Q
What does Texas SB1055 do?
SB1055 authorizes the Southeast Texas Groundwater Conservation District (SETGCD) to increase groundwater withdrawal fees by up to 700%, raising the statutory cap from $0. 01 to $0. 07 per 1,000 gallons.
Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB1055
Regular Session
Relating to permit fees for groundwater wells imposed by the Southeast Texas Groundwater Conservation District.
Government Affairs & Regulatory Compliance Analysis
SB1055: Government Affairs Overview
SB1055 authorizes the Southeast Texas Groundwater Conservation District (SETGCD) to increase groundwater withdrawal fees by up to 700%, raising the statutory cap from $0. 01 to $0. 07 per 1,000 gallons.
Sen. Robert Nichols·Senate Bill·Regular Session
ModeratePlan for compliance
High Cost
Effective:2025-09-01
Enforcing Agencies
Southeast Texas Groundwater Conservation District
Business Impact
Who SB1055 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
Estimated Cost Impact
highSignificant operational investment may be required.
Need Government Relations Support?
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
Need Help Navigating This Legislation?
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
SB1055
ModerateRelating to permit fees for groundwater wells imposed by the Southeast Texas Groundwater Conservation District.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
High
Effective
2025-09-01Enforcing Agencies
Southeast Texas Groundwater Cons...
Primary Author: Sen. Robert Nichols
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: Contingent on District Board action; anticipate new rates appearing on billing cycles as early as October or November 2025.
- Agency Rulemaking: The District Board must formally vote to amend the fee schedule to utilize the new statutory cap. This will occur in open meetings post-September 1, creating a short window for industry advocacy regarding phase-in schedules.
Immediate Action Plan
- Budgeting: Adjust Q3/Q4 2025 and FY 2026 financial models to assume the maximum $0.07 rate to ensure liquidity.
- Legal Review: Audit downstream contracts to confirm you can legally pass this fee increase to customers or tenants.
- Maintenance: Calibrate all groundwater meters immediately to ensure you are not paying premium rates for phantom usage or calibration errors.
- Engagement: Subscribe to SETGCD Board meeting notifications and prepare to advocate for a phased implementation rather than an immediate jump to the cap.
Operational Changes Required
Contracts
Review Master Service Agreements (MSAs) and commercial leases immediately. If you are a water supplier or landlord, ensure "change in law" or "pass-through" clauses explicitly cover regulatory fee hikes. Without these clauses, your entity will be forced to absorb the cost difference between the old $0.01 rate and the new potential $0.07 rate.
Hiring/Training
Direct facilities and maintenance teams to prioritize meter calibration and leak detection. With the cost of water potentially rising sevenfold, the ROI on leak repair has shifted dramatically. "Lost water" is now a significant financial liability.
Reporting & Record-Keeping
Prepare for increased audit frequency. While no new forms are mandated, the District will likely scrutinize usage reports more aggressively to maximize revenue under the new cap. Ensure withdrawal logs match meter readings precisely to defend against billing disputes.
Fees & Costs
Revise FY 2026 budget forecasts immediately. A facility currently paying $10,000 annually in pumpage fees now faces a statutory exposure of up to $70,000. The cap is set at $0.07 per 1,000 gallons withdrawn.
Strategic Ambiguities & Considerations
The statute establishes a ceiling ($0.07), not a mandate. It is currently unclear whether the SETGCD Board will implement the full increase immediately or opt for a tiered phase-in (e.g., increasing to $0.03 first). Businesses cannot predict the exact rate until the Board publishes its agenda for the first post-effective date meeting.
Need Compliance Guidance on This Legislation?
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation 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
03
Senate Authors
House Sponsor
Fiscal NoteView Original
Related Legislation
Explore more bills from this author and on related topics
More from Sen. Robert Nichols
- SB1121Relating to excepting certain communication facilities from certain notice requirements for projects on state or local public land.
- SB1259Relating to the regulation of land surveyors by the Texas Board of Professional Engineers and Land Surveyors.
- SB1364Relating to the repeal of wheelbase and horsepower restrictions for the state's passenger vehicle fleet.
- SB1366Relating to the inclusion of information about construction or maintenance work zones in the curriculum of driver education and driving safety courses.
- SB1405Relating to increasing access to and reducing taxation of Internet services.
Related by Topic
- HB1689Relating to the use of certain groundwater export fees collected by a groundwater conservation district.
- HB2078Relating to the joint planning of desired future conditions in groundwater management areas.
- HB2080Relating to the review of the duties of a groundwater conservation district by the Texas Commission on Environmental Quality.
- HB4158Relating to the compensation of the directors of the Texana Groundwater Conservation District.
- HB5560Relating to penalties in certain suits involving a groundwater conservation district; increasing a penalty.
Quick Reference
Frequently Asked Questions
Common questions about SB1055
Q
Who authored SB1055?
SB1055 was authored by Texas Senator Robert Nichols during the Regular Session.
Q
When was SB1055 signed into law?
SB1055 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce SB1055?
SB1055 is enforced by Southeast Texas Groundwater Conservation District.
Q
How significant are the changes in SB1055?
The regulatory priority for SB1055 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
Q
What is the cost impact of SB1055?
The cost impact of SB1055 is estimated as "high". This may vary based on industry and implementation requirements.
Q
What topics does SB1055 address?
SB1055 addresses topics including southeast texas groundwater conservation district, special districts & authorities, special districts & authorities--groundwater conserve dist., special districts & authorities--water & utility and water.
Q
What are the key dates for SB1055?
Key dates for SB1055: Effective date is 2025-09-01. Rulemaking: Board must formally amend the District fee schedule to utilize the new statutory cap. (Post-09/01/2025). 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 25, 2026