Water bills face deadline threat as Texas lawmakers negotiate spending priorities

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Texas is running out of water. And Texas lawmakers are running out of time to solve the problem.

With just days left until the legislative session ends, two key pieces of legislation await key votes in the state House and Senate.

The two pieces of legislation, Senate Bill 7 and House Joint Resolution 7, are supposed to work together to spend billions of dollars to save the state’s water supply. Despite Gov. Greg Abbott declaring water an emergency item at the start of the legislative session, which means the bills can be fast-tracked, lawmakers, water agencies, and advocacy groups have reached an impasse on how to spend the money.

“This is a priority for leadership. It is going to have to be negotiated,” said Perry Fowler, executive director of the Texas Water Infrastructure Network. “This is big, important policy. It is not easy stuff. You end up getting some bumps and bruises.”

A Texas 2036 report estimated that the state needs nearly $154 billion by 2050 for water infrastructure, including $59 billion for water supply projects, $74 billion for leaky pipes and infrastructure maintenance, and $21 billion to fix broken wastewater systems.

If the bills are approved — and voters agree in the fall —the state will spend about $10 billion over the next decade.

What the bills do

The Senate bill would create the administrative framework for how water projects would be funded under the Texas Water Development Board. It also establishes two new oversight bodies: the Texas Water Fund Advisory Committee and the Office of Water Supply Conveyance Coordination.

Recent changes to the bill have expanded its scope to include programs like the Flood Infrastructure Fund, the Economically Distressed Areas Program, and the Agricultural Water Conservation Fund.

The Senate bill, sponsored by state Sen. Charles Perry, R-Lubbock, passed the upper chamber and is now in the House. A floor debate by the full chamber could happen as soon as May 23. The final deadline for the House to give preliminary approval to Senate bills is May 27.

The House resolution, sponsored by state Rep. Cody Harris, R-Palestine, is where the real tension lies. The resolution proposes a constitutional amendment that would dedicate up to $1 billion per year to the Texas Water Fund for the next decade — money that would allow local governments and water providers to build supply and fix aging systems.

The resolution passed the House and was referred to a Senate committee. Perry proposed changes to the resolution that spell out how the money is to be spent.

Water policy experts, lobbyists, and environmental groups have raised concerns about the rigid funding formula. Sarah Kirkle, policy director at the Texas Water Conservation Association, said the allocation formula remains the main hurdle between the two chambers.

“The biggest conversations between the House and Senate will be focused on how much of the dedicated funding goes to new supply projects versus a wider range of project types, that includes other water supply projects, wastewater projects, potentially flood projects, and all of our infrastructure repair and replacement projects,” she said.

Originally, the House proposal gave the water board broad discretion over how to spend the money. The options can broadly be divided into two categories. New water supply: desalinating brackish groundwater and marine water to make it drinkable, “shovel-ready” reservoirs and constructing pipelines to transport water across the state. The other, leaky pipes: repairing the state’s old and deteriorating water infrastructure.

The Senate amendment now mandates that 80% of the money goes to new water supply projects, such as desalination, while only 20% would be reserved for repairs, conservation, and flood mitigation. This split has become the flashpoint of the legislative debate.

At the hearing, Perry strongly advocated for what he calls a “long-term water supply” plan that prioritizes new water supply projects over infrastructure repairs.

He defended the split, saying that fixing every leak in that state would not be enough water recovered to solve the state’s future supply challenges. Perry said that if the split doesn’t favor water supply, big cities will take all the funding and “the state would have missed an opportunity with the limited funds available to actually address a supply need that is critical to continue the Texas Miracle for decades to come.”

He argued that with this plan he is protecting all interests in the state’s 254 counties and guaranteeing rural areas will benefit and not get left behind.

“That's why I'm heavily weighted on supply,” he said.

Many argue that the prescriptive split undermines local flexibility and shifts too much attention toward new water supply projects, desalination and pipelines, at the expense of urgently needed repairs to infrastructure or flooding mitigation.

The debate 

Fowler said the state’s top three leaders – Abbott, Lt. Gov. Dan Patrick and House Speaker Dustin Burrows — are aligned with having no split and letting the water board determine what is best. He added that there will need to be a “reasonable compromise with Sen. Perry to keep [legislation] moving forward.”

Andrew Mahaleris, Abbott’s spokesman, didn’t say if the governor had a preference on how the money is spent. However, Mahaleris said the governor wants to make “the largest investment in water in Texas history” so the state can do both.

The state “must also invest in new water supply strategies that develop resources like desalination facilities and transportation infrastructure and ensure rural Texas communities have the resources to maintain existing water systems,” Mahaleris said.

He assured that the governor will continue to work with Perry and Harris on the legislation.

Burrows also did not comment on the split.

“By providing the resources and funding for critical water supply infrastructure projects, the state is taking a proactive approach to keeping up with population growth and ensuring Texas communities are able to have their water needs met,” he said in a statement.

“I look forward to a thoughtful debate when Senate Bill 7 comes to the House floor later this week,” he said.

Patrick’s office did not return a request for comment.

Jennifer Walker, director for the Texas Coast and Water program with the National Wildlife Federation, said she thinks the split will change.

“I don’t think it's gonna be 80/20… I would prefer no split,” Walker said. “I don't think that's realistic. But we have to reject this false narrative that only projects labeled as ‘new supply’ can secure our water future.”

Walker and other water experts said negotiations over the split are ongoing.

“It’s gotten real quiet,” she said. “It does make me nervous. Time is running out.”

Despite the debate, most of the organizations supporting the bills believe the proposals will ultimately pass.

“Water has been a key priority for much of state leadership this session. I have a lot of faith that they’re going to be able to advance both pieces of legislation,” Kirkle said.

The Senate committee must advance the House bill before May 24.

“I can’t imagine anyone being okay with this falling apart,” Fowler said. “It needs to get resolved.”

If both chambers pass their respective versions, the bills will move to a conference committee, where the most contentious decisions will be made out of public view, behind the scenes.

There lawmakers will need to reconcile their differences. If they do, the decision will ultimately fall to Texas voters, who will decide in November whether to approve the new constitutional amendment.

Disclosure: Texas 2036 and Conservation Fund have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.

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