Chairman Harris, Vice Chairman Martinez, and members. Thank you for the opportunity to testify today. My name is Jesse Hereford, and I represented the North American Development Bank, or NADBank.
We appreciate the Legislature’s leadership in addressing Texas's growing water and wastewater infrastructure needs, and the opportunity to discuss how these regional collaborations can help communities with their challenges.
I also want to give a shoutout to Marvin (????) from the Texas Water Development Board on the leveraging and co-financing of irrigation districts. We're really excited about that. Marvin, thank you.
Some of you might not know who NADBank is. I know the border Reps do. We're a binational financial institution. We're owned and operated in equal parts by the U.S. and Mexican federal governments. Our mission is to finance and to develop and finance environmental infrastructure, including water projects that improve public health, strengthen economic opportunity, and enhance the quality of life of residents on the border.
We're headquartered in San Antonio, Texas, and we provide loans, grants, technical assistance for infrastructure projects in water, solid waste, air quality, and energy infrastructure, among others.
During our 32-year history, we have financed more than 340 infrastructure projects along the border, representing more than 4.3 billion dollars in NADBank investment, and we've leveraged that to more than $12 billion in total infrastructure across the border. Collectively, these investments have benefited more than 21 million border residents.
Water infrastructure, though, remains a cornerstone of our portfolio. Of the 340 projects we financed, 225 have been water and wastewater projects. These projects account for nearly $1.6 billion in financing. The experience that we have gained through these projects provides us with a deep understanding of the challenges facing border communities.
In Texas alone, we finance more than 90 projects totaling approximately 1.13 billion dollars, and those investments have benefited an estimated 2.2 million border Texans. Those projects are concentrated here in Hidalgo, Cameron, and El Paso.
Regional solutions will be increasingly important to ensuring reliable and affordable water service. As we move to Senate Bill 1169, it created a framework that allows communities to voluntarily-and I stress the word voluntarily-collaborate on water and wastewater infrastructure while preserving local decision-making authority. The legislation provides participating entities with a structure for regional cooperation, financial oversight, and long-term planning.
Importantly, the framework enables communities to pursue larger regional projects that may be difficult or cost prohibitive for a single entity to undertake independently. By working together, communities can achieve economies of scale, improve system reliance and strengthen their ability to secure financing and grant funding.
We fully supported the implementation of Senate Bill 1169, and we even provided technical assistance to support local governments exploring the opportunities created by the new law. We awarded a grant that supports legal communication, stakeholder engagement, and implementation activities necessary to establish the regional utility structure. Through this effort, technical support was provided by the Water Finance Exchange and the Winstead Law Firm to assist the participating communities throughout their formation process.
As a result of our joint efforts, the cities of Weslaco, Mercedes, San Benito, and Raymondville came together to establish the Rio Grande Valley Public Utility Agency, or RGV PUA, which provided the collaborative regional framework that positions participating communities to better address their future water and wastewater needs.
Through this new opportunity they can now pursue grants, loans, and other financing for improving their long-term planning and coordination. It helps prepare the region to accommodate future population growth, economic development, and increasing water supplies.
Now, why does this matter? As this committee understands better than most, Texas communities are facing unprecedented pressures related to population growth, water availability, aging infrastructure, and affordability. Regional collaboration can help communities stretch limited resources further and accelerate critical infrastructure investments.
The PUA model provides another tool for local leaders seeking practical, locally-driven solutions to their water challenges.
In closing, NADBANK appreciates the legislature's commitment to providing innovative tools and flexible financial solutions for Texas communities. We believe the PUA framework can serve as a valuable model for regional cooperation, where local governments choose to participate. And we stand ready to continue to partner with communities across the Texas border to advance projects that improve water reliability, protect public health, support economic development, and strengthen long-term resilience in border communities. Thank you.
Editor’s Note: The above testimony was delivered by Jesse J. Hereford, director of institutional relations and communications for the North American Development Bank, at a hearing of the Texas House Committee on Natural Resources. The hearing took place at Weslaco City Hall on August. 24, 2026.
