According to the Legislative Budget Board (LBB), HB 3240 is not expected to have a significant fiscal impact on the state. The creation and operation of the Texas Geothermal Energy Production Policy Council, as described in the bill, can be implemented using existing resources within the Railroad Commission and the Bureau of Economic Geology at The University of Texas at Austin. This means no additional appropriations or staffing increases are anticipated for state agencies involved in supporting the council’s work.

The bill does not propose any new funding streams or direct expenditures and explicitly states that council members will not receive compensation or reimbursement for expenses. This further reduces potential costs and underscores the advisory and temporary nature of the council. Its duties—mainly centered around research, analysis, and policy recommendation—fall within the scope of work already conducted by the agencies involved.

At the local level, the bill is also expected to have no significant fiscal implications. Since it does not mandate any responsibilities or expenditures for municipal or county governments, implementation is not projected to affect local budgets or resources.

HB 3240, while framed as a modest and temporary measure, nonetheless initiates the creation of a new government entity—the Texas Geothermal Energy Production Policy Council—within the Railroad Commission of Texas. Though the council is advisory in nature and scheduled to expire in 2032, its existence marks a clear expansion of state government responsibilities. For those committed to limited government principles, this represents an unnecessary extension of the state's role into a sector that is already seeing organic growth through private investment.

Critically, the council’s primary charge is to study and recommend policy regarding geothermal energy production, transportation, and storage. While this may sound neutral, in practice, such councils often serve as precursors to regulatory frameworks, taxpayer-funded incentives, or new layers of compliance for businesses. The bill does not include guardrails to prevent future regulatory or fiscal expansion based on the council’s findings, and it leaves open the possibility of new policies that could increase burdens on both the state budget and the energy industry.

While HB 3240 does not currently impose costs or regulations, principled opposition stems from the belief that government should not insert itself into market sectors unless clearly necessary. The private sector is already exploring and investing in geothermal technology without state coordination. As such, this legislation is not essential and may, over time, justify expanded government oversight in an area that should be guided by innovation and free enterprise.

For these reasons, Texas Policy Research recommends that lawmakers vote NO on HB 3240.

• Individual Liberty: The bill has no adverse effect on individual liberty. It does not impose obligations, restrictions, or compliance requirements on individuals or businesses. Citizens retain full freedom in their personal and professional decisions regarding energy use, development, or investment. Moreover, if geothermal energy becomes more widely accessible as a result of informed state policy, individuals and communities may benefit from increased energy options, potentially enhancing their autonomy and control over energy choices.
• Personal Responsibility: The bill reinforces personal responsibility by supporting private innovation and voluntary partnerships to advance geothermal energy solutions. It avoids heavy-handed government intervention or public spending commitments, instead tasking the council with researching how Texas can responsibly plan for geothermal development. By emphasizing collaboration between government, academia, and industry, without coercion or subsidy mandates, the bill reflects the view that responsibility for energy advancement lies with those best equipped to lead: private actors and experts, not the state alone.
• Free Enterprise: The bill aligns well with free enterprise by encouraging private-sector involvement in shaping the state’s geothermal energy framework. It includes industry stakeholders in the council and focuses on studying how Texas can responsibly facilitate growth in this emerging energy sector. There are no mandates or restrictions placed on businesses, and the intent is to foster innovation and investment. However, the possibility that the council may recommend subsidies or tax incentives in the future introduces a risk of market distortion if such tools are not applied equitably. Still, the bill, as introduced, respects the free market and seeks to leverage it for policy development.
• Private Property Rights: The bill is currently neutral with respect to private property rights. It does not grant the state any new authority to access or control land, nor does it affect existing rights to subsurface minerals or geothermal energy resources. However, since the council’s recommendations could lead to legislation addressing geothermal infrastructure, such as pipelines or well drilling, there is a potential for future impacts on landowner rights. At this stage, the bill neither enhances nor infringes upon property rights but does create a channel through which future legislative changes could emerge.
• Limited Government: The bill raises a key concern for proponents of limited government by creating a new state entity, the Texas Geothermal Energy Production Policy Council, within the Railroad Commission. Even though the council is temporary and advisory, its creation still expands the scope of government authority. While it does not impose regulations or spend significant public funds, it formalizes a new role for the state in shaping energy policy where none previously existed. For those who view any government expansion, however restrained, as a potential gateway to permanent bureaucracy or future regulation, this bill challenges the principle of limited government.

• SB 2671 (Same As)