Committee adopts substitute tightening approvals for package wastewater plants near municipal lines

3138130 · April 28, 2025

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Summary

Committee substitute for Senate Bill 15-86 narrows where premanufactured "package" wastewater treatment plants may be approved near existing municipal wastewater lines and requires applicants to obtain denial-of-service from nearby providers; committee reported the substitute favorably.

Senator Schwertner laid out a committee substitute to Senate Bill 15-86 addressing the increased use of premanufactured "package" wastewater treatment plants in residential developments, a trend witnesses said has grown after developers used de-annexation strategies to avoid connecting to municipal systems.

The substitute defines conditions under which a package plant can be permitted and tightens requirements, including (1) prohibiting approval of a package plant within 1,000 feet of a municipal wastewater line unless the applicant obtains an affirmative denial of service from an existing wastewater provider within 3 miles; (2) requiring applicants be in good standing with TCEQ on fees and unresolved enforcement actions; and (3) directing the commission to account for cumulative discharge impacts along the same route.

Robert Sadler, a TCEQ water-quality resource witness, told the committee the agency has seen an increase in private domestic wastewater treatment facilities but noted there are different sizes and technologies. Sadler corrected an earlier statement in the hearing record about typical capacities: "This bill defines package plant as premanufactured wastewater treatment facility treating, less than 500,000 gallons per day," he said, noting a range of plant sizes.

Local officials and affected residents from Georgetown and San Marcos testified that package plants can be sited near neighborhoods and sensitive receptors, raise odor and long‑term maintenance concerns, and can strand municipal capacity and costs. Kevin Pitts, mayor pro tem of Georgetown, described a 40-acre tract now in the city's ETJ where a proposed plant is near residences and a church; Heath Culp, an affected landowner, asked for stronger state review and record accuracy in permitting.

The committee adopted the substitute and voted to report Senate Bill 15-86 favorably to the full Senate (6 ayes, 0 nays). Supporters said the substitute promotes regionalization and protects municipal and environmental interests while preserving a path for necessary package plants when no municipal service is reasonably available.