Senate committee advances bill to scale water tap fees to expected use, adds contract and clawback protections

House Bill 25-12-11, which would require special water and sanitation districts to scale tap fees to a property’s expected water use and to provide service when they have capacity, moved out of the Senate Local Government & Housing Committee on a 5-2 vote and was sent to the Committee of the Whole as amended.

The bill’s sponsors, Senator Bridges and Senator Kurt Meyer, said the proposal aims to support housing affordability and conserve water by making front-end incentives for developers to build lower‑use homes. Senator Bridges said the measure is not a “silver bullet” but ‘‘one of those silver BBs’’ for housing affordability and water conservation.

Supporters argued scaled tap fees would reward smaller lots and water‑efficient fixtures and reduce long‑term water use. Chelsea Benjamin, policy adviser at Western Resource Advocates, told the committee that conservation‑oriented tap fees — such as charges tied to irrigation needs or efficient indoor fixtures — have been used in Colorado and can lower costs and water use for developers and buyers. Benjie Edelstein, whose research focuses on tap fees and housing markets, testified that flat tap fees are inefficient and that reduced fees can change builder incentives toward more water‑efficient homes.

Opponents, including managers and representatives of several special districts and their trade groups, urged caution and said the bill initially risked shifting infrastructure costs onto existing customers or running afoul of existing contracts and bonding covenants. Kathleen Curry, representing Clifton Water District (and later testifying for Colorado Water Congress), said Clifton serves about 13,000 taps — roughly 40,000…