Relating to the awarding of contracts by the Texas Department of Transportation for certain materials used in road construction projects.

HB 408 prohibits the Texas Department of Transportation (TxDOT) from favoring construction bids based on environmental, social, or governance criteria (such as carbon emissions) when selecting materials for road projects, if those materials are less cost-effective or durable than alternatives. The bill directly affects TxDOT and contractors bidding on road construction projects by requiring that bid comparisons prioritize cost and durability over ESG factors. It amends the Transportation Code to explicitly ban such preferences in material selection for projects covered under the law. The rule takes effect September 1, 2025, ensuring TxDOT must base contract awards solely on cost and material performance.