January 31, 2024 / Yvonne N. Nguyen

Construction / 3 min read

Water policies prevailed in the 88th Regular Texas Legislative Session, with state leaders prioritizing funding for water supply projects and infrastructure. Senate Bill 28 passed, which created the Texas Water Fund. In addition, Senate Joint Resolution 75, authorizing a one-time appropriation of $1 billion into the Texas Water Fund, was ultimately approved through Proposition 6 on November 7, 2023.

According to the State’s Water Plan, the population of Texas is projected to increase 73 percent between 2020 and 2070, from 29.7 million to 51.5 million. Between now and 2070, the state will need to invest over $150 billion in water supply projects to fix deteriorating water systems and develop at least 7 million acre-feet of new water supplies to keep up with the rapid projection. However, the costs associated with these projects often make it too difficult for communities to implement, causing a lack of action and little to no integration of any sustainable water practices for the promotion of the State’s Water Plan.

In a bipartisan effort to respond to this issue and to avoid future crisis, under the administration of the Texas Water Development Board (TWDB), the Texas Water Fund will now support economic opportunities for communities to implement water supply projects by providing funding to the following TWDB’s water program funds/accounts:

  1. SB 28’s newly created New Water Supply Fund for Texas – for the development of water supply projects creating new water sources that would lead to 7-million acre-feet of new water supplies by December 31, 2033;
  2. The State Water Implementation Fund for Texas – for optimizing water supplies, including conservation and reuse, desalinating groundwater and seawater, building new pipelines, developing reservoirs and wells fields and purchasing water rights;
  3. The Clean Water or Drinking Water State Revolving Funds – for development of wastewater, reuse and stormwater infrastructure;
  4. The Rural Water Assistance Fund – for small, rural water utilities and infrastructure, purchasing water well fields and purchasing or leasing water rights;
  5. The Texas Water Development Fund – for water supply, wastewater, and flood control projects including treatment plants, reservoirs and tanks, nonpoint source pollution abatement, acquisition of floodplain land, and development of flood management plans; and
  6. SB 28’s newly created Statewide Water Public Awareness Account – for the TWDB’s development and implementation of a statewide water public awareness program educating residents about water in Texas.

Funds transferred to these funds/accounts may only be used for the following kinds of water projects:

  1. water infrastructure projects, prioritized by risk or need, for rural political subdivisions and municipalities with a population of less than 150,000;
  2. projects for which all required state or federal permitting has been substantially completed;
  3. the statewide water public awareness program;
  4. water conservation strategies; and
  5. water loss mitigation projects.

Though statutory provisions governing the Texas Water Fund took effect on January 1, 2024, funds from the Texas Water Fund will become available upon TWDB’s adoption of rules and procedures for administering and distributing such funds in the coming year. Texas undoubtedly took a major step forward to address water concerns which need help from both the public and private sectors at all levels and in all locations.

In anticipation of TWDB’s deployment of the Texas Water Fund’s protocols, private companies should evaluate opportunities to participate in eligible water projects covered under the new $1 billion effort, with additional funding that could be allocated for water projects in the future. The TWDB will be seeking stakeholder input on implementing the Texas Water Fund and explore other options to provide funding through TWDB’s eligible water programs.

An implementation timeline and information on opportunities for stakeholder engagement will be made available in the early months of 2024. Be the first to receive the latest information on how to participate by subscribing to the TWDB’s “General Information” and “Financial Assistance” email lists here. Link - https://visitor.r20.constantcontact.com/manage/optin?v=0019_l7KhBeOJe6KXNMbUDvn_o8Hyo3cwgWqGLa5FeuoL4wcMCd00lqCIMx0WPmZoo0kHN-WyH71Bjv4NLeYHqDCBEaouHBYREFamEHCCIk4h4y1YvnmI0-2k9s5hXT3Pm1E1-j8D8QLLa3DVDhh7681t1FzvucREWw

Desktop Tablet Mobile