Resource Management Commission backs reauthorization of Austin Water’s Go Purple pilot, adds two‑year limit on most rebates

The Resource Management Commission voted unanimously Sept. 16 to recommend that Austin Water continue its Go Purple pilot incentive program for fiscal 2025–26, authorizing up to $4 million in aggregate incentives and setting a two‑year phase‑out for most rebates except those tied to deeply affordable housing or voluntary projects that go beyond code requirements.

Go Purple is Austin Water’s program of incentives, cost‑sharing and code changes intended to expand nonpotable reuse—commonly called “purple pipe” systems—for uses such as toilet flushing, irrigation and building cooling. Catherine Jasinski, a supervising engineer in Austin Water’s reclaimed and on‑site reuse program, told commissioners the program was adopted by the City Council in March 2024 and aligns with the Water Forward long‑range supply plan. “The Go Purple program ... includes code changes for on‑site water reuse and reclaimed water connections for new commercial and multifamily development projects,” Jasinski said during the commission briefing.

Why it matters: The program is intended to reduce demand for potable water by increasing use of reclaimed effluent and treated rain/condensate in large new developments. The pilot is paid in part by a community benefit charge on water bills (15¢ per 1,000 gallons) and is one of Austin Water’s tools for meeting the city’s supply and conservation goals.

Key details and council direction - Reauthorization and funding: Commissioners recommended continuing the pilot at a total aggregate amount of $4,000,000 for FY 2025–26, with per‑project caps of $500,000 for standard projects and up to $1,500,000 for qualifying deeply affordable housing projects. The commission recorded a 6–0 vote to recommend the RCA (Austin Water’s request to continue the pilot). The motion to reauthorize the pilot was moved by Vice Chair Paul Robbins and seconded by Commissioner Allison Silverstein. - Commission amendment and phase‑out: Vice Chair Robbins proposed and the commission adopted an amendment directing that, except for incentives for deeply affordable housing and incentives for voluntary measures that go above code, the rebates be phased out after two years (FY 2027–28). The amendment passed 6–0 before the final recommendation vote. - Eligibility and code thresholds: The Go Purple code requirements adopted by council apply to large new commercial or multifamily developments with 250,000 square feet or more of gross floor area. Projects within 500 feet of the municipal reclaimed water mains are required to extend reclaimed mains and dual‑plumb buildings; projects farther than 500 feet may meet the requirement by capturing and treating rainwater/condensate for the same nonpotable uses.

Costs, incentives and affordability - Affordability analysis: When the code changes were analyzed for affordability, staff estimated additional per‑unit costs could range from roughly $800–$900 at the low end up to $4,000–$7,000 per housing unit depending on circumstances. That analysis prompted city management to ask Austin Water to develop cost‑sharing and incentive mechanisms. - Incentive types: Reclaimed main extension rebates (covering up to 50% of the last 250 feet of required main extension, capped by project), expedited building permit review rebates, waived impact fees for reclaimed water meters, an on‑site reuse system rebate (up to $500,000 per project for voluntary installations), and assistance with Travis County’s PACE (Property Assessed Clean Energy) financing process were described in the briefing. - Deeply affordable exemptions and enhanced incentives: Projects meeting the city’s deeply affordable thresholds (as described by staff in the briefing) are treated differently: they may be exempt from some code requirements and are eligible for enhanced incentives up to $1.5 million per project.

Program performance and outlook - Uptake to date: Staff reported two approved incentive applications since program inception, with stated annual water savings of about 61,000,000 gallons and $750,000 in paid incentives. However, Jasinski said Austin Water received no incentive applications in the most recent fiscal year; staff reported active outreach and expected more applications as projects reach the building‑permit stage. - Budget and reporting: The pilot requires annual Council reauthorization; staff asked the commission to recommend continuing the pilot budgeted for FY25–26. Austin Water committed to quarterly reporting on program activity and to continue outreach to developers and to the housing department on uptake and potential payment timing changes.

Commission discussion and concerns Commissioners questioned why uptake has been low and whether the incentive structure or payout timing discourages developers. Commissioner Allison Silverstein asked whether staff had heard reasons for the absence of applications; Jasinski said some developer teams told staff the systems are relatively new and developers are reluctant to recommend them to clients until they are required to design them. Kevin Crittendon, Austin Water assistant director, emphasized the pilot nature of the program and said unused funds can be shifted to other reclaimed‑system investments if needed.

What the commission recommended The RMC recommended that Council authorize Austin Water to continue the Go Purple pilot for FY 2025–26 at $4,000,000 total (projects capped at $500,000, except $1,500,000 for qualifying deeply affordable housing), and it added a commission request that most rebates be phased out after two years except for (1) incentives for deeply affordable housing and (2) incentives for voluntary measures that exceed code requirements. The commission’s recommendation will be transmitted to City Council and staff for consideration.

Ending note Staff told commissioners they expect more applications as projects move from site‑development to building‑permit phases; Austin Water will continue quarterly reporting on participation and savings. The commission’s amendment sets an explicit discussion and policy‑review point for FY 2027–28 for most rebate categories.