Relating to the creation of the Texas Energy Waste Advisory Committee.
LowStandard timeline
Low Cost
Effective:2025-06-20
Enforcing Agencies
Public Utility Commission of Texas (Administrative Support) • Texas Energy Waste Advisory Committee (Advisory Role)
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.
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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.
Texas has many incentive programs, market products, and regulatory requirements that are developed to increase the state's energy efficiency and electricity demand response capabilities. The bill author has informed the committee that while each cluster of programs is managed by a separate state agency, none of these programs are designed with universal perspective. The bill author has further informed the committee that presumably all state programs could be designed to meet the goal of ensuring a reliable state power grid, and that state agencies should be required to collaborate on programmatic approaches to achieve that goal. H.B. 5323 seeks to address this issue by establishing the Texas Energy Waste Advisory Committee to assist in achieving the reliability needs of the ERCOT power region and to recommend policies and coordinate inter-agency programs to reduce energy waste, increase energy efficiency, and enhance demand response programs.
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. 5323 amends the Utilities Code to create the Texas Energy Waste Advisory Committee to make recommendations for coordinating and improving state agency and interagency programs that reduce energy waste, increase energy efficiency, and enhance demand response programs in order to increase reliability of electric service in the ERCOT power region in accordance with statutory provisions relating to power region reliability and dispatchable generation. The bill establishes that the committee is composed of seven ex officio members as follows:
·the presiding officer of the Public Utility Commission of Texas (PUC);
·the chief executive officer of ERCOT;
·the comptroller of public accounts;
·the executive director of the Texas Department of Licensing and Regulation (TDLR);
·the director of the Texas Department of Housing and Community Affairs (TDHCA);
·the presiding officer of the Texas Commission on Environmental Quality (TCEQ); and
·the commissioner of the General Land Office (GLO).
The bill authorizes an ex officio member to designate an employee of the member's agency or office to serve in the member's place, and requires the presiding officer of the PUC or an employee of the PUC designated by the presiding officer to serve as the chair of the committee. The bill requires the committee to meet quarterly at the call of the chair.
H.B. 5323 requires the committee, to improve the reliability of electric service in the ERCOT power region, to solicit information from and make recommendations to the following state agencies and organizations regarding state programs that have the potential to reduce demand for electricity in the ERCOT wholesale market during high risk hours identified by the PUC:
·the PUC;
·ERCOT;
·the comptroller;
·the State Energy Conservation Office;
·TDLR;
·the TDHCA;
·the TCEQ; and
·the GLO.
The bill requires the PUC to provide the committee with administrative support, including meeting space and staff necessary to assist the committee in carrying out the committee's duties under the bill's provisions.
H.B. 5323 establishes that the committee is not subject to state open meetings law or state public information law, but subjects information written, produced, collected, assembled, or maintained under law or in connection with the transaction of official business by the committee or an officer or employee of the committee to Government Code provisions relating to information for legislative purposes in the same manner as public information.
H.B. 5323 requires the committee, not later than September 1 of each even-numbered year, to provide to the legislature a report on the committee's activities and recommendations.
Honorable Ken King, Chair, House Committee on State Affairs
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB5323 by King (Relating to the creation of the Texas Energy Waste Advisory Committee.), 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:
304 Comptroller of Public Accounts, 305 General Land Office and Veterans' Land Board, 332 Department of Housing and Community Affairs, 452 Department of Licensing and Regulation, 473 Public Utility Commission of Texas, 582 Commission on Environmental Quality
LBB Staff:
JMc, WP, JBel
Related Legislation
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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. Implementation Timeline Effective Date: September 1, 2025.
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 urgent is compliance with HB5323?
The compliance urgency for HB5323 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
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.
Legislative data provided by LegiScanLast updated: November 25, 2025
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