H.B. No. 3875 introduces a new provision in the Local Government Code that mandates political subdivisions to offer credits against water and wastewater impact fees to builders and developers who engage in specific water conservation and reuse projects. The bill outlines that these credits can be granted for the construction, contribution, or dedication of facilities, systems, or products that promote water reuse, conservation, or savings. Eligible projects include those that reduce water consumption, decrease the need for wastewater treatment, lessen the demand for stormwater management, or implement advanced water efficiency practices that surpass standard compliance requirements.

Additionally, the bill requires political subdivisions to establish fair and consistent procedures for calculating, applying, and approving these credits. This legislation aims to incentivize sustainable development practices and enhance water conservation efforts within communities. The provisions of this act are set to take effect on September 1, 2025.

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