Texas
Texas is the nation’s largest industrial emitter. Three sectors are responsible for the bulk of emissions: petroleum and natural gas systems, non-fluorinated chemicals, and refineries. Texas refines approximately one third of the nation’s oil. Large industrial facilities, including the chemical sector, are located primarily in the eastern part of the state. Petrochemicals and hydrogen account for most chemical production. The industrial footprint in West Texas consists primarily of petroleum and natural gas extraction.

- This map shows the top 20 emitters, coded by industrial sector. The size of the circles corresponds to emissions: the larger the circle, the higher the emissions.
- Disadvantaged communities (as determined by the federal government) are shaded blue.

- The inner circle provides a visual representation of the share of emissions generated by each industrial sector.
- The outer circle also indicates the share of a sector’s emissions generated in disadvantaged communities.
STATE ENERGY POLICY:
Examining a state’s broader energy policy landscape is helpful when considering policies to support industrial innovation. Texas has not established greenhouse gas emissions targets or a clean heat standard. Texas established a renewable portfolio standard in 1999. In 2024, any mandatory goals were effectively phased out in 2024 by H.B. 1500 and replaced with a voluntary renewable energy credit. While these formal commitments are not prerequisites for innovative industrial policy, they can provide a supportive framework. In addition, streamlining permitting and establishing an efficient, transparent appeals process that engages local communities early while giving clarity and assurances to project developers are key components of effective state energy policy. Discussions around innovative industrial policy present an opportunity for broader conversations about state energy policy to ensure a mutually reinforcing strategy.
LEGISLATIVE context & opportunity:
Let us know if you are aware of additional legislation advancing industrial innovation in Texas that should be featured. The context below is not exhaustive and serves as an example of recent policies and programs and where there may be future opportunities:
- HyVelocity Gulf Coast Hydrogen Hub: Louisiana and Texas are part of HyVelocity. Independent of the outcome of the regional hubs, there is strong interest in building a clean hydrogen economy in this region to reduce emissions across hydrogen production, oil and gas development, and industrial manufacturing.
- Carbon management technologies are another opportunity to reduce industrial emissions in the state. Learn more about the economically feasible subsectors in Texas and facilities that qualify for the federal 45Q tax credit.
- A factsheet by the Renewable Thermal Collaborative identifies electrification of Texas’s ammonia, methanol, and plastic recycling subsectors as opportunities to reduce emissions significantly.
- Two companion bills in Texas (H.B. 1499 and S.B. 2353) are being considered in the 2025 legislative session to establish a grant program to reimburse ready-mix concrete manufacturers for the costs of accessing software to generate environmental product declarations.
Explore recent legislation in Texas and all 50 states by clicking on a specific year: 2025 legislation, 2024 legislation, 2023 legislation.