HB 3875

relating to the authority of a political subdivision to provide
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 may 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, drainage,
and flood control facilities per service unit; or
(4)  integrates practices or technologies that achieve
water efficiency, reuse, or conservation performance that exceed
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
(2)  reviewing and approving credits under this
SECTION 2.  This Act takes effect September 1, 2025.