HB 29

relating to water losses reported by certain municipally owned
utilities to the Texas Water Development Board; authorizing
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
(c)  A municipally owned utility that has filed an annual
water audit under Section 16.0121 with the board indicating that
the utility's real water loss meets or exceeds the threshold
established by rule 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
(2)  not later than the first anniversary of the date
the audit was filed, develop and submit to the board a water loss
(d)  A municipally owned utility that has filed an annual
water audit under Section 16.0121 with the board indicating that
the utility's real water loss meets or exceeds the threshold
established by rule under Section 16.0121 for three consecutive
(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
(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
(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
(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
(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
(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
(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 for each violation of
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.