House Bill No. 3278 mandates the Texas Commission on Environmental Quality, in collaboration with other relevant state agencies, to conduct a comprehensive study on the environmental, economic, and infrastructural impacts of solar and wind energy generation facilities. The study will address various factors, including land use, decommissioning challenges, grid reliability, economic effects on rural communities, fire risks associated with battery storage, contamination risks, wildlife mortality, and health effects from noise. Public hearings will be held in rural counties to gather input from stakeholders, and the commission is required to submit an interim report by September 1, 2026, and a final report by January 31, 2027.

Additionally, the bill imposes a moratorium on state economic incentives for solar and wind energy projects from the effective date of the Act until the end of the 90th Legislature, with exceptions for applications submitted prior to the Act's effective date. The moratorium can be lifted by a concurrent resolution from the legislature. The Act is set to expire on September 1, 2027, and will take effect immediately if it receives a two-thirds vote from both houses; otherwise, it will take effect on September 1, 2025.