SB1253 - Relating to impact and production fees for certain water projects and to the regulation of certain wells; authorizing a fee.

      S.B. No. 1253         AN ACT   relating to impact and production fees for certain water projects   and to the regulation of certain wells; authorizing a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 395, Local Government   Code, is amended by adding Section 395.0231 to read as follows:           Sec.   395.0231.     CONSERVATION AND REUSE CREDITS AGAINST WATER   AND WASTEWATER FEES. (a)   A political subdivision shall provide a   credit against water and wastewater impact fees otherwise assessed   to a development to a builder or developer for the construction,   contribution, or dedication of an eligible facility, system, or   product that results in water reuse, conservation, or savings.           (b)     A facility, system, or product eligible for a credit   under this section includes a facility, system, or product that:                 (1)     reduces per service unit water consumption, supply   requirements, or necessary treatment and distribution   infrastructure per service unit;                 (2)     decreases the need of wastewater collection and   treatment facilities per service unit;                 (3)     diminishes the demand for stormwater and drainage   facilities per service unit; or                 (4)     integrates practices or technologies that achieve   water efficiency, reuse, or conservation performance that exceed   standard compliance requirements.           (c)     A political subdivision that provides a credit under   this section shall establish procedures for:                 (1)     calculating and applying the credits in a fair and   consistent manner; and                 (2)     reviewing and approving credits under this   section.          SECTION 2.  Section 8843.152, Special District Local Laws   Code, is amended to read as follows:          Sec. 8843.152. SERVICE CONNECTION FEE AND PRODUCTION FEE .   (a)  This section does not apply to a water utility that has surface   water as its sole source of water.          (b)  The district may levy and collect a water utility   service connection fee not to exceed $1,000 for each new water   service connection made after September 1, 2013.           (c)     The district may assess a production fee as provided by   Section 36.205, Water Code. Subject to Subsection (d), a fee   assessed under this subsection may not exceed 30 cents per 1,000   gallons.           (d)     Beginning January 1, 2026, and continuing on January 1   of each subsequent year, the maximum amount of the fee described by   Subsection (c) increases by five percent from the previous year's   maximum amount.           (e)     The district may provide a credit against a service   connection fee otherwise assessed to a water utility that is also   assessed a production fee under this section for the construction,   contribution, or dedication of an eligible facility, system, or   product that results in water reuse, conservation, or savings as   described under Section 395.0231(b), Local Government Code.          SECTION 3.  Section 8843.104, Special District Local Laws   Code, is repealed.          SECTION 4.  This Act takes effect September 1, 2025.               ______________________________ ______________________________      President of the Senate Speaker of the House                 I hereby certify that S.B. No. 1253 passed the Senate on   March 27, 2025, by the following vote: Yeas 30, Nays 0; and that   the Senate concurred in House amendments on May 26, 2025, by the   following vote: Yeas 30, Nays 1.       ______________________________   Secretary of the Senate                I hereby certify that S.B. No. 1253 passed the House, with   amendments, on May 21, 2025, by the following vote: Yeas 112,   Nays 28, two present not voting.       ______________________________   Chief Clerk of the House            Approved:     ______________________________                Date       ______________________________              Governor