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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB5323

Regular Session

Relating to the creation of the Texas Energy Waste Advisory Committee.

Government Affairs & Regulatory Compliance Analysis

HB5323: Government Affairs Overview

HB 5323 establishes the Texas Energy Waste Advisory Committee, a powerful interagency body tasked with designing future mandates for energy efficiency and demand response in the ERCOT region. While there are no immediate operational changes for businesses, the committee is explicitly exempt from Open Meetings and Public Information laws, meaning future regulatory policy regarding "energy waste" and "high risk hours" will be developed behind closed doors without direct industry observation.

Rep. Ken King·House Bill·Regular Session

Low
Low Cost
Effective:2025-06-20
Enforcing Agencies

Public Utility Commission of Texas (Administrative Support) • Texas Energy Waste Advisory Committee (Advisory Role)

Business Impact

Who HB5323 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.

⚡

Energy

Affected business types:

  • Power generators
  • Electric utilities
  • Renewable energy developers
  • Battery storage operators
View all energy legislation

Key Operational Considerations

  • 1No new hiring required.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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HB5323
Relating to the creation of the Texas Energy Waste Advisory Committee.
Low Urgency
Heavily Contested
House Vote111 - 35
YEA
NAY
76% in favor146 voting
Senate Vote27 - 4
YEA
87% in favor31 voting
39
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
Public Utility Commission of TexasTexas Energy Waste Advisory Comm...
Primary Author: Rep. Ken King
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025.
  • Compliance Deadline: None immediately. This legislation creates an advisory body, not a regulatory mandate. The first potential wave of compliance requirements will not occur until the 90th Legislative Session (2027) acts on the committee's recommendations.
  • Agency Rulemaking: The Public Utility Commission (PUC) provides administrative support but is not required to issue rules immediately. The "regulatory gray zone" exists between September 2025 and December 2026, during which the committee will define "energy waste" and "high risk hours" without public oversight.

Immediate Action Plan

  • Identify Agency Allies: Since the committee meetings are closed, identify which voting member agency (e.g., TDLR, Dept of Agriculture, or Housing & Community Affairs) most closely aligns with your industry and request a meeting *before* Q4 2025.
  • Audit Energy Data: internalize your facility's energy efficiency metrics now. If the committee defines "waste" aggressively, you must be ready to prove your facility's efficiency relative to output.
  • Monitor Legislative Requests: Work with friendly Legislators to utilize Sec. 552.008 (Legislative Request) to compel the release of committee documents, as this is the only legal avenue to pierce the confidentiality veil.

Operational Changes Required

Contracts

  • Demand Response & PPA Review: Review all Power Purchase Agreements (PPAs) and Demand Response contracts that rely on "peak demand" or "emergency" triggers. The committee is statutorily required to identify and target "high risk hours." If their recommendations alter the definition of these hours, payment triggers in your existing contracts may become misaligned with new regulatory standards.
  • Government Procurement: Vendors servicing state facilities should anticipate future contract amendments. The committee includes the Texas Facilities Commission; expect stricter energy efficiency KPIs in future state RFPs based on this committee's output.

Hiring/Training

  • No new hiring required.
  • Government Affairs: Direct your Government Affairs team to shift strategy. Because you cannot attend these meetings, they must establish direct back-channel communication with the *ex officio* agencies (PUC, TDLR, ERCOT) to ensure your industry's data is considered.

Reporting & Record-Keeping

  • Voluntary Only: The bill authorizes the committee to "solicit information" from state agencies. Prepare your engineering teams to segregate energy efficiency data now. You may need to voluntarily submit this data to the PUC to defend your industry against aggressive "waste" definitions.

Fees & Costs

  • No new fees. The Legislative Budget Board anticipates no significant fiscal implication to the State or private entities at this time.

Strategic Ambiguities & Considerations

  • The "Black Box" Provision (Sec. 18.006): The committee is explicitly exempt from Chapter 551 (Open Meetings) and Chapter 552 (Public Information). This is a critical risk. We cannot FOIA their drafts or attend their debates. We will only see the final report.
  • Undefined "Energy Waste": The statute does not define "Energy Waste." The committee has absolute discretion to define this term. A broad definition could penalize energy-intensive industrial processes (e.g., manufacturing, crypto-mining, data centers) rather than just targeting inefficient infrastructure.
  • "High Risk Hours" Methodology: The committee must recommend strategies to reduce demand during "high risk hours." The methodology for calculating these hours is left to agency discretion, introducing volatility for businesses managing load based on current ERCOT peak definitions.

Need Compliance Guidance on This Legislation?

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
Mar 14, 2025
Passed House
May 8, 2025
Passed Senate
May 22, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsEnergyEnergy--conservationState Agencies, Boards & CommissionsState Agencies, Boards & Commissions--newly ProposedUtilitiesUtilities--electricComptroller of Public AccountsElectric Reliability Council of TexasEnergy Waste Advisory Committee, TexasEnvironmental Quality, Texas Commission OnGeneral Land Office CommissionerHousing & Community Affairs, Texas Department ofLicensing & Regulation, Texas Department ofPublic Utility CommissionState Energy Conservation Office
03

House Authors

Rep. Ken KingRepublican · Primary Author
Coauthors (2)

Senate Sponsors

Sen. Kelly HancockRepublican · Primary Sponsor
Cosponsors (2)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about HB5323

Q

What does Texas HB5323 do?

HB 5323 establishes the Texas Energy Waste Advisory Committee, a powerful interagency body tasked with designing future mandates for energy efficiency and demand response in the ERCOT region. While there are no immediate operational changes for businesses, the committee is explicitly exempt from Open Meetings and Public Information laws, meaning future regulatory policy regarding "energy waste" and "high risk hours" will be developed behind closed doors without direct industry observation.

Q

Who authored HB5323?

HB5323 was authored by Texas Representative Ken King during the Regular Session.

Q

When was HB5323 signed into law?

HB5323 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB5323?

HB5323 is enforced by Public Utility Commission of Texas (Administrative Support) and Texas Energy Waste Advisory Committee (Advisory Role).

Q

How significant are the changes in HB5323?

The regulatory priority for HB5323 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB5323?

The cost impact of HB5323 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB5323 address?

HB5323 addresses topics including energy, energy--conservation, state agencies, boards & commissions, state agencies, boards & commissions--newly proposed and utilities.

Q

What are the key dates for HB5323?

Key dates for HB5323: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by HB5323?

HB5323 primarily affects energy companies and power generators, 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