House Bill No. 2605 introduces new regulations for municipally owned utilities in Texas that provide potable water through more than 150,000 service connections. The bill mandates that 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 to the Texas Water Development Board within one year of filing the audit. For utilities that report excessive water loss for three consecutive years, a more detailed validation and an updated mitigation plan are required.

The bill also stipulates that validations must be conducted by certified individuals who have undergone specific training, ensuring that the process adheres to board guidelines and industry standards. Furthermore, the Texas Commission will impose an administrative penalty 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 of the legislature or on September 1, 2025, if such a vote is not achieved.

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