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 over the past ten years at least once every five years. The commission must prepare a report identifying which of these may be subject to cancellation and provide specific details about each identified permit, including the volume of water associated and whether it may be suitable for dedication to the Texas Water Trust.

Additionally, the bill stipulates that the initial report must be submitted by March 31, 2027, and this requirement will expire on September 1, 2027. The act will take effect 91 days after the conclusion of the legislative session. This legislation aims to enhance the management of water resources in Texas by ensuring that unused water rights are appropriately evaluated and addressed.

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