According to the Legislative Budget Board (LBB), no significant fiscal implications to the State are anticipated as a result of implementing HB 3511. The LBB assumes that any costs associated with the Public Utility Commission of Texas (PUC) establishing rules, overseeing EV interconnections, or creating programs to facilitate EV participation in the ERCOT market could be absorbed using existing agency resources without the need for additional appropriations.

Similarly, the bill is expected to have no significant fiscal impact on local governments. The nature of the bill focuses on enabling private participation in ERCOT markets rather than imposing regulatory or operational mandates on local entities. As such, counties, municipalities, and other local bodies are not expected to bear any direct financial costs due to this legislation.

Overall, from a budgetary perspective, HB 3511 is a low-cost, administrative change aimed at facilitating market participation without materially affecting state or local budgets.

HB 3511 represents a proactive step toward modernizing Texas’s energy infrastructure by enabling electric vehicle (EV) owners to participate in the ERCOT electricity market. The bill creates a clear legal pathway for EV owners to interconnect their vehicles to the electric grid and sell stored electricity through aggregation programs. It promotes innovation, market flexibility, and grid reliability at a time when decentralized energy resources are increasingly vital. By creating these new opportunities, the bill supports individual liberty, personal responsibility, and private property rights.

The bill advances liberty principles by empowering individuals to use their private vehicles as market assets, encouraging voluntary participation in grid services without mandates or taxpayer subsidies. It promotes free enterprise by opening a new market segment and recognizing that individuals and aggregators, not just large utilities, can contribute to the energy system. While the bill grants the Public Utility Commission (PUC) rulemaking authority to set safety and technical standards, it specifically requires that such standards must not conflict with existing national safety norms, limiting the potential for government overreach.

Although vigilance will be needed during the PUC’s rulemaking process to ensure that regulations remain fair, necessary, and not burdensome to small participants, the bill itself does not impose direct costs on taxpayers and creates no new mandates on individuals. Overall, HB 3511 respects voluntary participation, strengthens private property rights, promotes competition, and responsibly modernizes Texas’s energy grid. Therefore, Texas Policy Research has revised its position to that of encouraging lawmakers to vote YES on HB 3511.

• Individual Liberty: The bill empowers EV owners with more control over their property, their vehicles, and the stored energy within them. By allowing owners to voluntarily choose to connect to the grid and participate in energy markets, the bill expands individual freedom and decision-making power. No one is forced to participate; it remains a voluntary opportunity.
• Personal Responsibility: The bill encourages personal responsibility by creating an environment where individuals can decide to manage their own energy production and contributions to the grid. EV owners would bear the responsibility for managing when and how to sell energy, incentivizing responsible participation based on their personal or business interests.
• Free Enterprise: The bill promotes free enterprise by opening the energy market to new participants — individuals and private aggregators — beyond large utilities. It creates more competition and options within the energy sector. While there is a minor concern that poorly implemented rules could favor larger corporations, the bill itself is written neutrally and gives individuals and small businesses new market opportunities without blocking access.
• Private Property Rights: The bill affirms that individuals can use their private property — their electric vehicles and stored energy — in the marketplace without government interference, subject only to safety-based interconnection standards. This strengthens the principle that private property owners control how they use and monetize their assets.
• Limited Government: The bill does give the Public Utility Commission (PUC) new rulemaking authority over EV interconnection and aggregation programs. However, it specifically requires that the PUC’s standards not conflict with established national safety standards, and it leaves participation voluntary. Because of these safeguards, the increase in regulatory scope is limited, reasonable, and designed to ensure grid safety, not to regulate ownership or market access. Therefore, it represents a carefully tailored and acceptable use of government authority under a limited government philosophy.

• SB 2634 (Similar To)