H.B. No. 3322 proposes amendments to the Water Code regarding the process for amending or revoking certificates of public convenience and necessity for certain water utilities. The bill modifies Subsection (b) of Section 13.2541 to allow landowners of tracts of at least 25 acres, who are not receiving water or sewer service, to petition for expedited release from such certificates. The criteria for eligibility have been updated to include landowners in counties with populations of at least 1.2 million, adjacent counties, or specific counties with populations between 200,000 and 233,500 that do not host large universities. Notably, the bill removes previous restrictions related to counties with populations between 50,500 and 52,000.

Additionally, the bill introduces Subsection (e-1), which allows landowners submitting a petition to agree to pay the certificate holder an amount necessary to pay off or defease a federal loan associated with the certificate holder. The certificate holder is required to provide the petitioner with the necessary amount upon request, and the utility commission has the authority to mandate acceptance of such payments. The changes will apply only to proceedings that begin on or after the effective date of the Act, which is set for September 1, 2025.

Statutes affected:
Introduced: Water Code 13.2541 (Water Code 13)