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SB 13

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, 1st Called Session (2025) Introduced by Carol Alvarado and 13 co-sponsors

SB 13 enables Texas municipalities to offer impact fee credits to developers implementing water conservation and reuse projects, incentivizing water-efficient construction while reducing local fee revenue.

Reported engrossed
#citygovernment--general(i0060) #countygovernment--general(i0096) #fees&othernontaxrevenue--local(i0361) #politicalsubdivisions(i0588) #water--conservation(i097l)
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Bill Summary · SB 13

Legislative bill overview

SB 13 allows Texas political subdivisions (cities, counties, water districts) to offer tax credits or fee reductions against impact fees to builders and developers who implement water conservation and reuse projects. This creates financial incentives for developers to incorporate water-saving infrastructure into new construction and development projects.

Why is this important

Water scarcity and drought management are critical infrastructure challenges in Texas, particularly in rapidly growing regions. By reducing development costs for water-efficient projects, the bill encourages builders to voluntarily adopt conservation measures, potentially reducing long-term water demand and infrastructure strain without mandates or new regulations.

Potential points of contention

  • Fiscal impact uncertainty: Local governments forego impact fee revenue needed for infrastructure; bill doesn't specify how municipalities should calculate appropriate credit amounts
  • Defining qualifying projects: Ambiguity around what constitutes eligible "water conservation and reuse projects" could lead to inconsistent application and disputes over credit eligibility
  • Equity concerns: Credits may primarily benefit larger, well-capitalized developers who can afford upfront conservation investments, while smaller builders may not access the benefits
  • Gaming incentives: Developers could overstate conservation benefits or claim credits for standard-practice improvements to maximize fee reductions

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

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