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Issue explainer

Energy and Climate Policy

Energy policy is about which fuels we produce and use, how fast that mix should change, and who pays for it. In Texas it is also jobs policy, because the state is a leader in both oil and gas and in wind and solar power. Federal rules changed a lot in 2025 and 2026, so the debate is active again.

The basics

Texas is the nation's energy powerhouse. It produced 28% of all U.S. marketed natural gas in 2023, more than any other state1. The Permian Basin in West Texas and southeastern New Mexico produced 48% of all U.S. crude oil in 20242.

Texas also makes a lot of electricity from wind and sun. On the ERCOT grid, which serves most of the state, wind and solar together met 36% of electricity demand in the first nine months of 2025. Natural gas plants produced 158 terawatt-hours in that period, still the largest single source3.

The core debate is a tradeoff. One side stresses keeping energy cheap and reliable and protecting oil and gas jobs. The other stresses the costs of climate change, like heat, drought and storms, and the business opportunity in cleaner energy. Many people sit in between and favor using every source.

Federal policy shifted in 2025 and 2026. A July 2025 federal tax law (often called the One Big Beautiful Bill Act) ends the main federal tax credits for wind and solar projects placed in service after 2027, unless construction began by July 4, 20264. In February 2026, the EPA published a final rule repealing its 2009 finding that greenhouse gases from vehicles endanger public health, along with federal vehicle greenhouse gas standards. It took effect April 20, 20265. Health and environmental groups and a coalition of about two dozen states have sued to overturn it in federal appeals court8.

Key terms

Endangerment finding
A 2009 EPA determination that greenhouse gases from motor vehicles endanger public health and welfare. It was the legal basis for federal vehicle climate rules until EPA rescinded it in 20265. That repeal is being challenged in court8.
Renewable tax credits
Federal tax breaks for building clean power. A 2025 law ends them for wind and solar projects placed in service after December 31, 2027, unless construction began by July 4, 20264.
Dispatchable power
Power plants that can be turned up or down on demand, such as natural gas plants. Wind and solar depend on the weather, so batteries or other plants back them up.
Permian Basin
The oil and gas region of West Texas and southeastern New Mexico. It produced 48% of U.S. crude oil in 20242.

In Texas

The Texas Railroad Commission, despite its name, no longer regulates railroads. It is the main state regulator for oil and gas production, pipelines and gas utilities6. Its three commissioners are elected statewide to six-year, overlapping terms, so it appears on your ballot9.

Both old and new energy are growing here. As of February 2026, solar and battery storage made up more than 76% of the new generation seeking to connect to the ERCOT grid, and the capacity of natural gas projects in the queue had grown 271% since the Texas Energy Fund passed in 20237.

How people see it

The strongest case for each view, in terms its supporters would recognize. We don't pick a side.

Expand oil and gas

Oil and gas keep energy affordable, fund Texas schools and roads through taxes and royalties, and support hundreds of thousands of jobs. Cutting U.S. production does not cut world demand; it just moves drilling to countries with weaker rules. Climate rules raise costs for families without changing global temperatures much.

All of the above

Texas does not have to choose. Gas, nuclear, wind, solar and batteries each have strengths, and competition among them keeps prices down. Government should stop picking winners, in either direction, and let markets decide what gets built.

Gradual transition

Climate change is real and costly, but a sudden shift would hurt workers and bills. Steady incentives, research and cleaner technology can lower emissions over time while keeping the lights on. Texas already shows that clean power can grow alongside oil and gas.

Rapid transition

Heat waves, drought and stronger storms are already costing Texans money and lives. Waiting makes the problem harder and more expensive to fix. Firm deadlines and strong federal standards are needed to cut emissions fast, and clean energy is where the jobs are heading anyway.

Who decides

  • Congress: Writes federal tax credits, energy laws and environmental laws.
  • President and federal agencies (EPA, Department of Energy): Write and enforce federal rules on emissions, drilling on federal land and energy programs.
  • Texas Legislature and Governor: Set state energy law, grid rules and state incentives.
  • Texas Railroad Commission (elected): Regulates oil and gas production, pipelines and gas utilities.
  • Public Utility Commission (appointed by the Governor): Oversees electricity markets and the ERCOT grid.

Questions to ask a candidate

  • Should the government favor any energy source, through tax breaks or rules, or stay neutral?
  • What would you do to keep power bills affordable as demand grows?
  • Do you believe climate change requires government action, and if so, what specific action?
  • Would you support or oppose restoring federal tax credits for wind and solar?

Last reviewed 2026-09-26. Spotted something wrong? Every claim links to its source so you can check it yourself.

Sources

  1. Five states drove record U.S. natural gas production in 2023U.S. Energy Information Administration
  2. U.S. crude oil production rose by 2% in 2024U.S. Energy Information Administration
  3. ERCOT increasingly meets rising demand with solar, wind, and batteriesU.S. Energy Information Administration
  4. Notice 2025-42: Beginning of construction for wind and solar facilitiesInternal Revenue Service
  5. Rescission of the Greenhouse Gas Endangerment Finding and Motor Vehicle Greenhouse Gas Emission StandardsFederal Register (EPA)
  6. About the Railroad Commission of TexasRailroad Commission of Texas
  7. ERCOT Update to the Senate Committee on Business and Commerce, April 1, 2026ERCOT
  8. Challenges to EPA's Repeal of the 2009 Endangerment FindingJones Day
  9. RRC HistoryRailroad Commission of Texas