2025 was a pivotal year for the Water Collaborative Delivery Association (WCDA). We saw a major legislative win in California and built awareness of collaborative delivery restrictions in Texas. As we close out the year and look toward 2026 and the 90th Texas legislative session in 2027, WCDA’s priorities are clear: expand access to collaborative delivery, protect core funding programs, and unlock more private investment in water infrastructure.
California: A Win with SB 598
2025 delivered a major win in California. Senate Bill 598 (SB 598), endorsed by WCDA, expands the ability of local agencies to use the construction manager/general contractor (CM/GC) project delivery method. CM/GC brings the contractor on during design under a separate contract, supporting better constructability, more accurate cost estimates, and greater schedule certainty. SB 598 was signed by Governor Newsom on October 11, 2025, and takes effect January 1, 2026, giving California utilities another collaborative tool to deliver complex projects more efficiently and resiliently.
Texas: Removing Population Barriers
Texas remains the only state that limits access to design-build for water projects based on population. Under Texas Government Code 2269, communities with fewer than 100,000 residents cannot use design-build for water and wastewater infrastructure. Only 43 of more than 1,200 communities qualify, leaving small and mid-sized cities, rural utilities, and special districts without this key delivery option.
Ahead of and during the 89th Texas legislative session in 2025, WCDA’s Advocacy Committee partnered with the Design-Build Institute of America – Southwest Region (DBIA-SW) to change that. There were a significant number of bills that were not heard in committee on both sides of Congress, and our bill to remove population barriers was one that stalled. However, the efforts in the last session elevated awareness about the limitations of design-build in Texas, built a broader coalition, and set the stage for a stronger push in 2027.
Over the next two years, WCDA and DBIA-SW will continue our advocacy efforts, educating owners, and engaging lawmakers so communities of all sizes can consider all collaborative delivery options for their water and wastewater infrastructure projects.
Financing Tools: WIFIA, SRF, and PAB
Expanding delivery options only works if communities can afford to build. Three financing tools are especially critical:
- WIFIA – EPA’s Water Infrastructure Finance and Innovation Act program offers long-term, low-interest loans for major drinking water, wastewater, and stormwater projects, often financing up to 49% of eligible costs.
- State Revolving Fund (SRF) – The Clean Water and Drinking Water SRFs are the backbone of water financing, providing low-interest loans that are especially vital for small and disadvantaged communities.
- Private Activity Bond (PAB) – Tax-exempt PABs allow private capital to support public-purpose infrastructure, including water and wastewater facilities, but are constrained by state volume caps.
WCDA strongly supports no funding cuts for WIFIA or SRFs and lifting or exempting water and wastewater PABs from state caps so more private capital can flow into critical projects.
It’s not enough to support these tools on paper. We need “boots on the ground” in legislative offices, advocating for policies that benefit our industry, American cities, and businesses. WCDA Executive Director Barb Martin has led by example, visiting with congressional offices, state regulators, and EPA representatives throughout the year.
Garney, a national water and wastewater contractor, sends a Government Relations Council to Washington, DC, twice a year to advocate for these priorities, with Barb joining the team at a congressional meeting in 2025.
Looking Ahead
As we move into 2026 and prepare for 2027, WCDA will stay focused on the following:
- Removing population limits on design-build in Texas
- Supporting the successful implementation of SB 598 in California
- Protecting WIFIA and SRF funding and advocating for the uncapping of PABs for water
- Continue to investigate advocacy opportunities with additional state legislatures and primacy agencies
You can help by contacting your elected officials, hosting or sponsoring collaborative delivery education sessions, sharing project stories, and staying engaged with WCDA updates. To get involved, please reach out to the WCDA Advocacy Committee at Advocacy@WaterCollaborativeDelivery.org.
The work isn’t finished, but 2025 illustrated what’s possible when the industry shows up and speaks with a unified voice.