Relating to water losses reported by certain municipally owned utilities to the Texas Water Development Board; authorizing administrative penalties, the official text

H.B. No. 29

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 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) Not later than December 31, 2030, and every 10 years

thereafter, a municipally owned utility that has filed an annual

water audit under Section 16.0121 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 if the utility fails

to develop and submit to the board a water loss mitigation plan

required by Subsection (c)(2).

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.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 29 was passed by the House on April

25, 2025, by the following vote: Yeas 138, Nays 0, 2 present, not

voting; and that the House concurred in Senate amendments to H.B.

No. 29 on May 19, 2025, by the following vote: Yeas 129, Nays 0, 1

present, not voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 29 was passed by the Senate, with

amendments, on May 8, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

APPROVED: __________________

Date

__________________

Governor