🔴An Act relating to an interstate compact for the liquefied natural gas industry
HB 2890
🔴 HB 2890: Gulf States LNG Compact Expands Governor Power
What it says it does:
HB 2890 lets Texas join an interstate compact with other Gulf states to “protect and grow” the liquefied natural gas (LNG) industry. It’s framed as regional teamwork to keep energy strong and defend Texas jobs tied to exports.
What it actually changes:
It gives the governor full authority to negotiate and sign the compact without requiring legislative approval or public oversight. It also declares that the compact does not need congressional approval, removing a key constitutional check.
Who is pushing for it:
Witness lists show support from Texas Oil & Gas Association, Texas Association of Manufacturers, Texas Association of Business, TIPRO, Permian Basin Petroleum Association, Freeport LNG, Cheniere Energy, and BP. These groups directly profit from LNG exports and deregulated coordination among Gulf states.
Who benefits:
Large LNG exporters, pipeline operators, and petrochemical lobby groups gain long-term policy protection and reduced regulatory friction. The governor’s office gains expanded discretion to align multi-state energy policy without legislative oversight.
Who gets left out or exposed:
Local governments and coastal communities lose a voice in regional energy planning. Environmental advocates and residents near ports and terminals have no representation in compact decisions. Everyday Texans lose transparency when public meetings and audits are not required.
Why this matters long term:
HB 2890 creates a model for future executive-led compacts that can bypass legislatures and federal review. Once the framework exists, new compacts for pipelines, ports, or refineries can be layered onto it, concentrating policy power in fewer hands and locking in pro-industry priorities for decades.
What to watch next:
Whether future sessions attach funding or contracting authority to this compact. Whether the governor’s office discloses compact terms or keeps them closed to public review. And whether federal agencies challenge the “no congressional approval” clause as unconstitutional.
Bottom line:
HB 2890 looks like cooperation, but it functions as consolidation. It centralizes energy policymaking in the governor’s office, shields major exporters from oversight, and weakens the public’s ability to track who is shaping Texas’s future energy deals.
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