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Bill

SB 565

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.

89th Legislature (2025) Introduced by César Blanco and 2 co-sponsors

SB 565 lets Texas regional utilities negotiate compliance agreements to suspend enforcement actions for violations, delaying penalties if they commit to correcting problems by a deadline.

Effective on 9/1/25
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Bill Summary · SB 565

Legislative bill overview

SB 565 allows regional water, sewer, wastewater, and solid waste utilities to enter into compliance agreements with regulators to suspend enforcement actions for violations. Rather than facing immediate penalties, these regional service providers can negotiate a structured plan to correct violations within a specified timeframe, with enforcement action resuming only if they fail to comply.

Why is this important

Regional utilities serve multiple communities and infrastructure failures can affect thousands of residents. This bill provides regulatory flexibility for utilities to address violations systematically rather than through costly penalties, potentially reducing service disruptions while still requiring corrective action. However, it also creates an avenue for utilities to delay accountability if compliance agreements are not properly enforced.

Potential points of contention

  • Enforcement accountability: Unclear whether compliance agreements have strict deadlines or milestones, potentially allowing indefinite delays in actual corrections to violations
  • Public protection standards: Questions about whether suspending enforcement action adequately protects public health and safety, particularly for water quality or wastewater treatment violations
  • Regulatory fairness: Small utilities and private operators may face stricter enforcement than regional entities, creating unequal treatment under environmental/sanitation regulations

Compiled from official sources — confirm details with the bill’s official record.

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