The bill, H.B. No. 408, proposes an amendment to the Texas Transportation Code by adding Section 223.0471, which establishes guidelines for the Texas Department of Transportation (TxDOT) regarding the awarding of contracts for materials used in road construction projects. Specifically, the new section prohibits TxDOT from giving preference to bids that utilize certain materials based on environmental, social, and governance (ESG) criteria, including carbon emission standards, if those materials are less cost-effective or durable compared to alternative options.

This legislation aims to ensure that cost and durability remain the primary factors in the selection of materials for road construction, rather than ESG considerations. The bill is set to take effect on September 1, 2025.

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