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League reviews two water bills; cities flag revenue and flexibility concerns
Summary
League staff previewed HB274 (water conservation in rate‑setting) and HB285 (capital asset management plan requirement for public water systems receiving state or federal funds). Cities and a water attorney raised concerns about revenue impacts and statutory alignment.
The Utah League of Cities and Towns’ Local Policy Committee discussed two water bills this session and left both as position pending while staff seeks clarifications from sponsors.
League staff introduced House Bill 274, sponsored by Rep. Casey Snyder, which would require water conservation to be considered when setting tiered water rates and would restrict additional fees raised for conservation from being used for dividends or salaries. Staff said the bill also contains a provision related to secondary water metering; that portion is expected to change and was not discussed in detail.
Ken Lethem, public official from North Salt Lake, said that conservation rate structures adopted locally tend to reduce revenues because customers conserve more water; he cautioned cities may experience decreased revenues even as rates rise. Gary Hill (Bountiful) and Sean Guzman (St. George City) said cities need flexibility to tailor tiered or seasonal conservation rates to local climates; St. George uses seasonal conservation rates because of the area’s different irrigation pattern.
Nathan Breck, a water attorney, said the bill traces back to a Division of Water Resources report and addresses a statutory tension: some rate statutes tie rates to cost, which may limit the top tier’s ability to intentionally exceed cost for conservation incentives. “When you set a high rate for that top tier and you say it's for conservation, then the presumption is that is reasonable,” Breck said, but he added the bill could use clearer alignment with existing statutes.
House Bill 285, also sponsored by Rep. Snyder, would require public water systems that are not water conservancy districts to adopt a capital asset management plan as a condition of receiving certain state or federal funds by July 1, 2028, and to update it every five years. League staff recommended keeping the position pending to consult further with DEQ and other affected entities about feasibility and timing.
Why it matters: Cities said conservation‑driven tiers may lower consumption and reduce revenue streams used for infrastructure and operations. Staff emphasized they will meet with the sponsor to clarify whether HB274 would create an expectation that cities divert existing infrastructure funding into conservation programs and whether HB285’s timing and requirements are attainable for smaller systems.
What’s next: League staff will meet sponsor Rep. Casey Snyder to get clarifying language on both bills and return to LPC with recommended positions once statutory interactions and fiscal impacts are clearer.
