Vetoed by Governor Greg Abbott

Vote Smart's Synopsis:

Vote to amend and pass a bill that establishes conservation and reuse credits against water and wastewater fees for developers in Texas.

Highlights:

• Establishes conservation and reuse credits against water and wastewater fees for developers and authorizes a fee in Texas (Sec. 1).

• Requires a political subdivision to provide the following (Sec. 1):

• 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;

• A facility, system, or product eligible for a credit under this section includes a facility, system, or product that:

• Reduces per service unit water consumption, supply requirements, or necessary treatment and distribution infrastructure per service unit;

• Decreases the need of wastewater collection and treatment facilities per service unit;

• Diminishes the demand for stormwater and drainage facilities per service unit; or

• Integrates practices or technologies that achieve water efficiency, reuse, or conservation performance that exceed standard compliance requirements.

• Procedures for:

• Calculating and applying the credits in a fair and consistent manner; and

• Reviewing and approving credits under this section.

• Specifies that beginning January 1, 2026, and continuing on January 1 of each subsequent year, the maximum amount of the fee described by Subsection (c) increases by 5 percent from the previous year’s maximum amount (Sec. 2).

• Requires the district to provide a credit against a service connection fee otherwise assessed to a water utility that is also assessed a production fee under this section for the construction, contribution, or dedication of an eligible facility, system, or product that results in water reuse, conservation, or savings (Sec. 2).

• Specifies that the provisions of this bill shall take effect beginning September 1, 2025 (Sec. 4).

Full Bill Text