Sec. 15.153.  USE OF FUND.  (a)  The board by rule shall undertake to finance projects through the fund that will lead to seven million acre-feet of new water supplies by December 31, 2033.
(b)  The fund may be used to:
(1)  provide financial assistance to political subdivisions to develop water supply projects that create new water sources for the state, including:
(A)  desalination projects, including marine and brackish water desalination;
(B)  produced water treatment projects, other than projects that are only for purposes of oil and gas exploration;
(C)  aquifer storage and recovery projects; and
(D)  the development of infrastructure to transport water that is made available by a project described by this subdivision;
(2)  make transfers from the fund:
(A)  to the state water implementation fund for Texas established under Subchapter G or the Texas Water Development Fund II established under Subchapter L, Chapter 17; and
(B)  for a purpose described by Subdivision (1); and
(3)  make transfers from the fund to the water bank account established under Section 15.707.
(c)  The fund may be used for any purpose described by Subsection (b) under criteria developed by the board.  A loan made from the fund under this subchapter may provide for repayment terms of up to 30 years, in the board's discretion.
(d)  Financial assistance for a purpose described by Subsection (b)(1):
(1)  may be provided for a qualifying project under Chapter 2267, Government Code, only if the project complies with that chapter; and
(2)  may not be provided for expenses associated with the maintenance or operation of a water supply project described by Subsection (b)(1).
Added by Acts 2023, 88th Leg., R.S., Ch. 457 (S.B. 28), Sec. 2, eff. September 1, 2023.