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SB 1253

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

89th Legislature (2025) Introduced by Carol Alvarado and 3 co-sponsors

Texas bill authorizing new impact and production fees for water projects to fund infrastructure, vetoed by Governor over cost or regulatory concerns.

Vetoed by the Governor
#citygovernment--general(i0060) #countygovernment--general(i0096) #fees&othernontaxrevenue--local(i0361) #politicalsubdivisions(i0588) #water--conservation(i097l)
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Bill Summary · SB 1253

Legislative bill overview

SB 1253 establishes impact and production fees for certain water projects in Texas and creates regulatory mechanisms for specific wells. The bill authorizes the state to collect fees from water users or producers to fund water infrastructure projects and management initiatives. The Governor vetoed the measure on June 22, 2025, after it passed both chambers of the legislature.

Why is this important

Water is a critical resource in Texas, particularly given periodic droughts and competing demands from agricultural, municipal, and industrial users. Fee-based funding mechanisms can support water infrastructure development and conservation efforts, but they also represent new costs passed to water users. The veto suggests significant disagreement over the fee structure, regulatory approach, or economic impact on water-dependent industries.

Potential points of contention

  • Economic impact on agriculture and industry: New production or impact fees could increase operational costs for farmers, ranchers, and water-intensive businesses, potentially affecting competitiveness and profitability
  • Fee structure and fairness: Disputes likely exist over who bears the financial burden—whether fees apply equally across user types or disproportionately affect certain sectors or regions
  • Regulatory authority and local control: Tension between state-level fee authority and local water management districts' traditional autonomy in Texas water governance

Compiled from official sources — confirm details with the bill’s official record.

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