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HB 3875

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 (2025) Introduced by Cecil Bell

HB 3875 allows Texas local governments to credit builders' impact fees in exchange for implementing water conservation and reuse projects on new development sites.

Committee report sent to Calendars
#citygovernment--general(i0060) #countygovernment--general(i0096) #fees&othernontaxrevenue--local(i0361) #politicalsubdivisions(i0588) #water--conservation(i097l)
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Bill Summary · HB 3875

Legislative bill overview

HB 3875 permits Texas political subdivisions (cities, counties, water districts) to offer credits against impact fees to builders and developers who implement water conservation and reuse projects. Impact fees are charges imposed on new development to fund infrastructure, and this bill allows local governments to reduce these fees as an incentive for water-efficient construction practices.

Why is this important

Water scarcity is a critical issue in Texas, particularly in growing urban areas. By allowing local governments to offer financial incentives for conservation and reuse projects, the bill could accelerate adoption of sustainable water practices during development while potentially lowering costs for builders who implement these features—creating a market-based approach to water management at the local level.

Potential points of contention

  • Revenue impact: Reducing impact fees decreases revenue for infrastructure funding, potentially shifting costs to other taxpayers or requiring alternative financing for water systems and related infrastructure
  • Equity concerns: Developers with resources to implement expensive conservation projects may gain larger credits, while smaller builders might be disadvantaged
  • Implementation ambiguity: The bill does not specify what qualifies as acceptable water conservation projects, how credits are calculated, or oversight mechanisms, leaving details to local discretion

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

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