Ah, sine die, the biennial signpost that the battle under the pink granite dome in downtown Austin has ended (unless a special session is called by the Governor). Below is a list of some of the key water-related bills that were passed by the Legislature. Even though the final mad scramble to get bills approved is over, we still don’t fully know the final outcome of the 140-day session. That is because Governor Abbott has until June 22nd to sign bills, veto bills, or allow them to become law by ignoring them. However, one thing is clear. The 89th session has been the most significant legislative session for Texas water since 1997 when the regional water planning process was established.
How many water-related bills are there on the legislature’s plate?
The Legislature is only required to pass one bill each session, the state budget. The $338 billion state budget for 2026 – 2027 is currently on the Comptroller’s desk before it ends its journey on the Governor’s desk. The budget contains an additional $2.5 billion for water, although about $900 million of that total is tied to commitments from the 88th session. However, the key water bill and joint resolution this session were Senate Bill 7 and House Joint Resolution 7. Together, they 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 will be administered by the Texas Water Development Board. House Joint Resolution 7 is the constitutional amendment that approves devoting $1billion annually from state sales and use taxes to the Texas Water Fund for twenty years. It is now up to the voters to make this investment a reality by approving the necessary changes to the constitution required by these bills on November 4th.
As I close out my final Lege+Water of 2025, I decided to ask four water lege-watchers how they would characterize the 89th session:
Perry Fowler – “The outcomes of the 89th Regular Session will be remembered as one of the most significant milestones in Texas water policy history. From an infrastructure standpoint in particular, the state now stands on the brink of a transformational era.”
Carlos Rubinstein – “By any measure, from advancing projects, funding, groundwater regulatory transparency to modeling and investment in better science, the 89th hit on all cylinders. Now it is up to project sponsors and water sustainability advocates to work to achieve water security for all uses.”
Jeremy Mazur – “The 89th Legislature delivered the most historic, consequential water infrastructure development legislation of this century. Future generations will benefit from the good decisions made this year.”
and
Vanessa Puig-Williams – “As Texas continues to navigate its water future, the 89th Legislature’s achievements signal a renewed commitment to careful, science-based stewardship of one of the state’s most vital resources.”
One final note, a vastly more comprehensive analysis of water and the 89th Texas Legislature will be coming to you in August via the Texas Water Journal’s biennial feature, “Summaries of Water-related Legislative Action.” So, for now it is happy trails to you until we meet again in January 2027!
| Bill | Sponsor | Status | Description | Interpretation |
|---|---|---|---|---|
| HJR7 | Harris | Sent to the Secretary of State. | Proposing a constitutional amendment to dedicate a portion of the revenue derived from state sales and use taxes to the Texas water fund and to provide for the allocation and use of that revenue. | Dedicates $1 billion per year to the Texas Water Fund for the next 20 years. The funds are to be divided 50/50 between developing new water supplies and water infrastructure. |
| HB 29 | Gerdes | Signed by the Governor, and effective immediately. | 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 | Dead. | 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 | Dead. | Relating to limitations on the issuance of bonds by the Texas Water Development Board for the development of certain projects in economically distressed areas. | 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 | On the Governor’s desk. | 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 | Dead. | Relating to creation of the groundwater science, research, and innovation fund to be administered by the Texas Water Development Board. | 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 | On the Governor’s desk. | 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 | Signed by the Governor, effective September 1st. | 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 | On the Governor’s desk. | 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 | Dead. | 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 | On the Governor’s desk. | Relating to test years used for ratemaking purposes by certain water and sewer utilities. | |
| HB 2765 | Guillen | On the Governor’s desk. | Relating to the Rural Economic Development and Investment Program and the Texas economic development fund. | |
| SB 1 | Huffman | Sent to the Comptroller. | General Appropriations bill (for 2026-2027 biennium). | |
| SB 7 | Perry et al | On the Governor’s desk. | 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. |
| SB 480 | Perry | Signed by the Governor, and effective immediately. | 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 612 | Hinojosa | On the Governor’s desk. | 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 | Signed by the Governor, and effective immediately. | 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 | On the Governor’s desk. | Relating to certain proceedings by the Public Utility Commission of Texas regarding water or sewer service. | |
| SB 863 | Perry | On the Governor’s desk. | Relating to water withdrawn from the Edwards Aquifer and to the use of certain reclaimed water in an aquifer storage and recovery project. | Water withdrawn from the Edwards Aquifer may not be exported or used outside the boundaries of the Edwards Aquifer Authority. |
| SB 971 | Sparks | On the Governor’s desk. | Relating to the definition of a rural political subdivision for purposes of the Texas Water Assistance Program. | |
| SB 1145 | Birdwell, Sparks | Signed by the Governor, effective September 1st. | 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. | Moves 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 | On the Governor’s desk. | Relating to impact and production fees for certain water projects and to the regulation of certain wells; authorizing a fee. | |
| SB 1261 | Perry | On the Governor’s desk. | Relating to the financing of water supply projects included in the state water plan; authorizing the issuance of obligations. | |
| SB 1302 | Kolkhorst | On the Governor’s desk. | Relating to eligibility to use a general permit to discharge waste into or adjacent to waters in this state. | |
| SB 1413 | Nichols | Dead. | Relating to the procedure for amending or revoking certificates of public convenience and necessity issued to certain water utilities. | |
| SB 1566 | Bettencourt | On the Governor’s desk. | Relating to connection of utilities by certain entities in certain subdivisions formerly located in a municipality's extraterritorial jurisdiction. | |
| SB 2660 | Perry | Dead | 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. |