Regular Session
Government Affairs & Regulatory Compliance Analysis
Effective June 20, 2025, HB4370 expands the statutory authority of Texas special districts (MUDs, PIDs, WCIDs, MMDs) to finance, construct, and maintain "geothermal water conveyance systems. " This legislation unlocks tax-exempt bond financing for geothermal infrastructure in real estate developments, allowing developers to treat these energy systems as reimbursable public utilities similar to water and sewer lines.
Rep. William Metcalf·House Bill·Regular Session
Fresh Water Supply Districts (FWSDs) • Municipal Management Districts (MMDs) • Municipal Utility Districts (MUDs) • Public Improvement Districts (PIDs) • Public Utility Commission of Texas (PUC) • Water Control and Improvement Districts (WCIDs)
This legislation has regulatory implications for the following Texas businesses and organizations:
Standard regulatory changes (effective 2025-06-20). Review during normal business planning.
Affected business types:
Affected business types:
lowMinimal cost impact anticipated.
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
Explore more bills from this author and on related topics
Common questions about HB4370
Effective June 20, 2025, HB4370 expands the statutory authority of Texas special districts (MUDs, PIDs, WCIDs, MMDs) to finance, construct, and maintain "geothermal water conveyance systems. " This legislation unlocks tax-exempt bond financing for geothermal infrastructure in real estate developments, allowing developers to treat these energy systems as reimbursable public utilities similar to water and sewer lines.
HB4370 was authored by Texas Representative William Metcalf during the Regular Session.
HB4370 was signed into law by Governor Greg Abbott on June 20, 2025.
HB4370 is enforced by Fresh Water Supply Districts (FWSDs), Municipal Management Districts (MMDs), Municipal Utility Districts (MUDs), Public Improvement Districts (PIDs), Public Utility Commission of Texas (PUC) and Water Control and Improvement Districts (WCIDs).
The regulatory priority for HB4370 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB4370 is estimated as "low". This may vary based on industry and implementation requirements.
HB4370 addresses topics including energy, energy--geothermal, special districts & authorities, special districts & authorities--miscellaneous and special districts & authorities--municipal utility districts.
Key dates for HB4370: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.
HB4370 primarily affects energy companies and power generators. 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.
