HB 29

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