Texas voters delivered a historic shift in statewide leadership on November 3, electing Democrats to several key offices responsible for environmental and energy policy. Gina Hinojosa defeated Governor Greg Abbott, Vikki Goodwin was elected lieutenant governor, Nathan Johnson was elected attorney general, and Jon Rosenthal won a seat on the Railroad Commission of Texas (RRC). Democrats also won all three seats on the Fifteenth Court of Appeals and all four Texas Supreme Court seats on the ballot.

The election will have significant implications for businesses operating in Texas. Changes in executive leadership, regulatory oversight, environmental enforcement, and the judiciary come as the state confronts growing pressure on water and electric infrastructure, increased scrutiny of data center development, and continued debate over industrial permitting, underground injection, and public participation.

Although existing environmental laws and permits remain in place, the election could substantially change how those laws are administered, enforced, and interpreted.

Who Won: A Historic Shift in Statewide Leadership

• Governor Gina Hinojosa: Hinojosa will become Texas’s first Democratic governor since Ann Richards left office in January 1995. Hinojosa has called for greater oversight of data center development, stronger protections for water resources, and more local participation in decisions that affect communities.
• Lieutenant Governor Vikki Goodwin: Goodwin will preside over the Texas Senate and exercise significant influence over legislative priorities and committee leadership. She has advocated for water infrastructure investments and proposed a constitutional amendment recognizing environmental rights.
• Attorney General Nathan Johnson: Johnson has emphasized consumer protection, public safety, and a renewed focus on prosecuting environmental enforcement actions.
• Railroad Commissioner Jon Rosenthal: Rosenthal, a former oilfield engineer and state representative, will join the three-member RRC. He has called for additional technical resources, stronger environmental enforcement, and increased public participation in oil and gas oversight.
• Fifteenth Court of Appeals: Jerry Zimmerer, Tom Baker, and Marc Meyer defeated incumbent Chief Justice Scott Brister and Justices Scott Field and April Farris, replacing the statewide court’s entire bench. See B&D’s earlier analysis.
• Supreme Court of Texas: Maggie Ellis, Chari Kelly, Kristen Hawkins, and Gisela Triana won the four Supreme Court seats on the ballot. Four of the nine justices will be replaced, with five incumbent Republican justices remaining.

What the Election Means for Texas Agencies and Courts

TCEQ: Permitting and Enforcement

The new governor could influence the direction of the Texas Commission on Environmental Quality (TCEQ), although changes to the Commission's membership are not automatic.

TCEQ’s three commissioners serve staggered six-year terms. The Senate confirmed Chairwoman Brooke Paup and Commissioner Catarina Gonzales in 2025, while Commissioner Tonya Miller, appointed in October 2025, has not yet been confirmed. Miller's pending confirmation presents an immediate opportunity for change, while other changes may occur through future appointments or vacancies. At the end of September 2026, former TCEQ Executive Director Kelly Keel vacated the position, now held by Interim Executive Director Steven Schar.

Changes to current Commission leadership could affect rulemaking, permitting, enforcement, affected person determinations, and contested case outcomes.

Attorney General: Environmental Enforcement and Consumer Protection

Johnson’s election could affect the State's environmental enforcement and litigation strategies, including defending agency decisions and challenging to federal regulations.

Johnson has emphasized consumer protection and public safety. One question is whether he will continue or expand his predecessor’s use of consumer protection authority to address environmental health and safety concerns. Attorney General Ken Paxton pursued investigations involving PFAS in consumer products, chemical safety representations, and pesticide use on organic produce, including an October 2026 settlement with Lululemon.

Texas’s Deceptive Trade Practices Act could provide additional avenues for scrutinizing manufacturers’ environmental claims, product safety representations, and disclosures of potential health risks.

Railroad Commission: Injection Wells and Environmental Oversight

Rosenthal has advocated for increased RRC funding, stronger enforcement, and greater oversight of underground injection, emissions, and oil and gas operations.

His election could lead to additional scrutiny of saltwater disposal wells and Class VI carbon sequestration projects, particularly concerning geologic confinement, groundwater protection, and induced seismicity.

Texas Appellate Courts: Judicial Review of Agency Decisions

The replacement of all three justices on the Fifteenth Court of Appeals could significantly affect environmental litigation. Established in 2024, the court has statewide jurisdiction over many appeals involving Texas agencies, including TCEQ and RRC. As discussed in B&D’s earlier analysis, its docket includes key disputes concerning affected person status, environmental permitting, and state enforcement actions.

Four new justices will also join the nine-member Supreme Court of Texas. One early case before the reconstituted Court is San Antonio Bay Estuarine Waterkeeper v. TCEQ and Max Midstream, LLC, No. 25-0564, concerning affected-person status and judicial review of an air permit. Oral argument is scheduled for January 11, 2027.

These changes could shape Texas administrative law, including sovereign immunity, agency authority, and judicial review of permitting and enforcement decisions.

Industries and Regulatory Issues to Watch

Data Centers

Data center development was a central issue in the gubernatorial campaign and will remain a focus of the 2027 legislative session.

Governor Abbott initially promoted data centers as an economic development priority but shifted course amid public concerns about electricity demand, water consumption, infrastructure costs, and community impacts. On September 21, he directed TCEQ to pause data center permitting pending further review, as discussed in B&D’s September 2026 News Alert.

In her July 23, 2026, Texans First Data Center Priorities press release, Hinojosa called for a moratorium on new data center development until the Texas Legislature enacts protections. Her campaign commitments included comprehensive legislation on local siting authority, water protections, infrastructure costs, transparency, labor requirements, and public incentives.

The incoming administration must determine its proposed statutory modifications to pursue legislation addressing water use, grid interconnection, local siting authority, and public participation.

Water-Intensive Industries and Municipal Water Supplies

Texas’s ongoing water challenges, particularly the water supply crisis in Corpus Christi, have intensified questions about competing municipal and industrial demands. In March 2026, Governor Abbott directed state agencies to expedite emergency water projects and waived certain permitting requirements to protect the city’s water supply. Continued shortages could increase pressure to restrict industrial water use during drought conditions.

Hinojosa and Goodwin have emphasized water infrastructure investment and protection of water resources. Goodwin has also proposed a Stewardship Amendment recognizing a constitutional right to a clean and healthy environment.

Water-intensive industries should monitor potential changes to drought contingency requirements, emergency water allocation, industrial water rights, and funding for new infrastructure.

Oil and Gas Production, Underground Injection, and Carbon Storage

Rosenthal’s election could bring increased scrutiny of oil and gas operations, particularly saltwater disposal, carbon sequestration, methane emissions, and flaring.

Texas’s recent assumption of Class VI permitting authority places the RRC at the center of carbon storage development. Rosenthal has advocated for stronger technical oversight and enforcement, potentially increasing scrutiny of geologic confinement, groundwater protection, induced seismicity, and long-term monitoring.

Commissioner Wayne Christian’s September 2026 opposition to ExxonMobil's Rose carbon storage permit demonstrates that concerns about individual projects can cross party lines. Although their policy perspectives differ, Rosenthal and Christian could align on particular injection well applications or property rights issues, potentially affecting permitting outcomes.

Beveridge & Diamond’s Austin office advises clients on environmental regulatory compliance, permitting, enforcement defense, infrastructure and project development, and complex litigation throughout Texas. Our attorneys help oil and gas, energy, manufacturing, chemical, and other industry clients navigate Texas’s evolving regulatory landscape, including matters before TCEQ, the Railroad Commission of Texas, and state courts. B&D’s experience includes defending environmental citizen suits, challenging and defending agency decisions, and counseling clients on major infrastructure projects. Nearly two-thirds of B&D’s lawyers have prior state or federal government experience, including former attorneys from EPA, DOJ, TCEQ, and the Texas Office of the Attorney General. For more information about how changes in Texas leadership may affect your business, please contact the authors.