What changes
Local governments gain the authority to provide builders and developers with credits against impact fees for implementing water conservation and reuse projects.
Who is affected
Local government entities, construction companies, and commercial/residential property developers.
Requirements and enforcement
Builders must incorporate approved water conservation or reuse technology into their projects to qualify for fee discounts.
Costs and funding
Direct reduction in revenue from impact fees collected by municipalities; costs of project implementation for developers.
When it takes effect
Effective on 1/1/26.
Potential benefits
Provides an economic incentive for developers to build more water-resilient projects and reduces local water demand.
Risks and tradeoffs
Potential loss of essential municipal revenue and the administrative complexity of verifying water-saving claims.
What is still unknown
The specific water-saving criteria that will qualify for the credits and whether the program will result in actual long-term net water savings.