Regular Session
Government Affairs & Regulatory Compliance Analysis
SB2662 mandates that all investor-owned water and sewer utilities incorporate Drought Contingency Plans (DCPs) into their official tariffs filed with the Public Utility Commission (PUC) by September 1, 2025. This legislation transforms DCPs from passive internal documents into active regulatory instruments, granting utilities statutory authority to enforce water restrictions through fines, surcharges, and service disconnection, provided the plan is properly filed.
Sen. Charles Perry·Senate Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Significant regulatory changes (effective 2025-09-01). Review with your legal and compliance teams to understand implications.
Affected business types:
mediumModerate costs expected for implementation.
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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.
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This bill's path through the Texas Legislature
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Common questions about SB2662
SB2662 mandates that all investor-owned water and sewer utilities incorporate Drought Contingency Plans (DCPs) into their official tariffs filed with the Public Utility Commission (PUC) by September 1, 2025. This legislation transforms DCPs from passive internal documents into active regulatory instruments, granting utilities statutory authority to enforce water restrictions through fines, surcharges, and service disconnection, provided the plan is properly filed.
SB2662 was authored by Texas Senator Charles Perry during the Regular Session.
SB2662 was signed into law by Governor Greg Abbott on May 30, 2025.
SB2662 is enforced by Municipal Governing Bodies (for utilities within corporate limits), Public Utility Commission of Texas (PUC) and Texas Commission on Environmental Quality (TCEQ).
The regulatory priority for SB2662 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB2662 is estimated as "medium". This may vary based on industry and implementation requirements.
SB2662 addresses topics including city government, city government--utilities, special districts & authorities, special districts & authorities--groundwater conserve dist. and utilities.
Key dates for SB2662: Effective date is 2025-09-01. Rulemaking: Develop and update model drought contingency programs and identify quantified target goals for water use reductions. (Recurring (Every 5 years)). Consult with legal counsel regarding applicability.
SB2662 establishes the following penalties: administrative/operational penalty of Variable (determined by utility) for Customer noncompliance with the utility's Drought Contingency Plan (now explicitly authorizes fines, surcharges, and disconnection).; administrative penalty of Standard PUC administrative penalties for Utility failure to file the DCP as part of the official tariff with the regulatory authority.. Consult with legal counsel for specific applicability to your situation.
SB2662 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.
