Texas HB1424 allows municipalities and retail public utilities to implement water conservation rates and excessive use fees.

Texas HB1424 amends the Local Government Code and Water Code to allow the governing body of a municipality to structure water rates in a manner promoting conservation. Customers who consume more water will pay higher rates per unit volume. The bill also authorizes the establishment of an excessive use fee for customers whose water usage exceeds a specified percentage of other customers' usage. This Act takes effect September 1, 2025.

Texas HB1424 allows municipalities and retail public utilities to implement water conservation rates and excessive use fees.

Texas HB1424 amends the Local Government Code and Water Code to allow the governing body of a municipality to structure water rates in a manner promoting conservation. Customers who consume more water will pay higher rates per unit volume. The bill also authorizes the establishment of an excessive use fee for customers whose water usage exceeds a specified percentage of other customers' usage. This Act takes effect September 1, 2025.