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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
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.

Government Affairs & Regulatory Compliance Analysis

HB2440: Government Affairs Overview

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.

Rep. Pat Curry·House Bill·Regular Session

Low
Low Cost
Effective:2025-06-20
Business Impact

Who HB2440 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: low

Standard regulatory changes (effective 2025-06-20). Review during normal business planning.

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Transportation

Affected business types:

  • Trucking companies
  • Towing operators
  • Fleet operators
  • Logistics providers
View all transportation legislation

Key Operational Considerations

  • 1No Action Required: No new certifications or training mandates are created by this bill.

Estimated Cost Impact

lowMinimal cost impact anticipated.

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HB2440
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 moto...
Low Urgency
Heavily Contested
House Vote101 - 32
YEA
NAY
76% in favor133 voting
Senate Vote25 - 6
YEA
NAY
81% in favor31 voting
38
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Primary Author: Rep. Pat Curry
89th Texas Legislature
jdkey.com
01

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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JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

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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.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 5, 2025
Passed House
May 10, 2025
Passed Senate
May 23, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsEnvironmentEnvironment--airState Agencies, Boards & CommissionsTransportationTransportation--miscellaneousVehicles & TrafficVehicles & Traffic--general
03

House Authors

Rep. Pat CurryRepublican · Primary Author
Joint Authors

Senate Sponsors

Sen. Tan ParkerRepublican · Primary Sponsor
Cosponsors (1)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Rep. Pat Curry

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about HB2440

Q

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.

Q

Who authored HB2440?

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

Q

When was HB2440 signed into law?

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

Q

How significant are the changes in HB2440?

The regulatory priority for HB2440 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

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.

Q

What topics does HB2440 address?

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

Q

What are the key dates for HB2440?

Key dates for HB2440: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by HB2440?

HB2440 primarily affects transportation and logistics companies. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026