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Bill

SB 1912

Relating to contracting with companies that boycott certain energy companies.

89th Legislature (2025) Introduced by Sarah Eckhardt

Texas bill bars state contracts and pension investments with companies that boycott fossil fuel industries, protecting state economic interests in oil and gas.

Referred to Natural Resources
#energy--general(i0315) #purchasing--state(i0643)
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Bill Summary · SB 1912

Legislative bill overview

SB 1912 would prohibit Texas state entities and pension funds from contracting with or investing in companies that boycott fossil fuel energy companies or refuse to do business with them. The bill aims to protect the state's economic interests in the energy sector by penalizing corporations that divest from or avoid involvement with oil, gas, and coal industries.

Why is this important

Texas is the nation's leading oil and natural gas producer, making energy policy economically and politically significant to the state. This bill directly addresses the tension between state financial interests and corporate environmental, social, and governance (ESG) policies, potentially affecting billions in state pension and procurement decisions.

Potential points of contention

  • Free market vs. state mandates: Critics argue the bill restricts private companies' right to choose business partners, while supporters contend the state shouldn't fund companies opposing Texas's primary industry
  • Pension fund performance: Fossil fuel divestment decisions are typically made for financial reasons; requiring reinvestment could limit returns or increase risk exposure for state retirees
  • Definitional challenges: The bill must precisely define what constitutes a "boycott" to avoid unintended consequences—does refusing new fossil fuel contracts count, or only explicit divestment?

Compiled from official sources — confirm details with the bill’s official record.

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