H.B. No. 4049 introduces a new subchapter, Subchapter J-1, to Chapter 382 of the Health and Safety Code, focusing on the tracking of greenhouse gas emissions by companies operating in Texas. The bill defines a "company" and outlines that, except as required by federal law, companies are prohibited from expending resources to track or estimate their greenhouse gas emissions for compliance with any federal, state, or foreign regulations. Additionally, it stipulates that no entity may penalize a company for adhering to this prohibition.

The bill also establishes a civil penalty for violations of these provisions. Companies that violate the tracking prohibition or entities that penalize companies for compliance may face a civil penalty of either $10,000 or double the amount spent by the company on tracking emissions, whichever is greater. The attorney general is authorized to initiate legal action to recover these penalties. This new regulation will apply only to expenditures initiated after the bill's effective date of September 1, 2025.

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