Utah households opening July water bills are seeing the first customer-facing wave of a brand-new statewide regulatory fee. Authorized by the Utah Legislature last year through S.B. 80, the charge is a first-of-its-kind statewide fee rather than a local rate hike.
The Utah Division of Drinking Water (DDW) is charging public water systems an annual, consumption-based fee of $0.0165 for every 1,000 gallons of domestic water delivered. Systems using less than 10 million gallons annually pay a flat $35 instead.
The authority for this program originated from S.B. 80, the Water Fee Amendments, which was enacted during the 2025 General Session. Chief sponsor Sen. Scott D. Sandall of Tremonton and House sponsor Rep. Casey Snider required the Department of Environmental Quality (DEQ) to establish a fee schedule for regulating public water systems.
Senator Sandall previously stated that the bill was a response to static federal support as Utah grows, noting that the state needed its own fee authority so quality testing would not lag behind growth in new neighborhoods. DEQ officials echoed this logic, stating the fee is intended to reduce reliance on declining federal grants and fund staff for inspections, testing, and oversight.
The current rate represents a 50% reduction from the $0.0331 per 1,000 gallons originally proposed in August 2025. This reduction followed public outreach, a formal fee hearing in Salt Lake City, and nearly 100 written comments.
While utilities are already itemizing the charge on July bills, systems do not pay the state until mid-2027. Larger, consumption-based systems will be invoiced between October 1 and December 31, 2027, while flat-rate systems will self-pay between July 1 and September 30, 2027.
Several utilities are already showing the pass-through charge. The White City Water Improvement District notified customers on July 16, 2026, that a new Utah DDW FEE line would appear. Similarly, the Holliday Water Company has listed the new Utah Drinking Water Fee, noting that none of the revenue stays with the local company.
The fee applies to all public water systems in Utah, though exemptions exist for water wholesaled to other public systems, pure agricultural use outside a public drinking-water system, and industrial end-users.
DEQ is offering up to a 10% fee reduction for community systems that meet specific conservation incentives, such as full residential metering and tiered rates. Engineering contact Dani Zebelean, P.E., is listed for questions regarding these incentives.
Under S.B. 80, the DEQ must also report on the fee schedule to the Legislature’s Natural Resources, Agriculture, and Environment Interim Committee to ensure continued oversight.
