BILL ANALYSIS C.S.H.B. 1783 By: Yarbrough (Whitmire) Intergovernmental Relations 05-17-95 Senate Committee Report (Substituted) BACKGROUND Investor-owned public utilities are required to pay a fee to use county road easements while municipal utility districts, cities, and gas companies are not required to pay a fee. The Texas Natural Resource Conservation Commission is actively promoting regionalization through combining utilities or stimulating growth of existing utilities in all areas of Texas. One of the potential barriers to the formation of large sewer utilities is the fees mandated by counties. Various investor-owned public utilities are proposing to extend sewer service into areas that at present are being served by failing septic tanks. An assessment of a fee for installing sewer lines means that the additional cost will be passed on to new customers. Some customers might choose not to connect because of the price. PURPOSE As proposed, C.S.H.B. 1783 prohibits a county with a population of more than 2.8 million from charging a water and sewer utility for the installation or replacement of a water or sewer line in the county's right-of-way. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to a retail public utility that provides water service under SECTION 2 (Chapter 13O, Water Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 13G, Water Code, by adding Section 13.256, as follows: Sec. 13.256. COUNTY FEE. (a) Prohibits a county with a population of more than 2.8 million from charging a water and sewer utility a fee for the privilege of installing or replacing a water or sewer line in the county's right-of-way, notwithstanding any other provision of law. (b) Provides that this section does not affect a franchise agreement or other contract entered into before September 1, 1995. SECTION 2. Amends Chapter 13, Water Code, by adding Subchapter O, as follows: SUBCHAPTER O. NON-COMSUMPTIVE WATER SERVICE FEE. (a) Authorizes a retail public utility to provide non-competitive water service for the operation of a geothermal heat pump that circulates the water in a closed loop and returns it to the water main. (b) Authorizes a retail public utility that provides water service to adopt reasonable rules and procedures for the installation, operation, and removal of a geothermal heat pump. (c) Authorizes a retail public utility that provides water service to a geothermal heat pump to charge a reasonable fee for the installation, inspection, and operation of the heat pump. SECTION 3. Effective date: September 1, 1995. SECTION 4. Emergency clause.