S.B. No. 7 aims to enhance the oversight and financing of water infrastructure projects managed by the Texas Water Development Board (TWDB) by introducing a new Subchapter H to Chapter 6 of the Water Code, titled "Water Supply Conveyance Coordination." This new section outlines the board's responsibilities in facilitating joint planning among stakeholders, maximizing existing easements, minimizing eminent domain use, and developing standards for water transport systems. The bill also expands the types of projects eligible for financial assistance from the TWDB, including specific reservoir projects and water transportation infrastructure, while establishing a Texas water fund administrative account to support these initiatives, particularly in rural areas.

Additionally, the bill amends various sections of the Water Code to improve the operations of the water bank, allowing the board to negotiate water rights sale prices and maintain a registry of deposits. It also introduces new requirements for depositing water rights and expands funding eligibility from the state participation account. The Texas Water Fund Advisory Committee's structure is revised, increasing its membership and responsibilities, while several outdated provisions are repealed. A new requirement mandates a biennial report on the board's progress in addressing water supply deficits. The bill is set to take effect on September 1, 2025, with certain provisions contingent upon voter approval of a related constitutional amendment.

Statutes affected:
Introduced: Water Code 15.153, Water Code 15.504, Water Code 15.502, Water Code 15.703, Water Code 16.131, Water Code 15.431 (Water Code 15, Water Code 16)
Senate Committee Report: Water Code 11.036, Water Code 15.153, Water Code 15.502, Water Code 15.504, Water Code 15.505, Water Code 15.703, Water Code 16.131, Water Code 15.431 (Water Code 15, Water Code 16, Water Code 11)
Engrossed: Water Code 11.036, Water Code 15.153, Water Code 15.502, Water Code 15.504, Water Code 15.505, Water Code 15.703, Water Code 16.131, Water Code 15.431 (Water Code 15, Water Code 16, Water Code 11)