House Rejects Amendment to Prohibit Future Carbon Tax in Texas

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by KnowESG
KnowESG_House Rejects Amendment to Prohibit Future Carbon Tax in Texas-min
Two days ago, a proposal to permanently block Texas from adopting a carbon tax, failed to gain the necessary support in the state House. FREEPIK

Amid mounting environmental concerns, a proposal to permanently block Texas from ever adopting a carbon tax has failed to gain the necessary support in the state House.

On Monday, May 12, 2025, the Texas House considered House Joint Resolution 138 (HJR 138), introduced by Rep. Alders. The resolution aimed to pass a constitutional amendment that would bar the state from imposing a carbon tax, an economic mechanism widely recognized as an efficient way to reduce greenhouse gas emissions and combat climate change.

Because HJR 138 proposed a constitutional amendment, it required a two-thirds majority vote to move forward to a public ballot. Fortunately for environmental advocates, it fell short of that threshold. Although the current Legislature is unlikely to implement a carbon tax in the future, the failure of this resolution ensures that future lawmakers retain the option to consider such policies.

Environmental experts and climate policy advocates breathed a sigh of relief at the vote’s outcome. Many argue that carbon taxes provide a market-based approach to curbing pollution from fossil fuels and accelerating the transition to clean energy. Blocking that avenue permanently, they say, would hinder Texas' ability to respond to the evolving climate crisis.

Read More: The Growing Need for ESG Companies, Sustainability, and Climate Solutions

While HJR 138 failed, another major energy-related amendment did pass. A proposal from Rep. Brooks Landgraf would divert 12% of oil and gas tax revenue, currently funneled into the Rainy Day Fund, into a new initiative called the Texas STRONG Fund. This fund would invest in projects such as oil and gas cleanup, emissions reduction programs, and infrastructure improvements in communities largely impacted by fossil fuel production.

Meanwhile, on the Senate floor, lawmakers passed Senate Bill 261, which seeks to ban the production and sale of cultivated meat in Texas. Supporters argue the measure protects traditional ranching industries, while critics warn it undercuts innovation in sustainable food systems.

In a victory for water conservation, the Senate also passed House Bill 517, which stops Homeowners Associations from penalizing residents for brown or dry lawns during official drought restrictions. This measure aims to protect Texans who are adhering to municipal water-saving regulations, especially as summer temperatures climb.

Also Read: Understanding Carbon Accounting: A Practical Guide for 2024

Other environmental measures advanced in Senate committees, including Senate Bill 2497, which tackles concerns about the quality of drinking water, and Senate Bill 2850, which would create a pollinator health task force to protect bees, butterflies, and other essential species.

While the Texas Legislature continues to work around the tension between economic priorities and environmental responsibility, the defeat of HJR 138 signals that there remains a path, however uncertain, for future climate action in the Lone Star State.

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Source: Environment Texas

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