Overall Vote Recommendation

Yes

Principle Criteria

Free Enterprise

Property Rights

Personal Responsibility

Limited Government

Individual Liberty

Digest

HB 2440 is a transportation-related bill that amends the Texas Transportation Code by adding Section 750.001, which restricts the authority of state agencies and the state’s air quality state implementation plan in regulating motor vehicles based on their energy source. The bill defines “energy source” as any fuel or power source used to power an engine, and “engine” as any machine that converts energy into mechanical force and motion, including internal combustion engines and generators.

Under the bill, no state agency would be allowed to prohibit or otherwise restrict the sale, use, or ownership of a motor vehicle based on its energy source. Similarly, individuals may not be prohibited from owning or operating a motor vehicle that is powered by an engine. Furthermore, the bill prohibits the inclusion of any provision in the state’s air quality implementation plan that would restrict a person’s ability to purchase a motor vehicle, including those powered by an engine.

The legislation effectively preempts potential state-level efforts to phase out or restrict the use of internal combustion engine vehicles, including through environmental regulation. It signals a legislative commitment to maintaining consumer freedom in vehicle choice and protecting traditional and alternative vehicle technologies from blanket regulatory bans.

The originally filed version of HB 2440 focused narrowly on prohibiting state agencies and the state’s air quality state implementation plan from restricting the sale, use, or ownership of motor vehicles based on their energy source, specifically mentioning internal combustion engines. The bill simply stated that a state agency could not “prohibit or otherwise restrict” the sale or use of a vehicle based on the “energy source used to propel or otherwise power the vehicle,” and it explicitly protected ownership of vehicles with internal combustion engines.

The Committee Substitute, however, expands the scope and precision of the original bill in several key ways. First, it broadens the definition of relevant terms by introducing statutory definitions for "energy source" and "engine." “Energy source” is defined as any fuel or power source used to power an engine, and “engine” is defined to include internal combustion engines and generators. This shift makes the language more technically robust and inclusive of other mechanical propulsion systems beyond just internal combustion engines.

Second, the substitute version eliminates limiting language that focused solely on internal combustion engines. Instead, it ensures that no motor vehicle—regardless of propulsion method—can be restricted due to the type of energy it uses. This clarifies that protections apply equally to electric vehicles, hybrids, and other alternative energy sources, not just fossil-fuel-powered vehicles.

Finally, the substitute version includes minor organizational refinements and clarifies that the restrictions apply to both the sale/use and ownership of motor vehicles “based on the vehicle’s energy source,” which is broader than the original phrasing that referenced the energy source used “to propel or otherwise power” the vehicle.

In sum, the Committee Substitute version refines and strengthens the original bill by adding clarity, broader applicability, and more comprehensive protections for all types of vehicle energy technologies.

Author (2)

Pat Curry

Steve Toth

Sponsor (1)

Tan Parker

Co-Sponsor (1)

Mayes Middleton

Contact the Author

Rep. Pat Curry

Capitol Phone:

(512) 463-0135

Capitol Office:

EXT E1.512

E-Mail:

[email protected]

Visit Official Website

Fiscal Notes

According to the Legislative Budget Board (LBB), HB 2440 is not expected to have a significant fiscal impact on the State of Texas. The analysis indicates that any costs arising from implementation of the bill—such as administrative adjustments or revisions to air quality plans—could be absorbed using existing agency resources. The Texas Commission on Environmental Quality (TCEQ), which is the primary agency potentially affected, is not expected to require new appropriations or staffing increases to comply with the bill's provisions.

Likewise, the bill is anticipated to have no significant fiscal implications for local governments. This is consistent with the bill’s focus on state-level agency authority and regulatory frameworks rather than imposing any mandates or restrictions on municipal or county governments.

In summary, while the bill restricts certain regulatory options previously available to state agencies—particularly related to environmental planning—it does not trigger additional funding requirements or impose new operational burdens that would affect the state budget or local governance structures.

Vote Recommendation Notes

Texas Policy Research recommends that lawmakers vote YES on HB 2440. As federal regulatory developments reinforce, the bill serves a clear preemptive function: to protect Texans' freedom of vehicle choice in an era of shifting federal and state environmental policies. While the Biden administration reversed prior national mandates for 100% electric vehicle (EV) adoption, the political volatility of such regulations makes state-level safeguards like HB 2440 timely and prudent.

By prohibiting Texas state agencies and the state’s air quality implementation plan from banning or restricting motor vehicles based on their energy source, the bill ensures that consumer choice and technological competition remain intact. Whether a Texan chooses an electric vehicle, a diesel pickup, a hybrid, or a gasoline-powered sedan, the state may not limit that choice solely due to the propulsion method. This policy respects individual liberty, free enterprise, and private property rights, while upholding the principle of limited government by restraining future bureaucratic overreach.

Importantly, the bill does not prevent private industry or consumers from shifting toward EVs—it merely prevents the state from forcing such a shift. The fiscal analysis confirms that this protection comes at no significant cost to state or local governments, and the bill avoids any expansion of criminal law or regulatory authority.

In sum, HB 2440 reflects a proactive defense of consumer autonomy in a politically charged regulatory environment. It reinforces Texas’s commitment to liberty, energy freedom, and market diversity without financial or administrative burden.

Texas Policy Research recommends that lawmakers vote YES on HB 2440.

Individual Liberty: The bill protects Texans' freedom to choose the type of motor vehicle they wish to own or operate—whether powered by gasoline, diesel, electricity, hydrogen, or hybrid technology. It ensures that future regulatory mandates cannot force individuals into a particular mode of transportation. This reinforces the foundational concept that individuals, not government entities, should decide what is best for their needs and circumstances.
Personal Responsibility: By allowing individuals to make their own transportation decisions without state-imposed limits, the bill promotes personal responsibility. Consumers are free to assess their needs (e.g., cost, efficiency, reliability) and choose a vehicle accordingly. This is especially significant in a state as geographically large and economically diverse as Texas, where a one-size-fits-all transportation mandate could severely disrupt lives and livelihoods.
Free Enterprise: The bill preserves open market conditions for vehicle manufacturers, dealerships, and consumers. It prevents the state from favoring or mandating specific technologies (such as EVs) over others, thereby reducing the risk of artificial market distortion. By keeping the government from choosing winners and losers in the energy and transportation sectors, the bill reinforces competition and innovation.
Private Property Rights: The right to own and use personal property—such as a vehicle powered by the engine of one's choosing—is directly supported by this bill. It ensures that property rights are not undermined by future regulatory actions that might otherwise devalue or criminalize ownership of certain vehicle types, particularly internal combustion engine (ICE) vehicles.
Limited Government: The bill imposes a clear boundary on state government power by preventing agencies from using environmental regulations to restrict consumer behavior. It reinforces the idea that such far-reaching decisions about energy and transportation should not be made by unelected bureaucrats. Instead, it reserves those choices for the people, reflecting the principle that the state exists to serve—not control—its citizens.

View Bill Text and Status