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Bill

SB 14

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

89th Legislature, 2nd Called Session (2025) Introduced by Carol Alvarado and 26 co-sponsors

Texas allows local governments to offer water impact fee credits to developers implementing conservation and reuse projects, effective January 1, 2026.

Effective on 1/1/26
#citygovernment--general(i0060) #countygovernment--general(i0096) #environment--water(i0320) #fees&othernontaxrevenue--local(i0361) #politicalsubdivisions(i0588) #water--conservation(i097l)
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Bill Summary · SB 14

Legislative bill overview

SB 14 allows Texas political subdivisions (cities, counties, water districts) to grant credits against impact fees to builders and developers who implement water conservation and reuse projects. The bill became effective January 1, 2026, and provides local governments discretionary authority to incentivize sustainable water infrastructure through fee reductions rather than mandatory requirements.

Why is this important

Texas faces ongoing water scarcity challenges, particularly in rapidly growing regions. By tying financial incentives to conservation projects, the bill encourages developers to incorporate water-saving infrastructure—such as rainwater harvesting, graywater systems, or reclaimed water use—into new construction without imposing regulatory mandates. This approach balances development growth with resource sustainability.

Potential points of contention

  • Revenue impact: Reducing impact fees decreases funding for municipal water infrastructure, potentially shifting costs to other taxpayers or requiring alternative revenue sources
  • Inconsistent implementation: Without statewide standards, local governments may apply credits differently, creating uncertainty for developers and potentially inequitable outcomes across regions
  • Verification challenges: Determining legitimate conservation projects and preventing gaming of the system requires robust monitoring and could burden understaffed local agencies

Compiled from official sources — confirm details with the bill’s official record.

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