Brownsville approves $220 million water infrastructure agreement with SpaceX
Key Highlights
- The initiative aims to support long-term community growth, economic development, and water resilience.
- The MOU allocates up to $220 million for water and wastewater projects in Brownsville and Cameron County.
- Projects include potable reuse, wastewater reclamation, and plant expansion to increase water supply by up to 18 million gallons per day.
The City of Brownsville has approved a Memorandum of Understanding (MOU) with SpaceX to provide up to $220 million for water and wastewater infrastructure projects designed to increase water availability in Brownsville and Cameron County.
During the special meeting held Saturday, Aug. 29, the Brownsville City Commission also approved to disannex about 444.45 acres, along with adjacent right-of-way, from the City’s corporate and extraterritorial jurisdiction (ETJ) boundaries. The property is in Cameron County and is in the ordinance as part of Tract A, Share 7 of the San Martin Grant.
The MOU, between the City and SpaceX for the benefit of the Brownsville Public Utilities Board (BPUB) and Southmost Regional Water Authority (SWRA), provides for an initial $40 million escrow contribution followed by six quarterly payments of $30 million, for a maximum contribution of $220 million. Funding will be restricted to qualifying water and wastewater projects and released as project milestones are met. The agreement does not constitute a purchase of water capacity, an ownership interest or a prepayment of utility rates.
Projects identified under the agreement include potable reuse and wastewater reclamation capable of increasing water supply by about 8 million gal/d, as well as an SRWA plant expansion capable of increasing supply by about 10 million gal/d.
BPUB’s long term goal is to reach 20 million gal/d. The initial optimization is estimated at about $46.8 million, while the potential 20 million gal/d-expansion is estimated at about $202 million.
The additional water capacity is expected to strengthen the community’s long-term water supply, support residential and economic growth, and provide greater resilience as demand increases. The investment also creates an opportunity to leverage private-sector funding for critical infrastructure that serves a broader community purpose.
The city will work with BPUB and other stakeholders on the identification, development, and implementation of qualifying projects under the MOU. Projects remain subject to applicable engineering, permitting, legal, and milestone requirements.