee will be meeting at 9:00 AM. The full agenda may be found here.

The House Homeland Security, Public Safety & Veterans’ Affairs will be meeting at 10:30 AM or upon final adjournment. The agenda may be found here.

The House Delivery of Government Efficiency will be meeting at 10:30 AM or upon final adjournment. The agenda may be found here.

Thursday, May 8, 2025

The House Land & Resource Management Committee will meet at 8:00 AM. The agenda may be found here.

The House Judiciary and Civil Jurisprudence Committee will be meeting at 8:00 AM. The agenda may be found here.

The House Subcommitee on Academic & Career-Oriented Eduction will meet at 8:00 AM. The full agenda may be found here.

The House Environmental Regulation Committee will meet at 10:30 AM or upon adjournment. The full agenda may be found here.