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 developers who construct or contribute eligible facilities that promote water reuse, conservation, or savings. Eligible facilities include those that reduce water consumption, decrease wastewater treatment needs, diminish stormwater demands, or integrate advanced water efficiency technologies. Additionally, the bill requires political subdivisions to establish fair procedures for calculating and applying these credits.

The bill also amends Section 8843.152 of the Special District Local Laws Code to allow districts to assess a production fee, capped at 30 cents per 1,000 gallons, and outlines a gradual increase of this fee by five percent annually starting January 1, 2026. Furthermore, it allows districts to provide credits against service connection fees for water utilities that also pay a production fee, similar to the credits described in Section 395.0231. The bill repeals Section 8843.104 and 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)