BPUB takes no action on proposed SpaceX agreement


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A photographer prepares to take photos of SpaceX’s mega rocket Starship as it is prepared for a test flight from Starbase in Boca Chica, Texas, Wednesday, March 13, 2024. (AP Photo/Eric Gay)

BROWNSVILLE – The Public Utilities Board of Directors here took no action Thursday on closed meeting agenda items that included a proposed agreement with SpaceX.

During the special meeting, board members spent about two hours in a closed session on two issues, one of which was “Consideration and Possible Action on a proposal for an Agreement regarding SpaceX.” The other item was related to the position of director of Internal Audit.

Board of Directors Chair Gerardo Martinez deferred questions about the potential SpaceX agreement to a BPUB spokesperson. Officials typically do not share details about closed meeting agenda items.

The special meeting came two days before the Brownsville City Commission’s Saturday special meeting on an ordinance to disannex more than 444 acres of city property at the request of SpaceX, which the city said in a news release has proposed a “long-term regional water solution.”

Alexa Perez, BPUB’s division manager for Communications and Marketing, told The Herald that Thursday was the first time the proposed SpaceX agreement was on a board meeting agenda.

While she could not divulge information about the SpaceX proposal, she said BPUB is obliged to provide service to any customer that falls within its certified water service territory. That includes SpaceX.

“Any commercial customer that wants to grow their infrastructure, they are in charge of their own development,” Perez explained, adding that each industrial customer’s water needs are different. “(BPUB typically will) check if we can meet those needs, we can meet that demand, check out the infrastructure that they will need on the water and service side. It’s different from case to case.”

Perez later gave more detail via email, explaining that BPUB regulates how off-site waterline extensions are designed and that customers who want new electric service must cover the infrastructure costs associated with extending service.

“Generally speaking, BPUB has established electric and water/wastewater service policies that outline how new development and significant customer expansions are served,” Perez said via email. “While we cannot discuss confidential information or pending agreements involving individual customers, we can provide information about the policies and processes that apply to customer growth and expansion.”

SpaceX will be at the center of another public meeting on Saturday, when city commissioners meet at City Hall at 4 p.m. to vote on the second reading of an ordinance that would voluntary disannex of 444 acres of land in Cameron County located along South Connector Road, just east of the city’s landfill.

The drafted ordinance, which was available on the city’s Agendas and Minutes webpage as of Friday, outlines the boundaries of the property that would be disannexed if commissioners approved and agreed that “it would be advantageous and beneficial to Brownsville and its citizens and the Landowner to disannex the Property.”

In a Monday news release about the first reading of the ordinance during an Aug. 21 special meeting, the city said that SpaceX plans to expand its operations closer to the Port of Brownsville and “based on the current lack of City services to the property.”

“As part of broader discussions surrounding future infrastructure and regional growth, SpaceX is currently negotiating a significant financial investment toward the advancement of a long-term regional water solution,” the news release said. “If fully developed as contemplated, the project is anticipated to substantially increase regional potable water production capacity, with the potential to approximately double current capacity and provide additional water resources for Brownsville at the surrounding communities.”

It named the Southmost Regional Water Authority, “in which the Brownsville Public Utilities Board is the principal shareholder,” as part of discussions.

The City Commission special meeting will take place in the commission chambers on the second floor of Brownsville City Hall, located at 1001 East Elizabeth St. People can also attend digitally through Microsoft Teams by logging in here. The meeting ID is 296 875 030 103 201, and the password is “qn6EL6Fc” (without the quotation marks).



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