HB1689

HB1689 expressly allows a groundwater conservation district to use specified export-fee increase revenue to keep significantly affected wells operating even when those wells are outside the district. It took effect September 1, 2025. The money remains restricted to assessing and addressing impacts associated with groundwater development; this is not unrestricted authority to spend district money anywhere. Final law.

The provision concerns money from increases in export fees under Water Code 36.122(e-1) on or after January 1, 2024, not all district revenue. That earlier provision increases the allowable fee ceiling by three percent each calendar year. HB1689 does not itself impose a new fee or order a district to raise its fee. Existing law requires board approval after a public hearing for the covered fee or fee increase. Water Code 36.122(e)–(e-3) and 36.207.

If an affected well is in another groundwater conservation district, spending this money to maintain the well’s operation requires an interlocal contract with that other district authorizing that use. In plain terms, the districts must formally agree; one district cannot simply bypass the other district under this provision. The new contract condition specifically addresses wells in another district, not every well outside the spending district’s boundary. Final law, new 36.207(c); Government Code Chapter 791.

The existing permitted uses of this restricted revenue—alternative water supplies, aquifer monitoring, data collection and aquifer science—remain. The law says a district may use the funds; it does not guarantee a payment or repair to every owner whose well is affected. Final law.