Texas Codes

Tex. Water Code § 13.241 (2026)

Granting Certificates

✓ current as of May 2026

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Sec. 13.241. GRANTING CERTIFICATES. (a) In determining whether to grant or amend a certificate of public convenience and necessity, the utility commission shall ensure that the applicant possesses the financial, managerial, and technical capability to provide continuous and adequate service.

(b) For water utility service, the commission shall ensure that the applicant:

(1) is capable of providing drinking water that meets the requirements of Chapter 341, Health and Safety Code, and requirements of this code; and

(2) has access to an adequate supply of water.

(c) For sewer utility service, the commission shall ensure that the applicant is capable of meeting the commission's design criteria for sewer treatment plants and the requirements of this code.

(d) Before the utility commission grants a new certificate of convenience and necessity for an area which would require construction of a physically separate water or sewer system, the applicant must demonstrate to the utility commission that regionalization or consolidation with another retail public utility is not economically feasible.

(e) The utility commission by rule shall develop a standardized method for determining under Section 13.246(f) which of two or more retail public utilities or water supply or sewer service corporations that apply for a certificate of public convenience and necessity to provide water or sewer utility service to an uncertificated area located in an economically distressed area is more capable financially, managerially, and technically of providing continuous and adequate service. In this subsection, "economically distressed area" has the meaning assigned by Section 15.001.

Added by Acts 1997, 75th Leg., ch. 1010, Sec. 6.07, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 404, Sec. 30, eff. Sept. 1, 1999.

Amended by:

Acts 2005, 79th Leg., Ch. 1145 (H.B. 2876), Sec. 2, eff. September 1, 2005.

Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.42, eff. September 1, 2013.

Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 42, eff. September 1, 2013.

Notes of Decisions

Cited in 9 cases (1 in the last 5 years), 2005–2025 · leading case: Bexar Metro. Water Dist. v. Texas Comm'n on Env't Quality, 185 S.W.3d 546 (Tex. App. 2006).

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Bexar Metro. Water Dist. v. Texas Comm'n on Env't Quality, 185 S.W.3d 546 (Tex. App. 2006). · cites it 5× “Tex. Water Code Ann. § 13.241 (a)-(b) (West 2000).”

City of San Antonio v. BSR Water Co., 190 S.W.3d 747 (Tex. App. 2005). “See Tex. WateR Code Ann. §§ 13.241 , 13.242 (Vernon 2000).”

Chisholm Trail SUD Stakeholders Grp. v. Chisholm Trail Special Util. Dist. & Dist. Directors Delton Robinson, Ed Pastor, Mike Sweeney, James Pletcher, Robert Kostka, David Maserang, Gary Goodman, & Robert Johnson, Jr. The Pub. Util. Comm'n of Texas (Tex. App. 2016). · cites it 3× “Accordingly, the PUC issued a Preliminary Order providing Plaintiffs First Amended Petition Page 24 that Georgetown's Application must meet the standards set out it the Texas Water Code Section 13.254 and associated PUC rules for the revocation of the a CCN, as well as Texas…”

Bexar Metro. Water Dist. v. Texas Comm'n on Env't Quality, City of Bulverde & Guadalupe-Blanco River Auth. (Tex. App. 2005). · cites it 5× “Tex. Water Code Ann. § 13.241 (a)-(b) (West 2000).”

Bexar Metro. Water Dist. v. Texas Comm'n on Env't Quality, City of Bulverde & Guadalupe-Blanco River Auth. (Tex. App. 2006). · cites it 5× “Tex. Water Code Ann. § 13.241 (a)-(b) (West 2000).”

Bexar Metro. Water Dist. v. Texas Comm'n on Env't Quality, City of Bulverde & Guadalupe-Blanco River Auth. (Tex. App. 2005). · cites it 3× “Tex. Water Code Ann. § 13.241 (a)-(b) (West 2000).”

Bexar Metro. Water Dist. v. Texas Comm'n on Env't Quality, City of Bulverde & Guadalupe-Blanco River Auth. (Tex. App. 2006). · cites it 3× “Tex. Water Code Ann. § 13.241 (a)-(b) (West 2000).”

City of Palmview v. Agua Special Util. Dist. (Tex. App. 2019). “See TEX. W ATER CODE ANN. §§ 13.241– .258 (West, Westlaw through 2017 1st C.”

AIRW 2017-7, L.P.; 600 Westinghouse Investments, LLC; 800 Westinghouse Investments, LLC; Texas Comm'n on Env't Quality; & Jonah Water Special Util. Dist. v. City of Georgetown, Texas (Tex. App. 2025). “See Tex. Water Code § 13.241(d) (“Before the utility commission grants a new certificate of convenience and necessity for an area which would require construction of a physically separate water or sewer system, the applicant must demonstrate to the utility commission that…”

— Tex. Water Code § 13.241(a) — 1 case

Chisholm Trail SUD Stakeholders Grp. v. Chisholm Trail Special Util. Dist. & Dist. Directors Delton Robinson, Ed Pastor, Mike Sweeney, James Pletcher, Robert Kostka, David Maserang, Gary Goodman, & Robert Johnson, Jr. The Pub. Util. Comm'n of Texas (Tex. App. 2016). “Accordingly, the PUC issued a Preliminary Order providing Plaintiffs First Amended Petition Page 24 that Georgetown's Application must meet the standards set out it the Texas Water Code Section 13.254 and associated PUC rules for the revocation of the a CCN, as well as Texas…”

— Tex. Water Code § 13.241(d) — 1 case

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