Texas House Bill HB3650

Texas 2021 - 87th Regular

Caption

Relating to the transfer of functions relating to the economic regulation of water and sewer service from the Public Utility Commission of Texas to the Texas Commission on Environmental Quality.

Impact

By shifting regulatory functions to the Texas Commission on Environmental Quality, HB3650 is set to streamline and enhance coordination concerning water and sewer service regulation. This change is expected to improve the decision-making process regarding economic regulations and enable more specialized oversight geared towards environmental considerations. Additionally, the bill mandates the creation of a memorandum of understanding between the two commissions to ensure a comprehensive transition of powers, duties, and ongoing applications in a structured manner, anticipating some challenges related to the distribution of authority and responsibilities.

Summary

House Bill 3650 aims to transfer the responsibilities for the economic regulation of water and sewer services from the Public Utility Commission of Texas to the Texas Commission on Environmental Quality. The transfer, which took effect on September 1, 2022, includes various functions such as the issuance and transfer of certificates of convenience and necessity, determining rates, and overseeing related hearings and proceedings under specified chapters of the Texas Water Code. This legislative shift intends to consolidate oversight of water and sewer services, enhancing regulation efficiency and accountability in the management of these essential public services.

Contention

Notably, the bill's passage reflects ongoing discussions about the appropriate regulatory framework for water and sewer services in Texas, balancing efficiency against the necessity for rigorous oversight. Some stakeholders may express concern regarding the adequacy of environmental considerations amid economic regulations, fearing that more centralized control could overlook localized challenges. The success of this transition will also depend on how well the Texas Commission on Environmental Quality develops new policies that effectively address both environmental and economic issues.