Relating to an exemption from the requirement to obtain a permit from the Texas Commission on Environmental Quality for certain dams or reservoirs operated and maintained for the purposes of erosion, floodwater, and sediment control.

Adds a new Section 11.1423 to the Water Code creating a permit exemption for certain dams or reservoirs used for erosion, floodwater, and sediment control.

Defines "qualified local sponsor" as a district or authority that has an agreement with the USDA Natural Resources Conservation Service under the Watershed Protection and Flood Prevention Act (16 U.S.C. Section 1001 et seq.).

Allows a qualified local sponsor to construct or maintain a dam or reservoir on property it owns or controls with normal storage of not more than 200 acre-feet of water and to divert water as needed to repair, maintain, or rehabilitate the impoundment.

Specifies that if the USDA agreement ends, the permit exemption still applies as long as the sponsor continues to own or control the dam or reservoir.

Requires the Texas Commission on Environmental Quality to adopt implementing rules by April 1, 2026, and sets the act's effective date rules (immediate with two-thirds vote or 91 days after session).