HB 29 Introduced

Relating to water losses reported by certain municipally owned utilities to the Texas Water Development Board; authorizing administrative penalties. 

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A BILL TO BE ENTITLED

 

AN ACT

 

relating to water losses reported by certain municipally owned

 

utilities to the Texas Water Development Board; authorizing

 

administrative penalties.

 

       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 

       SECTION 1.  Subchapter B, Chapter 16, Water Code, is amended

 

by adding Section 16.0122 to read as follows:

 

       Sec. 16.0122.  WATER AUDIT VALIDATION BY CERTAIN MUNICIPALLY

 

OWNED UTILITIES. (a) In this section, “municipally owned utility”

 

has the meaning assigned by Section 13.002.

 

       (b)  This section applies only to a municipally owned utility

 

that provides potable water through more than 150,000 service

 

connections.

 

       (c)  A municipally owned utility that has filed an annual

 

water audit under Section 16.0121 with the board indicating that

 

the utility’s real water loss meets or exceeds the threshold

 

established by rule under Section 16.0121 shall:

 

             (1)  not later than the 180th day after the date the

 

audit was filed, complete a validation of the audit to ensure the

 

utility accurately assessed potential inaccuracies in data used in

 

the audit; and

 

             (2)  not later than the first anniversary of the date

 

the audit was filed, develop and submit to the board a water loss

 

mitigation plan.

 

       (d)  A municipally owned utility that has filed an annual

 

water audit under Section 16.0121 with the board indicating that

 

the utility’s real water loss meets or exceeds the threshold

 

established by rule under Section 16.0121 for three consecutive

 

audit years shall:

 

             (1)  complete a more detailed validation of the

 

utility’s most current water audit to:

 

                   (A)  determine whether the implementation of

 

water leakage reduction strategies is appropriate; and

 

                   (B)  investigate the accuracy of the utility’s

 

billing data; and 

 

             (2)  update the water loss mitigation plan developed by

 

the utility under Subsection (c)(2) accordingly.

 

       (e)  Each validation required under Subsection (c)(1) must

 

be performed by a person who has completed water audit validation

 

training and is certified to conduct the validation. The

 

validation: 

 

             (1)  must follow board validation guidelines; and

 

             (2)  may not be conducted by a board staff member or the

 

person who submitted the water audit. 

 

       (f)  Each water loss mitigation plan developed under

 

Subsection (c)(2), as updated under Subsection (d)(2), if

 

applicable, must be incorporated into the utility’s most recent

 

water conservation plan required under Section 13.146 not later

 

than the first anniversary of the date the mitigation plan is

 

completed. As part of the utility’s annual water conservation

 

report under Section 16.402(b), the utility shall report the

 

utility’s progress in implementing the mitigation plan. The

 

mitigation plan must include:

 

             (1)  one-year, three-year, five-year, and ten-year

 

goals for water loss mitigation;

 

             (2)  descriptions of water loss mitigation projects or

 

programs designed to meet those goals;

 

             (3)  estimated financial savings from the

 

implementation of the projects or programs under Subdivision (2);

 

             (4)  estimated water savings from the implementation of

 

the projects or programs under Subdivision (2); and

 

             (5)  cost estimates for implementing each project or

 

program under Subdivision (2).

 

       (g)  If the utility must complete a validation under

 

Subsection (d)(1), the utility shall update the water loss

 

mitigation plan developed by the utility under Subsection (c)(2) to

 

revise the utility’s one-year, three-year, five-year, and ten-year

 

goals.

 

       (h)  Each validation required under Subsection (d)(1) must

 

be performed by a person who is experienced in performing required

 

validation activities. The validation: 

 

             (1)  must be based on the recommendations from the

 

utility’s validation performed under Subsection (c)(1); 

 

             (2)  must be completed in consultation with the person

 

who completed the validation under Subsection (c)(1);

 

             (3)  must be conducted in accordance with industry

 

standards; and

 

             (4)  may not be conducted by a board staff member or the

 

person who submitted the water audit.

 

       (i)  The commission shall assess against a municipally owned

 

utility an administrative penalty of $25,000 for each violation of

 

this section.

 

       SECTION 2.  This Act takes effect immediately if it receives

 

a vote of two-thirds of all the members elected to each house, as

 

provided by Section 39, Article III, Texas Constitution.  If this

 

Act does not receive the vote necessary for immediate effect, this

 

Act takes effect September 1, 2025. 

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