S.B. No. 1253 introduces new provisions regarding impact and production fees for water projects and the regulation of certain wells in Texas. The bill adds Section 395.0231 to the Local Government Code, which mandates that political subdivisions provide credits against water and wastewater impact fees for builders or developers who construct or contribute eligible facilities, systems, or products that promote water reuse, conservation, or savings. The bill outlines specific criteria for what constitutes an eligible facility, including those that reduce water consumption, decrease wastewater treatment needs, and integrate advanced water efficiency practices.

Additionally, the bill amends Section 8843.152 of the Special District Local Laws Code to allow districts to assess a production fee, not exceeding 30 cents per 1,000 gallons, and establishes a mechanism for annual increases in this fee starting January 1, 2026. It also allows for credits against service connection fees for water utilities that contribute to eligible water conservation efforts. Furthermore, Section 8843.104 is repealed, and the act is set to take effect on September 1, 2025.

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Enrolled: Special District Local Laws Code 8843.152, Special District Local Laws Code 395.0231 (Special District Local Laws Code 395, Special District Local Laws Code 8843)