The bill, S.B. No. 1190, amends the Water Code by adding Section 16.0122, which establishes new requirements for municipally owned utilities that provide potable water through more than 150,000 service connections. These utilities must complete a validation of their annual water audit within 180 days if their reported water loss meets or exceeds a specified threshold. Additionally, they are required to develop and submit a water loss mitigation plan within one year of filing the audit. If a utility reports excessive water loss for three consecutive years, it must conduct a more detailed validation of its water audit and update its mitigation plan accordingly.

The bill also mandates that all validations be performed by certified individuals and outlines specific components that must be included in the water loss mitigation plans, such as goals for water loss reduction and estimated financial and water savings. Furthermore, the bill authorizes the Texas Water Development Board to impose administrative penalties of $25,000 for each violation of these new requirements. The act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that vote is not achieved.

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