Texas House Rejects Proposal to Ban Future Carbon Tax

In a significant victory for Texas climate politics, House Joint Resolution 138 (HJR 138), legislation that aimed to make it constitutionally impossible for the state to implement a carbon tax, was defeated in the Texas House on May 12, 2025. Sponsored by Representative Alders, the bill would have amended the state constitution to forever rule out consideration of a carbon tax—a market-based policy instrument used in some places to fight greenhouse gas emissions.

As it required a constitutional amendment, HJR 138 had to pass by a two-thirds majority to proceed to a public vote. Still, the resolution did not do so. With this outcome, Texas lawmakers still have the option to revisit carbon tax proposals in the future, although the current Legislature has signaled no intent to do so.

The loss of HJR 138 further highlights the ongoing legislative disconnect between economic interests and environmental protection in Texas. The defeat of the resolution ensures that subsequent policy makers have the flexibility to bring climate-oriented economic legislation if needed, without being constitutionally obligated to do so.

Also on the same day, another important legislative measure was enacted into law in the House. A Representative Brooks Landgraf amendment will redirect 12% of oil and gas tax revenue, previously allocated to the state's Economic Stabilization Fund (Rainy Day Fund), to a new fund known as the Texas STRONG Fund. It is designed to pay for oil and gas cleanup efforts, emission suppression efforts, and infrastructure upgrades in fossil fuel development areas. The diversion of the funds represents a shift towards mitigating environmental consequences of the state's energy sector while being dedicated to funding its economic structure.

In another Senate floor vote, legislators advanced Senate Bill 261, which would ban the manufacturing and sale of cell-based meat in Texas. Supporters of the bill argue that it protects the state's historic cattle economy. But the bill has been fought by food tech and sustainability organizations, who argue that cultured alternatives would provide cleaner protein sources for the environment.

Also passed by the Senate was House Bill 517, protecting residents from fines by Homeowners Associations for having brown or dried-up lawns when officially designated drought conditions have been declared. The bill is in line with state water conservation goals and affords relief for homeowners who follow municipal water use rules in response to increasing summer temperatures.

Environmental policy more frequently came into play in Senate committees, with more measures progressing. Senate Bill 2497, addressing improved quality of drinking water, and Senate Bill 2850, calling for the establishment of a pollinator health task force to defend bees and other pollinating agents, both made progress. Such bills demonstrate greater emphasis on public health and environmental sustainability under Texas leadership.

Despite the political and economic complexities of Texas climate action, the defeat of HJR 138 leaves the door ajar for future environmental policy innovation. It highlights that while the state is not yet ready to implement a carbon tax, the choice remains available before future legislators, offering a flexible path to address emissions and environmental impacts as things unfold.

Source/Credits:
KnowESG; Source: Environment Texas