Relating to requiring the Texas Commission on Environmental Quality to study and report about water rights that may be subject to cancellation for nonuse.

HB 203 requires the Texas Commission on Environmental Quality (TCEQ) to study and report on water rights that may be canceled for nonuse. Specifically, the TCEQ must analyze permits, filings, and certificates where water wasn't used for 10 consecutive years, then submit a report identifying: (1) rights with exemptions from cancellation, (2) rights potentially subject to cancellation, and (3) details about water volume, cancellation status, and possible dedication to the Texas Water Trust. The first report is due by March 31, 2027, with subsequent reports every five years. This bill directly affects water permit holders who haven’t used their allocated water for a decade, but does not change water rights laws - only mandates periodic TCEQ reporting.