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2025 · Regular session · Senate bill
SB565
SB565 broadens when the Texas Commission on Environmental Quality may make a compliance agreement for a service being combined into a regional system.
Official caption: Relating to a compliance agreement for the suspension of an enforcement action against a regional water supply, sewer, wastewater treatment, or solid waste disposal service for certain violations.
Official report lists Senate author(s): Perry. This does not identify sponsors or amendment drafters.
Bill explanation published · Version and amendment review scope is stated below · Individual amendment records may not be separately annotated.
Bill highlights
Selected points from the published explanation. Follow each point to its source-linked context; conditions and limits may matter.
- SB565 broadens when the Texas Commission on Environmental Quality may make a compliance agreement for a service being combined into a regional system.
- For water supply, sewer, wastewater treatment or solid-waste disposal services, the law adds services operated by or for a regional service area or unincorporated service area to the existing city/county category.
- The existing safeguard remains: TCEQ may initiate enforcement against a regional service that does not substantially comply with its agreement.
What does it do?
SB565 broadens when the Texas Commission on Environmental Quality may make a compliance agreement for a service being combined into a regional system. The agreement lets TCEQ refrain from initiating enforcement against the receiving regional service for existing or anticipated violations arising from operating the service being integrated. It must include provisions needed to bring that service into compliance. This is discretionary and conditional, not automatic forgiveness of every violation. Final law, Section 1.
For water supply, sewer, wastewater treatment or solid-waste disposal services, the law adds services operated by or for a regional service area or unincorporated service area to the existing city/county category. It specifies that the receiving regional service is administered by another entity, including a retail public utility. For the separate category of non-city/non-county retail public utilities providing water, sewer or wastewater treatment, it clarifies that the receiving entity can be another retail public utility. That second category does not list solid-waste disposal. Two eligibility pathways.
The existing safeguard remains: TCEQ may initiate enforcement against a regional service that does not substantially comply with its agreement. The act does not order a merger, guarantee an agreement, or waive unrelated legal requirements. Signed June 20, 2025, it took effect September 1, 2025. Existing Water Code Section 7.0026, including subsection (d); Enacted changes and effective date; Official history.
What changed along the way?
The introduced, Senate committee, engrossed, House committee and enrolled versions contain the same operative changes. Both committees reported the bill without amendments, and the official amendment index lists none. The expansion is in the original proposal, not a later floor amendment. Introduced text; All five versions; Amendment index.
Compared with the prior statute, the main change is the broader first eligibility pathway and the express recognition of retail public utilities as receiving entities. The requirement for corrective provisions and the enforcement safeguard for substantial noncompliance already existed and are not newly invented by SB565. Prior statute; Final wording.
For the full amendment record, open the official amendment index.
Official bill versions
Compare the published text versions in the official text index. A change is not attributed to a specific amendment here without a verified record.
Who could benefit—and who could bear the costs?
An eligible regional provider may be more willing to take on a troubled service if it can arrange a path to compliance without immediate enforcement for covered inherited or anticipated violations. Customers may benefit if integration improves service, but the law guarantees neither improved water quality nor lower bills. Providers still must meet their agreements; TCEQ retains its decision-making and enforcement role. Conditional compliance agreements; Continuing enforcement safeguard.
The February 21 introduced-bill fiscal note—the only posted fiscal note—anticipates no significant state or local fiscal impact and assumes state costs can be absorbed with existing resources. It does not estimate acquisition costs, particular utility repairs, customer rates or savings. SB565 itself does not appropriate money. Official fiscal note.
Official sources
- Bill history and latest recorded action
- Bill versions, analyses and fiscal notes
- Action history and votes
- Amendment index
Catalog report retrieved 2026-10-25. Check the official record for corrections or later changes.