HB 501 Utah House · 2026 General Session

Water Modifications

HB 501 requires secondary water suppliers (like cities or water districts providing non-culinary irrigation water) to install meters for all new commercial, industrial, institutional, and residential connections by specific deadlines (2020 for some counties, 2022 for others) and achieve full metering for all users by January 1, 2030. It mandates annual reporting to the Division of Water Resources on metered usage, service boundaries, and water sources, and restricts rate increases related to metering to 10% per year without justification. The bill also defines key terms like "secondary water" and "commercial user" to clarify coverage, and includes requirements for suppliers to develop and submit metering implementation plans by 2025. This affects water suppliers across Utah, particularly those serving non-agricultural or non-residential irrigation needs.

Bill status passed 4 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Mar 2026

House Passage

Feb 2026

Senate Passage

Feb 2026

Governor

Introduced Feb 5, 2026 Last action Mar 7, 2026

Maddy AI version diff · 4 comparisons

What changed between versions

Substitute #3 → Substitute #4 · 7 edits

MODERATE

This version replaces the previous draft with a complete bill text that adds two new sections requiring water and wastewater providers to contribute a percentage of their revenue to qualify for state infrastructure funding. It also includes new definitions for user types and establishes specific metering deadlines and penalty fines for non-compliance.

Scope change

The bill's scope expanded to include a 'Local Investment Requirement' that applies to public water systems and wastewater service providers seeking state money, in addition to the existing secondary water metering regulations.

FISCAL

Added Section 73-10g-801 defining 'local investment requirement' as revenue that must stay with local providers.

Added Section 73-10g-802 requiring water and wastewater providers to collect a percentage of revenue (1.5% to 3%) to qualify for state grants or loans starting in 2027.

REQUIREMENT

Added a requirement for secondary water suppliers to install meters on all connections by January 1, 2030.

Added requirements for secondary water suppliers to implement tiered conservation billing rates by July 1, 2030.

ENFORCEMENT

Added specific administrative fines ranging from $10 to $50 per non-metered connection for failure to meet the 2030 deadline.

DEFINITION

Added specific definitions for 'Commercial user', 'Industrial user', 'Institutional user', 'Power generation use', and 'Residential user'.

TIMELINE

Set the effective date of the entire bill to July 1, 2026, replacing a previous placeholder date.

Substitute #1 → Substitute #2 · 7 edits

MODERATE

This bill modifies Utah's water regulations to strengthen metering requirements for secondary water suppliers and establish new financial obligations for water systems receiving state funds. It expands the definition of 'critical areas' to include more drainage basins, tightens rules on contract modifications to ensure usage-based billing, and introduces a 'local contribution amount' that public water systems must collect from customers before they can receive state money. Additionally, it creates a new notification system requiring title agents to inform secondary water suppliers when property ownership changes, ensuring water covenants run with the land.

Scope change

The bill expands the geographic scope of 'critical areas' for water conservation and clarifies applicability for small secondary water retail suppliers and those unable to obtain meters due to water quality issues. It also extends the timeline for certain metering deadlines and adds new requirements for wastewater service providers regarding state funding eligibility.

DEFINITION

The definition of 'critical area' was expanded to explicitly include drainage areas for the Bear, Weber, Jordan, and Utah Rivers, as well as Tooele Valley, broadening the area subject to specific groundwater management rules.

REQUIREMENT

A new requirement mandates that title agents must notify secondary water suppliers of property transfers within 10 business days, ensuring water usage covenants are transferred to new owners.

Contracts entered into or renewed after July 1, 2025, must allow for tiered conservation rates that encourage water efficiency.

FISCAL

New sections require public water systems and wastewater providers to collect a calculated 'local contribution amount' from their customers as a condition for receiving any state money for water infrastructure.

TIMELINE

Deadlines for full metering of secondary water were adjusted, with a firm requirement that all secondary water connections be metered by January 1, 2030.

ENFORCEMENT

New enforcement mechanisms were added, including administrative fines for secondary water suppliers who fail to meter connections or comply with tiered conservation billing rates.

ELIGIBILITY

Exemptions from metering requirements were added for suppliers in counties of the fifth or sixth class who can prove the cost of metering exceeds 25% of their operating budget, and for those unable to get meters due to water quality.

Floor votes · House Feb 25, 2026

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 5, 2026

Upper · Passed

Senate/ comm rpt/ sent to Rules [Senate Rules Committee]

upper

Mar 4, 2026

Upper · Passed

Senate Comm - Recommends Returned to Rules [Senate Government Operations and Political Subdivisions Committee]

upper

Mar 3, 2026

Upper · Passed

Senate Comm - Not Considered [Senate Government Operations and Political Subdivisions Committee]

upper

Feb 27, 2026

Committee

Senate/ to standing committee [Senate Government Operations and Political Subdivisions Committee]

upper

Feb 26, 2026

Introduced

Senate/ 1st reading (Introduced)

upper

Feb 25, 2026

Upper · Passed

House/ passed 3rd reading

upper

Feb 18, 2026

Lower · Passed

House/ committee report favorable [House Natural Resources, Agriculture, and Environment Committee]

lower

Feb 18, 2026

Lower · Passed

House Comm - Favorable Recommendation [House Natural Resources, Agriculture, and Environment Committee]

lower

Feb 13, 2026

Committee

House/ to standing committee [House Natural Resources, Agriculture, and Environment Committee]

lower

Feb 5, 2026

Introduced

House/ 1st reading (Introduced)

lower

1 primary · 1 co-sponsor