H.B. No. 203 mandates the Texas Commission on Environmental Quality (TCEQ) to conduct a study and report on water rights that may be subject to cancellation due to nonuse. The bill amends Section 11.173 of the Water Code by adding new subsections (c) and (c-1). Under these subsections, the TCEQ is required to analyze permits, certified filings, and certificates of adjudication that have not been utilized beneficially in the past ten years at least once every five years. The commission must prepare a report identifying which of these water rights may be subject to cancellation and provide specific details about each, including the volume of water associated and whether any cancellation actions have been initiated.

Additionally, the TCEQ must submit the initial report by March 31, 2027, with the provision that this requirement will expire on September 1, 2027. The bill aims to enhance the management of water resources in Texas by ensuring that unused water rights are appropriately monitored and potentially reallocated to support the Texas Water Trust. The act will take effect 91 days after the conclusion of the legislative session.

Statutes affected:
Introduced: Water Code 11.173 (Water Code 11)