Committee hears bill to bar SDC increases tied solely to residential fire-sprinkler meter upsizing

On April 16, 2025, the Senate Committee on Housing and Development held a public hearing on House Bill 3505A, which would prohibit local governments from imposing or increasing system development charges (SDCs) for the installation of an NFPA 13D residential fire-sprinkler system when the only reason for a larger water meter is the sprinkler system.

Alana Cox, administrator of the Building Codes Division at the Department of Consumer and Business Services (DCBS), told the committee the bill is a narrow technical fix intended to remove an unintentional disincentive for installing residential sprinklers. Cox said many SDC formulas factor meter size into SDC calculations; residential sprinkler systems can require upsizing to the next meter size even though sprinklers have no continuous daily flow. That upsizing can result in a higher SDC despite little or no increase in typical household water use.

Claire McGrew, chief deputy at the Oregon Department of State Fire Marshal (OSFM), told the committee OSFM supports the bill as a targeted measure tied to NFPA 13D residential systems. McGrew said residential sprinklers provide a high level of life-safety protection and that removing the SDC penalty would reduce a cost barrier to installing those systems.

Builders and trades groups also testified in support. Brian Krieg of the United Association of Plumbers and Steamfitters and the Plumbing and Mechanical Contractors Association described residential sprinklers as an option that enables denser development in difficult lots and said sprinklers reduce potential environmental water use by putting out fires earlier. Scott Barry of the Oregon Home Builders Association said meter upsizing to accommodate sprinklers can add roughly $5,000–$6,000 to the cost of a house in some jurisdictions and that the bill would remove that specific, sprinkler-related SDC increase.

Committee members asked whether the bill would allow cities to charge for the meter itself or otherwise recoup costs. Cox and McGrew clarified the bill would not prohibit charging for the water meter hardware or for SDCs where a larger meter is needed for other uses (for example, irrigation); it would only prevent an SDC increase triggered solely by the meter upsizing that is required exclusively by the residential sprinkler system. The Building Codes Division emphasized it is not seeking to expand sprinkler mandates statewide; the bill aims to remove an economic disincentive to installing sprinklers where they are already required or permitted under existing codes.

No committee vote on HB 3505A was recorded on April 16; the hearing included technical testimony and public-support statements from construction trades and builders.