SB 2506

relating to the establishment of a grant program by the Texas
Department of Licensing and Regulation to plug abandoned and
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 28, Water Code, is amended by adding
Subchapter F to read as follows:
SUBCHAPTER F.  PLUGGING ABANDONED AND DETERIORATED WATER WELLS
Sec. 28.151.  DEFINITIONS.  In this subchapter:
(1)  "Department" means the Texas Department of
(2)  "District" means a district or authority created
under Section 52, Article III, or Section 59, Article XVI, Texas
Constitution, that has the authority to regulate the spacing of
water wells, the production of water wells, or both.
(3)  "Fund" means the plugging abandoned and
deteriorated water wells fund established under Section 28.153.
(4)  "Program" means the plugging abandoned and
deteriorated water wells grant program established under Section
Sec. 28.152.  PLUGGING ABANDONED AND DETERIORATED WATER
WELLS GRANT PROGRAM.  (a)  The department by rule shall develop a
program to provide grants for the public purpose of offsetting the
costs associated with plugging abandoned or deteriorated water
(b)  A grant may be provided under this section only to:
(2)  a landowner who plugs a well that is not located
within the boundaries of a district.
Sec. 28.153.  PROGRAM FUND.  (a)  The plugging abandoned and
deteriorated water wells fund is an account in the general revenue
(b)  The fund consists of money appropriated, credited, or
transferred to the fund by the legislature.
Sec. 28.154.  APPLICATION; AMOUNT OF GRANT.  (a)  A district
or landowner who pays or incurs the cost of plugging an abandoned or
deteriorated water well may apply to the department for a
reimbursement grant for an amount equal to 50 percent of the costs
associated with plugging the water well.
(b)  The department may approve an application for a grant
under this section only if the Texas Water Development Board finds
that the district or landowner has submitted sufficient
documentation to show that the district or landowner has
permanently plugged the abandoned or deteriorated water well in
accordance with this chapter and the rules and regulations of the
Sec. 28.155.  APPLICATION FOR GRANT ON BEHALF OF LANDOWNER.
(a)  A district may apply for a grant under Section 28.154 on behalf
of a landowner who has plugged an abandoned or deteriorated water
well on land that is located in the boundaries of the district.
(b)  A district by resolution may establish rules regarding
the application process under this section.
Sec. 28.156.  RULES.  The department may adopt rules
necessary to administer the program established under this
subchapter, including rules regarding:
(1)  inspection requirements; and
(2)  administrative procedures, including procedures
related to the timing of a reimbursement.
SECTION 2.  This Act takes effect September 1, 2025.