H.B. No. 4370 amends various sections of the Local Government Code and Water Code to expand the scope of projects that can be undertaken by public improvement districts, municipal management districts, and other similar entities. Notably, the bill introduces provisions for the acquisition, construction, and improvement of geothermal water conveyance systems, which are now recognized as part of the infrastructure that districts can develop. Additionally, it allows for the operation and maintenance expenses related to these geothermal systems to be included in the costs of improvements. The bill also clarifies that costs for improvements can be reimbursed to entities subject to the regulatory jurisdiction of the Public Utility Commission of Texas.

Furthermore, the bill enhances the purposes for which water control and improvement districts can be created, explicitly including the use of geothermal water conveyance systems for the conservation of natural resources. It allows districts to issue bonds for the construction and improvement of these systems, thereby facilitating funding for such projects. The changes aim to modernize the infrastructure capabilities of these districts and promote the use of geothermal resources in Texas, with the act set to take effect on September 1, 2025.

Statutes affected:
Introduced: Local Government Code 372.003, Local Government Code 372.023, Local Government Code 375.112, Local Government Code 375.093, Water Code 54.012, Water Code 54.501, Water Code 51.121 (Local Government Code 375, Water Code 51, Local Government Code 372, Water Code 54)
House Committee Report: Local Government Code 372.003, Local Government Code 372.023, Local Government Code 375.093, Local Government Code 375.112, Water Code 51.121, Water Code 51.125, Water Code 53.182, Water Code 54.012, Water Code 54.501 (Water Code 54, Water Code 51, Local Government Code 372, Local Government Code 375, Water Code 53)
Engrossed: Local Government Code 372.003, Local Government Code 372.023, Local Government Code 375.093, Local Government Code 375.112, Water Code 51.121, Water Code 51.125, Water Code 53.182, Water Code 54.012, Water Code 54.501 (Water Code 54, Water Code 51, Local Government Code 372, Local Government Code 375, Water Code 53)
Senate Committee Report: Local Government Code 372.003, Local Government Code 372.023, Local Government Code 375.093, Local Government Code 375.112, Water Code 51.121, Water Code 51.125, Water Code 53.182, Water Code 54.012, Water Code 54.501 (Water Code 54, Water Code 51, Local Government Code 372, Local Government Code 375, Water Code 53)
Enrolled: Local Government Code 372.003, Local Government Code 372.023, Local Government Code 375.093, Local Government Code 375.112, Water Code 51.121, Water Code 51.125, Water Code 53.182, Water Code 54.012, Water Code 54.501 (Water Code 54, Water Code 51, Local Government Code 372, Local Government Code 375, Water Code 53)