During Baker Botts' 39th Annual Environmental, Safety & Incident Response Seminar on January 28, 2026, Partner Stephanie Bergeron Perdue led the “TCEQ Update” session with Kelly Keel, Executive Director at the Texas Commission on Environmental Quality.

Key Takeaways

1. The Agency is investing in capacity and process improvements. Recent efforts have focused on completing major internal reviews, strengthening compliance history tools, and improving recruitment and retention. Additional legislative funding is supporting significant staffing increases, particularly in air and water programs, to help address growing permitting demand and reduce timelines. These changes signal an agency focused on both service delivery and enforcement credibility.
    
2. Produced water is moving from concept to permitting reality. The Agency is actively developing discharge and land applications permitting frameworks for treated produced water, working closely with scientific experts and industry. Multiple applications are already under technical review, with an emphasis on setting protective but workable limits and monitoring requirements. This iterative approach, starting with discharge permits and expanding over time, reflects both urgency around water supply and caution around environmental protection.
    
3. Water supply pressures are reshaping regulatory priorities. Severe drought conditions in parts of the state are driving closer coordination between water planners and permitting staff. The Agency is tracking public water systems at risk of running short and prioritizing technical assistance and expedited reviews where needed. At the same time, major new water supply projects such as desalination and alternative sources will require coordinated permitting across multiple programs, supported by new staffing and interagency collaboration.
    
4. Early engagement and clear problem solving improve outcomes. Across enforcement, permitting, and public participation, a consistent message is that applicants who engage early, explain their challenges clearly, and bring practical solutions tend to navigate the process more successfully. Face to face discussions before formal submittals, strong community relationships, and proactive communication with regulators can help avoid delays and reduce the risk of disputes escalating into litigation.

State environmental regulation is entering a period defined by growth, resource expansion, and new technical frontiers. With additional legislative funding and expanded staffing, the agency is positioning itself to handle rising demand for permits and oversight while also strengthening enforcement tools such as compliance history. At the same time, the water sector is undergoing rapid evolution. Drought pressures and legislative direction are accelerating the development of permitting pathways for nontraditional sources such as treated produced water, requiring new scientific evaluations and regulatory frameworks.

For regulated entities, this environment creates both opportunity and responsibility. Agencies are signaling a willingness to work with applicants, particularly on urgent water supply and infrastructure needs, but expect early coordination, strong technical support, and thoughtful community engagement. Whether addressing air quality challenges, new water supply projects, or compliance issues, organizations that invest in proactive dialogue and well-developed solutions are likely to see smoother reviews and more predictable outcomes in a regulatory landscape that is expanding in both scope and complexity.