Texas House Bill 4413 (HB 4413) was signed by the Governor on June 20, 2025, and took effect September 1, 2025. The law strengthens Texas’ statutory framework for renewable chemicals by amending the Texas Health and Safety Code to expand and clarify the definitions of “renewable biomass” and “renewable chemical.” In doing so, HB 4413 aligns state law more closely with federal principles and current sustainability practices that support the use of renewable and waste-derived feedstocks in chemical production.
The legislation broadly defines renewable biomass to include forest and agricultural byproducts, animal and food waste, algae, microorganisms, municipal solid waste, plant-derived waste oils, and materials derived from wastewater treatment. These definitions are consistent with federal law, including the Healthy Forests Restoration Act, and support waste diversion, resource efficiency, and circular economy objectives. Renewable chemicals are defined as a range of chemical substances produced from renewable biomass or verified through third-party mass balance attribution systems, enabling the tracking of renewable content across complex supply chains without requiring full physical segregation of feedstocks.
HB 4413 directs the Texas Commission on Environmental Quality (TCEQ) to implement the law through rulemaking, including identifying third-party certification systems that will be accepted for mass balance attribution. While the statutory definitions are already in effect, companies should expect that the practical “how” of demonstrating renewable content via certification will depend on TCEQ’s implementing rules and the certification systems TCEQ formally recognizes. TCEQ is directed to adopt these rules as soon as practicable, which should provide clearer, statewide consistency for compliance and documentation and support broader adoption of biobased and waste-to-chemical technologies across the chemical, refining, and waste-to-energy sectors.
Overall, HB 4413 positions Texas as a supportive jurisdiction for renewable chemical production and biobased manufacturing. By expanding eligible feedstocks and recognizing mass balance certification, the legislation promotes environmental stewardship, waste reduction, and innovation in low-carbon, circular economy technologies while maintaining regulatory compliance and environmental accountability.
How EDGE Can Help
EDGE can support companies evaluating the implications of HB 4413 by:
- Screening feedstocks and finished products against the statutory definitions.
- Reviewing mass balance certification pathways and building defensible substantiation approaches.
- Monitoring TCEQ rulemaking and advising on practical implementation steps for facilities and supply chains.
For questions about how HB 4413 may affect your operations, permitting, or compliance strategy, contact EDGE’s Compliance & Liabilities Management team.