Texas measure would raise drought water rates up to 280% for major industrial users

In Texas, Corpus Christi's reservoirs have climbed back from near-crisis levels, but a growing fight over who should pay more during periods of extreme drought is far from over.

City leaders have agreed to let voters decide whether the region's largest industrial water users should face steep surcharge increases when water supplies run low again, approving a referendum that is now scheduled for November.

Here's what to know

Inside Climate News reported that, in a 6-2 vote, the Corpus Christi City Council set a special election for the citizen-backed Fair Water Amendment.

A November victory for the measure would sharply increase drought-time water charges for major industrial users in the area, a change that could add millions in costs for companies such as ExxonMobil, Occidental Chemical, and Valero.

The grassroots effort to force large-scale industrial water users to pitch in more during times of crisis generated momentum due to the region's experience with extreme droughts and water shortages. 

For 29 straight months, Corpus Christi's primary reservoirs stayed below 30% capacity. Levels dropped from about 30% in March 2024 to less than 8% in May, then rebounded to 42% after a rainy spring and summer.

That improvement reduced the immediate sense of emergency, but it has not erased anger over how much water that industry consumes, particularly during shortages.

This anger has spurred a popular movement that has surprised even local officials. Nearly 13,000 signatures were submitted by community and environmental organizers to get the measure on the ballot, highlighting the years of tension between residents and the large refinery and chemical plant operators in the area.

"This was a lot of signatures," commented Kaylynn Paxson, the mayor pro-tem of Corpus Christi. "This is something that doesn't happen every day."

More background

The proposed amendment would take effect only when water supplies become severely strained.

Under the measure, Corpus Christi's biggest industrial users would face rate hikes of 70% when reservoirs drop below 30% capacity, 140% below 20%, and 280% if the city declares a water emergency. 

Supporters have said that rate structure would do more to protect households while sending a stronger conservation message to the heaviest users when water becomes scarce.

Corpus Christi supplies water across a seven-county region that includes more than 20 cities and towns, meaning decisions about drought pricing could affect far more than the finances of a few large companies.

The politics surrounding the measure remain complicated. Some council members who oppose the surcharge still supported letting voters decide the issue for themselves.

For example, Gil Hernandez, a city councilperson who opposes the proposal, still pushed back on an effort to block the initiative under a state law tied to climate-change-related charter amendments.

"It's too much of a stretch," Hernandez said, per Inside Climate News. 

What's being done?

The measure now heads toward a public vote, although legal challenges are expected before Election Day.

Council member Sylvia Campos, who campaigned for the amendment, acknowledged this reality, saying, "It's gonna be challenged, no doubt. That's the nature of the beast."

Peter Zanoni, the city manager, warned that parts of the proposal could be vulnerable to legal challenges because Corpus Christi cannot directly set rates for separate entities that buy city water and then resell it.

"They don't report to me or this City Council," Zanoni told council members, per Inside Climate News. "You don't have the authority to do that."

Over a period of months, volunteers with For the Greater Good and paid canvassers from Texas Campaign for the Environment collected signatures as worries about the water crisis grew.

For Isabel Araiza, a founder of For the Greater Good and a local college professor, the campaign represents something larger than a single pricing formula.

"Civic engagement is flourishing and it's beautiful," she said, per the publication. "The powerful industry [doesn't] want people to recognize their power, and people are recognizing their power."

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