Energy Efficiency - The Solution Texas Can’t Afford to Ignore

Energy and our electric grid are hot topics at the Texas Legislature right now. There are bills being advanced that would throw billions of taxpayer dollars towards new, expensive nuclear energy technology and more polluting gas power plants that would take years to build. Meanwhile, bills that would expand the most affordable, cleanest, and most resilient energy resource, energy efficiency, have yet to receive a hearing.

Energy efficiency isn’t a luxury - it’s a lifeline. And right now, with the exception of a few, Texas legislators are ignoring it.

Energy efficiency is the cheapest, most cost-effective way to strengthen our power grid, lower energy bills, and reduce strain on energy systems. Yet Texas consistently ranks near the bottom (36th, in fact) nationwide for energy efficiency. Our building codes are outdated, our policies inconsistent, and our state leadership beholden to special interests motivated not by lowering bills for Texas families but by shareholder profit.

But what is energy efficiency and why should the legislature care about it? Let’s dive in.

Energy efficiency means doing more with less - reducing waste and saving money. In practical terms, energy efficiency can include programs to reduce the cost of adding more efficient insulation, double-pane windows, and energy-efficient heating and cooling systems. It can mean swapping outdated light bulbs for LEDs, adding weather stripping to doors and windows, and using smart thermostats that optimize energy use. These measures may seem small, but collectively they make a significant impact - lowering utility bills, reducing the risk of power outages, and making homes more comfortable in the extreme heat and cold. Implementing these strategies is not only affordable; it's the most responsible choice, especially when Texans are facing record-high bills and struggling to make ends meet.

It is no accident that Texas became one of the most energy wasteful states in the country. Texas’ utility giants, like CenterPoint Energy and Oncor, have long prioritized profit over people, while fossil fuel generators continuously push for subsidies for gas. Nuclear plants can’t get built without massive subsidies. CenterPoint and Oncor, two of the state's largest transmission and distribution utilities, have resisted meaningful energy efficiency targets while raking in record profits. In 2024, CenterPoint announced profits exceeding $1 billion, even as Texans endured power outages caused by extreme weather events. The company's former CEO, David Lesar, received a staggering $37.8 million compensation package in 2021 - over 366 times the median salary of a CenterPoint employee.

Oncor also benefits from maintaining the status quo, prioritizing shareholder profits over meaningful investments that could ensure Texans are protected from extreme heat and cold without getting hit with crippling utility bills. These corporations routinely lobby against common-sense energy efficiency standards, claiming such requirements are too expensive, or not realistic. In reality, it’s everyday Texans who bear the burden of expensive energy investments - families struggling with sky-high energy bills and power outages during extreme weather. When the grid fails, these companies continue to profit, leaving Texans to foot the bill.

Unfortunately, some of our state leaders protect these interests at all costs, and cast energy efficiency as too expensive. These same legislators then have the audacity to back bills that would give away billions of our dollars to the nuclear industry, which has been plagued by cost overruns and delays and would increase costs to Texas families.

But some are fighting that backwards logic. Democrats Sen. Sarah Eckhardt and Rep. Chris Turner have filed companion bills (SB 1915 and HB 4374) that would increase the state’s energy efficiency goal for the first time since 2011 - and roughly quadruple the investment utilities should make into energy efficiency programs that are proven successful at reducing energy waste. Rep. Ana Hernandez has filed HB 1359 which would create new payment assistance programs for working-class Texans, helping families struggling with rising energy costs. Two Republican leaders - Sen. Kelly Hancock and Rep. Ken King - have introduced legislation to address energy waste (SB 2455 and HB 5323).

Energy efficiency isn’t just an environmental issue; it’s an economic and public health issue. Investing in better efficiency standards could save Texas billions, strengthen our power grid, and cut down on harmful emissions. Most importantly, it could protect vulnerable Texans, those in low-income communities and communities of color, who are most likely to live in older, inefficient homes and spend a disproportionate amount of their income on energy bills.

We’re in the middle of the 89th Texas legislative session. If there’s ever a time to demand better from our elected officials, it’s now. Call your representatives. Demand that they prioritize the people of Texas over the profits of fossil fuel and utility giants. Tell them to support stronger energy efficiency policies (mention these bills, too!) - because summer and extreme heat are on the way.

Texas deserves better. Texans deserve better. It’s time we make it happen.

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ABOUT THE LONE STAR CHAPTER

The Sierra Club Lone Star Chapter is committed to protecting Texas' natural resources, advocating for equitable environmental policies, and empowering communities to take action for a sustainable future.