H1087 Summary

• Establishes the Viable Utility Reserve within the Water Infrastructure Fund with $9 million in initial funding to provide grants for water and wastewater system improvements, including asset assessments, rate studies, merger feasibility studies, emergency operating deficit assistance, and infrastructure projects.

• Requires Local Government Commission approval for all Viable Utility Reserve grants; emergency grant applications for operating deficits are automatically approved upon submission.

• Creates statutory merger and dissolution procedures for water and wastewater districts under Chapter 162A, with Environmental Management Commission oversight and public hearing requirements.

• Directs assessment and review of local government water and wastewater systems to identify "distressed units" that must conduct asset assessments, participate in training programs, and develop action plans for financial stability and infrastructure management.

• Appropriates $4.8 million to Southern Regional Area Health Education Center, reallocates $2 million in unused PFAS Recovery Fund money, appropriates $30.7 million for Volkswagen settlement environmental mitigation projects, and allocates $30.8 million for water resources development projects including coastal shoreline protection and flood damage reduction initiatives.