El Paso County authorizes application for up to $21 million to repair East Montana water system

El Paso County commissioners on July 6 authorized staff to finalize and submit an application to the Texas Water Development Board under House Bill 500 seeking grant funding to rehabilitate the East Montana water system.

Planning and development manager Munzer Al Saraj told the court the program allows a single application per eligible entity and that, based on the system’s population category, the county would be eligible to request up to $21 million. He said the project would replace aging distribution infrastructure, add storage capacity, improve fire protection and reduce water loss by improving metering and replacing failing hydrants.

"This is a unique opportunity for El Paso County," Munzer said, noting the program is a 100% grant with no loan requirement and that selecting the county’s highest-priority project was critical. He added the system’s recent measured water loss is “about 11–13 percent,” and staff is proposing additional master meters and hydrant replacements to better measure and abate loss.

Commissioners discussed competitiveness, timing and the program deadline; Munzer said staff would return any required grant agreements to the court for approval if the county is selected. Commissioner Butler moved to authorize submission and to permit the county judge to sign required documents; Commissioner Coronado seconded the motion and the court approved it.

Why it matters: If awarded, the grant would allow the county to rehabilitate critical water infrastructure without imposing the direct borrowing cost on local residents, potentially improving reliability and fire protection for thousands of customers in the county-owned system.

Next steps: Staff was authorized to submit the application before the July 30, 2026 deadline. Any grant agreement would return to the court for approval if the county is selected.