Regular Session
Government Affairs & Regulatory Compliance Analysis
HB29 is effective immediately and fundamentally changes water audit procedures for municipally owned utilities (MOUs) with over 150,000 service connections. These entities must now procure independent third-party validation of their water audits and submit a binding Water Loss Mitigation Plan to the Texas Water Development Board (TWDB). Failure to submit this plan triggers a mandatory $25,000 administrative penalty assessed by the TCEQ.
Rep. Stan Gerdes·House Bill·Regular Session
Texas Commission on Environmental Quality (TCEQ) • Texas Water Development Board (TWDB)
This legislation has regulatory implications for the following Texas businesses and organizations:
Significant regulatory changes (effective 2025-05-29). Review with your legal and compliance teams to understand implications.
Affected business types:
highSignificant operational investment may be required.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about HB29
HB29 is effective immediately and fundamentally changes water audit procedures for municipally owned utilities (MOUs) with over 150,000 service connections. These entities must now procure independent third-party validation of their water audits and submit a binding Water Loss Mitigation Plan to the Texas Water Development Board (TWDB). Failure to submit this plan triggers a mandatory $25,000 administrative penalty assessed by the TCEQ.
HB29 was authored by Texas Representative Stan Gerdes during the Regular Session.
HB29 was signed into law by Governor Greg Abbott on May 29, 2025.
HB29 is enforced by Texas Commission on Environmental Quality (TCEQ) and Texas Water Development Board (TWDB).
The regulatory priority for HB29 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB29 is estimated as "high". This may vary based on industry and implementation requirements.
HB29 addresses topics including city government, city government--utilities, utilities, utilities--water & sewer and water.
Key dates for HB29: Effective date is 2025-05-29. Consult with legal counsel regarding applicability.
HB29 establishes the following penalties: administrative penalty of $25,000 for Failure to develop and submit the required water loss mitigation plan to the Texas Water Development Board.. Consult with legal counsel for specific applicability to your situation.
HB29 primarily affects utility companies and energy providers. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
