SB 1034 establishes cybersecurity requirements for retail public utilities that provide water or sewer services. The bill prohibits these utilities from connecting their supervisory control and data acquisition (SCADA) systems to the internet, requiring them to use secure intranet or VPN connections instead. It mandates cybersecurity training for employees with system access and requires periodic security audits and risk assessments. Additionally, it creates incident reporting requirements for security breaches, including ransomware attacks, and authorizes the Texas Commission on Environmental Quality (TCEQ) to adopt rules ensuring compliance​.