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Signed Into Law
Signed May 24, 2025Effective 2025-09-01
SB616

Regular Session

Relating to aquifer storage and recovery projects that transect a portion of the Edwards Aquifer.

Government Affairs & Regulatory Compliance Analysis

SB616: Government Affairs Overview

SB 616 creates a new, permissive statutory authority allowing Aquifer Storage and Recovery (ASR) injection wells to transect the Edwards Aquifer to reach underlying formations, strictly limited to Medina County and Williamson County (East of I-35). While this removes a previous prohibition, it introduces strict liability risks regarding aquifer isolation and is contingent upon forthcoming technical rules from the TCEQ.

Sen. Charles Schwertner·Senate Bill·Regular Session

Moderate
Low Cost
Effective:2025-09-01
Business Impact

Who SB616 Affects

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

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.

💧

Water

Affected business types:

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

Key Operational Considerations

  • 1Force Majeure: Amend development contracts to account for regulatory delays. The timeline for rule adoption is statutory, but delays in technical guidance issuance are common.
  • 2Technical Expertise: Retain hydrogeological consultants specifically to design "Edwards-isolated" casing programs. Standard Class V injection well designs will be insufficient.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SB616
Moderate
Relating to aquifer storage and recovery projects that transect a portion of the Edwards Aquifer.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
TCEQ
Primary Author: Sen. Charles Schwertner
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: March 1, 2026 (Date by which TCEQ must adopt rules; practical permitting cannot commence until these rules are finalized).
  • Agency Rulemaking: TCEQ is legally mandated to adopt rules implementing Section 27.051(i) by March 1, 2026.
  • *Warning:* A "Regulatory Gap" exists between Sept 1, 2025, and March 1, 2026. While the law is effective, the technical standards for application approval will not exist. Do not file permit applications during this window; they will likely be stalled or returned.

Immediate Action Plan

  • Geographic Audit: Immediately verify if your land assets in Williamson County are East of I-35. If West, this law does not apply.
  • Insurance Review: Contact risk managers to renegotiate PLL policies to cover risks associated with drilling through a sole-source aquifer.
  • Monitor Rulemaking: Assign legal counsel to track TCEQ proposals starting September 2025. You must submit comments if proposed construction standards are technically unfeasible.
  • Pause Filing: Do not submit permit applications on September 1, 2025. Wait for the publication of the specific "Edwards Transection" technical guidance in early 2026.

Operational Changes Required

Contracts

  • Drilling MSAs: Update Master Service Agreements with drilling contractors to include strict indemnification clauses for "subsurface trespass" and "cross-contamination." If a contractor fails to properly cement the casing through the Edwards Aquifer, liability for remediation falls on the permit holder.
  • Force Majeure: Amend development contracts to account for regulatory delays. The timeline for rule adoption is statutory, but delays in technical guidance issuance are common.

Hiring/Training

  • Technical Expertise: Retain hydrogeological consultants specifically to design "Edwards-isolated" casing programs. Standard Class V injection well designs will be insufficient.
  • Legal Review: Engage environmental counsel to review Pollution Legal Liability (PLL) insurance policies. Ensure exclusions for "known aquifers" are removed or modified to cover authorized transection of the Edwards Aquifer.

Reporting & Record-Keeping

  • Stratigraphic Verification: Prepare to generate detailed logs proving the target formation is geologically distinct from and located below the Edwards Aquifer.
  • Mechanical Integrity Tests (MIT): Establish protocols for high-frequency MITs. You must prove continuous isolation of the Edwards Aquifer during the life of the well.
  • Monitoring Plans: Budget for the installation of monitoring wells within the Edwards Aquifer adjacent to the injection site to detect potential upward migration or casing leaks.

Fees & Costs

  • Project Costs: While state fees remain low, anticipate increased capital expenditure for dual-casing well designs and additional monitoring infrastructure required to satisfy the new non-contamination standards.

Strategic Ambiguities & Considerations

The statute authorizes "transection" but leaves the technical definition to TCEQ. During the rulemaking period (Sept 2025 – March 2026), businesses must watch for:

  • 1. Casing Standards: Will TCEQ require dual or triple casing through the Edwards? This will determine the commercial viability of the project.
  • 2. Monitoring Proximity: The rules will define how close monitoring wells must be. Excessive requirements could render small-footprint sites unusable.
  • 3. Financial Assurance: TCEQ may require specific bonding amounts to cover potential remediation of the Edwards Aquifer, distinct from standard plugging bonds.

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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.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Dec 13, 2024
Passed Senate
Mar 12, 2025
Passed House
May 5, 2025
Signed
May 24, 2025
Effective
Sep 1, 2025
TopicsWilliamson CountyEnvironmentEnvironment--waterWaterWater--developmentWater--generalEdwards AquiferInjection WellsPermitsEnvironmental Quality, Texas Commission OnMedina County
03

Senate Authors

Sen. Charles SchwertnerRepublican · Primary Author
Coauthors (1)

House Sponsor

Rep. Caroline Harris DavilaRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about SB616

Q

What does Texas SB616 do?

SB 616 creates a new, permissive statutory authority allowing Aquifer Storage and Recovery (ASR) injection wells to transect the Edwards Aquifer to reach underlying formations, strictly limited to Medina County and Williamson County (East of I-35). While this removes a previous prohibition, it introduces strict liability risks regarding aquifer isolation and is contingent upon forthcoming technical rules from the TCEQ.

Q

Who authored SB616?

SB616 was authored by Texas Senator Charles Schwertner during the Regular Session.

Q

When was SB616 signed into law?

SB616 was signed into law by Governor Greg Abbott on May 24, 2025.

Q

Which agencies enforce SB616?

SB616 is enforced by Texas Commission on Environmental Quality (TCEQ).

Q

How significant are the changes in SB616?

The regulatory priority for SB616 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB616?

The cost impact of SB616 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB616 address?

SB616 addresses topics including williamson county, environment, environment--water, water and water--development.

Q

What are the key dates for SB616?

Key dates for SB616: Effective date is 2025-09-01. Rulemaking: Adopt rules to implement Section 27.051(i), specifically defining standards for ASR injection wells transecting the Edwards Aquifer in Williamson (East of I-35) and Medina counties. (2026-03-01). 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