state of texas water plan

STATE OF TEXAS WATER PLAN

WHAT IT COSTS

Presented by Senator Kip Averitt

Water is the key to one of the world's largest and most robust economies.

One of the fastest growing states in our country. Our population has more than tripled since 1950.

WATER IS KEY TO OUR ECONOMY

19507 million

201025

million

206046 million

Texas has the 2nd largest state economy in the nation.

$1.8 trillion $1.1

trillion

$1.2 trillion

Based on Gross Domestic Product

WATER IS KEY TO OUR ECONOMY

Texas has the 11th largest economy in the nation.

WATER IS KEY TO OUR ECONOMY

The Texas Economy• Has grown at $27 billion per year since 2001

• Leading producer of crude oil and hosts nearly 30% of U.S. petroleum refining capacity

• Ranked 1st in U.S. livestock production, 2nd in total U.S. agricultural sales

• In 2008, over 70% of U.S. job growth occurred in Texas

• More Fortune 500 companies are headquartered in Texas than any other state

WATER IS KEY TO OUR ECONOMY

We are on a collision course.

By 2060, Texas will have 18% less water and

twice as many people.

WATER IS KEY TO OUR ECONOMY

Water shortages could be catastrophic.

WATER IS KEY TO OUR ECONOMY

2010 2020 2030 2040 2050 2060

17.9 16.9 16.1 15.4 15 14.6

20.9

29.133.1

36.941.1

45.6

Water Supplies (millions of acre-feet)

By 2060, water supplies will decrease 18 percent and population will double to 46 million.

WATER IS KEY TO OUR ECONOMY

2010 2020 2030 2040 2050 2060

17.916.9

16.1 15.4 15 14.6

18.3 19.1 19.6 20.2 20.8 21.7

Water Supplies (millions of acre-feet)

By 2060, water demand will increase 19% and water supplies will decrease 18%.

“What you gonna do when the well runs dry?” Fats

Domino, 1957

WHAT ARE WE DOING?

Regional and State Water Planning• Consensus-driven process led by local

communities who know what is best for their economies and environment.

• Planning groups recommend water management strategies designed to provide drought-proof water.

• If implemented, the State Water Plan will ensure that our cities, farms, and industries have enough water in conditions comparable to the worst droughts in recorded history.

WHAT ARE WE DOING?

2010

2020

2030

2040

2050

2060

3.7

4.9

6.0

7.0

7.8

8.9

Water Deficits in the 2007 State Water Plan (millions of acre-feet per year)

Projected Water ShortagesWe do not have enough water to meet the state’s water demands during a serious drought.

WHAT ARE WE DOING?

Water Shortages for Different Water User Groups

0.610000000000001

0.130.040.080.01

2.8

Municipal ManufacturingMiningSteam ElectricLivestockIrrigation

3.9

0.50.080.6400000

00000001

0.04

3.7

Municipal ManufacturingMiningSteam ElectricLivestockIrrigation

Year 2010

Year 2060

WHAT ARE WE DOING?

$14 billion

$17 billion

Other mechanisms

Cost of Eliminating State Water Plan Financing State Water Plan

ProjectsTo implement water strategies, project sponsors will need access to $17 billion of project capital costs through various financing mechanisms.

WHAT ARE WE DOING?

$1.5 billion

$17.1 billion

Amount currently authorizedState loans and grants programs needed

Current Funding for State Water Plan Amount currently

authorized for state loans and grant

For 2008 through 2011, Legislature authorized the TWDB to issue $1.2 billion in loans and grants with a supporting appropriation of $145 million for debt service to fund water infrastructure from the State Water Plan.

Projects Currently Funded through TWDB Financing

State Water Plan Projects Funded as of August 2009 (millions)

$114

$79

$67$19

5

$49

$77

$35

WHAT ARE WE DOING?

WHAT ARE WE DOING?

State Water Plan Implementation

Film and Music Marketing

Texas Enterprise Fund

Economic Development and Tourism

Texas Emerging Technology Fund

$46

$64

$68

$86

$203

Comparison of 2010-2011 State Water Plan appropriations to other general revenue expenditures (in millions)

WHAT ARE WE DOING?

Additional State Water Plan Project Funding (in millions)

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

$0

$100

$200

$300

$400

$500

$600

Water Infrastructure Fund Economically DisadvantagedState Participation

WHAT ARE WE DOING?

Additional State Water Plan Debt Service (in millions)

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

$-

$20

$40

$60

$80

$100

$120

$140

$160

Water Infrastructure Fund Economically DisadvantagedState Participation

Cost of complacency?

Cost of complacency?

“We are finding out that water is

about as valuable as oil, only we can

drink water.” -Kinney County Extension

Agent, 1956

Past Droughts: 1950-1957The 1950’s drought lasted from 1950 to 1957 and was the worst in the state’s recorded history.

• Water supplies of some cities were exhausted

• Low water levels in the Guadalupe River crippled 11 power plants

• Purchased water cost more than gasoline in areas

• The state’s population was only 7 million

IMPACTS OF DROUGHT: PAST, PRESENT & FUTURE

Droughts Today: North Texas 2006In 2006, extreme drought scorched North Texas. Estimated economic impacts were $4.1 billion.

• Extreme drops in water levels at several lakes

• Lake Lavon was 15.5 feet below normal

• Officials considered imposing severe water rationing

IMPACTS OF DROUGHT: PAST, PRESENT & FUTURE

Droughts Today: North Texas 2006

In 2004, Lake Lavon was nearly full.

IMPACTS OF DROUGHT: PAST, PRESENT & FUTURE

Droughts Today: North Texas 2006

In 2004, Lake Lavon was nearly full.

By September 2006, the lake was at 39% of total capacity.

IMPACTS OF DROUGHT: PAST, PRESENT & FUTURE

Droughts Today: Central Texas 2009

In 2009, a severe drought hit Central Texas.

• By March 2009, 100% of the state was in some form of drought

• By late September 2009, 23% of the state was under severe, extreme, or exceptional drought

IMPACTS OF DROUGHT: PAST, PRESENT & FUTURE

Droughts Today: Central Texas 2009By the end of the summer, drought resulted in losses of at least $3.6 billion.

• Canyon Lake hit a record low, and other reservoirs approaching record lows

• Lake Travis was at 37% capacity and Lake Buchanan at 43% capacity

• 230 public water systems declared mandatory water restrictions

IMPACTS OF DROUGHT: PAST, PRESENT & FUTURE

Future DroughtsNot meeting future water demands could cost the state $9.1 billion per year by 2010 and $98.4 billion per year by 2060.

IMPACTS OF DROUGHT: PAST, PRESENT & FUTURE

Losses to water consumers

0

20

40

60

80

100

120

Lost jobs0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Lost state & local business taxes

0

1

2

3

4

5

6

7

2010

2010

2010

2060

2060

2060

(in billions)

(in billions)

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