S.B. No. 1017 AN ACT relating to the authority of a political subdivision to regulate an energy source or engine. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle C, Title 7, Local Government Code, is amended by adding Chapter 247 to read as follows: CHAPTER 247. REGULATION OF ENERGY SOURCES AND ENGINES Sec. 247.001. DEFINITIONS. In this chapter: (1) "Energy source" means any fuel or power source used to power an engine. (2) "Engine" means a machine for converting an energy source into mechanical force and motion, including a generator or an internal combustion engine. (3) "Political subdivision" includes a county, municipality, special district, school district, junior college district, or housing authority. (4) "Retail service station" has the meaning assigned by Section 753.001, Health and Safety Code. Sec. 247.002. RESTRICTION ON REGULATION OF ENERGY SOURCES. (a) A political subdivision may not adopt or enforce an ordinance, order, regulation, or similar measure that limits access to or use of an energy source or that results in the effective prohibition of infrastructure that is necessary to provide access to a specific energy source, including a wholesaler, retailer, energy producer, or related infrastructure, including a retail service station. (b) This section does not limit the authority of a political subdivision to adopt or enforce an ordinance, order, regulation, or similar measure relating to an energy source, or infrastructure that is necessary to provide access to a specific energy source, that: (1) provides siting requirements, including siting requirements involving certain geographic areas; (2) does not effectively prohibit the operation of an energy source or infrastructure that is necessary to provide access to a specific energy source; and (3) is not preempted by state or federal law. Sec. 247.003. RESTRICTION ON REGULATION OF ENGINES. (a) A political subdivision may not adopt or enforce an ordinance, order, regulation, or similar measure that directly prohibits or restricts the use, sale, or lease of an engine based on its fuel source. (b) This section does not limit the authority of a political subdivision to adopt or enforce an ordinance, order, regulation, or similar measure not preempted by state or federal law that: (1) does not effectively prohibit or restrict the use, sale, or lease of the engine; (2) implements an agreement between the political subdivision and the Texas Commission on Environmental Quality to regulate motor vehicle idling under Section 382.019, Health and Safety Code; or (3) only affects an engine owned or operated by the political subdivision and is included in the state implementation plan or otherwise necessary for compliance with the federal Clean Air Act (42 U.S.C. Section 7401 et seq.). (c) This section does not limit the authority of a political subdivision to adopt an ordinance, order, regulation, resolution, policy, or other similar measure to encourage, promote, or provide rebates for engines and fuel sources from alternative sources such as electricity, hydrogen, gas, or biofuels and that does not directly or effectively ban, restrict, or prohibit the use, sale, or lease of an engine based on the engine's fuel source. (d) Section 81.0523, Natural Resources Code, prevails to the extent of a conflict with this section. SECTION 2. This Act takes effect September 1, 2023. ______________________________ ______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1017 passed the Senate on April 5, 2023, by the following vote: Yeas 29, Nays 2; and that the Senate concurred in House amendment on May 1, 2023, by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate I hereby certify that S.B. No. 1017 passed the House, with amendment, on April 25, 2023, by the following vote: Yeas 116, Nays 30, two present not voting. ______________________________ Chief Clerk of the House Approved: ______________________________ Date ______________________________ Governor