Capitol Weekly

May 9, 2025

This Week

We are in the final 3 weeks of the 89^th Legislative Session! While the end is near, more will happen in the next three weeks of session than in the previous 4 months. The urgency to negotiate compromises, deliver on campaign promises, and bring home newsworthy legislation is felt in every hallway, committee hearing, and in the lengthy and emotional debate on the House and Senate Floor.

Despite over 9,000 bills being filed, only 134 bills have been sent to the Governor for his signature thus far. As the end nears, there are important deadlines fast approaching that will determine the fate for most of the bills still in play. Thursday, May 15, is the last day a House Bill or House Joint Resolution can be considered by the full House. This important House deadline will mean the end of the line for thousands of bills that failed to make it through the committee process.

The Senate has passed all 40 of its priority bills and continues to move quickly through the remainder of Senate and House bills. SB 715 by Sen. Sparks (R-Midland) was passed on Thursday afternoon by a vote of 17 to 14. SB 715 would retroactively require “firming” requirements to existing renewable generation, undoing an important compromise language we negotiated last session in HB 1500 that would only apply firming requirements to new renewable generation starting in 2027. SB 715 would strike that limitation and require firming for periods when renewables cannot operate. TCC opposes the retroactive provisions, and the bill could trigger significant cost increases for companies with existing power purchase agreements (PPAs). SB 715 will now be sent to the House State Affairs Committee.

On Thursday and Friday, the House spent hours debating SB 17 by Sen. Kolkhorst (R-Brenham). 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. Any land purchased illegally would result in divestiture by the state. The bill will now go back to the Senate where they can accept the House changes or request a conference committee to negotiate a compromise.

On Friday, the Senate recessed until 11:00 AM on Monday. The House is expected to work through Mother’s Day weekend in anticipation of the upcoming bill deadlines.

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 and continuing the Legislature’s effort to deliver lasting property tax relief to Texans. Rate compression provides equitable tax relief to all taxpayers.

HB 105 by Rep. Ryan Guillen (R-Rio Grande City) has been set on the House Calendar for this Sunday, May 11^th.  HB 105 is a top priority for TCC this session to make improvements to the Texas Jobs, Energy, Technology, and Innovations (JETI) Act and enhance the program’s competitiveness for new industry investment in Texas. TCC, along with a broad coalition of more than 50 business organizations—including chambers of commerce and economic development corporations—will now coordinate efforts to secure support for the bill’s passage. HB 105 would prioritize large capital-intensive projects of $750 million or more and revises the wage calculation to reflect county average manufacturing wages and applying only to jobs required by the program.

Extending the franchise tax credit for research and development investments is another top priority for TCC this session. SB 2206 by Senator Paul Bettencourt (R-Houston) unanimously passed the Senate and is scheduled for a hearing in the House Ways and Means Committee on Monday, May 12^th. The bill would preserve a franchise creditfor industries seeking to invest in reseach and development projects in Texas. TCC is a part of the Texans for Innovation coalition in support of the bill.

HB 4839 by Representative Armando Walle (D-Houston), was voted out of the House Environmental Regulation Committee last week. HB 4839 is a TCC recyling priorityto advance sustainable recycling infrastructure and strengthen a circular economy in Texas. TCC will continue to work with stakeholders to build support for the bills passage.

SB 7 by Senator Charles Perry (R-Lubbock) is a comprehensive water infrastructure bill designed 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 enhances connectivity for regional and statewide water infrastructure. 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, ensuring a stable and recurring source of funding for water infrastructure projects statewide. HJR 7 would dedicate 80% of its funding for new water projects and 20% for infrastructure improvements. Both SB 7 and HJR 7 are advancing through the legislative process and are expected to pass. SB 7 passed out of the House Natural Resources Committee on Wednesday while HJR 7 was heard in the Senate Finance Committee on the same day. TCC strongly supports these bills, which are critical to addressing Texas’s growing water needs and ensuring sustainable water resources.

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 refer new issues back to the TCEQ during the discovery phase. SB 2203 was passed out of the Senate Natural Resources Committee last week and has been set on the Local/Uncontested Calendar for Monday. The House companion, HB 3249 by Rep. Drew Darby (R-San Angelo), has already been voted out of the House Environmental Regulation Committee and is currently in the House Calendars Committee awaiting the Senate bill. 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 was heard in the Senate Education Committee on Thursday. It is possible that this may be left pending to await the passage Senate version – SJR 59 - which has passe the Senate and is in the House.

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. SB 1786 has passed both chambers and has returned to the Senate for consideration of House changes. 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. On Wednesday, the House companion, HB 4806 by Rep. Greg Bonnen (R-Friendswood), was heard in the Committee with lengthy testimony from supporters and opponents. Trial Lawyers are opposing SB 30 and are running TV ads urging people to call their legislators and oppose. 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 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. This week, HB 2970 was heard and unanimously voted out of the Senate Natural Resources Committee and has been recommended for the Senate Local/Uncontested Calendar. 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. TCC has testified on dozens of bills in House and Senate committee hearings.

This week was the last week for House Committees to consider House Bills because the deadline for bills to be reported to the Calendars Committee is on Monday May 12^th.  Typically, House Committees that hold hearing on House bills this week are doing so as a courtesy to legislators with bills with major opposition and little chance of making it to the House floor. Unfortunately, these hearings provide legislators and invited witnesses with an opportunity to attack industries and seek media attention. Chairmen will also allow votes on bills for committee members that have substantial support to get their bill out of committee.

Last week, the House Environmental Regulation Committee voted out HB 1730 by Rep. Penny Morales Shaw (D-Houston), and the bill now awaits placement in the House Calendars Committee. HB 1730 would authorize the University of Houston to conduct a study on the effects of PFAS on public health. TCC was the only organization to testify in opposition, expressing concerns about allowing a university to take the lead on this study in lieu of the TCEQ. TCC continues to engage with lawmakers to prevent the bill from advancing further.

Last week, the House Environmental Regulation Committee heard HB 1682 by Rep. Penny Morales Shaw (D-Houston), which would redirect a portion of civil penalties collected by the state in environmental enforcement actions initiated by local governments into a dedicated environmental remediation fund. This fund would be reserved for local governments to carry out remediation projects, rather than the penalties being deposited into the state’s general revenue fund. TCC was the only organization to testify in opposition to the bill, raising concerns about fiscal accountability and potential unintended consequences. At this time, the bill is not expected to advance out of Committee.

Yesterday, the House Environmental Regulation Committee held a courtesy hearing on HB 1674 by Rep. Helen Kerwin (R-Glen Rose), relating to PFAS testing for biosolids used as commercial fertilizer. 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. Many individuals from Johnson County testified before the committee in support of the bill, expressing concerns about local environmental and human health impacts. TCC testified in opposition, highlighting the need for a more balanced and scientifically grounded approach. TCEQ provided compelling testimony, raising questions about the accuracy and context of the testimony provided by proponents of the bill. TCC does not expect HB 1674 to advance out of committee but the hearing may ignite deeper discussions regarding PFAS during the interim.

The House Environmental Regulation Committee held a courtesy hearing for HB 4028 by Rep. Erin Zwiener (D-Driftwood), relating to regulations for the discharge of pre-production plastics. TCC testified in opposition to the bill, raising concerns that the proposed regulatory changes are overly burdensome, exceed the capabilities of best available control technologies, and attempt to circumvent established water quality standards. TCC also invited the Director of Operation Clean Sweep at the Plastics Industry Association to testify on the bill and highlight the significant strides that industry has made to be responsible environmental stewards and to mitigate the loss of pre-production plastic materials through improved strategies and technologies. 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.

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 during House floor debate about PFAS issues unrelated to AFFF. Rep. Vasut (R-Angleton) has agreed to carry the bill in the House and understands the importance of protecting it from amendments that could compromise its integrity.

In recent weeks, the House Environmental Regulation Committee heard two bills related to the Texas Emissions Reduction Plan—HB 4519 by Rep. Claudia Ordaz (D-El Paso) and HB 4841 by Rep. Rafael Anchia (D-Dallas)—both were left pending in the committee. HB 4519 streamlines the application process and enhances TCEQ’s ability to administer TERP, improving efficiencies in approving grant applications. HB 4841 establishes a database to connect owners of older diesel vehicles (pre-2009 models) with potential TERP applicants, encouraging the scrapping of less efficient vehicles, while also directing TCEQ to promote the program. Earlier this week, HB 3868 by Rep. Brooks Landgraf (R-Odessa) incorporated the language from HB 4519 and HB 4841 and was successfully voted out of the Committee. TCC will continue to monitor HB 3868 as it advances through the process to ensure TERP maintains its integrity and purpose. 

Energy

HB 14 by Rep. Cody Harris (R-Palestine) was heard by the Senate Business & Commerce Committee on Thursday. 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. TCC will continue to advocate for this bill in the Senate.

SB 6 by Senator Phil King (R-Weatherford) was heard by the House State Affairs Committee on Tuesday. SB 6 focuses on planning for large scale electricity consumption by implementing new requirements for large loads interconnecting to the ERCOT grid. TCC will continue to follow this legislation as it moves through the House.

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 remains concerned about the impact this bill will have on industry.

SB 388 by Senator Phil King (R–Weatherford) has been 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. This week, both pieces of legislation were passed out of the House and have been referred to the Senate Business and Commerce 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 was voted out of the House on Thursday and has been referred to the Senate Business and Commerce Committee.

HB 2868 by Rep. Will Metcalf (R-Conroe) was voted out of House State Affairs and has been sent to the House Calendars 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 opposed this bill in committee and believes 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

SB 783 by Senator José Menéndez (D–San Antonio) has been sent to the Governor after the Senate voted to concur with amendments made by the House. 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. With both chambers now aligned, SB 783 awaits the Governor’s signature to become law.

The House

With less than one week remaining for the House to consider House bills, the House calendar is quickly filling up with hundreds of bills scheduled for floor consideration next week. The pace at the Capitol is accelerating, and the House will be working late into Friday evening and over the weekend as the May 15th deadline approaches. To see a breakdown of the deadlines for action, visit here.

Next Week

Monday, May 12, 2025

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

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

The House Judiciary and Civil Jurisprudence Committee will be meeting at 7:00 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 11:00 AM or upon adjournment. The agenda may be found here.

The House Subcommittee on County and Regional Government will be meeting at 9:00 AM. To see the full agenda, visit here.

The Senate Local Government Committee will be meeting at 2:00 PM or upon adjournment/recess of the Senate. The full agenda may be found here.

Tuesday, May 13, 2025

The Senate Business and Commerce Committee will be meeting at 8:00 AM. The agenda can be found here.

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 8:30 AM. The full agenda may be found here.

Wednesday, May 14, 2025

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 Homeland Security, Public Safety & Veterans’ Affairs will be meeting at 8:00 AM or upon final adjournment. The agenda may be found here.

The House Delivery of Government Efficiency will be meeting at 9:00 AM or upon final adjournment. The agenda may be found here.