Staff summarizes 2025 legislative outcomes: ASR authorization, major water-infrastructure funding and special-session priorities

Deputy General Manager Matt Phillips gave a brief legislative update on July 28, summarizing the 2025 regular-session outcomes and the items on the governor—s special-session call that may affect the authority.

Phillips said Senate Bill 616, signed by the governor, authorizes aquifer storage and recovery (ASR) at the East Williamson County facility near Lake Granger; next steps include a TCEQ rule amendment by March 1, 2026, and a TCEQ permit before implementation. He said the authority will incorporate ASR into East Williamson County project planning when the project schedule makes sense.

On water infrastructure funding, Phillips said the legislature approved roughly $2.5 billion in one-time water infrastructure funding in a supplemental appropriation and created a dedicated sales-and-use-tax stream that will direct $1 billion annually beginning in 2027 to water-related funds through 2047, subject to a future voter referendum. The legislature split dedicated funding 50/50 between a new water supply fund and the Texas Water Fund; the new water supply fund can now include reservoirs and reuse projects but requires applicants to own property and hold state water-right permits and federal 404 permits before seeking funds.

Phillips said the special session includes 18 items, notably flood-related work added after recent Hill Country flooding; the authority will be involved in flood-committee work and has begun outreach and testimony. He also highlighted a pending ban-on-taxpayer-funded-lobbying bill that could affect entities like the authority depending on final House actions. Phillips said staff will monitor special-session bills and engage on flood and funding issues as they develop.