HB2890

Regular Session

Relating to an interstate compact for the liquefied natural gas industry.

LowStandard timeline

Low Cost

Effective:2025-05-28

Enforcing Agencies

Office of the Governor

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: May 28, 2025
Compliance Deadline: Pending Compact Execution. No immediate operational changes are required until the Governor formally executes the compact with at least one other state.
Agency Rulemaking: The Office of the Governor must first negotiate terms with partner states. Following execution, expect the Railroad Commission of Texas (RRC) and TCEQ to issue guidance harmonizing Texas standards with Compact agreements. We are currently in a Regulatory Gray Zone; the authority exists, but the rules do not.

Immediate Action Plan

Audit Regulatory Filings: Catalog all data currently submitted to the RRC and identify which data points are proprietary/trade secrets.
Engage Government Affairs: Direct your lobbyists to monitor the Governor’s office for the formation of the Compact drafting committee. You must secure a seat at the table to define "information sharing" protocols.
Review Insurance Policies: Verify if your liability and workers' compensation policies cover employees and equipment if a future Compact agreement triggers a mutual aid deployment to a neighboring state.
Monitor Louisiana Legislature: Watch for reciprocal legislation in Louisiana, as the Compact requires a partner state to become operational.

Operational Changes Required

Contracts

Confidentiality Agreements (NDAs): Review existing NDAs with state regulators. The law mandates "information sharing" between states. You must ensure that proprietary data provided to Texas regulators retains its confidential status if transferred to the Compact or a partner state like Louisiana.
Joint Ventures: Entities with cross-border operations (e.g., pipelines crossing TX/LA lines) should prepare for potential alignment of operating procedures.

Hiring/Training

No immediate hiring requirements.
Future Training: Anticipate future training updates for safety and environmental compliance officers to align with standardized "Gulf of America" regional protocols rather than Texas-specific codes.

Reporting & Record-Keeping

Data Audit: The law explicitly authorizes the sharing of information to "foster the development" of the industry. Audit the data you currently report to the RRC regarding throughput, capacity, and safety. Assume this data will eventually be aggregated at a regional level.
Standardization: Prepare for a shift toward unified reporting formats across Gulf states to facilitate the mandated "efficiency" and "coordination."

Fees & Costs

No new fees are established by this statute.
Cost Impact: Minimal immediate cost. Future costs may arise from administrative adjustments to meet harmonized reporting standards.

Strategic Ambiguities & Considerations

Proprietary Data Protection: The statute mandates sharing information but lacks specific statutory protections for trade secrets shared between states. It is unclear if Texas Public Information Act exemptions will travel with the data once it leaves Texas jurisdiction.
Federal Preemption: Section 760.002 states the compact shall not require Congressional approval. This limits the Compact's scope to state-level issues. If the Compact attempts to influence export volumes or pricing (federal DOE/FERC jurisdiction), it will face immediate litigation.
Definition of "Resources": The bill mentions sharing "resources." It is undefined whether this refers strictly to state regulatory personnel or implies a mechanism to commandeer or share private industry assets (equipment, storage) during regional shortages or emergencies.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsGulf of America Economic & Industrial Development Economic & Industrial Development--general Governor Intergovernmental Relations Oil & Gas Utilities Utilities--natural Gas Water Water--navigation & Ports

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

H.B. 2890

By: Patterson

Energy Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

According to the website of the comptroller of public accounts, the liquefied natural gas (LNG) industry in Texas is a significant component of the state's energy sector and, due to the state's location and export capabilities, the LNG industry in Texas accounted for 31 percent of U.S. LNG exports in 2023. However, in January 2024, then-President Joe Biden placed a temporary pause on LNG exports to non-free trade agreement countries, which effectively banned new authorization of LNG exports to all but 18 countries. The bill's author has informed the committee that the pause on LNG exports prompted discussions on how to safeguard the industry from federal restrictions. Additionally, the House Select Committee on Protecting Texas LNG Exports proposed the formation of an interstate compact among Gulf Coast states with LNG infrastructure to coordinate policies and protect the LNG industry from outside factors, such as future executive office holders. H.B. 2890 seeks to establish this interstate compact by requiring the governor to develop and execute an interstate compact for the LNG industry among states that border the Gulf of America for the purpose of regional cooperation with states sharing a vested interest in LNG production and exports.

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

H.B. 2890 amends the Government Code to require the governor, on the state's behalf, to develop and execute an interstate compact for the liquefied natural gas industry among states that border the Gulf of America. The bill establishes that it is the legislature's intent that the compact not require congressional approval and prohibits the compact from increasing the political power of the compacting states in relation to the federal government. The bill requires the compact to provide for joint action among compacting states on matters that include sharing information, resources, and services to protect and grow the liquefied natural gas industry along the gulf coast and to improve coordination to increase the overall effectiveness and efficiency of that industry along the gulf coast.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.

House Authors

Rep. Jared PattersonRepublican · Primary Author

Joint Authors

Coauthors (2)

Senate Sponsors

Sen. Tan ParkerRepublican · Primary Sponsor

Cosponsors (1)

Charles Creighton (R)

Bill Text(with markup)

H.B. No. 2890

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to an interstate compact for the liquefied natural gas
	industry.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Title 7, Government Code, is amended by adding
	Chapter 760 to read as follows:
	CHAPTER 760. GULF STATES LIQUEFIED NATURAL GAS INDUSTRY COMPACT
	Sec. 760.001. AUTHORITY TO DEVELOP AND EXECUTE COMPACT. On
	behalf of this state, the governor may develop and execute an
	interstate compact for the liquefied natural gas industry among
	states that border the Gulf of America.
	Sec. 760.002. CONGRESSIONAL APPROVAL NOT REQUIRED. (a) It
	is the intent of the legislature that the compact developed and
	executed under this chapter not require congressional approval.
	(b) The compact may not increase the political power of the
	compacting states in relation to the federal government.
	Sec. 760.003. INTERSTATE COMPACT PROVISIONS. The compact
	authorized by this chapter must provide for joint action among
	compacting states on matters that include sharing information,
	resources, and services to:
	(1) protect and grow the liquefied natural gas
	industry along the gulf coast; and
	(2) improve coordination to increase the overall
	effectiveness and efficiency of the liquefied natural gas industry
	along the gulf coast.
	SECTION 2. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 20, 2025

TO:	Honorable Drew Darby, Chair, House Committee on Energy Resources

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB2890 by Patterson (Relating to an interstate compact for the liquefied natural gas industry.), As Introduced

No significant fiscal implication to the State is anticipated.

According to the Office of the Governor, no significant fiscal implications are anticipated from the provisions of the bill.

Local Government Impact

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

Source Agencies:

300 Trusteed Programs Within the Office of the Governor

LBB Staff:

JMc, RStu, LCO, KCu

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Frequently Asked Questions

Common questions about HB2890

What does Texas HB2890 do?

HB2890 authorizes the Texas Governor to execute the "Gulf States LNG Compact" with neighboring states (specifically Louisiana, Mississippi, Alabama, and Florida) to harmonize regulations and share industry data. While effective immediately, this is enabling legislation; it impacts LNG terminal operators and midstream assets by creating a future framework for cross-border standardization, but imposes no immediate penalties or filing requirements today. Implementation Timeline Effective Date: May 28, 2025 Compliance Deadline: Pending Compact Execution.

Who authored HB2890?

HB2890 was authored by Texas Representative Jared Patterson during the Regular Session.

When was HB2890 signed into law?

HB2890 was signed into law by Governor Greg Abbott on May 28, 2025.

Which agencies enforce HB2890?

HB2890 is enforced by Office of the Governor.

How urgent is compliance with HB2890?

The compliance urgency for HB2890 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB2890?

The cost impact of HB2890 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HB2890 address?

HB2890 addresses topics including gulf of america, economic & industrial development, economic & industrial development--general, governor and intergovernmental relations.

Legislative data provided by LegiScanLast updated: November 25, 2025

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