Austin Water outlines Go Purple pilot incentives, asks commission to reauthorize $4 million pilot

Austin Water staff presented details of the Go Purple pilot incentive program — a strategy within the department’s Water Forward plan to expand nonpotable water reuse in new commercial and multifamily developments — and the commission voted unanimously to reauthorize the pilot for the coming fiscal year with the same budget caps.

Catherine Jesinski, supervising engineer, summarized the program’s purpose and structure: Go Purple was adopted by City Council in March 2024 and combines new code requirements, affordability strategies, and a community benefit charge to accelerate reclaimed water and on-site reuse in large developments. The code requires dual plumbing or on-site treated capture for commercial and multifamily developments with 250,000 square feet or more of gross floor area; the requirements differ depending on whether a property is within 500 feet of an existing reclaimed ‘‘purple pipe’’ main.

Incentives and caps: Austin Water’s slide summary lists the pilot incentives and limits: reclaimed main extension rebates (50% rebate for 250–500 feet of extension capped at $500,000), expedited building-permit review rebates (up to $36,000), reduced or waived reclaimed-water meter impact fees, and staff assistance for Property Assessed Clean Energy (PACE) applications. For voluntary on-site reuse not required by code, incentives can cover up to 100% of voluntary installations, capped at $500,000 per project. Following Council direction, the affordable-housing exemption cap for deeply affordable projects (50% of units at 60–80% AMI) was increased to $1,500,000 this fiscal year.

Program budget and participation: Staff said the pilot’s annual budget will remain $4 million and that no applications were received in the fiscal year just ended; two applications have been received since the program launched. Staff explained that project timing has delayed application activity because site-development permitting and building-permit phases often span 6–18 months. Projects may reserve funds on application; Austin Water issues a reservation letter and gives projects up to three years from reservation to claim rebates, with flexibility to reconcile estimated costs against final installed costs when claims are submitted.

Commission questions and administrative details: Commissioners asked about the timing of rebate reservation and payout, whether cost estimates should be reconciled at installation, how staff will treat planned versus installed reclaimed mains for distance calculations, and the department’s budget/reserve approach if more projects apply than the annual $4 million. Staff said reserved funds can be paid from collected reserves if payouts accelerate and that the program requires annual Council reauthorization.

Commission action: The Commission approved staff’s motion to reauthorize the pilot incentive program for the coming fiscal year at the current funding level and with the existing per-project caps: $500,000 for standard projects and $1,500,000 for qualifying affordable-housing projects.

Ending: Austin Water will include program activity in its quarterly Water Management Strategies report and present the pilot for annual Council reauthorization.