TITLE: Relating to the provision by a political subdivision of credits against impact fees to builders and developers for certain water conservation and reuse projects.

SUMMARY: Relating to the provision by a political subdivision of credits against impact fees to builders and developers for certain water conservation and reuse projects.

FULL TEXT:
AN ACT relating to the provision by a political subdivision of credits against impact fees to builders and developers for certain water conservation and reuse projects. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 395, Local Government Code, is amended by adding Section 395.0231 to read as follows: Sec. 395.0231. CONSERVATION AND REUSE CREDITS AGAINST WATER AND WASTEWATER FEES. (a) A political subdivision shall provide a credit against water and wastewater impact fees otherwise assessed to a development to a builder or developer for the construction, contribution, or dedication of an eligible facility, system, or product that results in water reuse, conservation, or savings. (b) A facility, system, or product eligible for a credit under this section includes a facility, system, or product that: (1) reduces per service unit water consumption, supply requirements, or necessary treatment and distribution infrastructure per service unit; (2) decreases the need of wastewater collection and treatment facilities per service unit; (3) diminishes the demand for stormwater and drainage facilities per service unit; or (4) integrates practices or technologies that achieve water efficiency, reuse, or conservation performance that exceeds standard compliance requirements. (c) A political subdivision that provides a credit under this section shall establish procedures for: (1) calculating and applying the credits in a fair and consistent manner; and (2) reviewing and approving credits under this section. SECTION 2. This Act takes effect January 1, 2026.