Relating to the eligibility requirements for grants under programs of the Texas Commission on Environmental Quality.

SB 789 amends Texas Water Code to clarify eligibility for direct grants from the Texas Commission on Environmental Quality (TCEQ). It restricts direct grant awards to: (1) Texas or other state agencies, (2) Texas or other state universities, (3) U.S. federal agencies, or (4) nonprofits funding specific estuary projects under federal water pollution law (33 U.S.C. § 1251 et seq.) for Texas national estuaries. The bill requires the TCEQ executive director to determine that direct awards are necessary (due to infeasible proposal solicitation) and in the state’s best interest. This change takes effect September 1, 2025.