Committee hears bill to stop higher SDCs for homes with NFPA 13D sprinklers

House Committee on Housing and Homelessness Chair Representative Marsh opened a public hearing March 3 on House Bill 3,505, a bill and dash-2 amendment that would prevent local governments from increasing a system development charge (SDC) solely because a homeowner installs a National Fire Protection Association (NFPA) 13D residential fire sprinkler system.

The measure would not prohibit charging for a larger meter itself or for other uses that require the larger meter; it would apply only to the delta in the SDC tied to upsizing a meter that is required exclusively because of the sprinkler installation. "This amendment is a narrow fix designed to remove an unintentional disincentive to install residential sprinklers," said Milana Cox, administrator of the Building Codes Division at the Oregon Department of Consumer and Business Services.

The nut of the proposal, witnesses said, is that some SDC formulas factor meter size into the charge. When a sprinkler system prompts a local requirement for a larger meter to meet instantaneous flow demands, the SDC can jump even though residential sprinklers have no ongoing daily demand on the water system. Cox said that dynamic can make sprinklers — which she called the "gold standard of fire life safety" — significantly more expensive on infill and dense housing projects, potentially discouraging installation.

Claire McGrew, chief deputy at the Oregon Department of State Fire Marshal, told the committee the dash-2 language is "very narrow in scope and directly connected to residential fire sprinkler requirements through NFPA 13D" and said the amendment would reduce a cost barrier for a life‑saving upgrade. Sean Olsen, legislative chair for the Oregon Fire Marshals Association, cited federal statistics and urged fuller relief: "When both fire sprinklers and smoke alarms are present, fire deaths are reduced by 82 percent," Olsen said, and he encouraged the committee to consider eliminating SDCs for residential sprinkler systems entirely.

Builders and water‑utility officials who testified expressed targeted support for the dash-2 amendment. Scott Berry of the Oregon Home Builders Association said the difference between a typical 3/4‑inch meter and a 1‑inch meter — the size sometimes needed when sprinklers are added — can be about $5,000 in some jurisdictions, and that the proposed change would materially reduce retrofit costs for infill homes. Andy Smith, representing the Oregon Building Officials Association, thanked the Building Codes Division for convening stakeholders and described the amendment as a "narrow fix." The panel also noted local examples in which cities already track usages and make adjustments so SDCs do not penalize sprinkler installations when the larger meter is otherwise justified.

The bill, as described to the committee, does not expand sprinkler mandates or prevent local governments from charging for a larger meter when a customer needs it for other purposes such as additional fixtures or a private water feature. Witnesses described the amendment as limited to the increase in the SDC that is attributable solely to the sprinkler‑related upsizing.

No formal action or vote was taken at the hearing; the committee closed the public hearing after testimony.

Ending: House Bill 3,505 with the dash‑2 amendment proceeded through a public hearing with testimony from building‑code officials, fire service representatives and builders. Committee members asked technical questions but took no final vote during the March 3 hearing; the bill will return to the committee for further consideration and potential amendment.