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Council hears limits of expanding wastewater CCN and a contested package-plant permit for Preserve Hutto
Summary
Legal counsel said current PUC interpretation makes extending Hutto—s wastewater CCN to the full ETJ unlikely without detailed CIP and financing plans; the council also heard that TCEQ commissioners overturned an administrative recommendation and appear poised to issue a permit to Preserve Hutto LLC, raising potential appeals and compensation issues.
Hutto council received a legal update on Feb. 5 about the limits and risks of extending the city—s wastewater Certificate of Convenience and Necessity (CCN) into the extraterritorial jurisdiction.
Attorney Joe Freeland (Matthews & Freeland) told the council that under current Public Utility Commission (PUC) interpretations the city would need a detailed capital improvement plan and financing plan for each development area: "Given the current state of the Public Utilities Commission view on issuing CCNs, there's no way you would get it all the way to the ETJ boundary." Freeland said he filed a brief with the PUC seeking a more permissive interpretation but expected several months for any change. He also described a parallel matter at the Texas Commission on Environmental Quality (TCEQ): the TCEQ commissioners overturned an administrative law judge recommendation and appear likely to issue a permit to Preserve Hutto LLC to build a package wastewater plant for an anticipated tiny‑home development. The city and the Star Ranch District are weighing appeals, rehearing motions, and a potential compensation process if the developer—s land is removed from the city—s CCN.
Council directed staff to track the PUC response and explore legislative or trade‑association assistance if necessary, and to return with recommendations in 3–6 months.
