Monitoring the Session

HB 1424

Goodwin Water Bill’s New Fee Always Has Someone To Charge

Died in committee

Verdict: Smells

SmellsInitial review
Rep. Vikki GoodwinDHouse 47
Why it's charged
New fee, fund, board or appointees

THE TEXT

“A retail public utility may establish an excessive use fee for the utility's customers whose water usage is greater than the water usage of a percentage of the utility's other customers.”

Bill text, introduced version (I)

The bill authorizes a new surcharge tied to how a customer ranks against other customers, not to any fixed amount of use, so some share of customers can always be charged. The caption does disclose that it authorizes a fee.

New fee, fund, board or appointees

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the structuring of water rates by retail public utilities to promote water conservation; authorizing a fee.

Caption from analyzed text · version I.

Summary

Excessive use fee, graded on a curve! The utility or city picks the percentage.

The bill lets cities, regulated water utilities and other retail water providers charge heavier water users a higher rate per unit than lighter users. It also lets them add an "excessive use fee" on customers whose usage tops that of some percentage of other customers, with the percentage left for the utility or city to pick. Nothing is required, but any water customer in Texas could see tiered bills and a new surcharge starting September 1, 2025 if their provider opts in.

Labels

Labels: FEE INCLUDED. The caption of the graded version (introduced) reads: “relating to the structuring of water rates by retail public utilities to promote water conservation; authorizing a fee.”NEVER GOT A HEARING. Filed Nov 20, 2024 and referred to the House Natural Resources committee. No public hearing. The bill died.

Receipt

The receipt

89R-HB1424 · 2024-11-20

SOLD BY

ITEM

relating to the structuring of water rates by retail public utilities to promote water conservation; authorizing a fee.

WHAT IT DOES

Excessive use fee, graded on a curve! The utility or city picks the percentage.

The bill lets cities, regulated water utilities and other retail water providers charge heavier water users a higher rate per unit than lighter users. It also lets them add an "excessive use fee" on customers whose usage tops that of some percentage of other customers, with the percentage left for the utility or city to pick. Nothing is required, but any water customer in Texas could see tiered bills and a new surcharge starting September 1, 2025 if their provider opts in.

CHARGES

[x] NEW FEE, FUND, BOARD OR APPOINTEESanalysis confidence 50%

THE TEXT

“A retail public utility may establish an excessive use fee for the utility's customers whose water usage is greater than the water usage of a percentage of the utility's other customers.”

Bill text, introduced version (I)

The bill authorizes a new surcharge tied to how a customer ranks against other customers, not to any fixed amount of use, so some share of customers can always be charged. The caption does disclose that it authorizes a fee.

TOTAL

No fiscal note in the loaded record.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Natural Resources
FILED UNDER

DATA CENTERS, WATER AND THE GRID

THE TEXT

“establish an excessive use fee for water customers whose water usage is greater than the water usage of a percentage of the municipality's other customers”

Bill text, introduced version (I)

The bill decides who pays more for water by letting providers surcharge the heaviest users, with the cutoff set as a percentage chosen locally.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

R Stephen McNally$144,000Donald H Henley$109,000Donald Henley$108,500

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 28, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

R Stephen McNally$144,000.00
Donald H Henley$109,000.00
Donald Henley$108,500.00
Money

Missing data does not establish zero giving. Display amounts are rounded.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Nov 20, 2024

03/11/2025 H Referred to Natural Resources: Mar 11 2025 3:26PM

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Natural Resources · Final status: Died in committee

Subjects

City Government--General

City Government--Utilities

Utilities--Water & Sewer

Water--Conservation (I097L)

Text

The text as introduced · 444 words

89R2013 ANG-D

By: Goodwin
H.B. No. 1424

A BILL TO BE ENTITLED

AN ACT

relating to the structuring of water rates by retail public

utilities to promote water conservation; authorizing a fee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter Z, Chapter 552, Local Government

Code, is amended by adding Section 552.9065 to read as follows:

Sec. 552.9065. WATER CONSERVATION RATE AND FEE. The

governing body of a municipality may by ordinance:

(1) structure the municipality's rates for water

service in a manner that promotes water conservation by all of the

municipality's water customers so that customers in a class who

consume greater amounts of water pay a higher rate per unit volume

than customers in a class who consume lesser amounts of water; and

(2) establish an excessive use fee for water customers

whose water usage is greater than the water usage of a percentage of

the municipality's other customers.

SECTION 2. The heading to Section 13.182, Water Code, is

amended to read as follows:

Sec. 13.182. JUST AND REASONABLE RATES ; WATER CONSERVATION

RATE STRUCTURE AND FEE .

SECTION 3. Section 13.182, Water Code, is amended by adding

Subsection (b-2) to read as follows:

(b-2) In establishing a utility's rates, the regulatory

authority by rule or ordinance may authorize a utility to:

(1) structure the utility's rates in a manner that

promotes water conservation by all of the utility's customer

classes so that customers in a class who consume greater amounts of

water pay a higher rate per unit volume than customers in a class

who consume lesser amounts of water; and

(2) establish an excessive use fee for customers whose

water usage is greater than the water usage of a percentage of the

utility's other customers.

SECTION 4. Chapter 13, Water Code, is amended by adding

Subchapter O to read as follows:

SUBCHAPTER O. WATER CONSERVATION RATE AND FEE

Sec. 13.551. APPLICABILITY. This subchapter applies to a

retail public utility that is not subject to Subchapter F or Section

552.9065, Local Government Code.

Sec. 13.552. TIERED CONSERVATION RATE STRUCTURE. A retail

public utility may establish a water conservation rate that

promotes water conservation by all of the utility's customer

classes so that customers in a class who consume greater amounts of

water pay a higher rate per unit volume than customers in a class

who consume lesser amounts of water.

Sec. 13.553. EXCESSIVE USE FEE. A retail public utility may

establish an excessive use fee for the utility's customers whose

water usage is greater than the water usage of a percentage of the

utility's other customers.

SECTION 5. This Act takes effect September 1, 2025.