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Signed Into Law
Signed May 28, 2025Effective 2025-05-28
HB2890

Regular Session

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

Government Affairs & Regulatory Compliance Analysis

HB2890: Government Affairs Overview

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.

Rep. Jared Patterson·House Bill·Regular Session

Low
Low Cost
Effective:2025-05-28
Enforcing Agencies

Office of the Governor

Business Impact

Who HB2890 Affects

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

Regulatory Priority: low

Standard regulatory changes (effective 2025-05-28). Review during normal business planning.

💧

Water

Affected business types:

  • Water utilities
  • Wastewater treatment facilities
  • Municipal water districts
  • Agricultural water users
View all water legislation

Key Operational Considerations

  • 1Joint Ventures: Entities with cross-border operations (e.g., pipelines crossing TX/LA lines) should prepare for potential alignment of operating procedures.
  • 2No immediate hiring requirements.
  • 3Future 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.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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HB2890
Relating to an interstate compact for the liquefied natural gas industry.
Low Urgency
Passed with Opposition
House Vote137 - 9
YEA
94% in favor146 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
9
Total Opposition Votes
Cost Impact
Low
Effective
2025-05-28
Enforcing Agencies
Office of the Governor
Primary Author: Rep. Jared Patterson
89th Texas Legislature
jdkey.com
01

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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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 14, 2025
Passed House
Apr 23, 2025
Passed Senate
May 14, 2025
Signed
May 28, 2025
Effective
May 28, 2025
TopicsGulf of AmericaEconomic & Industrial DevelopmentEconomic & Industrial Development--generalGovernorIntergovernmental RelationsOil & GasUtilitiesUtilities--natural GasWaterWater--navigation & Ports
03

House Authors

Rep. Jared PattersonRepublican · Primary Author
Joint Authors
Coauthors (2)

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. Jared Patterson

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Related by Topic

View more Gulf of America legislation
Quick Reference

Frequently Asked Questions

Common questions about HB2890

Q

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.

Q

Who authored HB2890?

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

Q

When was HB2890 signed into law?

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

Q

Which agencies enforce HB2890?

HB2890 is enforced by Office of the Governor.

Q

How significant are the changes in HB2890?

The regulatory priority for HB2890 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

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.

Q

What topics does HB2890 address?

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

Q

What are the key dates for HB2890?

Key dates for HB2890: Effective date is 2025-05-28. Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by HB2890?

HB2890 primarily affects utility companies and energy providers. 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