BILL ANALYSIS

Senate Research Center	S.B. 1586
89R14099 DRS-D	By: Schwertner
	Water, Agriculture and Rural Affairs
	4/24/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

As Texas' population grows outside of city limits and extraterritorial jurisdictions (ETJs), the Texas Commission on Environmental Quality (TCEQ) has seen a sharp rise in permits for On-Site Sewage Facilities�commonly known as package plants�approved for residential developments outside city oversight. These pre-engineered, prefabricated wastewater treatment systems are often built in the middle of neighborhoods but do not meet the same standards as municipal wastewater treatment plants.

Originally intended for small-scale use, package plants are increasingly being used to serve large residential communities. While some developers may have legitimate financial reasons�such as distance from existing infrastructure�for opting for their own systems, many pursue this route primarily to reduce costs, often without regard for long-term safety, environmental impact, or municipal planning.

The unchecked proliferation of small package plants across suburban Texas increases the risk of system failures and undermines cities' ability to plan for long-term wastewater service.

TCEQ does have a regionalization policy designed to promote the consolidation of smaller systems into centralized, more efficient facilities. While the policy encourages cost-effective and environmentally sound solutions, the current permitting process lacks the safeguards necessary to ensure that new permits align with these goals.

S.B. 1586 seeks to strengthen the oversight and long-term viability of package plant systems. By placing critical guardrails on the permitting process, this bill ensures TCEQ takes into account environmental protection, public health, neighborhood property values, and long-term infrastructure planning before granting permits. The goal is to enhance system reliability and sustainability�ultimately protecting communities and taxpayer dollars

As proposed, S.B. 1586 amends current law relating to the issuance by the Texas Commission on Environmental Quality of permits for certain wastewater treatment facilities.

[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

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter B, Chapter 26, Water Code, by adding Section 26.054, as follows:

Sec. 26.054.� CONDITIONS OF PERMIT FOR PACKAGE PLANT.� (a) Defines "package plant."

(b) Prohibits the Texas Natural Resource Conservation Commission (TNRCC) from issuing a permit for a proposed package plant that is located within 1,000 feet of a municipal wastewater line.

(c) Authorizes TNRCC to issue a permit for a proposed package plant only if the applicant demonstrates to TNRCC that the applicant will implement measures to ensure the security and weatherization of the package plant and has financial assurance adequate to provide for future maintenance of the package plant.

SECTION 2. Makes application of Section 26.054, Water Code, as added by this Act, prospective.

SECTION 3. Effective date: September 1, 2025.