Texas House Bill HB1424

Texas 2025 - 89th Regular

• Filed: 11/20/24

Caption

Relating to the structuring of water rates by retail public utilities to promote water conservation; authorizing a fee.

Impact

If enacted, HB1424 would modify existing statutes in the Local Government Code and Water Code to provide regulatory authorities the ability to create these conservation-oriented rate structures. The implications of this change are significant, as they could lead to more sustainable water use practices among residents and businesses, ultimately aiming to foster a culture of conservation within the state. By promoting effective water management, the bill aligns with broader environmental objectives and the responsible use of natural resources.

Summary

House Bill 1424 aims to encourage water conservation through the structuring of water rates by retail public utilities. The bill allows municipalities to set up water rates that are tiered, meaning that customers who consume more water would pay a higher rate per unit than those who consume less. This tiered approach is designed to incentivize lower water usage across all customer classes. The bill also enables municipalities to impose an 'excessive use fee' for customers whose consumption exceeds the usage of a specific percentage of other customers in the municipality.

Contention

While HB1424 is poised to facilitate enhanced water conservation efforts, there may be points of contention regarding the implementation of the tiered rates and excessive use fees. Critics may argue that such fees can disproportionately affect low-income households or those with fixed incomes, who might not be able to afford the higher costs associated with increased consumption. Moreover, discussions would likely focus on the balance between necessary public utilities funding and the promotion of equitable water access for all community members.

Texas Constitutional Statutes Affected

Local Government Code

• Chapter 552. Municipal Utilities
  • Section: New Section

Water Code

• Chapter 13. Water Rates And Services
  • Section: 182
  • Section: New Section