Existing law, the Mitigation Fee Act, imposes various requirements with respect to the establishment, increase, or imposition of a fee by a local agency as a condition of approval of a development project, including requiring the local agency to identify the use to which the fee is to be put and determine how there is a reasonable relationship between the fee's use and the type of development project on which the fee is imposed. This bill would require the amount of a fee that is imposed on a development project that demolishes or changes an existing use to be offset to account for the demolition or change so that the amount of the fee is attributable only to the development project's incremental impact on public facilities or services, as provided. Existing law provides that when a local agency imposes a fee for water connections or sewer connections, or imposes a capacity charge, as defined, those fees or charges shall not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed, except as specified. This bill would provide that when a change in the capacity of an existing water or sewer connection is proposed, a local agency, in calculating the estimated reasonable cost of a capacity charge, shall only calculate an amount attributable to the change in the capacity. If the existing capacity exceeds the proposed capacity, the bill would prohibit any amount from being refunded, credited, transferred, assigned, or otherwise applied to offset any other charge or fee.