Bill would require small Clark County water providers to file annual infrastructure adequacy reports with PUCN

Senator Michelle Cruz Crawford presented Senate Bill 326 to require certain smaller water service providers in Clark County to submit an annual report to the Public Utilities Commission of Nevada (PUCN) documenting infrastructure adequacy, including the utility’s ability to provide required fire-protection water supply and pressures.

Attorney Matt Morris, counsel to the sponsor, explained the bill’s intent is to close a reporting gap for smaller privately owned water utilities that are not subject to integrated resource planning, general rate case filings or mandatory water conservation plans under existing NRS Chapter 704 rules. Morris said the bill would not change the statutory standard that utilities must provide a reasonably adequate supply and reasonable pressure for fire protection; it would only require selected smaller operators to report on their ability to meet that existing standard.

PUCN staff testified they were neutral and raised practical concerns: the bill, as written, appears to apply to a single small utility in Indian Springs that reported operating income under $40,000 and serves about 363 customers. PUCN staff said those small operators already provide information to other state agencies—the Division of Water Resources (water rights and proof of beneficial use), the Division of Environmental Protection or county health districts (sanitary surveys and infrastructure reviews)—and they lack resources comparable to larger utilities to prepare costly filings. PUCN staff emphasized that when deficiencies are found through sanitary surveys or PUCN inspections, they work with utilities to identify funding and remediation paths.

Committee members questioned enforcement implications and whether the bill would give PUCN authority to shut down systems found inadequate. PUCN staff said SB 326 is a reporting bill, not an enforcement bill; existing administrative tools remain for the commission to address violations. The committee also discussed whether developers and prospective customers have other existing avenues—through the Division of Water Resources or PUCN complaint processes—to obtain information about water rights and system capacity; staff said developers have used those avenues and that a complaint involving the Indian Springs utility is pending before the commission.

Public testimony included a caller from Indian Springs who registered support for SB 326. The committee closed the hearing and indicated further work with PUCN and stakeholders on the draft language may be needed; no committee vote on passage was recorded during the hearing.