1. (a) A political subdivision shall provide 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.

2. (b) A facility, system, or product eligible for a credit under this section includes a facility, system, or product that:

   1. (1) reduces per service unit water consumption, supply requirements, or necessary treatment and distribution infrastructure per service unit;
   2. (2) decreases the need of wastewater collection and treatment facilities per service unit;
   3. (3) diminishes the demand for stormwater and drainage facilities per service unit; or
   4. (4) integrates practices or technologies that achieve water efficiency, reuse, or conservation performance that exceeds standard compliance requirements.

3. (c) A political subdivision that provides a credit under this section shall establish procedures for:

   1. (1) calculating and applying the credits in a fair and consistent manner; and
   2. (2) reviewing and approving credits under this section.

Added by Acts 2025, 89th Leg., 2nd C.S., Ch. 15 (S.B. 14), Sec. 1, eff. January 1, 2026.