Every month during the 89th Regular Session of the Texas Legislature, I prepare an update on water-related legislation. The key water committees are the Senate Water, Agriculture, and Rural Affairs Committee and the House Natural Resources Committee. Senate Water, Agriculture, and Rural Affairs’ standing meeting schedule is Monday at 8am in hearing room E1.012 of the Capitol Extension. The House Natural Resource’s standing meeting schedule is Wednesday at 8am in hearing room E2.036 of the Capitol Extension.
How many water-related bills are there on the legislature’s plate?
The 89th session was marked from the beginning as ‘a water session’ by Governor Abbott’s emergency item calling for a Texas-Size Investment in Water. Senate Water, Agriculture, and Rural Affairs Committee is chaired by Senator Charles Perry (R) of Lubbock who commented at his first hearing that “We are on the edge of the most transformative water session that the legislature has had in a long, long time.” Representative Cody Harris (R) of Palestine chairs of the House Natural Resources Committee.
Bills to Watch
May is the elephant’s graveyard for legislation. During this month bills that once held so much promise and captivated the attention of experts, the press and the public, stagger toward inevitable death. As the month progresses, and the clock closes in on midnight (Sine die on June 2nd) the committee hearing schedules listed above start to recede into the ether. As time wanes hearings are often called on short notice and held on the floor of the Senate or House around the desk of the committee chair. These impromptu hearings resemble scrums with the committee chair at the epicenter, surrounded in concentric circles by committee members, then lege staff, and finally an encapsulating outer layer featuring an oscillating mixture of lobbyists, agency staff, NGOs and everyone else jockeying to hear what is being discussed in the bull’s eye.
The key water bill and joint resolution this session are still Senate Bill 7 and House Joint Resolution 7. These bills promise to deliver the Texas-size investment in water called for by the Governor. Senate Bill 7 would fund the development of new water supplies and repairs to our aging water infrastructure through the Texas Water Fund, which would be administered by the Texas Water Development Board. House Joint Resolution 7 is a constitutional amendment that would approve devoting $1billion annually from state sales and use taxes to the Texas Water Fund for up to ten years, with an option for the legislation to renew the investment every ten years. Senate Bill 7 received unanimous approval in the Senate on April 2nd and is still making its way through the House. House Joint Resolution 7 was passed by the House on April 29th and is currently pending in the Senate Committee on Finance which debated last week how the funds would be directed (with Chaiman Perry advocating for an 80%/20% split between new water supplies and water infrastructure). Ultimately, if both Senate Bill 7 and House Joint Resolution 7 make it, the voters will be given the opportunity to approve the necessary changes to the constitution on November 4th.
Below is a list of some of the key water-related bills making progress. I wish to thank Perry Fowler, Carlos Rubinstein and Evgenia Spears for their input on identifying the key water bills to watch at this point in the session. When we meet again in June the session will be over and all eyes will be on Governor Abbott as we watch to see which bills he signs, which he vetoes, and which he allows to become law by ignoring them. Final note, should the legislation that you were hoping would become law falls short, don’t become too distraught because the 90th session of the Texas Legislature is only 18 months away in June.
Bill | Sponsor | Companion | Status | Description | Interpretation |
---|---|---|---|---|---|
HJR7 | Harris | Enabling legislation is SB 7 by Perry | Passed by the House and pending in the Senate Committee on Finance | Proposing a constitutional amendment to dedicate a portion of the revenue derived from state sales and use taxes to the Texas water fund. | Proposes to dedicate $1 billion per year to the Texas Water Fund. Unlike the earlier SJR 66 (Perry), which is no longer advancing and has since been superseded by HJR 7, HJR 7 does not impose restrictions on funding allocation, allowing flexibility in distribution of funds within the Texas Water Fund. However, Senator Charles Perry submitted a committee substitute for HJR 7 containing the allocation restrictions which would require 80% of the annual $1 billion dedication be directed towards the New Water Supply for Texas Fund, leaving only 20% for all other program under the Texas Water Fund. |
HB 29 | Gerdes | SB 1190 by Perry, Identical | Passed by House and the Senate | Relating to water losses reported by certain municipally owned utilities to the Texas Water Development Board; authorizing administrative penalties. | Requires municipally owned utilities in six largest cities to validate water audits and develop water loss mitigation plans. Proposes fines for violations. This bill passed the House with amendments, one of which aimed to protect ratepayers from additional costs in case of such violations. |
HB 365 | Gonzalez | N/A | Passed by House and sent to the Senate | Relating to the authority of the Texas Water Development Board to provide financial assistance from the economically distressed areas account that is not required to be repaid. | |
HB 422 | Gonzalez | N/A | Passed the House, but hasn't been referred to a committee in the Senate | Relating to limitations on the issuance of bonds by the Texas Water Development Board for the development of certain projects in economically distressed areas. | Proposes to increase the limit on the issuance of bonds by the TWDB from $25 million to $100 million per year for water supply and sewer projects in economically distressed areas. |
HB 1318 | Guillen | SB 947 by Flores, Identical | Passed the House, scheduled for hearing in the Senate Water, Agriculture and Rural Affairs | Relating to a certificate of public convenience and necessity to provide water or sewer service in an area incorporated or annexed by a municipality. | |
HB 1400 | Harris | SB 718 by Kolkhorst, Identical | Passed by the House; referred to Senate Water, Agriculture and Rural Affairs | Relating to creation of the groundwater science, research, and innovation fund to be administered by the Texas Water Development Board. | Proposes to establish the Groundwater Science, Research, and Innovation Fund to support groundwater conservation projects, managed by TWDB. The fund will be sourced from appropriations, board transfers, interest, gifts, grants, donations, and other legislative revenue. |
HB 1633 | Gerdes | SB 624 by Kolkhorst, Identical | Passed by House; left pending in Senate Water, Agriculture and Rural Affairs | Relating to the criteria considered by groundwater conservation districts before granting or denying a permit or permit amendment. | Current law exempts certain wells from a requirement to obtain a permit from a groundwater conservation district, including wells for domestic use or certain small-scale agricultural operations. Due to an increase in the export of regional water, small-scale farmers and ranchers in Bastrop and Lee Counties have been forced to pay out of pocket to dig their wells to rapidly increasing depths. H.B. 1633 seeks to address this issue by requiring groundwater conservation districts to consider the effects that permitting decisions may have on wells that are registered with the district when making such a decision. |
HB 1689 | Gerdes | N/A | Passed by the House and Senate Water, Agriculture and Rural Affairs and recommended for local & uncontested calendar | Relating to the use of certain groundwater export fees collected by a groundwater conservation district. | Allows export fees to be used address wells outside of the district that are impacted. |
HB 1690 | Gerdes | N/A | Passed by the House, referred to Senate Water, Agriculture and Rural Affairs | Relating to an application for a permit for the transfer of groundwater out of a groundwater conservation district. | Requires that public notice must be published regarding a permit application to transfer groundwater out of a district. |
HB 2091 | Martinez | N/A | Passed by the House, sent to the Senate | Relating to the provision of financial assistance by the Texas Water Development Board for certain projects. | Relating to grants to drainage districts for water supply projects, including those that provide flood control. |
HB 2712 | Darby | SB 1891 by Perry, Identical | Passed by House, heard in Senate Water, Agriculture and Rural Affairs | Relating to test years used for ratemaking purposes by certain water and sewer utilities. | |
HB 2765 | Guillen | N/A | Passed by the House, referred to Senate Economic Development | Relating to the Rural Economic Development and Investment Program and the Texas economic development fund. | |
SB 1 | Huffman | HB 1 | Conferees are reconciling differences between SB 1 and HB 1 | General appropriations bill for 2026-2027 biennium. | Both SB 1 and HB 1 propose $2.5 billion for water infrastructure needs. |
SB 7 | Perry et al | Enabling legislation is HJR 7 | Approved by Senate and voted out of House Natural Resources and left pending | Relating to the oversight and financing of certain water infrastructure matters under the jurisdiction of the Texas Water Development Board. | The "big water infrastructure bill" establishes legislative oversight of TWDB's use of dedicated revenues for water supply projects, and performance measures to track state achievement towards addressing long-term water infrastructure challenges. The House version considered in the committee expands eligibility of projects to include wastewater and water reuse as part of new water supplies, Agricultural Water Conservation Fund, and Economically Distressed Areas Program (EDAP). |
SB 480 | Perry | HB 3383 by Canales, Identical | Passed by Senate, passed House Intergovernmental Affairs and sent to House Calendars | Relating to the authority of a local government to enter into an interlocal contract with certain governmental entities to participate in water research or planning activities. | |
SB 1145 | Hinojosa | N/A | Passed by the Senate, referred to House Natural Resources | Relating to the authority of certain conservation and reclamation districts to impose fees for the construction of certain pipelines and associated infrastructure. | |
SB 616 | Schwertner | HB 1618 by Harris Davila, Identical | Passed by House and Senate | Relating to aquifer storage and recovery projects that transect a portion of the Edwards Aquifer. | Authorizes aquifer storage and recovery that transects the Edwards Aquifer for storage in an underlying formation in Williamson Couty east of Interstate 35. |
SB 740 | Perry | HB 5385 by Wilson, Very Similar HB 2500 by Spiller, Identical | Passed by Senate, passed House Natural Resources and sent to House Calendars | Relating to certain proceedings by the Public Utility Commission of Texas regarding water or sewer service. | |
SB 863 | Perry | HB 2817 by Isaac, Identical | Passed by the Senate, scheduled for hearing in House Natural Resources | Relating to water withdrawn from the Edwards Aquifer. | Water withdrawn from the Edwards Aquifer may not be exported or used outside the boundaries of the Edwards Aquifer Authority. |
SB 971 | Sparks | HB 2302 by Gerdes, Identical | Passed by Senate, passed House Natural Resources and sent to House Calendars | Relating to the definition of a rural political subdivision for purposes of the Texas Water Assistance Program. | |
SB 1145 | Birdwell, Sparks | HB 2584 by Landgraf, Identical | Passed the Senate and the House; sent to the Governor | Relating to the authority of the Texas Commission on Environmental Quality to issue permits for the land application of water produced from certain mining and oil and gas extraction operations. | Proposes to move the authority to issue permits for the land application of treated produced water (oil and gas wastewater) from the RRC to TCEQ. Authorizes TCEQ to issue permits for the land application of produced water generated from hydrocarbon operations that has been treated for beneficial use. Requires that TCEQ adopt standards for land application that prevent water pollution. |
SB 1253 | Perry | HB 3875 by Bell, Cecil, Identical | Passed by Senate, passed House Intergovernmental Affairs and sent to House Calendars | Relating to the provision by a political subdivision of credits against impact fees to builders and developers for certain water conservation and reuse projects. | |
SB 1261 | Perry | HB 2815 by Gerdes, Identical | Passed by Senate, passed House Natural Resources and sent to House Calendars | Relating to the financing of water supply projects included in the state water plan; authorizing the issuance of obligations. | |
SB 1302 | Kolkhorst | HB 4485 by Bell, Cecil, Identical | Approved by Senate and voted out of House Natural Resources and left pending | Relating to eligibility to use a general permit to discharge waste into or adjacent to waters in this state. | |
SB 1413 | Nichols | HB 3322 by Harris, Identical | Passed by Senate, passed House Natural Resources and sent to House Calendars | Relating to the procedure for amending or revoking certificates of public convenience and necessity issued to certain water utilities. | |
SB 1566 | Bettencourt | N/A | Passed by Senate, passed House State Affairs | Relating to connection of utilities by certain entities in certain subdivisions formerly located in a municipality's extraterritorial jurisdiction. | |
SB 2660 | Perry | N/A | Passed by the Senate, scheduled for a hearing in House Natural Resources | Relating to the Hays Trinity Groundwater Conservation District; authorizing a fee. | Allows the Hays Trinity Groundwater Conservation District to assess production fees on certain wells, but exempts wells for irrigated agriculture and for domestic and livestock wells. |