BILL ANALYSIS

Senate Research Center	H.B. 3232
88R5984 JXC-F	By: Rogers (Perry)
	Water, Agriculture & Rural Affairs
	5/17/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Currently, if a water or wastewater utility other than a municipality or a county absorbs another system noncompliant with health, safety, or environmental protection requirements, those regulatory liabilities transfer to the absorbing utility. This serves as a regulatory disincentive for larger or well-run utilities to absorb other utilities that have noncompliance challenges. H.B. 3232 authorizes the Texas Commission on Environmental Quality to enter into a compliance agreement with a regional service regarding the integration of a water supply, sewer, or wastewater treatment service operated by certain retail public utilities.

H.B. 3232 amends current law relating to the suspension of an enforcement action against a regional water supply, sewer, or wastewater treatment service for a violation committed by a retail public utility being integrated into the regional service.

[Note: While the statutory reference in this bill is to the Texas Natural Resource Conservation Commission (TNRCC), the following amendments affect the Texas Commission on Environmental Quality, as the successor agency to TNRCC.]

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Commission on Environmental Quality in SECTION 2 of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 7.0026, Water Code, as follows:

Sec. 7.0026.� SUSPENSION OF ENFORCEMENT ACTION AGAINST CERTAIN REGIONAL WATER, SEWER, OR SOLID WASTE SERVICES.� (a) Defines "retail public utility."

(b)� Creates this subsection from existing text.

(c) Authorizes the Texas Natural Resource Conservation Commission (TNRCC), if a water supply, sewer, or wastewater treatment service operated by a retail public utility, other than a municipality or county, is being integrated into a regional water supply, sewer, or wastewater treatment service administered by another entity, to enter into a compliance agreement with the regional service under which TNRCC will not initiate an enforcement action against the regional service for existing or anticipated violations resulting from the operation by the regional service of the service being integrated. Requires that a compliance agreement under this section include provisions necessary to bring the service being integrated into compliance.

(d) Provides that this section does not prohibit TNRCC from initiating an enforcement action against a regional service that is a party to a compliance agreement if the regional service does not substantially comply with the agreement.

SECTION 2. �Requires the Texas Commission on Environmental Quality, not later than December 1, 2023,� to adopt rules as necessary to implement Section 7.0026(c), Water Code, as added by this Act.

SECTION 3. Effective date: September 1, 2023.