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A BILL TO BE ENTITLED
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AN ACT
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relating to water losses reported by certain municipally owned |
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utilities to the Texas Water Development Board; authorizing |
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administrative penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 16, Water Code, is amended |
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by adding Section 16.0122 to read as follows: |
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Sec. 16.0122. WATER AUDIT VALIDATION BY CERTAIN MUNICIPALLY |
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OWNED UTILITIES. (a) In this section, "municipally owned utility" |
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has the meaning assigned by Section 13.002. |
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(b) This section applies only to a municipally owned utility |
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that provides potable water through more than 150,000 service |
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connections. |
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(c) A municipally owned utility that has filed an annual |
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water audit under Section 16.0121 with the board indicating that |
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the utility's real water loss meets or exceeds the threshold |
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established by rule under Section 16.0121 shall: |
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(1) not later than the 180th day after the date the |
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audit was filed, complete a validation of the audit to ensure the |
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utility accurately assessed potential inaccuracies in data used in |
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the audit; and |
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(2) not later than the first anniversary of the date |
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the audit was filed, develop and submit to the board a water loss |
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mitigation plan. |
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(d) A municipally owned utility that has filed an annual |
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water audit under Section 16.0121 with the board indicating that |
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the utility's real water loss meets or exceeds the threshold |
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established by rule under Section 16.0121 for three consecutive |
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audit years shall: |
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(1) complete a more detailed validation of the |
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utility's most current water audit to: |
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(A) determine whether the implementation of |
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water leakage reduction strategies is appropriate; and |
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(B) investigate the accuracy of the utility's |
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billing data; and |
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(2) update the water loss mitigation plan developed by |
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the utility under Subsection (c)(2) accordingly. |
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(e) Each validation required under Subsection (c)(1) must |
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be performed by a person who has completed water audit validation |
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training and is certified to conduct the validation. The |
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validation: |
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(1) must follow board validation guidelines; and |
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(2) may not be conducted by a board staff member or the |
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person who submitted the water audit. |
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(f) Each water loss mitigation plan developed under |
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Subsection (c)(2), as updated under Subsection (d)(2), if |
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applicable, must be incorporated into the utility's most recent |
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water conservation plan required under Section 13.146 not later |
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than the first anniversary of the date the mitigation plan is |
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completed. As part of the utility's annual water conservation |
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report under Section 16.402(b), the utility shall report the |
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utility's progress in implementing the mitigation plan. The |
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mitigation plan must include: |
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(1) one-year, three-year, five-year, and ten-year |
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goals for water loss mitigation; |
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(2) descriptions of water loss mitigation projects or |
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programs designed to meet those goals; |
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(3) estimated financial savings from the |
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implementation of the projects or programs under Subdivision (2); |
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(4) estimated water savings from the implementation of |
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the projects or programs under Subdivision (2); and |
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(5) cost estimates for implementing each project or |
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program under Subdivision (2). |
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(g) If the utility must complete a validation under |
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Subsection (d)(1), the utility shall update the water loss |
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mitigation plan developed by the utility under Subsection (c)(2) to |
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revise the utility's one-year, three-year, five-year, and ten-year |
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goals. |
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(h) Each validation required under Subsection (d)(1) must |
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be performed by a person who is experienced in performing required |
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validation activities. The validation: |
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(1) must be based on the recommendations from the |
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utility's validation performed under Subsection (c)(1); |
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(2) must be completed in consultation with the person |
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who completed the validation under Subsection (c)(1); |
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(3) must be conducted in accordance with industry |
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standards; and |
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(4) may not be conducted by a board staff member or the |
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person who submitted the water audit. |
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(i) The commission shall assess against a municipally owned |
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utility an administrative penalty of $25,000 for each violation of |
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this section. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |