HB2440

Regular Session

Relating to the authority of a state agency or the state's air quality state implementation plan to impose certain restrictions with respect to a motor vehicle, including a motor vehicle powered by an engine.

LowStandard timeline

Low Cost

Effective:2025-06-20

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: June 20, 2025 (Effective immediately upon signature due to supermajority vote).
Compliance Deadline: Immediate. This is a defensive statute; businesses are immediately shielded from state-level ICE restrictions.
Agency Rulemaking: No new rulemaking is required. Conversely, the Texas Commission on Environmental Quality (TCEQ) is now statutorily barred from promulgating rules for the State Implementation Plan (SIP) that would mandate vehicle technology transitions.

Immediate Action Plan

1. Halt Regulatory Contingency Planning: Stop any procurement strategies based solely on the fear of a *state-level* ban on gas/diesel vehicles.
2. Monitor Municipal Agendas: Direct local government affairs teams to watch for city ordinances attempting to restrict ICE access, as this area remains legally gray.
3. Audit State Bids: If your business bids on state contracts, challenge any solicitation that attempts to mandate EV usage as a condition of the contract, citing Section 750.001(b)(1).
4. Maintain Federal Compliance: Continue to monitor EPA regulations; this Texas shield does not apply to federal enforcement.

Operational Changes Required

Contracts

Government Procurement: If you bid on state contracts, agencies cannot disqualify your bid or penalize your score solely because your fleet utilizes internal combustion engines. Review current RFPs for compliance with this new restriction on agency authority.
Supply Chain Agreements: Review "Change in Law" provisions in long-term fleet leases or fuel supply contracts. Provisions triggered by "state environmental mandates" are now nullified regarding ICE bans.

Hiring/Training

No Action Required: No new certifications or training mandates are created by this bill.

Reporting & Record-Keeping

Asset Valuation: Update internal asset depreciation schedules for ICE fleets. The regulatory risk of a state-mandated "forced retirement" of diesel or gas engines has been removed, potentially stabilizing residual asset values.
No New Filings: This legislation restricts the government, not the private sector. No new reporting is required.

Fees & Costs

No New Fees: The bill imposes no new costs on businesses.
Cost Avoidance: Businesses may halt capital expenditure contingency planning that was specifically allocated for state-mandated fleet electrification.

Strategic Ambiguities & Considerations

Federal Preemption (The EPA Gap): This law binds Texas agencies but cannot shield your business from Federal EPA mandates. If the EPA sets emissions standards that effectively ban ICE vehicles, Texas agencies will face a conflict of law. *Business Logic: Do not interpret this Texas law as total immunity from federal emissions regulations.*
Municipal Authority: The text explicitly restricts "state agencies." It does not explicitly name "political subdivisions" (cities/counties). There is a risk that municipalities may attempt to bypass this by creating "Zero Emission Zones" or local ordinances restricting ICE usage in city centers.
Incentives vs. Restrictions: The law prohibits "restricting" sale or use. It does not mandate that the state *must* buy ICE vehicles, nor does it prohibit the state from offering incentives for EVs. State agencies can likely still transition their own fleets to EV, provided they do not force the private sector to follow suit.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsEnvironment Environment--air State Agencies, Boards & Commissions Transportation Transportation--miscellaneous Vehicles & Traffic Vehicles & Traffic--general

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

C.S.H.B. 2440

By: Curry

Environmental Regulation

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill author has informed the committee that the possibility of the state restricting motor vehicle sales or usage based on a vehicle's energy source has led to concerns regarding consumer choice and regulatory overreach that could limit transportation options for Texans. C.S.H.B. 2440 seeks to protect consumer freedom and maintain a diverse vehicle market by prohibiting state agencies and the state's air quality state implementation plan from imposing certain restrictions on motor vehicles based on a vehicle's energy source.

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. 2440 amends the Transportation Code to prohibit a state agency from doing the following:

·prohibiting or otherwise restricting the sale or use of a motor vehicle based on the vehicle's energy source; or

·prohibiting a person from owning a motor vehicle that is powered by an engine.

The bill prohibits the state's air quality state implementation plan from including a provision that restricts the ability of a person to purchase any motor vehicle, including a motor vehicle powered by an engine. For these purposes, the bill defines the following terms:

·"energy source" as any fuel or power source used to power an engine; and

·"engine" as a machine for converting an energy source into mechanical force and motion, including an internal combustion engine or a generator.

EFFECTIVE DATE

September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 2440 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 state agency from prohibiting or otherwise restricting the sale or use of a motor vehicle based on the energy source used to propel or otherwise power the vehicle, the substitute prohibits a state agency from doing so based on the vehicle's energy source and includes a provision absent from the introduced defining "energy source."

Whereas the introduced prohibited a state agency from prohibiting a person from owning a motor vehicle that is powered by an internal combustion engine, the substitute prohibits a state agency from prohibiting a person from owning a motor vehicle that is powered by an "engine" and includes a provision absent from the introduced defining that term.

House Authors

Rep. Pat CurryRepublican · Primary Author

Joint Authors

Steve Toth (R)

Senate Sponsors

Sen. Tan ParkerRepublican · Primary Sponsor

Cosponsors (1)

Mayes Middleton (R)

Bill Text(with markup)

H.B. No. 2440

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the authority of a state agency or the state's air
	quality state implementation plan to impose certain restrictions
	with respect to a motor vehicle, including a motor vehicle powered
	by an engine.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Chapter 750, Transportation Code, is amended by
	adding Section 750.001 to read as follows:
	Sec. 750.001. AUTHORITY OF STATE AGENCY OR STATE
	IMPLEMENTATION PLAN TO IMPOSE CERTAIN RESTRICTIONS WITH RESPECT TO
	MOTOR VEHICLE. (a) In this section:
	(1) "Energy source" means any fuel or power source
	used to power an engine.
	(2) "Engine" means a machine for converting an energy
	source into mechanical force and motion, including an internal
	combustion engine or a generator.
	(b) A state agency shall not:
	(1) prohibit or otherwise restrict the sale or use of a
	motor vehicle based on the vehicle's energy source; or
	(2) prohibit a person from owning a motor vehicle that
	is powered by an engine.
	(c) The state's air quality state implementation plan shall
	not include a provision that restricts the ability of a person to
	purchase any motor vehicle, including a motor vehicle powered by an
	engine.
	SECTION 2. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 21, 2025

TO:	Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB2440 by Curry (Relating to the authority of a state agency or the state's air quality state implementation plan to impose certain restrictions with respect to a motor vehicle, including a motor vehicle powered by an internal combustion engine.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

582 Commission on Environmental Quality

LBB Staff:

JMc, FV, AJL

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Frequently Asked Questions

Common questions about HB2440

What does Texas HB2440 do?

HB 2440 immediately prohibits Texas state agencies from restricting the sale, use, or ownership of motor vehicles based on their energy source, effectively barring any state-level ban on Internal Combustion Engines (ICE). This legislation protects automotive dealerships, logistics carriers, and fleet operators from California-style Electric Vehicle (EV) mandates within the state of Texas. Implementation Timeline Effective Date: June 20, 2025 (Effective immediately upon signature due to supermajority vote).

Who authored HB2440?

HB2440 was authored by Texas Representative Pat Curry during the Regular Session.

When was HB2440 signed into law?

HB2440 was signed into law by Governor Greg Abbott on June 20, 2025.

How urgent is compliance with HB2440?

The compliance urgency for HB2440 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB2440?

The cost impact of HB2440 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HB2440 address?

HB2440 addresses topics including environment, environment--air, state agencies, boards & commissions, transportation and transportation--miscellaneous.

Legislative data provided by LegiScanLast updated: November 25, 2025

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