Texas Energy Conservation Office gains authority to adopt updated energy codes

The Senate Committee on Business and Commerce convened on March 25, 2025, to discuss a significant cleanup bill aimed at enhancing energy efficiency standards in Texas. The bill focuses on empowering the State Energy Conservation Office (SECO) to proceed with future rulemaking regarding energy, water, and high-performance building code standards for state-funded projects.

Currently, SECO has the authority to adopt energy codes from the International Code Council, having previously implemented the 2015 International Energy Conservation Code (IECC) and the energy chapter of the 2015 International Residential Code (IRC). However, a legal interpretation stemming from a 2019 bill has hindered SECO's ability to adopt the more efficient 2021 codes, which are estimated to be 5 to 10% more energy-efficient than the existing standards.

During the meeting, committee members expressed interest in understanding the potential energy savings in megawatts that could result from adopting the 2021 standards. Several major Texas cities, including Austin, Houston, Dallas, and San Antonio, have already adopted these updated standards, indicating a growing trend towards improved energy efficiency.

The committee's proposed substitute for the bill includes two key changes requested by SECO: it allows for the adoption of future code updates and facilitates SECO's ability to move forward with the rulemaking process. This advancement is expected to lead to more efficient new construction, reduced consumer costs, and less strain on the state's energy grid. Importantly, SECO will be required to conduct public notice and stakeholder input before adopting any new standards.

Public testimony was provided by representatives from the Texas Association of Builders and the Sierra Club, both of whom expressed strong support for the bill. Frances Blake, general counsel for the Texas Association of Builders, highlighted the unusual coalition of support from both builders and environmental groups, emphasizing the bill's importance in allowing SECO to adapt to changing energy needs. Cyrus Reid from the Sierra Club echoed these sentiments, noting the bill's potential to save energy and water, thereby benefiting both the energy and water grids in Texas.

The committee's discussions underscored the collaborative effort to enhance energy efficiency standards in Texas, with a focus on ensuring that SECO can effectively implement necessary changes for the future. The meeting concluded with a commitment to further explore the implications of the proposed energy standards and their potential benefits for the state.