08/31/2026
I’ve attached my notes from the TAC Legislative Conference that I attended last week. It’s a long read, but it captures what I believe to be the most critical topics that will be discussed in the State Legislature in 2027.
The 2027 Legislative Session has the potential to be transformational, in several areas.
Two areas of regulation that will be critical include Ground Drinking Water and Electrical Power Grid supply/distribution.
Data Center restrictions will include both areas of regulations, along with lighting, noise control factors and geographical location of “center campuses”.
My proposal to protect the interest of residents which I shared at the Conference and even before the conference with State Officials and TAC Leaders are listed below:
-The rule of capture law on water rights should be modified to work as it was intended, and that purpose was to protect water usage and not to commercialize it.
-All projects that have the potential to negatively impact water aquifers should be placed on the ballot for public approval via the voting process.
-Noise & lighting thresholds for industrial sites should be set by the State or give Commissioners Court the opportunity to regulate decibels and lumens.
-State agencies that make decisions that impact rural counties should be required to include local government in the decision process.
Key Notes that I took during the TAC Legislative Conference:
Why are Data Centers coming to Texas:
Texas House Bill 1223:
-In June 2013 under Governor Rick Perry, the Texas Legislature passed Texas House Bill 1223, which provides a sale and use tax exemption on equipment
purchases for data centers of at least
100,000 sq. ft. that invest $200 million over
five years and create at least 20 full time permanent jobs paying 120 percent of a county’s average weekly wage.
Land is priced to sale as compared to other States that have the infrastructure to support large business.
-We have some of the infrastructure, but we do lack electrical power!
-Water is not an issue now, with new design features that minimize usage to that of an average household; some even less.
Rural settings provide open settings for large scale construction and vast buildings (centers) to be constructed.
-While noise is a concern, lighting is a major complaint by neighbors during and after construction.
-Centers will not be allowed to encroach on local neighborhoods and communities, after the 2027 session.
Ground Drinking Water Projects at the State Level:
The mindset among most State Officials “when it comes to spending money to cleaning up the water, the voters don’t care about the future; they want taxes cut at all costs”.
-IMO, the reality is that State Officials have failed to communicate the urgency of this situation, and they have failed to include the public in the solution process. This is something that we could do a better job of in Newton County, and I mean all of us.
The desalination (salt removal) of water is a major project that is already underway with success in the way of as much as 50k barrels each day.
-Data Centers are committing large sums of money to these types of projects, and these contributions continue to grow as restrictions are increased and public input on Data Centers is heard.
Management of water aquifer storage, with restrictions on certain groundwater pipelines.
-This is area that we will need to monitor closely as an area of high-water content.
-The local government and Ground Water Conservation District need to have a more joint relationship, ensuring that the residents are represented by their elected representatives.
-I simply don’t support the commercialized selling of Ground Drinking Water; it doesn’t make sense to me.
Electrical Power Grid in the State of Texas:
The State is not in a solid position to sustain anticipated growth, the need for Nuclear Power Plants in the State of Texas is real. At least one Nuclear Power Plant will be in place by 2034 (in west Texas), with two more to follow (location unknown).
-State legislative reform in 2027 will require that all Data Centers provide their own electricity. Furthermore, the manufacturing of power cannot negatively impact the residents of Texas.
-High Power Transmission lines are being re-evaluated across the board to ensure that the path has minimal impact on landowners and that the transfer of electricity is strategic.
These are my key takeaways and points of interest as we move into 2027 and State officials have the opportunity to address these concerns.
Commissioner Powell
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