TX SB1629

Expands eligible water supply projects for financial assistance to include reservoir projects that have obtained both a federal Section 404 permit for dredged/fill material discharge and a state permit for water storage, taking, or diversion

Authorizes the New Water Supply for Texas Fund to make transfers to the Texas Water Development Fund II state participation account for new water source projects

Expands Texas Water Bank authority to purchase, hold, and transfer water or water rights originating outside Texas for the purpose of providing water for state use or benefit

Broadens infrastructure development eligibility to include not only water transportation but also integration of new water sources into existing water supply systems

Adds projects that create new water sources (desalination, produced water treatment, aquifer storage, reservoirs) to the list of eligible uses for the state participation account

Repeals Water Code Sections 16.131(c) and 16.146(h), with an effective date of September 1, 2025