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

SB 1253 allows cities and counties in Texas to offer credits against water and wastewater impact fees for developers who build qualifying water conservation or reuse projects. These credits apply to facilities that reduce per-unit water use, decrease wastewater infrastructure needs, or improve stormwater management beyond standard requirements. The bill requires local governments to establish fair procedures for calculating and approving these credits. It directly affects builders and developers constructing eligible water-saving infrastructure, while political subdivisions implement the credit system. The law takes effect September 1, 2025.