BILL ANALYSIS

Senate Research Center	C.S.H.B. 1501
87R28510 DRS-F	By: Dean et al. (Birdwell)
	Natural Resources & Economic Development
	5/21/2021
	Committee Report (Substituted)

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

It has been noted that natural gas is a vital part of the Texas economy and that nearly half of Texas homes use natural gas or propane for heating, cooking, and powering other home appliances and achieve annual savings in doing so. However, a growing number of cities across the country have begun restricting or outright banning natural gas or propane hookups for appliances in new buildings and construction. This trend has reached Texas, where the City of Austin, among others, has considered proposals to phase out the use of hookups fueled by certain fossil fuels as part of a revision of the city's climate plan. There have been calls for the state to pass legislation preempting local measures restricting or banning the use of an appliance or other system or component that is fueled by natural gas or propane in order to preserve customer choice and allow all Texas homeowners, builders, and businesses to decide how to meet their own energy needs. C.S.H.B. 1501 seeks to provide for such preemption.

C.S.H.B. 1501 amends current law relating to certain regulations adopted by a governmental entity restricting the use of a natural gas or propane appliance or other system or component.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 3000, Government Code, by adding Section 3000.0021, as follows:

Sec. 3000.0021. CERTAIN REGULATIONS REGARDING RESTRICTION OF NATURAL GAS OR PROPANE. (a) Prohibits any governmental entity from adopting or enforcing an ordinance, resolution, regulation, code, order, policy, or other measure that has the purpose, intent, or effect of directly or indirectly banning, limiting, restricting, discriminating against, or prohibiting the use of an appliance or other system or component that is fueled by natural gas or propane in the construction, renovation, maintenance, or alteration of a residential or commercial building.

(b) Prohibits a governmental entity from imposing any additional charge or pricing difference on a development or building permit applicant that discourages those constructing homes, buildings, or other structural improvements from using an appliance or other system or component that is fueled by natural gas or propane in the construction, renovation, maintenance, or alteration of a residential or commercial building.

SECTION 2. Effective date: September 1, 2021.