Texas 2025 - 89th Regular

Texas Senate Bill SB2662 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	89R15369 ANG-F
1	2		By: Perry S.B. No. 2662
2		-	(In the Senate - Filed March 13, 2025; April 3, 2025, read
3		-	first time and referred to Committee on Water, Agriculture and
4		-	Rural Affairs; April 15, 2025, reported adversely, with favorable
5		-	Committee Substitute by the following vote: Yeas 7, Nays 0;
6		-	April 15, 2025, sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR S.B. No. 2662 By: Perry
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13	7		A BILL TO BE ENTITLED
14	8		AN ACT
15	9		relating to the enforcement of drought contingency plans by water
16	10		and sewer utilities and the Public Utility Commission of Texas.
17	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
18	12		SECTION 1. Section 13.041(a), Water Code, is amended to
19	13		read as follows:
20	14		(a) The utility commission may regulate and supervise the
21	15		tariffs and business of each water and sewer utility within its
22	16		jurisdiction, including ratemaking and other economic regulation.
23	17		The commission may regulate water and sewer utilities within its
24	18		jurisdiction to ensure safe drinking water and environmental
25	19		protection. The utility commission and the commission may do all
26	20		things, whether specifically designated in this chapter or implied
27	21		in this chapter, necessary and convenient to the exercise of these
28	22		powers and jurisdiction. The utility commission may consult with
29	23		the commission as necessary in carrying out its duties related to
30	24		the regulation of water and sewer utilities.
31	25		SECTION 2. Section 13.042(a), Water Code, is amended to
32	26		read as follows:
33	27		(a) Subject to the limitations imposed in this chapter and
34	28		for the purpose of regulating rates and services so that those rates
35	29		may be fair, just, and reasonable and the services adequate and
36	30		efficient, the governing body of each municipality has exclusive
37	31		original jurisdiction over all water and sewer utility rates,
38	32		tariffs, operations, and services provided by a water and sewer
39	33		utility within its corporate limits.
40		-	SECTION 3. Section 13.136, Water Code, is amended by
41		-	amending Subsection (a) and adding Subsection (a-1) to read as
42		-	follows:
	34	+	SECTION 3. Section 13.136(a), Water Code, is amended to
	35	+	read as follows:
43	36		(a) Every utility shall file with each regulatory authority
44	37		tariffs showing all rates that are subject to the original or
45	38		appellate jurisdiction of the regulatory authority and that are in
46	39		force at the time for any utility service, product, or commodity
47	40		offered. Every utility shall file with and as a part of those
48	41		tariffs all rules and regulations relating to or affecting the
49	42		rates, utility service, product, or commodity furnished, including
50	43		the utility's drought contingency plan required by the commission.
51		-	(a-1) Notwithstanding Subsection (a), a provision of a
52		-	drought contingency plan does not constitute a rate as defined by
53		-	Section 13.002.
54	44		SECTION 4. Sections 13.250(b) and (d), Water Code, are
55	45		amended to read as follows:
56	46		(b) Unless the utility commission issues a certificate that
57	47		neither the present nor future convenience and necessity will be
58	48		adversely affected, the holder of a certificate or a person who
59	49		possesses facilities used to provide utility service shall not
60	50		discontinue, reduce, or impair service to a certified service area
61	51		or part of a certified service area except for:
62	52		(1) nonpayment of charges for services provided by the
63	53		certificate holder or a person who possesses facilities used to
64	54		provide utility service;
65	55		(2) nonpayment of charges for sewer service provided
66	56		by another retail public utility under an agreement between the
67	57		retail public utility and the certificate holder or a person who
68	58		possesses facilities used to provide utility service or under a
69	59		utility commission-ordered arrangement between the two service
70	60		providers;
71		-	(3) ~~noncompliance~~ with a drought contingency plan;
	61	+	(3) compliance with a drought contingency plan;
72	62		(4) nonuse; or
73	63		(5) [(4)] other similar reasons in the usual course of
74	64		business.
75	65		(d) Except as provided by this subsection, a retail public
76	66		utility that has not been granted a certificate of public
77	67		convenience and necessity may not discontinue, reduce, or impair
78	68		retail water or sewer service to any ratepayer without approval of
79	69		the regulatory authority. Except as provided by this subsection, a
80	70		utility or water supply corporation that is allowed to operate
81	71		without a certificate of public convenience and necessity under
82	72		Section 13.242(c) may not discontinue, reduce, or impair retail
83	73		water or sewer service to any ratepayer without the approval of the
84	74		regulatory authority. Subject to rules of the regulatory
85	75		authority, a retail public utility, utility, or water supply
86	76		corporation described in this subsection may discontinue, reduce,
87	77		or impair retail water or sewer service for:
88	78		(1) nonpayment of charges;
89		-	(2) ~~noncompliance~~ with a drought contingency plan;
	79	+	(2) compliance with a drought contingency plan;
90	80		(3) nonuse; or
91	81		(4) [(3)] other similar reasons in the usual course of
92	82		business.
93	83		SECTION 5. Section 11.1272, Water Code, is amended by
94	84		amending Subsections (c), (d), and (e) and adding Subsection (c-1)
95	85		to read as follows:
96	86		(c) A [By May 1, 2005, a] drought contingency plan required
97	87		by commission rule adopted under this section must include:
98	88		(1) specific, quantified targets for water use
99	89		reductions to be achieved during periods of water shortages and
100	90		drought; and
101		-	(2) ~~reasonable~~ procedures for the enforcement of
102		-	~~mandatory water~~ use restrictions, including fines, water rate
103		-	~~surcharges,~~ restriction of service, discontinuation of service, or
104		-	~~any other~~ penalty.
	91	+	(2) procedures for the enforcement of mandatory water
	92	+	use restrictions, including fines, water rate surcharges,
	93	+	restriction of service, discontinuation of service, or any other
	94	+	penalty.
105	95		(c-1) The entity preparing the drought contingency plan
106	96		shall establish the targets and enforcement procedures required
107	97		under Subsection (c).
108	98		(d) The commission, the utility commission, and the board by
109	99		joint rule shall identify quantified target goals for drought
110	100		contingency plans that wholesale and retail public water suppliers,
111	101		irrigation districts, and other entities may use as guidelines in
112	102		preparing drought contingency plans. Goals established under this
113	103		subsection are not enforceable requirements.
114	104		(e) The commission, the utility commission, and the board
115	105		jointly shall develop and update at least once every five years
116	106		model drought contingency programs for different types of water
117	107		suppliers that suggest best management practices for accomplishing
118	108		the highest practicable levels of water use reductions achievable
119	109		during periods of water shortages and drought for each specific
120	110		type of water supplier.
121	111		SECTION 6. This Act takes effect immediately if it receives
122	112		a vote of two-thirds of all the members elected to each house, as
123	113		provided by Section 39, Article III, Texas Constitution. If this
124	114		Act does not receive the vote necessary for immediate effect, this
125	115		Act takes effect September 1, 2025.
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