Senate Bill 13 would let local political subdivisions create a percentage impact-fee credit for developments that adopt innovative water-supply technologies or conservation measures beyond existing code. Supporters said the incentive is intended to encourage water reuse, graywater systems and other innovations that reduce new demand and downstream wastewater loads.

Why it matters: Several witnesses said water conservation and reuse are cheaper than new supply projects and that incentives for builders can accelerate adoption. The bill was a refiled measure that previously passed the Senate but was vetoed; the committee substitute moves the effective date to Jan. 1, 2026 to give local governments time to implement administrative changes.

Support and testimony: The Texas chapter of the U.S. Green Building Council, the Texas Association of Builders and the Lone Star Sierra Club testified in support. Kenneth Flippen of the Green Building Council said the policy would help “plan ahead and make sure our new developments are conserving water.” JD Hale of the Texas Association of Builders said the measure would reward builders who save water and cited potential large aggregate savings if households adopt small conservation measures.

Limitations and clarifications: Sponsors and supporters stressed that credits are for innovations beyond current code — not for developers merely meeting existing standards. The substitute also includes a stakeholder-feedback process to set an appropriate percentage credit and a review next session.

Next steps: The committee adopted the substitute and left the bill pending for further action.