Water is one of the most critical resources in Texas, and water conservation has become a priority for businesses, agriculture, and government at every level. Texas businesses involved in water conservation technology, water infrastructure, and water-intensive industries can access grants, loans, and incentive programs from federal, state, and local sources.
Texas Water Development Board (TWDB) Programs
The Texas Water Development Board is the primary state agency for water planning, funding, and conservation in Texas. TWDB administers several programs relevant to businesses:
Clean Water State Revolving Fund (CWSRF)
The CWSRF provides low-interest financing for water quality improvement projects, including wastewater treatment, stormwater management, and nonpoint source pollution control. While primarily aimed at public entities, businesses partnering with municipalities on water quality projects can benefit from CWSRF-funded infrastructure.
Drinking Water State Revolving Fund (DWSRF)
The DWSRF provides low-interest financing for drinking water system improvements. Again, the primary beneficiaries are public water systems, but businesses involved in water treatment technology, engineering, and construction benefit from the project demand this program creates.
Agricultural Water Conservation Programs
TWDB administers agricultural water conservation programs that provide financial assistance for irrigation efficiency improvements, water metering, and conservation planning. Agricultural businesses in water-stressed areas of Texas can access these programs to reduce water usage and improve operational efficiency.
Water Conservation Implementation
TWDB provides technical assistance and planning grants for water conservation planning. While these often flow to municipal and regional water authorities, they create demand for water conservation consulting, technology, and implementation services.
TCEQ Environmental Programs
The Texas Commission on Environmental Quality administers programs related to water quality, wastewater permitting, and environmental compliance that affect Texas businesses:
- Water Quality Permits: TCEQ issues permits for wastewater discharge and water use. Businesses with water-intensive operations must comply with these requirements.
- Small Business Environmental Assistance Program: TCEQ provides free compliance assistance to small businesses navigating environmental regulations, including water-related requirements.
- Emissions Reduction Grants: While primarily focused on air quality, some TCEQ programs include water quality co-benefits for qualifying projects.
Federal Water Programs
USDA Water Programs
- EQIP: The Environmental Quality Incentives Program provides financial and technical assistance to agricultural businesses for conservation practices including water conservation, irrigation efficiency, and water quality improvement.
- REAP: The Rural Energy for America Program can fund energy efficiency improvements for water pumping and irrigation systems in rural areas.
- Water and Waste Disposal Grants: USDA grants for water and wastewater infrastructure in rural communities, creating demand for engineering and construction services.
EPA Programs
- Water Infrastructure Finance and Innovation Act (WIFIA): Low-interest loans for large water infrastructure projects.
- SBIR Topics: EPA SBIR solicitations regularly include water technology topics covering treatment, monitoring, conservation, and infrastructure innovation.
- Environmental Justice Grants: Funding for projects addressing environmental justice concerns, including water quality issues in underserved communities.
Bureau of Reclamation
The Bureau of Reclamation's WaterSMART program provides grants for water conservation, efficiency, and recycling projects. Texas entities including irrigation districts, water authorities, and partnering businesses can access these competitive grants.
Opportunities for Water Technology Businesses
Texas businesses developing water conservation technology can access R&D funding through several channels:
- SBIR/STTR: R&D grants from EPA, USDA, DOE, and DOD for water technology innovation.
- Federal R&D Tax Credit: Credits for qualified research expenditures in water technology development.
- Texas Franchise Tax R&D Credit: State-level credit for qualified research activities.
- University partnerships: Texas universities with water research programs can serve as STTR partners for technology commercialization.
Water-Intensive Industries
Businesses in water-intensive industries — agriculture, manufacturing, food processing, energy production, and petrochemicals — have particular incentives to invest in water conservation. Beyond direct water program funding, these businesses can access manufacturing sales tax exemptions on water treatment equipment, property tax abatements for facility improvements, and workforce training grants for water management roles.
Find Programs That May Fit Your Business
Texas water conservation and water technology businesses can access both industry-specific and general business programs. Our free screening report checks your business against 150+ verified programs — grants, tax credits, loans, and incentives — and shows you which ones may match. Start your free screening →