{"id":463628,"date":"2026-10-12T10:50:39","date_gmt":"2026-10-12T10:50:39","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-tx\/463628\/"},"modified":"2026-10-12T10:50:39","modified_gmt":"2026-10-12T10:50:39","slug":"how-a-bid-to-beat-drought-drove-corpus-christi-to-the-brink-of-disaster","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-tx\/463628\/","title":{"rendered":"How a bid to beat drought drove Corpus Christi to the brink of disaster"},"content":{"rendered":"<p>Eight years ago, at the height of the shale-oil boom, a committee of industry giants and public officials unveiled a bold plan to make Corpus Christi \u201cdrought proof.\u201d<\/p>\n<p>With this plan, a consultant explained to city officials at the time, their semi-arid stretch of coastline in South Texas could finally overcome the economic limitations of its scarce water supply.<\/p>\n<p>\u201cIndustry can continue to operate,\u201d <a href=\"https:\/\/corpuschristi.legistar.com\/View.ashx?M=F&amp;ID=6448587&amp;GUID=532CC5EA-D325-47E9-8B7E-ED457A242176\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">said a slideshow<\/a> the consultant, Frank Brogan, presented to Corpus Christi City Council. \u201cIndustry can justify expansion. Community can attract new industry.\u201d<\/p>\n<p>The plan seemed simple. The region\u2019s largest water users \u2014 Texas-based titans like OxyChem, Valero and Citgo \u2014 would pay Corpus Christi to build the state\u2019s first-ever seawater desalination plant, which would produce millions of gallons of freshwater per day at minimal cost to the public. In exchange, the companies wouldn\u2019t face pressure to throttle back operations at their refineries and chemical plants during future dry spells.<\/p>\n<p>\u201cWe don\u2019t want to have the reputation of having a water problem,\u201d said Brogan, a former executive at the Port of Corpus Christi, the top U.S. port for crude-oil exports, in <a href=\"https:\/\/corpuschristi.granicus.com\/player\/clip\/1154?view_id=2&amp;meta_id=208456&amp;redirect=true\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">the August 2018 presentation<\/a>.<\/p>\n<p>City leaders unanimously approved the plan, hailing it as a breakthrough: Giant corporations had agreed to front the money for an innovative project that other communities could only dream of affording.<\/p>\n<p>But instead of securing Corpus Christi\u2019s water future, the plan pushed Texas\u2019 eighth-largest city to the brink of a <a href=\"https:\/\/www.kut.org\/energy-environment\/2026-04-23\/corpus-christi-texas-water-emergency-crisis-restrictions\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">water-supply disaster<\/a>, burned through tens of millions of public dollars, and engulfed the city in political turmoil.<\/p>\n<p>The city has spent at least $50 million on the promised desalination plant, but it has <a href=\"https:\/\/www.kedt.org\/texas-news\/2026-09-24\/corpus-christi-could-owe-texas-235m-for-failed-desalination-plant\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">yet to materialize<\/a> \u2014 a victim of political dysfunction, the coronavirus pandemic, rapid inflation and frequent turnover in the city\u2019s political leadership, among other factors. And the companies that had originally agreed to pay for it now contribute only a fraction of what the plant is expected to cost. Residents would have to pay for the rest.<\/p>\n<p>Meanwhile, Corpus Christi has honored the commitment it made back in 2018: It has not pressured the companies to cut back on water consumption, even when the area slipped into a punishing drought.<\/p>\n<p>By this spring, the region\u2019s main reservoirs <a href=\"https:\/\/www.kedt.org\/texas-news\/2026-03-09\/after-a-decade-of-missteps-corpus-christi-careens-toward-water-catastrophe\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">almost dried up entirely<\/a>. The industrial giants raced to <a href=\"https:\/\/www.kedt.org\/texas-news\/2026-04-07\/corpus-christi-water-crisis-spurs-stampede-on-south-texas-aquifers\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">drill emergency water wells<\/a>, the city\u2019s credit ratings slipped, and local business leaders raised the specter of mass layoffs if the water ran out.<\/p>\n<p>    <img decoding=\"async\" class=\"Image\" alt=\"A refinery towers in the background of homes in the Hillcrest neighborhood in Corpus Christi.\"  width=\"880\" height=\"587\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/10\/1791802230_134_.jpeg\"\/><\/p>\n<p>Jon Shapley<\/p>\n<p>\/<\/p>\n<p>Inside Climate News<\/p>\n<p>A refinery towers behind homes in Corpus Christi&#8217;s Hillcrest neighborhood. <\/p>\n<p>In the face of an <a href=\"https:\/\/www.tpr.org\/news\/2026-04-21\/corpus-christi-projects-emergency-water-restrictions-in-september-for-large-industrial-users-and-500-000-customers\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">unprecedented emergency<\/a>, city officials debated meager measures like closing public pools and fining residents for washing cars, rather than imposing restrictions on the chemical plants and refineries that use more water than all 500,000 residents of the seven-county Coastal Bend region combined.<\/p>\n<p>\u201cThe reason we were in the water crisis was because of their water usage,\u201d said Isabel Araiza, a college professor and founder of a community group called For the Greater Good who has fought for a decade against the desalination project.<\/p>\n<p>Bob Paulison, executive director of a trade group that represents the industrial giants, said they are not responsible for the crisis. He said the city\u2019s leaders were tasked with building a drought-proof water supply with funding the companies provided, and they didn\u2019t deliver.<\/p>\n<p>Of Corpus Christi, he said, \u201cyou kept dragging your feet and thinking that everything was OK until it was too late.\u201d<\/p>\n<p>Gov. Greg Abbott also placed the blame squarely on Corpus Christi earlier this year, <a href=\"https:\/\/x.com\/schwagerTV\/status\/2031481894416613720\" class=\"Link\" target=\"_blank\" rel=\"nofollow\">telling reporters in March<\/a> that city leaders \u201csquandered\u201d massive state loans awarded to them for the project.<\/p>\n<p>But a review of public records spanning more than a decade shows that the industrial giants also played a critical role in developing the failed plan.<\/p>\n<p>Those <a href=\"https:\/\/www.documentcloud.org\/documents\/28187811-letter-of-intent-to-proceed-industrial-desal-economic-feasibility-study\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">companies initially sought<\/a> to build a private seawater desalination plant solely for their own use. They later decided to team up with city officials on a public project, which allowed them to access hundreds of millions of dollars in low-interest loans from the state.<\/p>\n<p>City and industry officials believed their partnership would guarantee Corpus Christi a prosperous future. Instead, it has become a case study into the pitfalls of tying an essential public resource to the growth ambitions of private industry.<\/p>\n<p>            You kept dragging your feet and thinking that everything was OK until it was too late.<\/p>\n<p>Bob Paulison, executive director of the Coastal Bend Industry Association<\/p>\n<p>Corpus Christi <a href=\"https:\/\/www.kedt.org\/texas-news\/2026-08-27\/corpus-christi-withholds-water-to-wetlands-while-lifting-restrictions-on-lawns\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">no longer faces<\/a> an acute water crisis, thanks to heavy rain this summer. But its near brush with disaster has turned some residents against the same corporations that power the economy in one of Texas\u2019 leading industrial hubs.<\/p>\n<p>Now, a proposal to nullify the 2018 plan will be on the local ballot in November, following a <a href=\"https:\/\/www.kedt.org\/texas-news\/2026-08-12\/corpus-christi-puts-industrial-water-charge-on-november-ballot\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">successful petition campaign<\/a> by Araiza and other activists. The proposal seeks to eliminate the protections from water restrictions that city leaders gave the industrial giants almost a decade ago and instead dramatically increase the price they would pay for water during the next drought.<\/p>\n<p>If voters approve the measure, it would represent a dramatic about-face for governance in a port city that has long stayed faithful to private-sector leadership.<\/p>\n<p>\u201cIt\u2019s a referendum against the system,\u201d said Roland Barrera, a fourth-term Corpus City Council member, of the ballot measure. \u201cI don\u2019t think it ends well.\u201d<\/p>\n<p>Joe McComb, who was mayor when the city enacted the 2018 plan, said Corpus Christi\u2019s wellbeing is at stake. The city needs industry, and industry needs water.<\/p>\n<p>The activists, he said, want to break the economic backbone of the region.<\/p>\n<p>\u201cThey&#8217;re wanting to try to punish the industry,\u201d McComb said. \u201cIf industry shuts down, Corpus Christi will be just a fishing village again.\u201d<\/p>\n<p>Dreams of a drought-proof water supply\u00a0<\/p>\n<p>To McComb, the desalination project represented a generational dream to overcome the <a href=\"https:\/\/www.kut.org\/energy-environment\/2026-06-25\/texas-refusal-to-plan-for-climate-change-created-a-crisis-in-corpus-christi\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">tiresome cycles of drought<\/a> that have burdened Corpus Christi for as long as anyone can remember.<\/p>\n<p>During McComb\u2019s first term on City Council, in 1984, the city\u2019s water supplies dwindled to the point that leaders ordered a 25% cut in water use. The refineries and chemical plants also suffered.<\/p>\n<p>\u201cWater cuts fuel oil industry woes,\u201d one local newspaper headline trumpeted at the time, just weeks before historic rainfall eased the crisis.<\/p>\n<p>\u201cThat was a traumatic experience,\u201d McComb recalled.<\/p>\n<p>City leaders vowed it would never happen again, so they built a second, larger reservoir, called Choke Canyon. When drought conditions became dire again, in the 1990s, Corpus Christi built a 100-mile pipeline to Lake Texana. The worst drought yet struck in the 2010s, so the city built another pipeline to the Colorado River.<\/p>\n<p>After that, Corpus Christi had no lakes or rivers left to tap. Practically every body of water had been spoken for, except one: the Gulf of Mexico.<\/p>\n<p>Extracting all the salt out of that water would be expensive \u2014 there were no seawater desalination plants in the U.S. at the time \u2014 but it would lead to a truly drought-proof water supply.<\/p>\n<p>So in 2014, a dozen of the region\u2019s largest water users formed a group to discuss building such a project.<\/p>\n<p>The committee included OxyChem, Valero, Citgo and Flint Hills Resources, according to its <a href=\"https:\/\/www.documentcloud.org\/documents\/28187811-letter-of-intent-to-proceed-industrial-desal-economic-feasibility-study\/\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">commissioning document<\/a>. Local business-development and city officials were also part of the group.<\/p>\n<p>\u201cThe industries were looking at possible ways to protect themselves,\u201d said Mark Van Vleck, then the assistant city manager, in an interview. \u201cSo we wanted to be part of that discussion.\u201d The companies did not respond to requests for comment.<\/p>\n<p>    <img decoding=\"async\" class=\"Image\" alt=\"A ship navigates the Port of Corpus Christi, the top U.S. port for crude oil exports.\"  width=\"880\" height=\"587\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/10\/1791802232_395_.jpeg\"\/><\/p>\n<p>Jon Shapley<\/p>\n<p>\/<\/p>\n<p>Inside Climate News<\/p>\n<p>A ship navigates the Port of Corpus Christi, the top U.S. port for crude oil exports. <\/p>\n<p>Paulison identified himself as the group\u2019s coordinator during a City Council meeting <a href=\"https:\/\/corpuschristi.legistar.com\/View.ashx?M=F&amp;ID=4006139&amp;GUID=67CA5232-E708-41AB-83FE-637C2C056F26\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">in September 2015<\/a>. The proposed plant, he explained to council members, would produce \u201cnon-potable water for industrial use only.\u201d Importantly, \u201cthe water that they were purchasing would not be subject to water rationing.\u201d<\/p>\n<p>He added that the clock was ticking. Hydraulic fracturing had sparked a boom in the oilfields of Texas, leading to a spate of new pipelines to the Gulf Coast. The industrial users in Corpus needed to expand in order to process that oil and gas into fuels, petrochemicals and plastics. But water was holding them back.<\/p>\n<p>\u201cWater was beginning to become an issue as to the attractiveness of the Coastal Bend to new industry,\u201d Paulison told City Council, explaining the companies\u2019 desire for a desalination plant.<\/p>\n<p>\u201cI can\u2019t tell you how much I appreciate industry,\u201d said Nelda Martinez, the city\u2019s mayor at the time, at the meeting in 2015. \u201cWe depend on your growth, and we are proud of the partnership we have, and I look forward to seeing this through.\u201d<\/p>\n<p>The city and industry team up<\/p>\n<p>By 2016, the industrial giants concluded it was too expensive to build their own desalination plant, Paulison said. They\u2019d have to build their own pipeline distribution system, and even then, they would still need a way to connect to the city\u2019s pipes as a backup.<\/p>\n<p>So the committee of energy and chemical companies and public officials began discussing a new strategy: The city would build the project and connect it to the existing municipal water supply, which already serviced the industrial giants.<\/p>\n<p>The advantages for the companies went beyond sharing the city\u2019s pipelines. Just a few years earlier, Texas voters had approved a plan to use billions of dollars to help finance new public water projects across the state. Building a public seawater desalination project, rather than a private one, would unlock access to cheap state loans.<\/p>\n<p>\u201cPublic ownership offers significant cost savings,\u201d Paulison told City Council members <a href=\"https:\/\/corpuschristi.legistar.com\/View.ashx?M=F&amp;ID=4254031&amp;GUID=C2BB62C2-7527-48F4-85BB-12F4ADD0D045\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">in February 2016<\/a>.<\/p>\n<p>He added that the committee was working to accomplish the project at no cost to the city\u2019s 317,000 residents, acknowledging, \u201cThat is a very difficult proposition.\u201d<\/p>\n<p>A few months later, Araiza, then an associate professor at Texas A&amp;M University-Corpus Christi, learned about the plan and attended a council meeting to offer her critique.<\/p>\n<p>    <img decoding=\"async\" class=\"Image\" alt=\"Isabel Araiza, a college professor and activist in Corpus Christi, first learned about plans for a seawater desalination plant in 2016 and has fought against them ever since. She is now running for City Council.\"  width=\"880\" height=\"587\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/10\/1791802233_449_.jpeg\"\/><\/p>\n<p>Jon Shapley<\/p>\n<p>\/<\/p>\n<p>Inside Climate News<\/p>\n<p>Isabel Araiza, a college professor and activist in Corpus Christi, first learned about plans for a seawater desalination plant in 2016 and has fought against them ever since. She is now running for City Council. <\/p>\n<p>\u201cCorpus Christi wants to sponsor a water desalination plant,\u201d she told City Council on <a href=\"https:\/\/corpuschristi.legistar.com\/MeetingDetail.aspx?ID=490476&amp;GUID=1F6FA69C-28D2-4B5E-AAE2-AA92C5C2BC0D&amp;Options=info%7C&amp;Search=araiza\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">July 19, 2016<\/a>. \u201cWhile private industry is set to be responsible for the majority of the growth in water consumption, the city seeks to use the public\u2019s resources.\u201d<\/p>\n<p>Almost a year later, the question of whether \u2014 or how much \u2014 the public would have to pay for the plant hadn\u2019t been resolved. But the clock was ticking. \u201cIndustry requires a non-interruptible water supply,\u201d said <a href=\"https:\/\/www.documentcloud.org\/documents\/28522011-2017413-meeting-minutes-bob-paulison-desalination-workshop\/\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">meeting minutes<\/a> from a workshop Paulison gave on desalination in 2017. \u201cTiming is critical.\u201d<\/p>\n<p>Nevertheless, industrial growth was well underway. <a href=\"https:\/\/www.houstonchronicle.com\/business\/energy\/article\/Occidental-s-massive-petrochemical-plant-comes-10976995.php\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">Big expansion projects<\/a> had come online at OxyChem, Valero, and Flint Hills Resources. And <a href=\"https:\/\/www.documentcloud.org\/documents\/28522010-201713-agenda-memo-exxon-sabic-gcgv\/\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">Corpus Christi was still courting<\/a> a new ExxonMobil plastics plant that would eventually become the largest water user in the region.<\/p>\n<p>That summer, the city received its <a href=\"https:\/\/www.documentcloud.org\/documents\/28513562-financing-agreement\/\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">first $2.7 million state loan<\/a> for the desalination project. It used the funds to pay Texas-based engineering firm <a href=\"https:\/\/www.documentcloud.org\/documents\/28513560-contract-msa-seawater-desalination\/\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">Freese and Nichols<\/a> to assemble a team of international experts on seawater desalination, study potential sites for the plant, and prepare permit applications.<\/p>\n<p><a href=\"https:\/\/corpuschristi.legistar.com\/LegislationDetail.aspx?ID=3184380&amp;GUID=D20EAD42-11B6-42A3-8292-9E564BC615AF&amp;Options=ID%7CText%7C&amp;Search=Appropriating+Utility+Revenue+Improvement+Bond+Funds\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">During a City Council meeting in October<\/a>, members pointed out that there was still no plan to pay back that loan without charging the city\u2019s residents.<\/p>\n<p>\u201cI understand that industry needs water,\u201d said Council Member Carolyn Vaughn. \u201cI want to see a plan to pay this loan back.\u201d<\/p>\n<p>McComb, who by then had been elected as the city\u2019s mayor, said he was confident the large industrial users would agree to foot the bill. In the coming weeks, he said, city officials planned to \u201cmeet with industry folks to see what works best for them.\u201d<\/p>\n<p>Rick Ritter, the plant manager for OxyChem in Corpus Christi, the region\u2019s second largest water user at the time, told council members he was on board.<\/p>\n<p>\u201cI could almost build my own desal plant,\u201d he said. \u201cBut we prefer a regional approach.\u201d<\/p>\n<p>Industry agrees to foot the bill, but the bill goes up\u00a0<\/p>\n<p>In July 2018, the committee of industry giants and their city and port partners were finally ready to unveil their plan to pay for Corpus Christi\u2019s \u201cdrought proof\u201d water-supply project.<\/p>\n<p>They proposed amending Corpus Christi\u2019s drought-contingency plan, or procedures the city could turn to when water supplies ran low. The procedures allowed the city to compel conservation by imposing fines called drought surcharges. The fines could increase the water rates for some users, including refineries and petrochemical plants, by more than 100%.<\/p>\n<p>Under the proposed amendment, those large industrial water users would be exempt from such fines if they agreed to an immediate water-rate hike of about 8%. The rate hike was called the drought surcharge exemption fee, and it would be used to pay off loans the city would take out to build the desalination plant.<\/p>\n<p>\u201cIt\u2019s obviously very important to our business, the long-term assured availability of water,\u201d said Roger TenNapel, a development manager for Flint Hills Resources, during the 2018 City Council meeting where the drought surcharge exemption fee was unveiled. He said he was speaking on behalf of the region\u2019s five largest water users.<\/p>\n<p>    <img decoding=\"async\" class=\"Image\" alt=\"Train cars sit on the tracks next to a Valero facility in Corpus Christi.\"  width=\"880\" height=\"587\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/10\/1791802234_522_.jpeg\"\/><\/p>\n<p>Jon Shapley<\/p>\n<p>\/<\/p>\n<p>Inside Climate News<\/p>\n<p>Train cars sit on the tracks next to a Valero facility in Corpus Christi.<\/p>\n<p>He added, \u201cThe city is committing to take care of that concern, so we can focus on keeping our businesses running well without worrying about water availability.\u201d <\/p>\n<p>City Council voted unanimously to adopt the fee.<\/p>\n<p>McComb, the mayor, called it \u201ca giant step for the city.\u201d Esteban Ramos, the city\u2019s water-resource developer, also called it a \u201cgreat event,\u201d adding, \u201cThis will be the funding source for our future water supply.\u201d<\/p>\n<p>            This will be the funding source for our future water supply.<\/p>\n<p>Esteban Ramos, former water resource manager for Corpus Christi, in 2018<\/p>\n<p>By 2019, city leaders decided the money would go specifically toward building a seawater desalination plant in a place called the Inner Harbor, on a 14-acre tract in the historic heart of Corpus Christi.<\/p>\n<p>In August, Assistant City Manager Van Vleck told City Council members that a desalination plant producing 10 million gallons of water a day (MGD) would cost $140 million. The new water fees collected from the industrial giants could cover payments on loans for that amount, he said, especially with low interest rates from the state.<\/p>\n<p>Van Vleck said the project needed to be ready by early 2023. That\u2019s when the region\u2019s water demands would experience a \u201cmajor jump,\u201d he explained, due to the opening of the new ExxonMobil plastics facility.<\/p>\n<p>He said the footprint of the desalination plant would be large enough for the city to later expand the facility, at additional cost, to produce up to 30 MGD.<\/p>\n<p>The council unanimously agreed to move forward. They directed city staff to prepare applications for more state loans to build the desalination plant.<\/p>\n<p>\u201cI think it&#8217;s just a great plan,\u201d said council member Greg Smith.<\/p>\n<p>Van Vleck resigned at the end of 2019 following a disagreement over an unrelated infrastructure project. Still, he thought he had set the city up for success.<\/p>\n<p>\u201cWe were on track to make that happen when I left,\u201d he said of the desalination plant in an interview.<\/p>\n<p>But in early 2020, city officials updated the plan.<\/p>\n<p>\u201cThe region really realized that 10 MGD was not going to be enough,\u201d said Peter Zanoni, who became Corpus Christi\u2019s city manager in 2019, in an interview.<\/p>\n<p>In February, city staff told council members they now wanted to build a plant producing 20 million gallons of water a day, not 10. And they said it would cost $220 million, not $140 million.<\/p>\n<p>\u201cThis is a substantial increase,\u201d Gil Hernandez, who was serving his first term on City Council, said at the meeting. \u201cThe surcharge that we\u2019re getting from industry would not cover the cost.\u201d<\/p>\n<p>    <img decoding=\"async\" class=\"Image\" alt=\"Corpus Christi City Council member Gil Hernandez has been a longtime skeptic of the seawater desalination project the city planned to build with the help of industry funding. He is now running for mayor.\"  width=\"880\" height=\"660\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/10\/1791802235_976_.jpeg\"\/><\/p>\n<p>Spencer Cihak<\/p>\n<p>\/<\/p>\n<p>KEDT News<\/p>\n<p>Corpus Christi City Council member Gil Hernandez has been a longtime skeptic of the seawater desalination project the city planned to build with the help of industry funding. He is now running for mayor. <\/p>\n<p>The drought surcharge exemption fee would cover two-thirds of the loan payments, rather than the full amount, <a href=\"https:\/\/www.documentcloud.org\/documents\/28513754-agenda-memo-resolution-for-twdb-swift-2-loan-app-for-desal-plant-apr20\/\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">city staff wrote in a memo at the time<\/a>. Residential rate payers would be on the hook for the rest.<\/p>\n<p>City Council members agreed to move forward with the project by <a href=\"https:\/\/corpuschristi.legistar.com\/View.ashx?M=F&amp;ID=8245042&amp;GUID=A7A35EEC-6926-4FAB-AA9C-4306A1C78725\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">applying for a $222 million state loan<\/a> in the spring of 2020.<\/p>\n<p>Hernandez cast the only vote against the application. He said the city should compare prices with other potential water-supply projects.<\/p>\n<p>\u201cI\u2019m not against desal,\u201d he said at the City Council meeting when the loan application was approved. \u201cBut I have some issues with not getting any other information on alternatives.\u201d<\/p>\n<p>Paulison said he was not involved in the city\u2019s decision to pursue a larger, more expensive project, and he doesn\u2019t know why it happened. He added that by this point, the companies who\u2019d originally proposed the desalination plant and agreed to help fund it were not nearly as involved in the execution of the plan as they had been originally.<\/p>\n<p>\u201cThe dynamic changed,\u201d he said. \u201cThe communication was just never the same as it had been before.\u201d<\/p>\n<p>The plan is \u2018stuck\u2019<\/p>\n<p>The city had hoped to break ground on the desalination plant in 2021, but the year came and went with no real progress.<\/p>\n<p>\u201cThe process is sort of stuck,\u201d said the city\u2019s new water department head, Mike Murphy, at a City Council workshop on desalination that summer.<\/p>\n<p>The coronavirus pandemic had shut down the country and much of the world, disrupting global supply chains and the normal functioning of government. Another drought was also beginning to set in, eventually becoming the worst in the city\u2019s history.<\/p>\n<p>In late 2021, ExxonMobil\u2019s new plastics plant came online. It is now the region\u2019s largest overall water user, though Paulison pointed out it uses about half the water it was expected to when the venture was first announced. <\/p>\n<p>\u201cThey engineered in significant amounts of efficiency,\u201d Paulison said of ExxonMobil. \u201cAnd then they achieved it.\u201d<\/p>\n<p>A spokesperson for ExxonMobil declined to comment for this story. <\/p>\n<p>ExxonMobil\u2019s expansion highlighted the increasingly urgent need to move the desalination project forward, City Manager Zanoni said, because the city had signed a contract with the company years earlier promising to provide it with massive amounts of water.<\/p>\n<p>If the city didn\u2019t deliver, he said, \u201cExxon can hold up this contract and say, you know, you owe us this water.\u201d<\/p>\n<p>But opposition to the desalination project was growing. Activists were showing up to public meetings to denounce its high costs and potential environmental impacts on Corpus Christi Bay, where it would be withdrawing massive amounts of seawater and then dumping back concentrated brine.<\/p>\n<p>    <img decoding=\"async\" class=\"Image\" alt=\"Seagulls fly over Corpus Christi Bay.\"  width=\"880\" height=\"587\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/10\/1791802236_504_.jpeg\"\/><\/p>\n<p>Jon Shapley<\/p>\n<p>\/<\/p>\n<p>Inside Climate News<\/p>\n<p>Seagulls fly over Corpus Christi Bay. <\/p>\n<p>More City Council members began to show interest in competing water-supply projects that other companies were pitching, even though large state loans the city had received could only be used to build a desalination plant in the Inner Harbor.<\/p>\n<p>\u201cWe\u2019ve got to have options. It can\u2019t just be us taking all the responsibility and absorbing it all and taking all the risk ourselves,\u201d Hernandez said <a href=\"https:\/\/corpuschristi.legistar.com\/LegislationDetail.aspx?ID=5034473&amp;GUID=D18EB4F5-27A6-4C86-B1CB-F09FA69FD16E&amp;Options=ID%7CText%7C&amp;Search=desalination\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">during a council meeting in 2021<\/a>.<\/p>\n<p>The change in opinions reflects the difficulty local governments face building massive infrastructure project. Corpus Christi\u2019s mayor and eight City Council members all must run for re-election every two years, and bureaucrats running the city and its water department were also constantly changing. Many of the city leaders who\u2019d championed the desalination project years earlier were gone.<\/p>\n<p>The state was also standing in the way. By 2022, regulators at the Texas Commission on Environmental Quality (TCEQ) still had not signed off on permits for the project. The agency did not respond to requests for comment for this story.<\/p>\n<p>Drought sets in and opposition grows<\/p>\n<p>By 2023, Corpus Christi\u2019s reservoir levels appeared on track to hit 30%. If that happened, City Council members could implement drought surcharges \u2014 steep fines on water usage \u2014 to compel conservation.<\/p>\n<p>Murphy, of the water department, acknowledged the city had never done that before.<\/p>\n<p>\u201cHistorically speaking, it\u2019s never happened,\u201d he told council.<\/p>\n<p>Surcharges would likely be controversial. They would increase costs for residents and small businesses, but practically all the largest industrial users wouldn\u2019t have to pay them. Those users were paying the drought surcharge exemption fee that city leaders had put in place in 2018.<\/p>\n<p>Murphy apparently considered recommending doing away with the exemption, according to a draft version of a presentation he was set to make to City Council in January 2023. The draft, <a href=\"https:\/\/corpuschristi.legistar.com\/View.ashx?M=F&amp;ID=11595526&amp;GUID=41D626B4-3C34-4562-BB27-84DD1F359E4A\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">posted on the city\u2019s website<\/a>, suggested \u201cintroducing surcharges for large water users\u201d and \u201cremoving surcharges for residential customers.\u201d<\/p>\n<p>    <img decoding=\"async\" class=\"Image\" alt=\"\"  width=\"880\" height=\"729\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/10\/1791802237_180_.png\"\/><\/p>\n<p>However, that language did not appear on slides <a href=\"https:\/\/corpuschristi.legistar.com\/LegislationDetail.aspx?ID=6004386&amp;GUID=DFBF1F47-B613-4ADE-A9C9-DC3A02362915&amp;Options=Attachments%7C&amp;Search=%22drought+surcharge+exemption+fee%22\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">ultimately displayed to City Council<\/a>.<\/p>\n<p>Murphy resigned in 2023. Now the director of water utilities for the city of Kyle, he did not respond to requests for comment.<\/p>\n<p>As drought conditions worsened, city leaders continued to discuss the possibility of surcharges for residents and businesses, but not for the industrial users. In July 2023, For the Greater Good, Araiza\u2019s group, began circulating a petition calling for a repeal of the drought surcharge exemption fee.<\/p>\n<p>\u201cIt\u2019s residential users who face restrictions on their water usage, potentially doubled bills, and even having their water shut off,\u201d <a href=\"https:\/\/www.change.org\/p\/endtheexemptioncc\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">the petition\u2019s webpage says<\/a>. \u201cMeanwhile, large volume water users can pay a fee to opt out of these restrictions and continue using as much water as they please.\u201d<\/p>\n<p>Paulison, head of the industry trade group, attended a City Council meeting later that year to defend the companies and the plan they had come up with alongside the city half a decade earlier.<\/p>\n<p>The drought surcharge exemption fee, he said, was \u201cmisunderstood and recently much aligned.<\/p>\n<p>\u201cAt the time it was adopted it was considered new and a good deal and a game changer,\u201d he said.<\/p>\n<p>But the fee was originally meant to cover the cost of a plant that would produce 10 million gallons per day. By January 2024, city officials wanted to triple its size to keep up with industry growth and other demands. Its estimated cost by then, driven up further by rapid inflation, was $757 million.<\/p>\n<p>The city would have to spend about $68 million a year to cover debt service for such a project, officials later estimated. The money coming from the fee only averaged about $6 million a year.<\/p>\n<p>The city would need to increase water rates to help make up the difference.<\/p>\n<p>\u201cEveryone pays for this new water supply because it\u2019s fair, it\u2019s right and everyone is in this together,\u201d Drew Molly, then the head of the city\u2019s water department, told council members <a href=\"https:\/\/www.youtube.com\/watch?v=ESsGsBXUoec\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">during a January 2024 meeting<\/a>.<\/p>\n<p>He added that the city chose to build a larger plant in order to meet residential water demand, not just industrial demand: \u201cThe notion here that this is not for the residents is just a false narrative.\u201d<\/p>\n<p>            Everyone pays for this new water supply because it\u2019s fair, it\u2019s right and everyone is in this together. <\/p>\n<p>Drew Molly, Chief Operating Officer of Corpus Christi Water, in 2024 <\/p>\n<p>City Council <a href=\"https:\/\/www.documentcloud.org\/documents\/28565889-24-0073-agenda-memo-freese-and-nichols-msa-amendment-2\/\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">approved big spending<\/a> to advance the project, including $14 million for consultants and $3 million to build an electrical substation that would power the desalination plant.<\/p>\n<p>They also agreed to apply for yet another loan from the state, for $535 million. It would be one of the largest financing packages that Texas had ever awarded a water-supply project. <\/p>\n<p>\u201cWe\u2019ve been working on this for 10 years,\u201d Paulison told City Council members. \u201cIt\u2019s really time at this point to move forward.\u201d<\/p>\n<p>Still, opposition to the project continued to grow. At a public meeting held by state environmental regulators in April 2024, more than 100 activists <a href=\"https:\/\/www.facebook.com\/photo\/?fbid=10161308784197040&amp;set=g.135486736862873\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">marched with signs<\/a> and delivered almost three hours of comments to officials.<\/p>\n<p>    <img decoding=\"async\" class=\"Image\" alt=\"Protesters rallied at a public meeting about a desalination project in Corpus Christi on April 19, 2024.\"  width=\"880\" height=\"587\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/10\/1791802237_45_.jpeg\"\/><\/p>\n<p>Image Courtesy of Hayford Osei<\/p>\n<p>Protesters rallied at a public meeting about a desalination project in Corpus Christi on April 19, 2024. <\/p>\n<p>They called the project a \u201cscam,\u201d funded by the city for the benefit of wealthy corporations, and insisted that it would cause ecological damage to Corpus Christi Bay.<\/p>\n<p>\u201cWe\u2019re not going away,\u201d Araiza said into a microphone. \u201cWe\u2019re growing our civic engagement. You can\u2019t stop us. The movement is building. We will win.\u201d<\/p>\n<p>Cheers erupted while the meeting moderator yelled, \u201cOrder! Order!\u201d<\/p>\n<p>Reservoir levels later dipped below 20%, prompting the city to intensify restrictions for residents. Lawnwatering and carwashing, two of the biggest drivers of residential water usage, were largely banned. But the city never implemented surcharges.<\/p>\n<p>As critics like Araiza had been pointing out, such fees would make little sense if industrial users were exempt. Whatever additional conservation the surcharges could achieve from residents would be minimal compared to the amount of water the industrial giants were guzzling.<\/p>\n<p>\u2018The rubber meets the road here\u2019<\/p>\n<p>A new City Council took office in 2025, dominated by skeptics of the desalination project from across the political spectrum. They wanted the city to evaluate the costs of other potential water sources, like drilling water wells.<\/p>\n<p>But calling off the project would mean abandoning the permits the city had worked for years to acquire, along with canceling the $757 million financing agreement with the state.<\/p>\n<p>\u201cThe decision has been made,\u201d Paulette Guajardo, the mayor at the time, said in a <a href=\"https:\/\/corpuschristi.legistar.com\/MeetingDetail.aspx?ID=1294725&amp;GUID=E2A30C28-FF3A-4813-9F1F-3826C5915504&amp;Options=info%7C&amp;Search=#\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">May 2025 City Council meeting<\/a>. \u201cThis is a decade old!\u201d<\/p>\n<p>Yet the costs kept rising. In July, the contractor the city had hired to build the plant told council members it had an <a href=\"https:\/\/corpuschristi.granicus.com\/player\/clip\/2086?view_id=2&amp;meta_id=428452&amp;redirect=true\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">estimated price tag of $1.2 billion<\/a>.<\/p>\n<p>\u201cWhere are we going to get the money?\u201d asked Vaughn. Zanoni replied that the city could seek more loans from the state.<\/p>\n<p>Guajardo urged her colleagues to move forward.<\/p>\n<p>\u201cThis is a once-in-a-lifetime project for this council,\u201d she said. \u201cThe council before had a piece in it, and before that. The rubber meets the road here.\u201d<\/p>\n<p>            Where are we going to get the money?<\/p>\n<p>Corpus Christi City Council member Carolyn Vaughn in 2025<\/p>\n<p>In September, during a <a href=\"https:\/\/www.expressnews.com\/business\/article\/corpus-christi-desalination-drought-industry-21029890.php\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">rancorous 13-hour meeting<\/a>, business leaders and representatives of industrial giants warned of mass layoffs in the industrial sector if the city did not stay the course. Activists showed up in force to protest the project and rail against the big companies\u2019 exemption from water restrictions.<\/p>\n<p>Paulison again offered testimony in their defense.<\/p>\n<p>\u201cThey contribute to the water system now, they have been investing in it for decades in most cases, and they will continue to pay their appropriate share,\u201d he said, appearing visibly frustrated.<\/p>\n<p>    <img decoding=\"async\" class=\"Image\" alt=\"Bob Paulison, executive director of the Coastal Bend Industry Association, urges Corpus Christi City Council members to build the seawater desalination plant during a meeting in the fall of 2025.\"  width=\"880\" height=\"572\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/10\/1791802238_541_.png\"\/><\/p>\n<p> Corpus Christi City Council Meeting Video<\/p>\n<p> Bob Paulison, executive director of the Coastal Bend Industry Association, urges Corpus Christi City Council members to build the seawater desalination plant during a meeting in the fall of 2025. <\/p>\n<p>But at the end of the meeting, council members dealt a major blow to the plan conceived of years earlier to help make Corpus Christi \u201cdrought proof.\u201d They fired the contractor that was supposed to build the desalination plant.<\/p>\n<p>\u201cWe must choose options that are more affordable,\u201d Vaughn said.<\/p>\n<p>It\u2019s unclear if any such options exist. Over the next few months, as reservoir levels dwindled even further, council members approved spending more than $1 billion on seven water supply projects, most involving pumping groundwater.<\/p>\n<p>At the same time, it became more expensive for Corpus Christi to borrow money after credit ratings agencies downgraded their outlooks for the city based on worries of water depletion.<\/p>\n<p>The city began laying pipes and drilling wells even <a href=\"https:\/\/www.tpr.org\/environment\/2026-03-21\/corpus-christi-cuts-timeline-to-disaster-as-abbott-issues-emergency-orders\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">before it had secured permits<\/a> to operate them. The industrial users, including ExxonMobil and OxyChem, also sought permits to drill their own emergency wells, alongside the region\u2019s school and hospital districts.<\/p>\n<p>This past summer, as the city began to prepare for an imminent \u201c<a href=\"https:\/\/www.kut.org\/energy-environment\/2026-04-23\/corpus-christi-texas-water-emergency-crisis-restrictions\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">water emergency<\/a>,\u201d officials spent hours debating cutting hours at public swimming pools, which collectively consume about 20,000 gallons of water per day in the summer. <\/p>\n<p>Araiza and other activists were incensed that city officials still appeared unwilling to require cutbacks at facilities like ExxonMobil\u2019s plastics plant, which consumed 13.5 million gallons per day. They began collecting signatures for the Fair Water Amendment, which would repeal the drought surcharge exemption fee. They hired canvassers, bought ads in local media and knocked on doors. They gathered nearly 13,000 signatures \u2014 more than enough to qualify for November\u2019s ballot.<\/p>\n<p>\u2018No resident should ever have to be put through this again\u2019<\/p>\n<p>In July, epic rainstorms hit the upper Nueces River Basin, which supplies Corpus Christi\u2019s main reservoirs. For three days, the river <a href=\"https:\/\/insideclimatenews.org\/news\/17072026\/texas-precipitation-models-underestimate-risk\/\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">flowed with more water<\/a> than Niagara Falls. Soon, reservoir levels had <a href=\"https:\/\/www.kedt.org\/texas-news\/2026-08-27\/corpus-christi-withholds-water-to-wetlands-while-lifting-restrictions-on-lawns\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">climbed past 40 percent<\/a>.<\/p>\n<p>But there\u2019s no telling how long the reservoirs will hold or when the next drought will hit, and the city\u2019s scramble for alternative water-supply projects has had minimal success.<\/p>\n<p>In September, Corpus Christi city staff presented elected officials with a proposal for a different contractor to build the desalination plant at a slightly lower cost. They emphasized that abandoning the project altogether would also cost money.<\/p>\n<p>The city would have to return $235 million it has already borrowed from the state, $50 million of which has already been spent, along with another $70 million in interest costs. That could further damage its credit rating, making it far more difficult to get loans in the future.<\/p>\n<p>\u201cThat\u2019s going to be a painful experience if the state of Texas calls our notes due,\u201d said City Council Member Mark Scott, who had long been a champion of the project. \u201cI think we are dangerously close.\u201d<\/p>\n<p>Nevertheless, the council <a href=\"https:\/\/www.texastribune.org\/2026\/09\/01\/corpus-christi-water-desalination-plant-city-council-vote-texas\/\" class=\"Link\" target=\"_blank\" rel=\"nofollow noopener\">voted to reject the proposal<\/a>.<\/p>\n<p>    <img decoding=\"async\" class=\"Image\" alt=\"A Corpus Christi City Council meeting. \"  width=\"880\" height=\"587\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/10\/1791802239_661_.jpeg\"\/><\/p>\n<p>Blaine Young<\/p>\n<p>\/<\/p>\n<p>The Texas Tribune<\/p>\n<p>A community member expresses opposition to the plan to build a desalination plant during a meeting of the Corpus Christi City Council on June 2, 2026. <\/p>\n<p>\u201cOnce again, the people are being told to carry the bill while industry stands to make the money,\u201d said City Council Member Eric Cantu, referring to industrial expansion that would be enabled by the new water project. \u201cI\u2019m not going along with it.\u201d<\/p>\n<p>The project isn\u2019t dead yet, its supporters insist. With water at the center of the political conversation and every seat on City Council up for election in November, supporters of the desalination project are hopeful that a new slate of city officials may have a more favorable view of the project when they take office in January.<\/p>\n<p>Zanoni said neither the city of Corpus Christi nor the state of Texas are fully equipped to handle such a project. He said the federal government needs to step in to make sure it happens by providing funding and \u201cto demand that things get done.\u201d<\/p>\n<p>\u201cIf America wants us to be a leader in energy production and export, and if we want this to be a great country, there has to be some intervention,\u201d he said.<\/p>\n<p>He added, \u201cNo city manager, no city council, no resident should ever have to be put through this again.\u201d<\/p>\n<p>This story was produced in partnership by Inside Climate News and The Texas Newsroom, a collaboration among the state&#8217;s public radio stations.<\/p>\n","protected":false},"excerpt":{"rendered":"Eight years ago, at the height of the shale-oil boom, a committee of industry giants and public officials&hellip;\n","protected":false},"author":2,"featured_media":463629,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[155,157,156,79082,470,4535,6786,27,410],"class_list":["post-463628","post","type-post","status-publish","format-standard","has-post-thumbnail","category-corpus-christi","tag-corpus-christi","tag-corpus-christi-headlines","tag-corpus-christi-news","tag-corpus-christi-tx","tag-drought","tag-industry","tag-oil-and-gas","tag-texas","tag-water"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/463628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/comments?post=463628"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/463628\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media\/463629"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media?parent=463628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/categories?post=463628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/tags?post=463628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}