According to the Legislative Budget Board (LBB), HB 1584 is not expected to have a significant fiscal impact on the State of Texas. It is assumed that any costs incurred by state agencies, such as the Texas Division of Emergency Management (TDEM) or the Public Utility Commission (PUC), related to implementing the bill’s requirements could be absorbed within their existing budgets and resources. No new appropriations or significant operational expansions would be necessary at the state level to meet the bill’s obligations.

For local governments, particularly municipal or cooperative electric utilities, there is a fiscal impact because they must create, maintain, and update a list of priority facilities. However, the Legislative Budget Board indicated that while a cost could exist for these local utilities, the amount could not be precisely quantified. The costs would vary depending on the size of the utility, the number of facilities in their service areas, and their existing capacity to manage critical infrastructure lists.

Overall, while there are some localized and potentially uneven costs associated with compliance for smaller utilities, the broader fiscal footprint of the bill is modest. It is structured to impose minimal additional financial burden on the state and relies primarily on utilities leveraging existing infrastructure and administrative mechanisms.

HB 1584 is a well-structured response to real-world issues identified during recent natural disasters, such as Hurricane Beryl, where confusion over priority restoration for critical facilities caused severe disruptions. The bill improves public safety and emergency response coordination by requiring electric utilities to maintain a clear and verifiable list of priority facilities and ensures that critical institutions like hospitals, fire stations, and water systems receive appropriate attention during emergencies. By mandating that utilities provide a mechanism for facilities to request priority status and verify inclusion, the bill enhances transparency and preparedness without complicating government processes.

Importantly, HB 1584 does not expand the size or scope of government. It imposes no new duties on state agencies beyond what can be handled with existing resources. The Texas Division of Emergency Management simply receives the facility lists during declared emergencies, and no new regulatory agency is created. There is no increased burden on taxpayers, as the bill has no significant fiscal impact on the state budget and only a minimal, unquantifiable cost to local utilities. Additionally, the regulatory burden imposed on private entities is extremely limited: only electric utilities have new, narrowly tailored administrative responsibilities, and no individual citizens or unrelated businesses are affected.

By strengthening emergency management, promoting accountability in critical infrastructure protection, and safeguarding sensitive information through confidentiality protections, HB 1584 reflects responsible, limited government policymaking. It represents a thoughtful balance between ensuring public safety and maintaining taxpayer and regulatory restraint, and sd such, Texas Policy Research recommends that lawmakers vote YES.

• Individual Liberty: The bill protects individual liberty by ensuring that essential services like hospitals and police stations can stay operational during emergencies. Keeping these services running helps protect Texans' health, safety, and ability to exercise basic rights (like access to emergency care) without creating new restrictions on individual behavior.
• Personal Responsibility: The bill holds electric utilities accountable for maintaining clear records of critical facilities and for responding quickly to service requests. It promotes a culture of preparedness and proactive responsibility, particularly from utilities that serve the public, rather than relying on chaotic, reactive responses after disasters strike.
• Free Enterprise: While the bill does impose a small new duty on electric utilities, it does not interfere with competition, pricing, or market entry. Utilities simply must keep a list and offer an online request form — a reasonable business responsibility tied directly to public safety. It doesn't impact the free market in any significant way.
• Private Property Rights: Facilities have the right to voluntarily request inclusion on the priority list. No private property owner is forced onto the list or penalized. Protecting critical infrastructure also indirectly supports surrounding property owners by ensuring services like water, firefighting, and law enforcement remain available during emergencies.
• Limited Government: The bill carefully avoids growing government. It assigns the new task to electric utilities (private or local entities) rather than creating new agencies or expensive programs. It uses existing resources and staff at the Texas Division of Emergency Management to manage information during emergencies and emphasizes confidentiality to protect civil liberties.