Paxton says Austin energy code breaks state law

Texas Attorney General Ken Paxton issued an opinion Friday saying part of an Austin Energy code that went into effect last year conflicts with Texas law and is unenforceable, opening a new legal challenge for Austin’s push to make new buildings easier to electrify.

In April 2025, the Austin City Council adopted the 2024 International Energy Conservation Code, which, among other things, created new “electric-ready” requirements for residential and commercial buildings that could make it easier for future owners to transition away from natural gas.

Weeks later, Texas Sen. Brian Birdwell, R-Granbury, asked Paxton whether those provisions conflicted with a 2021 state law prohibiting local governments from discriminating against utility services based on the type of energy used. In his opinion, Paxton concluded that they do.

Paxton wrote that Austin’s new electric-ready requirements have the “purpose, intent or effect” of discriminating against gas utilities, which conflicts with state law, a finding that could intensify the broader political fight over local control, consumer choice and the role of natural gas in Texas.

“We therefore conclude that the Utility Code’s broad prohibition renders (the provision) of the City’s ordinance unenforceable,” Paxton wrote.

Austin Energy did not respond to a request for comment late Friday afternoon.

State opinion escalates fight over Austin’s push toward electrification

It is unclear whether the city will challenge the attorney general’s interpretation in court. An attorney general’s opinion is not the same as a court ruling and does not become law, though agencies often take such opinions into account when making policy decisions.

In his letter to Paxton, Birdwell said House Bill 17, which passed in 2021, was drafted in response to the growing number of Texas cities restricting gas hook-ups in new buildings and was intended to “preserve customer choice and allow Texans to decide how to meet their own energy needs.”

He said Austin’s “electric-ready” provision would “severely affect commercial customers” by requiring additional electrical infrastructure to be installed alongside certain natural gas appliances, raising costs for customers planning to use natural gas for those appliances.

Paul Robbins, vice chair of the Resource Management Commission, argued the city’s intent in adopting the code was not to prohibit building owners from using natural gas, but instead to give them the option to transition to electrification in the future by requiring electrical infrastructure during construction.

“The city tried to pursue this in a fuel-neutral way,” Robbins said. “They did not say you cannot build gas homes; they said you have to give customers a choice, so that if they choose to go all-electric, then it doesn’t cost them a lot of money to rewire their house.”

Robbins said Austin’s approach was meant to expand options, not restrict them.

“You can make a cogent argument that not doing electrification is actually discriminatory.”