H.B. No. 2815 introduces Chapter 1373 to the Government Code, establishing a framework for political subdivisions to issue bonds for financing water supply projects included in the state water plan. It defines "eligible project" as those with cumulative costs of at least $750 million and outlines the authority for issuers to finance or refinance these projects, refund existing debts, and cover issuance costs. The bill specifies the security for these obligations, including the potential use of ad valorem taxes, and requires voter approval for obligations secured by such taxes.

Additionally, the bill amends Section 17.957(c) of the Water Code to clarify the use of funds in the state participation account, allowing the Texas Water Development Board to allocate funds for "eligible projects" as defined in the new chapter, while removing the previous language that permitted the board to determine fund usage for administration. The maximum loan repayment terms for eligible projects are extended to 40 years, and the bill ensures that financing terms do not exceed the maturity of the obligations pledged. The legislation is set to take effect on September 1, 2025, aiming to enhance financing mechanisms for significant water supply initiatives in Texas.

Statutes affected:
Introduced: Water Code 15.432, Water Code 15.435, Water Code 15.474, Water Code 17.852, Water Code 17.957 (Water Code 15, Water Code 17)