BILL ANALYSIS

 

 

 

H.B. 2134

By: Rios Ybarra

Natural Resources

Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

Currently all retail water suppliers are required to perform a water loss audit.  Section 16.0121(b), Water Code, provides that every "five years a retail public utility providing potable water shall perform and file with the Texas Water Development Board ("the board") a water audit computing the utility's most recent annual water loss."  In a number of instances, system water loss adversely impacts a public water system's need for infrastructure improvements and increased water supply.  The first audits were filed with the board in 2005, and the information is used by the board in reviewing loan and grant applications.  Annual water loss audits should assist public water suppliers in identifying areas within their infrastructure systems that require improvement, obtaining more accurate estimates of the need for additional water supply, and lowering the costs of unsold water that ultimately must be borne by customer rates.

 

H.B. 2134 requires all retail water systems to perform an annual system water loss audit, with the exception of the smallest systems.  For the smallest (those serving populations of 3,300 or less), the current five-year cycle would remain in effect unless the water system is receiving financial assistance from the board.  During the term of any loan or grant agreement with the board the smallest systems must perform the annual audits.

 

RULEMAKING AUTHORITY

 

It is the Committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. 

 

ANALYSIS

 

SECTION 1. Amends Section 16.0121, Water Code by amending Subsection (b), (c), and (f) and adding Subsection (b-1), as follows:

 

Subsection (b) Provides that except as provided by Section (b-1), a retail public utility providing potable water must perform and file with the board an annual, rather than every five years, water audit computing the utility's system water loss during the preceding year, rather the most recent year.

 

Subsection (b-1) Provides that a retail public utility providing potable water for populations of 3,300 or less and does not receive any type of financial assistance from the board must perform and file with the board a water audit every five years that computes the utility's most recent annual system water loss.

 

Subsection (c) Provides that the board will develop appropriate methodologies and submission dates for a water audit for certain retail public utilities required under Subsection (b) or (b-1).

 

Subsection (f) Provides that the board shall compile the information included in the water audits required by subsections (b) and (b-1) according to certain categories and areas. Provides that certain regional planning groups must use that information to identify appropriate water management strategies in the development of a regional water plan under Section 16.053.

 

SECTION 2. Provides that no later than May 1, 2011, a retail public utility that receives financial assistance from the board or a retail public utility that serves a population of greater than 3,300 must submit the first annual report required by Section 16.0121, as amended by the Act, and that the initial water audit report submitted by a retail public utility under that section must compute the utility's most recent annual system water loss.

 

SECTION 3. Provides the effective date of this Act.

 

EFFECTIVE DATE

 

This Act takes effect September 1, 2009.