A groundbreaking bipartisan bill designed to open and distribute vital funding to support water infrastructure has been approved by both the Texas House and Senate. If the governor approves Senate Bill 1967, the state will expand the definitions of a “flood project” to include multipurpose flood mitigation projects.
This expanded definition will allow more projects to be eligible for financial assistance from the Flood Infrastructure Fund (FIF). The current criteria make several critical projects ineligible for awards, specifically in drought-stricken areas in South Texas.
Previously, FIF grants were limited to projects that focus on water and wastewater services in economically distressed areas or prioritize water conservation, desalination, brush control, weather modification, regionalism or regional water supply enhancement services.
The amendment adjusts the law to ensure the grants can now be given to projects with flood control components. In addition, drainage districts cannot be disqualified from consideration by not having:
- Historical data about water use.
- Provide retail water to consumers.
- A certificate of convenience and necessity to provide retail water or wastewater services.
Texas has been handling water crises for decades, impacted by severe droughts and scarcity. The handling, management and processing of floodwaters—once considered unusable—may open new opportunities for water resources. The bill was amended to redefine “flood project” to include any work to build multipurpose flood mitigation and drainage infrastructure. These projects help control, divert, capture or impound floodwater, stormwater, agricultural runoff water or treated wastewater and convert them into a new water supply source.
If signed, the bill will take effect Sept. 1, 2025.
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