TEXAS OFFICES / CAMPUS PERMITS / BLOG
Texas elected a new governor, a new railroad commissioner, a new comptroller and a new attorney general. The TCEQ rules a campus is built against did not change with them.
The November 3, 2026 election put new people in four of the five state bodies that decide a Texas data center campus file. It did not change the permit rules a campus is built against. TCEQ is a three-member commission appointed by the governor, and its commissioners serve staggered six-year terms, so the rule floor moves through an appointment and a reopened rule project. The elected offices move faster. Railroad Commission practice, Comptroller certification of the data-center sales-tax exemption and Attorney General enforcement posture can all shift with the people who hold those offices.
A campus file does not sit with one agency. It runs through four state bodies. The Texas Commission on Environmental Quality (TCEQ) holds the air and water permits. The Railroad Commission of Texas sets the tariff and docket practice for a gas lateral. The Texas Comptroller of Public Accounts holds the sales-tax exemption. The Texas Attorney General (AG) holds enforcement. The governor's appointment power sits over TCEQ. The November 3 election changed four of those five, and the one that did not change is the one that writes the permit rules.
The five bodies, and how each one is put there
TCEQ has three commissioners appointed by the governor with the advice and consent of the Senate, under Texas Water Code §5.052(a). Their terms are staggered and run six years, with one term expiring every two years, under §5.056(a). Removal is limited to the grounds listed in §5.054. A new governor therefore fills one commission seat at a time, and the commission's rules stand until a rule project reopens.
The Railroad Commission has three commissioners elected at a general election. Their terms are six years, and one commissioner is elected every two years, under Article 16, Section 2 of the Texas Constitution. A vacancy is filled by the governor until the next general election. One seat was on the ballot on November 3, so one commissioner changes.
The Comptroller of Public Accounts is a single elected officeholder. The office certifies a qualifying data center for the sales-tax exemption under Texas Tax Code §151.359, and the exemption runs for 10 or 15 years from the date of that certification. The Comptroller audits each certified data center at its five-year anniversary.
The Attorney General is a single elected officeholder. The office enforces the Deceptive Trade Practices Act through its consumer protection division, under Texas Business and Commerce Code §17.46(a). The office's enforcement posture is a choice the officeholder makes.
The governor is a single elected officeholder. The governor appoints the TCEQ commissioners who write the permit rules a campus is built against.
What each body decides for a campus
The map matters more than the election result. Each body controls a different decision, and each decision moves on its own clock.
TCEQ controls the permit floor. A campus air authorization runs through Chapter 116 or a permit by rule, and a water authorization runs through the commission's water programs. Those rules stand until the commission reopens a rule project.
The Railroad Commission sets the tariff and docket practice for the gas lateral. A new commissioner can change how the commission reads a docket.
The Comptroller controls the exemption. If a campus relies on the data-center sales-tax exemption, the Comptroller's certification starts a ten-year or fifteen-year clock, and the five-year audit tests the capital investment and the jobs.
The Attorney General controls enforcement posture. The office decides which conduct it pursues under the Deceptive Trade Practices Act and how it reads the water code.
The governor controls the appointment. A new governor can change the TCEQ commission over time, one seat at a time.
What the election changed
These are the unofficial vote counts, at 99% of polling locations reporting, updated 10:53 AM CT on 4 November 2026, from the Texas Secretary of State. They are not canvassed.
- Governor: Gina Hinojosa 5,198,441; Greg Abbott 4,501,544.
- Railroad Commission: Jon Rosenthal 5,071,715; Bo French 4,404,157.
- Comptroller of Public Accounts: Sarah Eckhardt 4,983,999; Don Huffines 4,488,794.
- Attorney General: Nathan Johnson 5,102,010; Mayes Middleton 4,479,898.
Four offices change hands. The governor's office, one Railroad Commission seat, the Comptroller's office and the Attorney General's office each get a new officeholder. TCEQ does not change hands, because its commissioners are appointed and serve staggered terms.
Hinojosa campaigned on a moratorium on new data centers. She also wants data centers to pay sales tax on the electricity they consume, and she put the cost of the current exemption at more than $1 billion a year. That figure is hers. She has said a moratorium on new permits and an electricity sales tax would each need legislative action.
What to file, certify or reprice before the new officeholders take office
The sponsor decides these calls, and counsel advises. The steps below gather the facts for them. This is not a legal opinion.
- Exemption certification status. If the campus relies on the §151.359 exemption, confirm whether the Comptroller has certified it. Put the certification date, the ten-year or fifteen-year clock and the five-year audit on the calendar.
- Railroad Commission docket and tariff. Name the docket and the tariff the gas lateral sits under, because the commission's practice can change with one commissioner.
- AG posture assumptions. List every assumption in the model that depends on the Attorney General's enforcement posture, because that office changes wholesale.
- TCEQ rule assumptions. List every assumption that depends on a TCEQ rule. Those rules survive installation, and they move only through an appointment and a reopened rule project.
- Permit status. For each air and water authorization, name the rule and the issuing section, so a change in commission practice can be tested against the file.
- Campaign positions. Treat the moratorium and the electricity sales tax as positions. Both need legislative action, and neither is a filed rule project.
- Rule that survives inauguration. Identify which assumptions would hold even if the commission changed, and which depend on a rule that a future commission could reopen.
The tradeoff between filing early and waiting
Filing early costs money and time. A certification, a docket and a permit each take work, and a campus that files before the transition pays for that work now.
Waiting costs something else. A campaign position that becomes a bill, or a new commissioner who reads a docket differently, lands on an unfinished file. The campus that waited then reprices against a rule or a practice it did not plan for.
The election changed four officeholders. It did not set a moratorium date. The rules a campus is built against did not change on November 3, and they do not change when the new officeholders are installed. They change when a rule project reopens, and that takes an appointment and a commission decision.
One question stays open. Whether an incoming governor can lawfully halt permits already issued under existing TCEQ rules is Unknown. It resolves from the transition's own announcements and a TCEQ filing. A campaign statement does not resolve it.
If a campus is still assembling its approval file, our Entitlements & community work looks at which Texas approvals a campus needs and the order in which they gate construction.
Sources
- Texas Secretary of State, 2026 November General Election unofficial results, https://electionresults.sos.state.tx.us/results.html (updated 11/04/2026 10:53 AM, 99% of polling locations reporting)
- Texas Water Code §5.052, Members of the Commission, and §5.054, Removal of Commission Members, https://statutes.capitol.texas.gov/Docs/WA/htm/WA.5.htm
- Texas Water Code §5.056, Terms of Office, https://statutes.capitol.texas.gov/Docs/WA/htm/WA.5.htm
- Texas Constitution Article XVI §2, Railroad Commission, https://statutes.capitol.texas.gov/Docs/CN/htm/CN.16.htm
- Texas Tax Code §151.359, Property Used in Certain Data Centers, https://statutes.capitol.texas.gov/Docs/TX/htm/TX.151.htm
- Texas Comptroller of Public Accounts, State Sales Tax Exemption for Qualifying Data Centers and Qualifying Large Data Center Projects, https://comptroller.texas.gov/taxes/data-centers/
- Texas Business and Commerce Code §17.46, Deceptive Trade Practices Unlawful, https://statutes.capitol.texas.gov/Docs/BC/htm/BC.17.htm
- Texas Constitution Article IV §4, Installation of Governor, https://statutes.capitol.texas.gov/Docs/CN/htm/CN.4.htm
- Yahoo Finance, Ben Werschkul, 4 November 2026, on Hinojosa's moratorium pledge and the Texas House result, https://finance.yahoo.com/economy/article/a-democrat-won-the-texas-governors-race-after-promising-to-halt-new-data-center-construction-044536389.html
- Click2Houston, 4 November 2026, on Hinojosa's data-center positions and the $1 billion figure, https://www.click2houston.com/news/local/2026/11/04/gina-hinojosas-plans-for-texas-dollar1500-checks-data-centers-medicaid/
Related coverage:
- The county moratorium authority page: Can Texas counties stop data centers
- The TCEQ permit pause page: Two gates, one calendar