Honorable Robert Puente, Chair, House Committee on Natural Resources
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:
HB387 by Geren (Relating to prohibiting the Texas Commission on Environmental Quality from amending, interpreting, impairing, or modifying a written contract for the wholesale provision of water.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would prohibit the Texas Commission on Environmental Quality (TCEQ) from amending, interpreting, impairing, or modifying a written contract for the provision of raw or treated water. The bill also would require a petitioner seeking to compel water supply to demonstrate to the TCEQ that the petitioner has not entered into a contract with the party owning or controlling the water supply
Local Government Impact
The bill could impact water contractors, which include local governments, cities, districts, and other water utilities with contract issues. It is possible that units of local government purchasing water pursuant to a contract may no longer be able to seek rate relief from the TCEQ if it has a contract with the water supplier. It is also possible that units of local government that provide water would no longer have to expend funds to defend contract rates appealed to the TCEQ.