House Bill 274, a bill to allow water retail suppliers to adopt tiered rates at the secondary/provider level, passed the Utah House on Feb. 19 after floor debate and votes on an amendment. Representative Jeremy Snyder, sponsor of the third substitute, said the measure gives suppliers “the ability to also tier price” so backyard and outdoor water use can be accounted for and charged differently to promote conservation.

The bill’s sponsor, Representative Jeremy Snyder, told colleagues that the measure would permit suppliers to set higher rates in a third tier to “apply the pressure of pricing to promote conservation.” He warned that failing to address water pricing would jeopardize long-term resources, saying, “If we do not figure out a way to adequately address water pricing, we will not have a great salt lake. We will not have opportunities to grow. We may not even have agriculture.”

Representative Karen Chu offered an amendment to change a provision in the third substitute that currently reads that a water retailer “shall consider urban farming” (and similar conservation objectives) when setting rates, proposing the word be changed to “may.” Chu said the change was intended to give retailers more discretion. The amendment was debated by multiple members who argued it would weaken the section by removing an affirmative consideration; Representative Snyder and other supporters of the substitute cautioned it could produce unintended consequences and reduce transparency for customers. The motion to amend (change “shall” to “may” on the cited line) failed on the floor.

After debate ended, the House voted on the third substitute to House Bill 274. Voting was closed with the clerk reporting 67 yea votes and 2 nays; the substitute passed and the bill will be sent to the Senate for consideration.

Discussion vs. decision: the floor debate was primarily about the scope of discretion afforded to water retailers when incorporating conservation considerations (urban farming, green space, food security) into rate-setting. The sponsor and supporters described carve-outs in existing law for very small systems or systems without meters; Snyder noted those systems are not required to tier under this bill because they lack the mechanism to do so. The failed amendment was a floor motion (discussion + attempted change) and did not change the substitute.

Votes at a glance: Third substitute, House Bill 274 (water amendments) — Passes House; recorded tally 67 yeas, 2 nays.

Next steps: With House passage the third substitute will be transmitted to the Utah Senate for further consideration.