Read The Amendment | Fair Water Amendment

(a) Findings and Single Purpose.

The voters of the City of Corpus Christi find and declare that:

Corpus Christi is subject to recurring and increasingly severe drought conditions;
Large Industrial Users consume a disproportionate share of the City's water supply;
Programs that exempt Large Industrial Users from Drought Surcharges or conservation, allocation or curtailment requirements during Declared Drought Stages undermine fairness and public confidence in the City's drought response;
The mandatory levy and collection of Drought Surcharges for Large Industrial Users is necessary to allocate drought-related costs in fair proportion to water use; and
The Drought Surcharges for Large Industrial Users set forth herein reflect those adopted by the Corpus Christi City Council in March 2025, are intended to regulate and deter water use during a period of drought in order to achieve necessary water conservation, and are intended to be fair, reasonable, and proportionate to use.

This Section is intended to achieve the single purpose of fairness in cost-sharing and conservation obligations during declared drought conditions, and each provision is related and necessary to that purpose.

(b) Intent.

This Section is adopted to ensure that during Declared Drought Stages:

No Large Industrial User may avoid paying applicable Drought Surcharges or meeting applicable drought-stage conservation, allocation or curtailment requirements through payment of an alternative fee or exemption;
All Large Industrial Users shall bear a proportionate share of drought-related costs through the mandatory levy and collection of applicable Drought Surcharges; and
All Large Industrial Users shall meet applicable drought-stage conservation, allocation, and curtailment requirements.

(c) Definitions.

For purposes of this Section:

1. Water. Treated and raw water, excluding reclaimed water.

2. Drought Contingency Plan (DCP). The City of Corpus Christi Drought Contingency Plan adopted pursuant to state law, including the plan adopted by the Corpus Christi City Council in March 2025, and any successor.

3. Declared Drought Stage. Any drought stage declared per the provisions of the DCP and City Code, including Stage 1, Stage 2, Stage 3, and Water Emergency, or successor stages with equivalent effect.

4. Drought Surcharge. A temporary rate imposed during a Declared Drought Stage on water use exceeding a threshold amount, as provided by this Section.

5. Wholesale Customer. Any entity that purchases water from the City of Corpus Christi through a contract that authorizes the resale of water to third parties or that is expressly designated as a wholesale customer in any water supply agreement with the City.

6. Large Industrial User. Any water customer of the City of Corpus Christi or water customer of a Wholesale Customer that: (i) uses water to support industrial processing (defined as converting materials of a lower order of value into forms having greater usability and commercial value), large-scale data-center operations, or large-scale energy generation excluding hydroelectric power, and excluding agricultural uses; and (ii) has water use of one hundred thousand (100,000) gallons or more per day based on total metered water consumption in any monthly billing period divided by the number of days in that billing cycle, as reflected in the billing records of the City or Wholesale Customer.

7. Exemption Program. Any ordinance, fee, contract, credit, rebate, program or plan that exempts any Large Industrial User from Drought Surcharges and/or drought-stage conservation, allocation, or curtailment requirements established by the DCP or City Code.

(d) Prohibition and Termination of Exemption Programs.

1. Prohibition. Upon voter approval of this Section, neither the City nor any Wholesale Customer shall create, renew, extend, or authorize any Exemption Program for Large Industrial Users.

2. City Program Termination Notice. Within thirty (30) days of voter approval of this Section, the City shall issue written notice to each of the City's Large Industrial Users and each Wholesale Customer of intent to terminate any Exemption Program then in effect, with termination becoming effective no later than the first business day after expiration of a five-year notice period.

3. Wholesale Customer Program Termination Notice. Within thirty (30) days of voter approval of this Section, each Wholesale Customer shall issue written notice to each of the Wholesale Customer's Large Industrial Users of intent to terminate any Exemption Program then in effect, with termination becoming effective no later than the first business day after expiration of a five-year notice period.

4. Encumbrance of Existing Exemption Program Funds. To the extent practicable, all funds held in any dedicated City account established for any Exemption Program shall be fully expended or encumbered for purposes authorized by the City Code prior to termination of such Exemption Program.

(e) Mandatory Drought Surcharges for Large Industrial Users.

1. Mandatory Levy by City. Beginning immediately upon termination of Exemption Programs, during a Declared Drought Stage, the City shall levy and collect Drought Surcharges from each of the City's Large Industrial Users.

2. Mandatory Levy and Remittance by Wholesale Customers. Beginning immediately upon termination of Exemption Programs, during a Declared Drought Stage, each Wholesale Customer shall levy and collect Drought Surcharges from each of the Wholesale Customer's Large Industrial Users, based on the same threshold amount and rates then applicable to the City's Large Industrial Users, and shall remit such fees to the City.

3. Threshold Amount and Rates. Drought Surcharges for Large Industrial Users shall apply to all water use exceeding a threshold amount of no more than twelve million eight hundred forty-two thousand (12,842,000) gallons per month, at rates no less than the following:

Stage 1: no surcharge.

Stage 2: $3.00 per one thousand (1,000) gallons.

Stage 3: $6.00 per one thousand (1,000) gallons.

Water Emergency: $12.00 per one thousand (1,000) gallons.

(f) Conservation Requirements for Large Industrial Users.

Compliance. Upon termination of Exemption Programs, during a Declared Drought Stage, all Large Industrial Users, whether served by the City or by a Wholesale Customer, shall be subject to and comply with all drought-stage conservation, allocation, and curtailment requirements contained in the Drought Contingency Plan and/or City Code. Wholesale Customers shall enforce such requirements upon each of the Wholesale Customer's Large Industrial Users.

(g) Anti-Circumvention.

The City and Wholesale Customers shall prohibit all practices intended or having the effect of evading customer classification as a Large Industrial User.

(h) Protection for Existing Contracts.

Nothing herein requires the City to breach an existing express contractual term. This Section shall fully apply to the maximum extent permitted by law to all contracts executed, renewed, or amended after voter approval of this Section.

(i) Police Power, Implementation and Adoption.

This Section is an exercise of the City's police power to protect public health, safety, and welfare through equitable water conservation during drought. This Section is to be implemented in accordance with Texas Water Code §11.039, TCEQ drought plan rules, and any other applicable law. The Corpus Christi City Council shall adopt revisions to City Code, retail and wholesale water contracts, and other instruments as necessary to fully implement this Section and carry out its intent.

(j) Severability.

If any provision of this Section is held invalid, the remaining provisions shall remain in full force and effect.