The TCEQ writes rules to govern billing practices for water and
wastewater utility services provided by property owners to tenants
(or by condominium associations to members).
What is "submetered" or
"allocated" billing?
Under both of these billing methods, the local public utility
measures water use for the whole property at a "master" meter and
then bills the property owner based on the master meter reading.
Then:
- under submetered billing, the owner uses submeters at
each dwelling unit to bill tenants based on their actual water
use.
- under allocated billing, the owner does not meter each
dwelling unit, but uses a formula to allocate utility charges among
the tenants.
The charges billed by the owner are based on the bill received
from the public utility.
Who can bill tenants in
these ways?
Owners of the following types of properties are allowed to bill
their tenants for the actual cost of water or wastewater service
provided by the local utility:
- apartments
- manufactured home rental communities
- condominiums
- strip malls, marinas, and other multiple-use facilities
Owners who submeter or allocate utility bills must follow TCEQ
rules and must file a Registration of Submetered or Allocated
Utility Service Form (TCEQ-10363) and a TCEQ Core Data Form
(TCEQ-10400) for each property where tenants are billed.
What changed as of
January 2003?
The 77th Texas Legislature made several changes in the state law
that allows property owners to bill their utility costs to tenants.
Those changes were effective September 1, 2001, and are applicable
to existing properties which implement submetered or allocated
billing after January 1, 2003, and properties on which construction
begins after January 1, 2003.
Property owners NOT AFFECTED by the new requirements are those
who:
- Began billing tenants for submetered or allocated services
provided in 2002 and continue to do so
- Will continue to provide services as an "incidence of tenancy"
after 2002
Property owners AFFECTED by new requirements under the law and
TCEQ rules are:
- Those who plan to begin billing tenants for services used after
2002
- Those who own property on which construction began after
2002
The new requirements are summarized as follows:
Before Allocated or Submetered Billing Is Implemented After
January 1, 2003*
- Ensure sink or lavatory faucets, faucet aerators and
showerheads meet low–flow standards.
- Perform water leak audits and repair leaks
And, within one year- Remove toilets using more than 3.5 gallons per flush
- Replace with toilets not exceeding 1.6 gallons per flush
| *These requirements do not apply to a manufactured home rental
community owner who does not own the manufactured home for which
space is being rented |
New Construction, unless an exception applies
(see below):
- Install a plumbing system compatible with the installation of
submeters for each dwelling or rental unit and install submeters
OR
- Make arrangements with the utility to provide individual meters
and install a plumbing system compatible with the installation of
meters by the retail public utility
Exceptions
- The property owner provides government assisted or subsidized
rental housing to low or very low income residents
- The retail public utility has determined the installation of
individual meters for each rental unit is not feasible
|
New Construction, if one of the exceptions
applies:
- Install a plumbing system compatible with the installation of
submeters or meters. TCEQ recommends the property owner maintain
records to establish which exception applies
Click on Texas
Water Code, Chapter 13, Subchapter M or in the section below
titled, "Where can I get more information?", to download a current
copy of "Submetering and Nonsubmetering for Apartments and
Manufactured Home Rental Communities and Other Multiple Use
Facilities" (Texas Water Code, Chapter 13, Subchapter M).
Some misunderstandings about the effect of changes made to the
state law are addressed below.
| Each of the following statements is FALSE |
Explanation |
| All property owners will be required to bill tenants for
water/wastewater services. |
The Water Code does not require an owner to bill tenants for
utility services.
|
| All properties with submeters in place must bill tenants on a
submetered basis.
Only submetered billing will be permitted after 2002 for both
new and existing properties.
|
The Water Code does not require an owner to issue bills based
on submeter measurements. (However, once a property is billed on a
submetered basis, the owner must obtain TCEQ approval to change
from submetered to allocated billing.) |
| Submeters or meters are required on ALL property on which
construction begins after 2002. |
The exceptions to this requirement are discussed above. |
| All property owners billing for utility services will be
required to conduct water leak audits and ensure all plumbing
fixtures and toilets meet current, low-flow standards. |
This requirement only applies to properties which implement
allocated or submetered billing after 2002. With regard to
retrofitting toilets, only those that use more than 3.5 gallons per
flush must be replaced and the owner has one year in which to do
so. |
| Property owners which began billing prior to 2003, discontinue
billing, then begin billing again are "grandfathered" with regard
to the new requirements. |
The requirements which apply to properties implementing an
allocated or submetered billing program after 2002 DO apply to
properties that discontinue billing, then "re–implement" a
billing program. |
Where can I get
more information?
We make camera-ready copies of the rules and related
publications available for owners to reproduce and distribute to
their tenants. Each of these items is available in PDF format by
clicking on the underlined word in the following list.
