Turning a Water Plan into Water Dan Hardin, Director of Water Resource Planning

Turning a Water Plan into Water

Dan Hardin, Director of Water Resource Planning

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Water Planning: Legislative Response to Drought

Late 1950s Drought of Record– 1957: Creation of TWDB– $200 million Water Development

Fund– 9 State Water Plans, 1961-2012

Late 1990s: Potential New Drought of Record– ~$6 billion economic losses in ‘96

(mostly agriculture)– ~300 entities with threat to water

supplies– 1997 & 2001: Passage of SB 1 & 2

which created & refined regional water planning

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Regional Water Planning

Statutory interests:

Public Counties Municipalities

Water districts Water utilities Groundwater

management areas

Industries Agriculture Environment Small

businesses

Electric-generating utilities

River authorities

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Projected Texas Population

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Projected Population Growthin Texas Counties

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Projected Water Demandsand Existing Supplies

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Projected Need for Additional Water in Times of Drought

0.310.09

0.05 0

.06

0.001

3.1

Municipal ManufacturingMining Steam ElectricLivestock Irrigation

3.4

0.50.080.62000000000

0001

0.03

3.8

Municipal ManufacturingMining Steam ElectricLivestock Irrigation

Year 2010

Year 2060

(millions of acre-feet per year)

Water Shortages by Water User Group

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Water Supplies from Water Management Strategies

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Relative Volumes of Recommended Strategies (2060)

< 1%

< 1%

0

500

1,000

1,500

2,000

2,500

Municipal Conservation

Surface Water Desalination

New Major Reservoir

Reuse Groundwater Desalination

Seawater Desalination

Annual Average Unit Costs of Water Management Strategy Categories, 2012 State Water Plan (dollars per acre-foot)

First Online Year

Year 2060

Unit costs are higher in early years and fall significantly once debt on construction costs are paid .

0

500

1,000

1,500

2,000

2,500

Municipal Conservation

Surface Water Desalination

New Major Reservoir

Reuse Groundwater Desalination

Seawater Desalination

Annual Average Unit Costs of Water Management Strategy Categories, 2012 State Water Plan (dollars per acre-foot)

First Online Year Year 2060

Unit costs are higher in early years and fall significantly once debt on construction costs are paid .TWDB 2012

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Total Water SupplyCapital Costs: $53 Billion

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Cost of 2012 State Water Plan

•$53.1 billion to implement

• Project sponsors need access to $26.9 billion of project capital costs through state assistance

$26.2 billion

$26.9 billion

Other mechanismsState loan and grant programs

Financing State Water Plan Projects

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Cost of Not Implementing Plan Recommendations

• $12 billion lost income - 2010• $116 billion lost income – 2060

• State/local business taxes lost: $1 billion – 2010

• State/local business taxes lost: $10 billion – 2060

• Lost jobs : 115,000 – 2010• Lost jobs: 1 million – 2060

• Lost population growth: 1.4 million - 2060

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Barriers to Implementation

• State has no authority to require implementation of projects

• State has devoted limited financial resources to encourage implementation

• Local entities reluctant to impose costs of projects and associated debt on constituents

• Lack of recognition that there is a problem or of the benefits of taking action

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What can we do to encourage implementation?

• Education– It’s possible to turn on a tap and have

nothing come out!–Water is not an unlimited resource, it is

limited and needs to be valued as such– Investment maintains secure supplies,

brings economic benefits through construction, and avoids cost of shortages

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Implementing the State Water Plan

“What’s in it for me?”

For More Information

2012 State Water Plan:http://www.twdb.texas.gov/wrpi/swp/swp.asp

Dan.Hardin@twdb.texas.gov