Relating to the criteria considered by groundwater conservation districts before granting or denying a permit or permit amendment.
ModeratePlan for compliance
Low Cost
Effective:2025-06-20
Enforcing Agencies
Groundwater Conservation Districts (GCDs)
01
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.
Current law exempts certain wells from a requirement to obtain a permit from a groundwater conservation district, including wells for domestic use or certain small-scale agricultural operations. The bill author has informed the committee that, due to an increase in the export of regional water, small-scale farmers and ranchers in Bastrop and Lee Counties have been forced to pay out of pocket to dig their wells to rapidly increasing depths. H.B. 1633 seeks to address this issue by requiring groundwater conservation districts to consider the effects that permitting decisions may have on wells that are registered with the district when making such a decision.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 1633 amends the Water Code to include among the considerations a groundwater conservation district is required to make before granting or denying certain permits or permit amendments the consideration of whether the proposed use of water unreasonably affects wells that are registered with the district and exempt from the requirement to obtain a permit under statutory groundwater conservation district provisions or district rules.
EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
Honorable Cody Harris, Chair, House Committee on Natural Resources
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB1633 by Gerdes (Relating to the criteria considered by groundwater conservation districts before granting or denying a permit or permit amendment.), As Introduced
No fiscal implication to the State is anticipated.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff:
JMc, TUf, BC, CWi
Related Legislation
Explore more bills from this author and on related topics
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. Implementation Timeline Effective Date: June 20, 2025 (Immediate effect due to supermajority passage).
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 urgent is compliance with HB1633?
The compliance urgency for HB1633 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
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.
Legislative data provided by LegiScanLast updated: November 25, 2025
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