BILL ANALYSIS

C.S.H.B. 4313

By: Bell, Cecil

Intergovernmental Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill author has informed the committee that some cities are considering implementing "climate fees" to fund climate and environmental projects, which could ultimately cost taxpayers billions of dollars. C.S.H.B. 4313 seeks to address this issue by prohibiting a political subdivision from using public money to plan, create, or operate an environmental project, with certain exceptions.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 4313 amends the Local Government Code to prohibit a political subdivision from using public money to plan, create, or operate an environmental project, including by directly spending money for the project or by dedicating money for the repayment of debt issued by the political subdivision for the project. The bill defines the following terms for such purposes:

· "environmental project" as a project to reduce greenhouse gas emissions, reduce the amount of pollutants reaching the environment, or create public awareness of those or related issues; and

· "political subdivision" as a county, municipality, public school district, special purpose district or authority, metropolitan or regional transit authority, port authority, regional council of governments, regional planning commission, county improvement district, or public improvement district.

C.S.H.B. 4313 clarifies that the prohibition applies to public money obtained from any source, including from a tax, fee, grant, or donation, but exempts from the prohibition a political subdivision's use of public money to do the following:

· comply with a state or federal law;

· satisfy a statutory duty imposed on the political subdivision, including for a project described in this list of exemptions;

· improve flood control, drainage, or water supplies;

· implement a water conservation or drought contingency measure;

· construct or operate a renewable energy infrastructure project that provides direct service to a facility owned or operated by the political subdivision;

· improve the energy efficiency or resilience of a facility owned or operated by the political subdivision;

· manage vegetation necessary to maintain public safety, protect infrastructure, prevent wildfires, or support flood and water management activities;

· engage in water quality, conservation, or resource management activities;

· implement roadway maintenance, erosion control, or infrastructure safety improvements necessary for public transportation or road durability, other than a project to construct or maintain electric vehicle charging stations, alternative fuel infrastructure, or projects aimed at reducing vehicle emissions;

· carry out environmental or energy efficiency initiatives in public schools, colleges, hospitals, and health care facilities necessary to meet operational or statutory requirements; or

· manage waste disposal or sanitation services.

EFFECTIVE DATE

September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 4313 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

Whereas the introduced prohibited a political subdivision from imposing a fee to fund a climate or environmental project undertaken by the political subdivision, the substitute prohibits a political subdivision from using public money to plan, create, or operate an environmental project, including by directly spending money for the project or by dedicating money for the repayment of debt issued by the political subdivision for the project.

The substitute defines "environmental project" similarly to the definition of "climate or environmental project" in the introduced but does not include projects to mitigate the impacts of climate change or to adapt to the effects of climate change, which were included in the introduced version's definition. The bill also makes the following changes with respect to definitions:

· omits the introduced version's definition of "fee"; and

· includes a definition of "political subdivision" that did not appear in the introduced.

The substitute includes provisions not in the introduced clarifying that the prohibition applies to public money obtained from any source, including from a tax, fee, grant, or donation, and exempting from the prohibition a political subdivision's use of public money for specified actions. Both versions provide for an exception regarding sanitation or waste disposal services, but while the introduced excluded such services from its definition of "climate or environmental project," the substitute includes management of such services among the exempted actions.