Water is important for Texans… Proposition 6 could help with water issues

by Eric

In today’s article on the 14 proposed amendments to the Texas Constitution, we’ll look at Proposition 6, which is about the Texas Water Fund.

Ballot title: “The constitutional amendment creating the Texas Water Fund to assist in financing water projects in this state.”

Proposition Breakdown

The amendment would establish in the Texas Constitution the Texas Water Fund administered by the Texas Water Development Board. The board would be authorized to transfer funds between the state Water Fund and the Water Assistance Fund No. 480, the New Water Supply for Texas Fund, the Rural Water Assistance Fund No. 301, or the Statewide Water Public Awareness Account.

The Water Fund would consist of money allocated by the state legislature, gifts and grants, and investment earnings of the fund. The amendment would require no less than 25% of the initial allocation to the fund by the legislature to be transferred to the New Water Supply for Texas Fund. Money appropriated by the state legislature to the fund would be excluded from the state’s appropriation limit.

The state legislature also passed Senate Bill 28, the implementing legislation, during the 2023 regular legislative session.

Click here for Proposition 6 and Texas Water Fund Frequently Asked Questions

Background to Proposition 6

State Sen. Charles Perry (R-28), who is Terry County’s State Senator, sponsored the amendment, and according to Senator Perry, “Water infrastructure needs in Texas total in the billions in order to cover aging and failing pipes and build out new water supply. It is estimated that the state loses 136 billion of gallons of water a year to leaking water main pipes. Additionally, the state will be 7 million acre-feet short of supply in the next 50 years. S.J.R. 75 allows the Texas voters to decide if the state will create the Texas Water Fund to continue investment in water for years to come.” During the legislative process, the Texas Water Development Board, the Texas Water Conservation Association, the Texas Oil & Gas Association, the Texas Association of Builders, the Texas Association of Business, and the Texas Desalination Association endorsed the amendment.

During the 2023 legislative session, the Texas State Legislature passed Senate Bill 28 (2023)—the implementing legislation for the amendment. It passed in the Senate by a vote of 31-0 and in the House by a vote of 134-4 on May 28. It would take effect if the amendment is approved by voters.

SB 28 would create the Texas Water Fund in state law to be administered by the Texas Water Development Board. Money in the fund can only be transferred to the WaterAssistance Fund, the New Supply Fund, the Water Implementation Fund, the State Water Implementation Revenue Fund for Texas, the Financial Assistance for Water Pollution Control, Rural Water Assistance Fund, the State Water Account, the Financial Assistance Account, and the state Participation Account. Distributions to water infrastructure projects would prioritize projects in rural political subdivisions or municipalities with a population of less than 150,000.

SB 28 would also create the New Supply Fund in state law to be administered by the Texas Water Development Board. The fund would consist of money allocated to it by the legislature, interest, and investment returns from the fund, gifts, grants, donations, and any other fees or sources of revenue that the legislature authorizes. The fund would be used to finance projects to create 70 million acre-feet of new water supplies by December 31, 2023. The projects would include marine and brackish water desalination, water treatment, aquifer storage and recovery, and the development of infrastructure to transport water.

The law would require the board to develop rules to administer financial assistance from the fund. The law also would require the board to consider the following criteria when administering financial assistance:

  1. the intended end users of the water supply, the needs of the area to be served by the project, the expected benefit the project to the area, the relationship of the project to the water supply needs of this state overall, and the relationship of the project to the state water plan;
  2. the amount of water expected to be produced by the project; and
  3. the availability of money or revenue to the political subdivision from all sources for the ultimate repayment of the cost of the project, including all interest.

The Texas Water Development Board (WDB) was created in 1957 via Proposition 2. WDP is a three-member board, with the governor appointing each member. The WDP oversees state programs related to the conservation and development of water resources in Texas, including the Economically Distressed Areas Program (EDAP).

The full (31) Upper Chamber voted yes, the lower chamber voted 142 yes, 0 no, 8 no votes

A “YES” vote supports amending the state constitution to create the Texas Water Fund administered by the Texas Water Development Board to finance water projects in the state.

A “NO” vote opposes amending the state constitution to create the Texas Water Fund administered by the Texas Water Development Board to finance water projects in the state.

Disclaimer: TownTalk does not support or endorse a “YES” or a “NO” to these propositions. The information provided in this article is for informational purposes only.

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