Guadalupe Blanco River Authority supports Senate Bill 1261 for affordable water projects

Senate Bill 1261 emerged as a pivotal topic during the Texas Senate Committee on Water, Agriculture, and Rural Affairs meeting on April 7, 2025. The bill aims to introduce new financing tools for regional water supply projects, a move that could significantly impact communities across the state, particularly in rapidly growing areas.

Darryl Nichols, CEO of the Guadalupe Blanco River Authority, testified in support of the bill, highlighting its potential to facilitate large-scale water projects without increasing state debt. Nichols emphasized that the bill would allow for the development of essential water resources in a ten-county area, which includes some of the fastest-growing regions between Austin and San Antonio. He noted that the proposed WaterSecure project, which aims to develop 100,000 acre-feet of water, is currently projected to cost $6 billion and take nine years to complete.

The bill proposes extending financing terms to 50 years for open market projects and 30 to 40 years for swift projects, which would help shift costs from existing ratepayers to future customers as populations grow. Nichols stated, “This will decrease payments by ten to fifteen percent,” making it more feasible for communities to invest in necessary infrastructure.

Sarah Kerpel from the Texas Water Association also voiced support for the bill, underscoring the urgency of addressing the state's water supply challenges. She pointed out that the costs of water projects have surged by 20 to 60% in recent years, making affordable financing options crucial for meeting future demands.

The committee also heard from Sheila Hemphill, a rancher from McCullough County, who shared her struggles with water access during droughts. Hemphill's testimony highlighted the dire need for improved water infrastructure, stating, “Water is not optional. You don’t have water, you don’t have livestock.” Her comments reinforced the bill's significance for rural communities reliant on sustainable water sources.

As discussions continue, the implications of Senate Bill 1261 could reshape how Texas manages its water resources, ensuring that growing populations have access to the water they need for both economic development and daily living. The committee's next steps will be crucial in determining the bill's fate and its potential impact on Texas's water future.