Relating to the provision by a political subdivision of credits against impact fees to builders and developers for certain water conservation and reuse projects.

Contracts

• Development Agreements: Update Chapter 380 and 395 agreements to explicitly reference SB14 rights. Define clearly whether the Master Developer or the vertical builder retains the benefit of the impact fee credit.
• Vendor Warranties: Purchase agreements for reuse systems (graywater, rainwater harvesting) must include warranties guaranteeing performance metrics that meet local "service unit" reduction requirements.
• MUD Reimbursements: Ensure that the valuation of conservation infrastructure in reimbursement agreements does not offset or negate the statutory impact fee credit.

Hiring/Training

• Civil Engineering Scope: Amend engagement letters with engineering firms to include "Impact Fee Credit Analysis" as a deliverable. Engineers must be capable of quantifying "gallons per day" savings against the specific municipality's LUE (Living Unit Equivalent) baseline.
• Sales Teams: Train commercial and residential sales staff to articulate the long-term utility savings of these systems, as the upfront capital cost is now partially subsidized by the fee credit.

Reporting & Record-Keeping

• Technical Justification: You must generate engineering certifications proving that the proposed facility or system reduces the load on the municipal water supply.
• Verification Data: Be prepared to submit post-installation monitoring data. Municipalities may condition the finalization of the credit on operational proof that the system works as designed.

Fees & Costs

• Fee Reduction: This legislation lowers total development costs. Pro formas for 2026 projects should reflect a reduction in impact fees proportional to the projected water savings.
• Upfront Costs: Anticipate a slight increase in soft costs for engineering analysis and legal negotiation to secure the credit.