HB 3896 Texas House · 89th Legislature (2025)

Relating to the generation of electric power by a water supply or sewer service corporation.

HB 3896 allows water supply and sewer service corporations operating within Texas' ERCOT electricity grid to register as power generators and sell electricity. The bill permits these entities to use revenue from electricity sales solely to cover their own power production costs (like staff, equipment, and maintenance) or for purposes specified under existing Water Code provisions. It requires strict accounting for this revenue to comply with current financial rules. The law takes effect September 1, 2025.

Bill status passed 3 of 5 stages cleared

Introduction

Mar 2025

Committee Review

May 2025

House Passage

May 2025

Senate Passage

Governor

Introduced Mar 27, 2025 Last action May 9, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Engrossed · 4 edits · May 8, 2025

MODERATE

The bill was substantially rewritten to clarify that water and sewer corporations can generate electric power for their own operations (like water pumps and treatment facilities) rather than just for sale. It also adds specific eligibility requirements for smaller counties and clarifies how revenue from power sales must be used.

Scope change

The bill's scope was narrowed from allowing power generation for sale to primarily allowing power generation for internal use, with limited exceptions for sale in smaller counties.

SCOPE

Changed the primary purpose of power generation from selling electricity to using it for internal operations like water well pumps and treatment infrastructure.

ELIGIBILITY

Added specific eligibility criteria for corporations in counties with populations under 350,000 to sell excess power for revenue.

REQUIREMENT

Modified revenue usage requirements to specify that power sale revenue can only be used for power production costs or purposes described in Section 67.002.

DEFINITION

Added specific examples of equipment that can be powered, including water well pumps, service pumps, and treatment infrastructure.

Floor votes · House May 8, 2025

How they voted

145–0

Passed · 3 other

Total votes 148

May 8, 2025

D Democratic61

59 Yea 2

96% Yea

R Republican87

86 Yea 1

98% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 9, 2025

Committee

Referred to Business & Commerce

upper

May 9, 2025

Introduced

Read first time

upper

May 8, 2025

Introduced

Received from the House

upper

May 8, 2025

Lower · Passed

Passed

lower

May 7, 2025

Lower · Passed

Passed to engrossment

lower

Apr 29, 2025

Lower · Passed

Committee report sent to Calendars

lower

Apr 28, 2025

Lower · Passed

Committee report distributed

lower

Apr 25, 2025

Lower · Passed

Reported favorably as substituted

lower

Apr 23, 2025

Lower · Passed

Left pending in committee

lower

Apr 23, 2025

Lower · Passed

Testimony taken/registration(s) recorded in committee

lower

Mar 27, 2025

Committee

Referred to State Affairs

lower

Mar 27, 2025

Introduced

Read first time

lower

1 primary · 0 co-sponsors