With only 33 days left in the 89th regular session, it still feels like anything could happen.
The journey so far
Well, we saw this “water session” coming a mile away: by the time the Texas Water Fund was created two years ago, Senate Water Agriculture & Rural Affairs Committee Chairman Charles Perry was already talking about grand plans beyond its inaugural $1 billion appropriation. He wanted the 89th Legislature to make a $5 billion one-time appropriation and dedicate $1 billion in tax revenue every year going forward. These are huge numbers, and they would constitute a historic win for Texas water.
Key Differences in Proposed Budgets: Big Impacts on Water
As it stands today, the House and Senate have yet to reach agreement on the final contents of the state’s budget. The Senate version includes $2.5 billion for water supply and infrastructure, while the House placed the same amount in its separate supplemental appropriations bill. We have been pleased to see preliminary decisions filed in the House that reflect favorable consideration of issues aligned with Texas Living Waters’ priorities, which we hope to see retained as conference committee members from each chamber negotiate a version both can accept.
It appears the dedication of $1 billion in tax revenue each year is also on track for approval but here also, bills filed in the House and Senate differ in key aspects that must be resolved before the final version can make its way to Texas voters this November. Chairman Perry’s SJR 66 would earmark 80% of these funds to develop “new” water supplies like desalinated seawater and produced water from oil & gas activity. On the other hand, House Natural Resources Committee Chairman Cody Harris carried HJR 7 which was passed by the full House this week and would give the Texas Water Development Board (TWDB) full discretion to administer the new funding through its existing programs. We think this flexibility is the best approach.

Texas Living Waters partner organizations held a briefing with legislative staff in January on our policy priorities.
Where do we go from here?
Texas Living Waters partner organizations have been a regular fixture at the Capitol working to ensure funding for our priorities is not lost in the budget negotiation process. We are fortunate to have a legislature that recognizes the importance of water and the need to invest in infrastructure for Texans of today and tomorrow, even while other priorities are constantly vying for their attention. We are working with legislative offices to ensure our recommendations inform the budget development process and we are serving as subject matter experts as they seek to understand the impact of various legislation.
How Funds Are Allocated Will Determine Water Supply Strategies
Although SJR 66 has not received a hearing in the Senate, HJR 7 is headed that way now that it’s cleared the House.. In the Senate, Chairman Perry will have the opportunity to make modifications by introducing language from SJR 66 although the final version must be acceptable to Chairman Harris as the bill’s author. The question of whether to direct a large portion of the funding to the New Water Supply for Texas Fund for a long period of time is an important issue for Texas Living Waters. Texas needs significant, ongoing investment to fix our aging infrastructure and serve our rapidly growing population while developing long-term supply strategies. TWDB administers programs created to help with issues like water loss, deteriorating infrastructure, and even development of long-term future water supply, but they have remained oversubscribed year after year as funding allocations are far from sufficient to meet the demand shown in the applications the agency receives. Throughout the session we have advocated to preserve TWDB’s flexibility to administer the infrastructure funding in a manner that balances our state’s needs, and we will continue to highlight this message as HJR 7 nears its final version.

Texas Living Waters partner organizations include National Wildlife Federation, Sierra Club Lone Star Chapter, Hill Country Alliance, Galveston Bay Foundation, The Nature Conservancy, and Bayou City Waterkeeper.
Regardless of how these funds are allocated, they are likely to result in increased investment toward new supply technologies such as seawater desalination and expanded utilization of produced water. Proper guardrails will need to be in place to ensure these strategies are deployed responsibly. Texas Living Waters has tracked and engaged with member offices on bills that would require the Texas Commission on Environmental Quality to develop salinity standards for bays and estuaries (HB 3728, Morales Shaw) and conduct a study on the factors related to the diversion and discharge of water for desalination (HB 5493, Romero).
Next Steps: Stay Involved and Get Ready to Vote in November!
The Legislature appears ready to pass significant funding in support of Texas’ water supply and water infrastructure needs, we just need to work out the details Even if HJR 7 passes the Legislature, the funding it authorizes is not a done deal: voters will still need to approve the $1 billion annual dedication this November. It’s never a bad time to talk with your friends and family about the importance of funding to protect Texas water and spreading the word will be especially important this year!





