Monitoring the Session

HB 5341

Morales Shaw Bill Tightens Gulf Desalination Permits For Industry

Died in committee

Verdict: No flags

No flagsInitial review
Rep. Penny Morales ShawDHouse 148

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the issuance by the Texas Commission on Environmental Quality of permits to authorize the diversion of state water from the Gulf of Mexico or a bay or arm of the Gulf of Mexico for desalination and use for industrial purposes.

Caption from analyzed text · version I.

Summary

Environmental flow protections, and permits near oyster reefs or seagrass beds can be denied.

The bill tightens the rules for state permits that let companies take seawater from the Gulf of Mexico or its bays to desalinate for industrial use. It requires the Texas Commission on Environmental Quality to write environmental flow protections into those permits, lets the agency keep intake points away from or deny permits near oyster reefs and seagrass beds, and orders rules to limit fish and sea life being trapped or sucked into intakes. Permit applications filed on or after September 1, 2025 face these stricter conditions, with the agency's rules due by December 1, 2026.

Labels

Labels: NEVER GOT A HEARING. Filed Mar 14, 2025 and referred to the House Natural Resources committee. No public hearing. The bill died.

Receipt

The receipt

89R-HB5341 · 2025-03-14

SOLD BY

+ 3 coauthors

ITEM

relating to the issuance by the Texas Commission on Environmental Quality of permits to authorize the diversion of state water from the Gulf of Mexico or a bay or arm of the Gulf of Mexico for desalination and use for industrial purposes.

WHAT IT DOES

Environmental flow protections, and permits near oyster reefs or seagrass beds can be denied.

The bill tightens the rules for state permits that let companies take seawater from the Gulf of Mexico or its bays to desalinate for industrial use. It requires the Texas Commission on Environmental Quality to write environmental flow protections into those permits, lets the agency keep intake points away from or deny permits near oyster reefs and seagrass beds, and orders rules to limit fish and sea life being trapped or sucked into intakes. Permit applications filed on or after September 1, 2025 face these stricter conditions, with the agency's rules due by December 1, 2026.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal note in the loaded record.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Natural Resources
FILED UNDER

DATA CENTERS, WATER AND THE GRID

THE TEXT

“may deny a permit for a diversion of state water”…

Bill text, introduced version (I)

The bill changes who can get Gulf water for industrial desalination by letting the state deny permits for intakes near sensitive coastal habitat.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 27, 2024 to Oct 17, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texas Trial Lawyers Association PAC$21,500.00

Texas Trial Lawyers Association PAC

$21,500.00

Cash
$21,500.00
Paid by others
$0.00
Total
$21,500.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Nov 19, 2024 to Aug 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100984943, 101006793, 101044547, 101054176, 101068938.

House Democratic Caucus$7,000.00

House Democratic Caucus

$7,000.00

Cash
$7,000.00
Paid by others
$0.00
Total
$7,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Apr 30, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Apr 30, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101054176.

Texas Organizing Project Political Action Committee$6,254.03

Texas Organizing Project Political Action Committee

$6,254.03

Cash
$0.00
Paid by others
$6,254.03
Total
$6,254.03
Other filed descriptions $4,070.03printing $2,184.00

Also funds 4 other sitting lawmakers.

Derived recipient stock · Sep 30, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

TEC account match.

Sources

Derived itemized flow · Oct 31, 2024 to Sep 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100984943, 101068938.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texas Trial Lawyers Association PAC

$21,500.00

Cash
$21,500.00
Paid by others
$0.00
Total
$21,500.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Nov 19, 2024 to Aug 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100984943, 101006793, 101044547, 101054176, 101068938.

×

House Democratic Caucus

$7,000.00

Cash
$7,000.00
Paid by others
$0.00
Total
$7,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Apr 30, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Apr 30, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101054176.

×

Texas Organizing Project Political Action Committee

$6,254.03

Cash
$0.00
Paid by others
$6,254.03
Total
$6,254.03
Other filed descriptions $4,070.03printing $2,184.00

Also funds 4 other sitting lawmakers.

Derived recipient stock · Sep 30, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

TEC account match.

Sources

Derived itemized flow · Oct 31, 2024 to Sep 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100984943, 101068938.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Mar 14, 2025

04/07/2025 H Referred to Natural Resources: Apr 7 2025 5:28PM

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

Coauthors

House committee · Natural Resources · Final status: Died in committee

Subjects

GULF OF MEXICO

Coastal Affairs & Beaches

Environment--Water

Water--Development

Water--General

Water--Rights

DESALINATION

PERMITS

ENVIRONMENTAL QUALITY, TEXAS COMMISSION ON

Text

The text as introduced · 357 words

89R13038 KRM-F

By: Morales Shaw
H.B. No. 5341

A BILL TO BE ENTITLED

AN ACT

relating to the issuance by the Texas Commission on Environmental

Quality of permits to authorize the diversion of state water from

the Gulf of Mexico or a bay or arm of the Gulf of Mexico for

desalination and use for industrial purposes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 11.1405, Water Code, is amended by

amending Subsection (g) and adding Subsection (g-1) to read as

follows:

(g) The commission :

(1) shall [ may ] include any provision in a permit

issued under this section that the commission considers necessary

to comply with the environmental flow standards established under

Section 11.1471 ;

(2) may limit a point of diversion to an area located

outside of a sensitive habitat based on the environmental flow

analyses and recommended environmental flow regimes developed by

the applicable basin and bay expert science team under Section

11.02362; and

(3) may deny a permit for a diversion of state water

under this section if the point of diversion is in close proximity

to a sensitive habitat such as an oyster reef or seagrass bed .

(g-1) The commission by rule shall establish standards to

minimize impingement and entrainment caused by a permitted

diversion of state water from a bay or arm of the Gulf of Mexico.

SECTION 2. Not later than December 1, 2026, the Texas

Commission on Environmental Quality shall adopt or amend rules

necessary to implement the changes in law made by this Act.

SECTION 3. The changes in law made by this Act apply only to

an application for a permit for the diversion of state water that is

submitted to the Texas Commission on Environmental Quality on or

after the effective date of this Act. An application for a permit

that was submitted to the commission before the effective date of

this Act is governed by the law in effect at the time the

application was submitted, and the former law is continued in

effect for that purpose.

SECTION 4. This Act takes effect September 1, 2025.