H.B. No. 16 seeks to enhance the oversight and financing of water infrastructure projects managed by the Texas Water Development Board. The bill expands the types of projects eligible for funding, including desalination, aquifer storage, and potable water reuse, while introducing new provisions for reservoir projects that meet specific permitting requirements. It also allows for the integration of these projects into existing water supply systems and expands the list of funds available for transfers, including the flood infrastructure fund and the agricultural water conservation fund. Additionally, the bill restructures the Texas Water Fund Advisory Committee, increasing its membership and clarifying its roles, while mandating semiannual reviews of fund operations.

The legislation introduces new sections to the Water Code, including a water access assessment to identify utilities at risk of failure and a public information tool to track progress on water supply projects. It establishes a water access assessment account to support the development of this assessment and outlines requirements for the board to report on fund allocation and infrastructure needs. The bill also mandates the executive administrator to provide annual reports on the board's efforts to expand water supply portfolios and assist utilities facing challenges. The bill is set to take effect on January 1, 2026, pending voter approval of a related constitutional amendment.

Statutes affected:
Introduced: Water Code 15.153, Water Code 15.502, Water Code 15.504, Water Code 15.703, Water Code 16.131, Water Code 15.431 (Water Code 15, Water Code 16)