HB2605 - Relating to water losses reported by certain municipally owned utilities to the Texas Water Development Board; authorizing administrative penalties.

  89R10328 ANG-F     By: Gerdes H.B. No. 2605       A BILL TO BE ENTITLED   AN ACT   relating to water losses reported by certain municipally owned   utilities to the Texas Water Development Board; authorizing   administrative penalties.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 16, Water Code, is amended   by adding Section 16.0122 to read as follows:           Sec.   16.0122.     WATER AUDIT VALIDATION BY CERTAIN MUNICIPALLY   OWNED UTILITIES. (a) In this section, "municipally owned utility"   has the meaning assigned by Section 13.002.           (b)     This section applies only to a municipally owned utility   that provides potable water through more than 150,000 service   connections.           (c)     A municipally owned utility that has filed an annual   water audit under Section 16.0121 with the board indicating that   the utility's real water loss meets or exceeds the threshold   established by rule under Section 16.0121 shall:                 (1)     not later than the 180th day after the date the   audit was filed, complete a validation of the audit to ensure the   utility accurately assessed potential inaccuracies in data used in   the audit; and                 (2)     not later than the first anniversary of the date   the audit was filed, develop and submit to the board a water loss   mitigation plan.           (d)     A municipally owned utility that has filed an annual   water audit under Section 16.0121 with the board indicating that   the utility's real water loss meets or exceeds the threshold   established by rule under Section 16.0121 for three consecutive   audit years shall:                 (1)     complete a more detailed validation of the   utility's most current water audit to:                       (A)     determine whether the implementation of   water leakage reduction strategies is appropriate; and                       (B)     investigate the accuracy of the utility's   billing data; and                   (2)     update the water loss mitigation plan developed by   the utility under Subsection (c)(2) accordingly.           (e)     Each validation required under Subsection (c)(1) must   be performed by a person who has completed water audit validation   training and is certified to conduct the validation. The   validation:                   (1)  must follow board validation guidelines; and                 (2)     may not be conducted by a board staff member or the   person who submitted the water audit.             (f)     Each water loss mitigation plan developed under   Subsection (c)(2), as updated under Subsection (d)(2), if   applicable, must be incorporated into the utility's most recent   water conservation plan required under Section 13.146 not later   than the first anniversary of the date the mitigation plan is   completed. As part of the utility's annual water conservation   report under Section 16.402(b), the utility shall report the   utility's progress in implementing the mitigation plan. The   mitigation plan must include:                 (1)     one-year, three-year, five-year, and ten-year   goals for water loss mitigation;                 (2)     descriptions of water loss mitigation projects or   programs designed to meet those goals;                 (3)     estimated financial savings from the   implementation of the projects or programs under Subdivision (2);                 (4)     estimated water savings from the implementation of   the projects or programs under Subdivision (2); and                 (5)     cost estimates for implementing each project or   program under Subdivision (2).           (g)     If the utility must complete a validation under   Subsection (d)(1), the utility shall update the water loss   mitigation plan developed by the utility under Subsection (c)(2) to   revise the utility's one-year, three-year, five-year, and ten-year   goals.           (h)     Each validation required under Subsection (d)(1) must   be performed by a person who is experienced in performing required   validation activities. The validation:                   (1)     must be based on the recommendations from the   utility's validation performed under Subsection (c)(1);                   (2)     must be completed in consultation with the person   who completed the validation under Subsection (c)(1);                 (3)     must be conducted in accordance with industry   standards; and                 (4)     may not be conducted by a board staff member or the   person who submitted the water audit.           (i)     The commission shall assess against a municipally owned   utility an administrative penalty of $25,000 for each violation of   this section.          SECTION 2.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.