By Andy Sevilla.
Despite some late year showers in 2013, at least one of which caused devastating flooding in Central Texas, state officials warn the downpours did little to quench water concerns in Texas, putting communities and economic development interests on high-alert.
The Texas Water Development Board (TWDB), now armed with $2 billion for local water projects, is encouraging local governments to take advantage of Proposition 6 funding, which voters overwhelmingly approved to help address the state’s water challenges.
On Nov. 5, 2013, with 73 percent of the vote, Texas voters approved Proposition 6, a state constitutional amendment that transferred $2 billion from the State’s Economic Stabilization Fund, or Rainy Day Fund, to the newly established State Water Implementation Fund for Texas (SWIFT) to support projects in the state’s most recent water plan.
“The benefit is that it helps us secure a more reliable water source into the future. And it helps us do it by partnering with entities… by also helping reduce that rate-shock, because of the financial incentives and assistance that we’ll be able to give,” TWDB Chair Carlos Rubinstein told the Hays Free Press after his meeting with the Hays Caldwell Public Utility Agency (HCPUA) in Kyle on Feb. 27.
Rubinstein told HCPUA members that although 2013 was wetter than in recent years, “the drought ain’t over.” He said weather predictions this year forecast a 50/50 chance of average rainfall, odds that don’t offer great relief.
“At this time of the year our reservoirs collectively should be at 82 percent capacity,” Rubinstein said. “And we all know that (Lake) Travis and (Lake Buchanan), for example, are at 36 and 38 (percent capacity). So even though 2013 was wetter, things didn’t get better.”
The Highland Lakes provide Travis County with surface water needs, while Canyon Lake in New Braunfels, which is at 83 percent capacity, is the surface water source for many Hays County cities.
And though thirsty communities need water concerns quenched now, SWIFT funding will not be available until 2015, as the agency sets up administrative rules governing how funds will operate and be distributed to projects on the state’s 2012 water plan. Rubinstein said regional water planning groups have until June to take their 2012 list of projects and develop them into a draft priority list; the state water board will offer feedback and finalize the list in September.
According to Texas House Bill 4, however, 20 percent of SWIFT monies will need to be used for conservation and reuse, and at least 10 percent for rural and agriculture purposes; the remaining dollars could be used for water projects in communities and cities of all sizes.
Rubinstein said a stakeholders group developed uniform standards that all 16 regional water planning groups will use to prioritize projects, including the decade the project is needed, its feasibility, viability, sustainability and cost effectiveness.
Projects that serve a large population, assist a diverse urban and rural population, provide regionalization and meet high percentage of water users’ needs will receive the highest consideration, according to the standards.
And though SWIFT money will not provide any grants or forgivable loans, Rubinstein said the funds will provide a source of revenue or security for programs, support low-interest loans and offer longer repayment terms. That money will also allow incremental repurchase terms for projects with state ownership, provide a 50 percent reduction on interest rate the board borrows against and provide deferral of loan payments until entities make some revenue on the projects.
Texas has a AAA credit rating, which could mean low interest rates.
Rubinstein warned that if officials don’t act on water needs now, the effects could have far-reaching consequences, particularly in 50 years when the population is expected to skyrocket by 82 percent to 46 million, up from 25 million residents today. With the no-action scenario, in 50 years the state would operate with an 8.3 million acre-feet of water deficit.
The whole state used 18 million acre-feet of water in 2011, the driest year on record, according to Rubinstein. An acre-foot of water is the amount of water necessary to cover a one acre to a depth of one foot, or about 326,000 gallons.
