Bill > HB1424

This bill provides Texas municipalities and retail public utilities with explicit authorization to implement water conservation-focused rate structures and fees. Specifically, the bill allows local governments and water utilities to create tiered water rate systems where customers who use larger volumes of water pay higher rates per unit, incentivizing water conservation. Additionally, the legislation permits these entities to establish an "excessive use fee" for customers whose water consumption exceeds a specified percentage of other customers' usage. The bill applies to municipalities, water utilities not already subject to existing regulations, and aims to encourage more efficient water usage by creating financial disincentives for high water consumption. The provisions will take effect on September 1, 2025, giving utilities and municipalities time to develop and implement these new rate structures. By enabling these flexible pricing mechanisms, the bill seeks to promote water conservation in Texas, which can be particularly important in regions prone to drought or experiencing water scarcity.

Agriculture and Natural Resources

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1424