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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB1633

Regular Session

Relating to the criteria considered by groundwater conservation districts before granting or denying a permit or permit amendment.

Government Affairs & Regulatory Compliance Analysis

HB1633: Government Affairs Overview

HB1633 fundamentally alters the risk profile for groundwater permitting by mandating that Groundwater Conservation Districts (GCDs) consider impacts on registered exempt wells (domestic/livestock) before granting permits. This legislation creates immediate statutory standing for small landowners to contest industrial, agricultural, and utility permit applications, effectively lowering the threshold for permit denial.

Rep. Stan Gerdes路House Bill路Regular Session

Moderate
Low Cost
Effective:2025-06-20
Business Impact

Who HB1633 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-06-20). Consider how these changes may affect your operations.

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Water

Affected business types:

  • Water utilities
  • Wastewater treatment facilities
  • Municipal water districts
  • Agricultural water users
View all water legislation

Key Operational Considerations

  • 1Land Acquisition Agreements: Update due diligence contingencies. The value of water rights is now dependent on the density of surrounding registered exempt wells.
  • 2Technical Staff: Permitting teams must be trained to query GCD databases for "registered" status of exempt wells, rather than relying solely on state-level well logs.
  • 3Legal Counsel: In-house counsel must prepare for increased contested case hearings driven by residential neighbors, as this law provides them a specific statutory hook for protests.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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HB1633
Relating to the criteria considered by groundwater conservation districts before granting or denying a permit or permit amendment.
Moderate Urgency
Unanimous Passage
House Vote146 - 0
YEA
100% in favor146 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
Groundwater Conservation Districts
Primary Author: Rep. Stan Gerdes
89th Texas Legislature
jdkey.com
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Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025 (Immediate effect due to supermajority passage).
  • Compliance Deadline: Immediate. This statute applies to all permit applications currently pending board vote, regardless of when they were filed.
  • Agency Rulemaking: While the statute is self-executing, individual GCDs will likely initiate rulemaking in Q3/Q4 2025 to define "unreasonable affect." Expect a regulatory gray zone where decisions are made case-by-case until local rules are formalized.

Immediate Action Plan

  • Audit Pending Applications: Immediately review any application submitted but not yet voted on. Supplement the filing with data proving no unreasonable impact on exempt wells to prevent remand.
  • Update Impact Models: Instruct technical consultants to overlay the location of all registered exempt wells onto your drawdown models immediately.
  • Pre-emptive Outreach: Identify registered exempt wells within your projected cone of depression and assess the cost of mitigating their water loss *before* filing for a permit.
  • Monitor Registration Drives: Watch for GCD campaigns encouraging homeowners to register wells; a spike in registrations directly shrinks your available water rights.

Operational Changes Required

Contracts

  • Land Acquisition Agreements: Update due diligence contingencies. The value of water rights is now dependent on the density of surrounding registered exempt wells.
  • Consultant MSAs: Amend Master Service Agreements with hydrogeology and engineering firms. Scopes of work must now explicitly require the identification and impact modeling of *registered exempt wells*, not just permitted wells.

Hiring/Training

  • Technical Staff: Permitting teams must be trained to query GCD databases for "registered" status of exempt wells, rather than relying solely on state-level well logs.
  • Legal Counsel: In-house counsel must prepare for increased contested case hearings driven by residential neighbors, as this law provides them a specific statutory hook for protests.

Reporting & Record-Keeping

  • Hydrology Reports: All technical reports submitted with permit applications must include a specific section addressing Texas Water Code Section 36.113(d)(2)(C), documenting that the proposed usage does not unreasonably affect registered exempt wells.
  • GIS Data: Maintain an internal, frequently updated GIS layer of registered exempt wells within the cone of depression of your intake points.

Fees & Costs

  • Mitigation Reserves: Budget for "neighbor mitigation" costs (e.g., lowering pumps, drilling deeper wells for neighbors) as a pre-emptive settlement strategy to avoid permit denial.
  • Legal Costs: Anticipate higher legal fees for permit defense due to the broadened scope of potential protestants.

Strategic Ambiguities & Considerations

The statute prohibits usage that "unreasonably affects" exempt wells but fails to define "unreasonable."

  • The Risk: GCDs have broad discretion to define this. Is a 10-foot drawdown unreasonable? Is a 5% reduction in pump efficiency unreasonable?
  • The Watch-Out: Monitor local GCD board meetings. If a District proposes a definition of "unreasonable" that is technically unachievable (e.g., "any measurable drawdown"), you must intervene during the public comment period immediately.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Dec 16, 2024
Passed House
Apr 24, 2025
Passed Senate
May 25, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsSpecial Districts & AuthoritiesSpecial Districts & Authorities--groundwater Conserve Dist.Special Districts & Authorities--water & UtilityPermits
03

House Authors

Rep. Stan GerdesRepublican 路 Primary Author

Senate Sponsor

Sen. Lois KolkhorstRepublican 路 Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Rep. Stan Gerdes

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about HB1633

Q

What does Texas HB1633 do?

HB1633 fundamentally alters the risk profile for groundwater permitting by mandating that Groundwater Conservation Districts (GCDs) consider impacts on registered exempt wells (domestic/livestock) before granting permits. This legislation creates immediate statutory standing for small landowners to contest industrial, agricultural, and utility permit applications, effectively lowering the threshold for permit denial.

Q

Who authored HB1633?

HB1633 was authored by Texas Representative Stan Gerdes during the Regular Session.

Q

When was HB1633 signed into law?

HB1633 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB1633?

HB1633 is enforced by Groundwater Conservation Districts (GCDs).

Q

How significant are the changes in HB1633?

The regulatory priority for HB1633 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB1633?

The cost impact of HB1633 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB1633 address?

HB1633 addresses topics including special districts & authorities, special districts & authorities--groundwater conserve dist., special districts & authorities--water & utility and permits.

Q

What are the key dates for HB1633?

Key dates for HB1633: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026