03/25/2025

Capitol Chemistry with Mia

The Texas legislative session is in full swing, and there’s been plenty of action on issues that matter to our industry—from water and energy to environmental regulations and economic incentives. Here’s a quick rundown of what’s happening at the Capitol and what it means for the business of chemistry in Texas.

This session has already set a record, with over 9,064 bills and resolutions filed—breaking the 2023 record of 8,530. TCC is tracking more than 1,800 bills to make sure our industry’s voice is heard on the issues that matter most.

Lt. Governor Dan Patrick recently added to the list of Senate legislative priorities:

• SB 6 – Increasing Texas’ Electric Grid Reliability
• SB 7 – Increasing Investments in Texas’ Water Supply
• SB 17 – Stopping Foreign Adversaries’ Land Grabs
• SB 25 – Making Texas Healthy Again
• SB 32 – Business tax relief

Many of these policies will have long-term effects on our workforce and economy, so we’re keeping a close eye on how they develop.

Big Win on Water

We’re celebrating a major milestone with the approval of the Corpus Christi Inner Harbor Desalination Project, the first municipally owned seawater desalination facility in the U.S. This is a big deal for Texas’ water future, ensuring reliable access for industry and communities along the coast.

Additionally, the House and Senate have released their plans for future water funding. Senator Charles Perry (R-Lubbock) has filed SB 7 relating to the oversight and financing of water infrastructure matters to take a major step in developing new water sources and improvements to existing water infrastructure across the state. TCC has testified about the importance of water security to sustain petrochemical manufacturing in Texas.  

Property Tax Relief & Tax Incentives for New Investment

Texas has the 7^th highest property tax rate in the nation and after last session’s property tax reforms, 92% of our businesses’ property value is being taxed, increasing the property tax burden on the job creators of our state. This is why property tax relief and incentives to reduce the property tax burdgen on new industry investment are a top priority for our industry.

Various proposals are currently on the table that will increase homestead exemptions, raise tax compression rates, and offer businesses exemptions for tangible property. TCC continues to advocate for a fair and equitable tax system that is broad-based and promotes job creation, economic investment, and is globally competitive.

Last session the legislature recognized the importance of providing some form of economic incentive to businesses looking to invest or expand in our state and passed what is known and the Jobs, Energy, Technology, and Innovation (JETI) Act. The JETI Act provides for a limited property tax abatement for certain capital-intensive projects built in the state. In its first year of implementation, just 14 applications were received by the State Comptroller, and a mere 2 agreements received final approval. As a stark contrast, our neighbor Louisiana implemented several aggressive economic development programs last year, including an 80% property tax abatement for up to 10 years on new projects. Because of these economic incentives, Louisiana has seen a 255% increase in the number of prospective projects coming to their state. HB 105 was filed last week that will make key changes to the JETI program with a goal of increasing Texas’ competitiveness with other states and countries. This is a priority piece of legislation for TCC.

Research & Development plays a huge role in our ever-changing, innovative industry. The state has recognized the importance of R&D and offered tax incentives to bolster R&D in our state. These tax incentives expire in 2026. TCC is part of a larger coalition of business associations working to extend and reform Texas’ R&D tax incentive program. SB 2206 by Senators Bettencourt (R-Houston) and Huffman (R-Houston) and HB 4393 by Representative Geren (R-Fort Worth) have been filed to not only continue an R&D tax incentive program but also add key reforms that will make the program more efficient and equitable. Additionally, the bills encourage businesses to partner with higher education for their research and offer a higher incentive for those companies who choose to partner.

Recycling

Another major industry priority this session is improving the supply chain for plastics recycling. The Texas Recycling Market Development Program (SB 2689 & HB 4839), which aims to improve recycling infrastructure and create a circular economy for plastics manufacturing. This initiative could be a game-changer for sustainability efforts in Texas.

Environmental Policy

There have been well over 100 bills filed attacking industry on environmental policy.  TCC is actively involved meeting with legislators about the impact of these bills on our industry.  These include regulations on air, water and waste permitting, increased penalty enforcements, and product regulations to name a few. TCC will vigorously defend against onerous environmental legislation that would be harmful to our industry and not founded on science.  

Product Regulation

There have been several bills to regulate per- and polyfluoroalkyl substances (PFAS) or require testing for PFAS exposure.  These include a bill to require testing for PFAS in agriculture biosolids, a bill to have the University of Houston study the impacts of PFAS, and a bill to restrict the use of Aqueous Film-Forming Foam (AFF) or firefighting foams containing PFAS.

The Texas Senate recently passed SB 25, which would require warning labels on foods containing certain artificial additives  banned in other countries like Canada and the EU. The bill includes Titanium Dioxide (TiO₂), preservatives, sugar substitutes, and other food additives made by our industry. Another bill, SB 314, takes a similar approach by banning certain food additives in public school meals.

In addition to food labeling, there are a couple of bills requiring additional labeling and online disclosures of ingredients on lipsticks and cosmetics.

TCC has been actively meeting with lawmakers on these bills. Our concern? Basing Texas policy on foreign bans instead of sound science could set a dangerous precedent. We’re pushing for a more balanced approach that keeps consumer safety front and center while avoiding unnecessary restrictions on widely used ingredients.

TCC has helped to secure additional funding for the Texas Commission on Environmental Quality (TCEQ) to hire 115 new employees needed to efficiently manage permitting and enforcement and improve employee retention at the Commission, which provide greater regulatory consistency.  A fully staffed TCEQ means faster permitting and a more predictable regulatory process for everyone.

Electricity

The Legislature’s top electricity priority this session is ensuring an adequate supply of electricity to meet our state’s population growth and the high demand for electricity required by new data centers to support Artificial Intelligence (AI) computing technologies. SB 6 by Senator Phill King (R-Stephenville) addresses infrastructure costs for large energy users. TCC worked with Senator King to successfully address concerns for industrial facilities with cogeneration power. We will continue working with lawmakers as the bill moves forward.

For a deeper-dive on TCC legislative activities look for our TCC Capitol Weekly.

We’ll keep you posted as things develop, but one thing is clear: Texas lawmakers are making big moves, and we’re right there with them—advocating for a strong, science-based, and business-friendly regulatory environment.

Got questions or want to get more involved? Reach out to our team. We’re always happy to talk about what’s happening under the pink dome!