It's not true at all. Federal regulations dictate most environmental standards and in top of that TCEQ is a very competent and at times tough regulator.
EPA definitely has a dog in the fight, especially considering that a 250 megawatt power plant would be a literal "major stationary source" under the clean air act
I don't know anything about this sort of regulation, but it might be worth noting that the PEA does indicate that SpaceX will be seeking a permit from TCEQ (on page 42 of the PEA)
> SpaceX would apply for authorization under the Oil and Gas Standard Permit with the TCEQ and adhere to any permit conditions
