By:  Puente                                                       H.B. No. 3338


A BILL TO BE ENTITLED
AN ACT
relating to requiring water rights applicants and holders, water utilities, and conservation and reclamation districts to adopt and implement certain water conservation measures. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS SECTION 1. Section 11.1271, Water Code, is amended by adding Subsections (d) and (e) as follows: (d) In addition to the above requirements of Subsections (a) and (b), a retail or wholesale water supplier shall include with the application a commitment to: (1) complete and submit to the Commission and the Board an annual water audit and performance indicators report, using the methodology developed by the International Water Association. The audit will be phased in over three years The audit shall be phased in over no longer than three years. If requested, a copy of the report shall be submitted to the commission and/or the board each year. A. At the end of years one and two, the utility shall complete a high level top down water loss report. Water loss shall be calculated using methodology developed by the International Water Association. B. At the end of year three, each utility shall complete, i. an adjusted water loss report based on the completion of a bottom-up audit at the end of the third year. The bottom-up audit shall include evaluation of meter accuracy, billing and account history, and operational records. ii. A summarized water loss report that includes a performance indicators report based on International Water Association methodology. iii. An analysis showing the utility has reduced leakage through a leakage reduction program to the economic level of leakage, which is defined as the level beyond which it is no longer cost-effective to the utility to finance additional leakage reduction; or a detailed plan and funding commitment to reduce leakage to the economic level of leakage within three years. (2) implementation and enforcement of regulations or ordinances prohibiting water waste by leaking of any kind or wasting of water during irrigation or car washing, cooling using misters or any type of spray evaporation, and once through cooling equipment such as ice makers, pumps, dental vacuum pumps, medical devices, etc.; and (3) adopt and enforce rules or ordinances requiring; A. compliance by any structure with plumbing fixtures with the plumbing standards in Chapter 372.002, Health and Safety Code: i. either by date certain, not later than January 1, or ii. at the time of sale of the structure, or B. retrofit of the plumbing fixtures before the water supplier provides or transfers service to a new customer. (e) The water conservation plan required by this section shall include a report to the commission and board on the number of plumbing fixtures, by building type, retrofitted each year. (f) If a person fails to comply with a provision of this chapter or a rule adopted by the commission under this chapter, the person may be assessed, in addition to other penalties, an administrative penalty set by the commission in an amount not to exceed $5,000 for each violation. SECTION 2. The heading to Section 13.136, Water Code is amended to read as follows: Sec. 13.136. FILING TARIFFS OF RATES, RULES, AND REGULATIONS; ANNUAL FINANCIAL REPORT; WATER AUDIT REPORT SECTION 3. Section 13.136 (d) is amended by adding Subsection (d) to read as follows: (d) A water supply corporation or water utility annually shall complete and submit to the commission and executive administrator of the Texas Water Development Board a water audit and performance indicators report, using methodology developed by the International Water Association as set out in Water Code Section 11.1271 (d)(1). (e) If a person fails to comply with a provision of this chapter or a rule adopted by the commission under this chapter, the person may be assessed, in addition to other penalties, an administrative penalty set by the commission in an amount not to exceed $5,000 for each violation. SECTION 4. Subchapter A, Chapter 15, Water Code is amended by adding Section 15.009 to read as follows: Sec. 15.009. WATER AUDIT AND PERFORMANCE INDICATORS REPORT; CONSERVATION REQUIREMENTS. An applicant for financial assistance under this chapter must submit with the application for financial assistance a commitment to: (1) complete and submit to the executive administrator a water audit and performance indicators report using the methodology developed by the International Water Association as described in 11.1271(d) (1). (2) adopt and enforce rules or ordinances requiring prohibiting water waste by leaking or wasting of water during irrigation, car washing, cooling by misters or any type of spray evaporation, and once through cooling equipment such as ice makers, pumps, dental vacuum pumps, medical devices, and (3) adopt and enforce rules requiring: (A) compliance by any structure with plumbing fixtures receiving or to receive service from the water utility with the plumbing standards in Chapter 372.002, Health and Safety Code. (i) by date certain, no later than January 1, 2006, or (ii) at the time of sale of the structure, or (B) by adopting water utility service rules and regulations requiring a retrofit of the plumbing fixtures before the water utility provides or transfers service to a new customer. (4) if a person fails to comply with a provision of this chapter or a rule adopted by the commission under this chapter, the person may be assessed, in addition to other penalties, an administrative penalty set by the commission in an amount not to exceed $5,000 for each violation. SECTION 5. Subchapter C, Chapter 16, Water Code is amended by adding Section 16.060 as follows: SECTION 16.060. WATER AUDIT AND PERFORMANCE INDICATORS REPORT; CONSERVATION REQUIREMENTS. Every retail and wholesale water utility shall comply with Water Code Section 11.1271 (b)(1)(a). (a) A retail or wholesale water utility shall complete and submit to the executive administrator a water audit and performance indicators report using the methodology developed by the International Water Association as described in 11.1271(d)(1). (b) A retail or wholesale water utility shall adopt and enforce rules or ordinances that: (1) prohibit water waste by leaking or wasting of water during irrigation, car washing, cooling by misters or any type of spray evaporation, and once through cooling equipment such as ice makers, pumps, dental vacuum pumps, medical devices, and (3) require; (A) compliance by any structure with plumbing fixtures receiving or to receive service from the water utility with the plumbing standards in Chapter 372.002, Health and Safety Code. (i) by date certain, no later than January 1, 2006, or (ii) at the time of sale of the structure, or (B) by adopting water utility service rules and regulations requiring a retrofit of the plumbing fixtures before the water utility provides or transfers service to a new customer. (d) Not later than March 1 of each year, a retail or water utility shall file a report with the commission describing the water utility's water waste rules, the enforcement of those rules and the number of fixtures, by type of building, retrofitted during the previous calendar year. (e) If a person fails to comply with a provision of this chapter or a rule adopted by the commission under this chapter, the person may be assessed, in addition to other penalties, an administrative penalty set by the commission in an amount not to exceed $5,000 for each violation. SECTION 6 Subchapter E, Chapter 17, Water Code, is amended by adding 17.190 to read as follows: Sec. 17.190 WATER AUDIT AND PERFORMANCE INDICATORS REPORT; CONSERVATION REQUIREMENTS. An applicant for financial assistance under this chapter must submit with the application for financial assistance a commitment to: (1) complete and submit to the executive administrator a water audit and performance indicators report using the methodology developed by the International Water Association as described in 11.1271 (d) (1). (2) adopt and enforce rules or ordinances requiring prohibiting water waste by leaking or wasting of water during irrigation, car washing, cooling by misters or any type of spray evaporation, and once through cooling equipment such as ice makers, pumps, dental vacuum pumps, medical devices, and (3) adopt and enforce rules requiring: (A) compliance by any structure with plumbing fixtures receiving or to receive service from the water utility with the plumbing standards in Chapter 372.002, Health and Safety Code. (i) by date certain, no later than January 1, 2006, or (ii) at the time of sale of the structure, or (B) by adopting water utility service rules and regulations requiring a retrofit of the plumbing fixtures before the water utility provides or transfers service to a new customer. (4) If a person fails to comply with a provision of this chapter or a rule adopted by the commission under this chapter, the person may be assessed, in addition to other penalties, an administrative penalty set by the commission in an amount not to exceed $5,000 for each violation. SECTION 7. Section 36.111, Water Code, is amended to read as follows: (a) [The] A district shall require that records be kept and reports be made of the drilling, equipping, and completing of water wells and of the production and use of groundwater. (b) A district shall require a public water supply system that is a permittee of the district to report on its accountability of groundwater usage. Accountability of groundwater usage shall mean the ratio of groundwater sold or otherwise accounted for to groundwater produced. A district may require a public water supply system to maintain a certain accountability in order to receive a permit from the district. In establishing accountability criteria, a district may consider the unique circumstances of rural water supply systems and may establish separate criteria for these systems. In lieu of the accountability report required by this section, a district may accept a water audit and performance indicators report prepared by the public water supply system using the methodology developed by the International Water Association as described in 11.1271(d)(1). (c) If a person fails to comply with a provision of this chapter or a rule adopted by the commission under this chapter, the person may be assessed, in addition to other penalties, an administrative penalty set by the commission in an amount not to exceed $5,000 for each violation. SECTION 8. Subchapter H, Chapter 49, Water Code is amended by adding Section 49.236 as follows: Sec. 49.467 WATER AUDIT AND PERFORMANCE INDICATORS REPORT; CONSERVATION REQUIREMENTS. (a) A district shall complete and submit to the commission an annual water audit and performance indicators report, using the methodology developed by the International Water Association as described in 11.1271(d)(1). (b) A district shall adopt and enforce rules or ordinances requiring; (1) any structure with plumbing fixtures to meet the plumbing standards established by Chapter 372.002, Health and Safety Code: (A) by date certain, not later than January 1, 2006 or (B) at the time of sale of the structure, or (2)a retrofit of the plumbing fixtures before service is provided or transferred to a new customer. (c) a district shall adopt and enforce rules or ordinances prohibiting water waste by leaking or wasting of water during irrigation, car washing, cooling by misters or any type of spray evaporation, and once through cooling equipment such as ice makers, pumps, dental vacuum pumps, medical devices. (d) Not later than March 1 of each year, the district shall file a report with the commission and the Texas Water Development Board describing the district's water waste rules, the enforcement of those rules and the number of fixtures, by type of building, retrofitted during the previous calendar year. (e) If a person fails to comply with a provision of this chapter or a rule adopted by the commission under this chapter, the person may be assessed, in addition to other penalties, an administrative penalty set by the commission in an amount not to exceed $5,000 for each violation. SECTION 9. (a) As soon as practicable after the effective date of this Act but not later than January 1, 2004, retail or wholesale water suppliers and utilities, groundwater conservation districts, and conservation and reclamation districts shall adopt all rules required by or necessary to implement the requirements of this Act. (b) Not later than January 1, 2005, a retail or wholesale water supplier shall submit to the Texas Commission on Environmental Quality a revise water conservation plan incorporating the requirements added by Section 11.1271 Water Code, as amended by this Act; and (c) Not later than March 1, 2004 an entity required by this Act to file a water audit and performance indicators report shall file the first of those required reports. SECTION 10. This Act takes effect September 1, 2003.