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AN ACT
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relating to the provision of financial assistance by the Texas |
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Water Development Board for certain projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 15.102, Water Code, is amended by |
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amending Subsection (b) and adding Subsection (e) to read as |
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follows: |
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(b) The loan fund may also be used by the board to provide: |
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(1) grants or loans for projects that include |
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supplying water and wastewater services in economically distressed |
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areas or nonborder colonias as provided by legislative |
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appropriations, this chapter, and board rules, including projects |
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involving retail distribution of those services; [and] |
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(2) grants for: |
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(A) projects for which federal grant funds are |
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placed in the loan fund; |
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(B) projects, on specific legislative |
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appropriation for those projects; or |
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(C) water conservation, desalination, brush |
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control, weather modification, regionalization, and projects |
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providing regional water quality enhancement services as defined by |
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board rule, including regional conveyance systems; and |
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(3) grants to drainage districts established under |
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Section 52, Article III, or Section 59, Article XVI, Texas |
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Constitution, for water supply projects, including projects that |
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contain a flood control component. |
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(e) The board may not disqualify a drainage district from |
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receiving a grant under Subsection (b)(3) because the district does |
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not: |
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(1) notwithstanding Section 16.012(m), have |
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historical data about water use; |
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(2) provide retail water service to consumers; or |
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(3) have a certificate of convenience and necessity |
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under which it provides retail water or wastewater service. |
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SECTION 2. Section 15.437(d), Water Code, is amended to |
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read as follows: |
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(d) In addition to the criteria provided by Subsection (c), |
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the board must also consider at least the following criteria in |
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prioritizing projects: |
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(1) the local contribution to be made to finance the |
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project, including the up-front capital to be provided by the |
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applicant; |
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(2) the financial capacity of the applicant to repay |
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the financial assistance provided; |
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(3) the ability of the board and the applicant to |
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timely leverage state financing with local and federal funding; |
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(4) whether there is an emergency need for the |
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project, taking into consideration whether: |
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(A) the applicant is included at the time of the |
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application on the list maintained by the commission of local |
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public water systems that have a water supply that will last less |
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than 180 days without additional rainfall; and |
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(B) federal funding for which the project is |
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eligible has been used or sought; |
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(5) if the applicant is applying for financial |
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assistance for the project under Subchapter Q, whether the |
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applicant is ready to proceed with the project at the time of the |
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application, including whether: |
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(A) all preliminary planning and design work |
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associated with the project has been completed; |
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(B) the applicant has acquired the water rights |
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associated with the project; |
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(C) the applicant has secured funding for the |
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project from other sources; and |
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(D) the applicant is able to begin implementing |
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or constructing the project; [and] |
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(6) whether the project is a water supply project that |
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contains a flood control component, regardless of whether the |
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applicant holds a certificate of convenience and necessity under |
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which it provides retail water or wastewater service; and |
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(7) [(6)] the demonstrated or projected effect of the |
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project on water conservation, including preventing the loss of |
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water, taking into consideration, if applicable, whether the |
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applicant has filed a water audit with the board under Section |
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16.0121 that demonstrates that the applicant is accountable with |
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regard to reducing water loss and increasing efficiency in the |
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distribution of water. |
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SECTION 3. Section 15.531(2), Water Code, is amended to |
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read as follows: |
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(2) "Flood project" means a drainage, flood |
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mitigation, or flood control project, including: |
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(A) planning and design activities; |
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(B) work to obtain regulatory approval to provide |
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nonstructural and structural flood mitigation and drainage; |
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(C) construction of structural flood mitigation |
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and drainage infrastructure; [and] |
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(D) construction and implementation of |
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nonstructural projects, including projects that use nature-based |
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features to protect, mitigate, or reduce flood risk; and |
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(E) construction of multi-purpose flood |
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mitigation and drainage infrastructure projects that control, |
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divert, capture, or impound floodwater, stormwater, agricultural |
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runoff water, or treated wastewater effluent and treat and |
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distribute the water for the purpose of creating an additional |
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source of water supply. |
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SECTION 4. This Act takes effect September 1, 2025. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1967 passed the Senate on |
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April 10, 2025, by the following vote: Yeas 28, Nays 2; and that |
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the Senate concurred in House amendment on May 7, 2025, by the |
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following vote: Yeas 29, Nays 2. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1967 passed the House, with |
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amendment, on May 2, 2025, by the following vote: Yeas 110, |
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Nays 14, one present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |