According to the Legislative Budget Board (LBB),HB 2890 is not expected to have a significant fiscal impact on the State of Texas. According to the Office of the Governor, implementing the provisions of the bill—primarily the development and execution of an interstate compact to support the liquefied natural gas (LNG) industry—would not require substantial new spending or administrative expansion.

Additionally, the bill is not anticipated to impose any significant fiscal burden on local government entities. Since the compact's functions are focused on collaboration, information sharing, and resource coordination rather than regulatory mandates or the establishment of new bureaucratic structures, it avoids triggering costs typically associated with new government programs or enforcement mechanisms.

The absence of substantial fiscal implications suggests the bill is designed to foster strategic, voluntary cooperation among Gulf Coast states using existing administrative capacities. This cost-neutral approach enhances the bill's appeal for stakeholders concerned with responsible government spending and efficient use of taxpayer resources.

Texas Policy Research recommends that lawmakers vote YES on HB 2890 due to its alignment with core liberty principles and its strategic focus on safeguarding Texas’s leadership in the liquefied natural gas (LNG) industry. In response to federal action, including a 2024 pause on LNG exports to non-free trade agreement countries, this bill authorizes the Governor to form an interstate compact with other Gulf Coast states to strengthen regional cooperation. By creating a platform for states with shared LNG infrastructure and interests to collaborate, the bill serves as a proactive measure to insulate Texas from federal disruptions and future executive policy shifts.

Crucially, the bill does not grow the size or scope of government. It does not create new agencies, programs, or regulatory frameworks. Instead, it leverages existing executive authority to enter a compact for voluntary coordination. There is no expansion of political power at the expense of the federal government, and the bill includes a provision affirming that congressional approval is not required, ensuring it remains within constitutional and practical limits. There is also no rulemaking authority granted to any state officer or agency, underscoring the bill’s non-regulatory intent.

From a fiscal standpoint, the Legislative Budget Board confirms that there are no significant fiscal implications for the state or local governments. The compact is not expected to require new appropriations or generate taxpayer burdens. Instead, it promotes efficient use of resources through interstate collaboration, rather than centralized bureaucracy or public spending.

Lastly, HB 2890 does not impose a regulatory burden. It introduces no new mandates on businesses or individuals and does not alter existing environmental or commercial permitting processes. Its primary mechanism is information sharing and coordination, rather than governance or enforcement, which means regulated industries are not subject to increased oversight or compliance costs.

In summary, HB 2890 upholds the principles of free enterprise, limited government, and state sovereignty. It protects a vital economic sector without adding government weight, regulatory complexity, or taxpayer obligations.

• Individual Liberty: While the bill does not directly affect personal freedoms such as speech, movement, or bodily autonomy, it supports state-level autonomy in energy policy. By fostering regional cooperation to resist federal overreach, it indirectly reinforces Texans' liberty by protecting industries vital to personal livelihoods and energy independence. Ensuring a stable and secure energy infrastructure enhances broader economic and social stability, which supports the conditions under which liberty can thrive.
• Personal Responsibility: The bill neither mandates nor incentivizes behavior at the individual level and does not shift responsibility for private or public conduct. Its focus is on state cooperation, rather than individual or corporate actions. As such, it maintains the status quo regarding personal accountability.
• Free Enterprise: The bill strongly supports free enterprise. The LNG industry is a cornerstone of Texas's export economy, and by promoting interstate coordination to protect this sector from inconsistent or hostile federal policies (such as the 2024 LNG export pause), the bill shields private industry from unnecessary uncertainty. This protection enhances market predictability, investor confidence, and cross-border efficiency, all of which are critical for the long-term health of Texas’s energy market.
• Private Property Rights: The bill does not impact land use laws, eminent domain, or impose any restrictions that would affect private ownership or the use of property. It avoids regulatory expansion, thereby preserving existing property rights without altering or threatening them.
• Limited Government: The bill is intentionally designed to operate within existing government structures. It assigns compact development authority to the Governor without creating new agencies, regulatory frameworks, or taxing mechanisms. Importantly, it includes language specifying that the compact must not increase the political power of the states in relation to the federal government and should not require congressional approval, reinforcing the principle of constitutional federalism. It embodies a model of cooperative governance without expanding bureaucracy or centralizing authority.

Protecting Texas LNG: Key Legislative Findings and Future Recommendations