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Prop 6 and hb Prop 6 and hb Presentation Transcript

  • January23,2014 PROP 6 AND HB 4: FINANCING, PRIORITIZING, AND CONSERVING TEXAS WATER IN THE 83rd TEXAS LEGISLATURE ELIZABETH A. FAZIO, J.D., LL.M. DIRECTOR, HOUSE NATURAL RESOURCES COMMITTEE GULF COAST WATER CONSERVATION SYMPOSIUM
  • 6 Other Pieces of Conservation Legislation: HB 857 HB 1461 HB 3604 HB 3605 SB 198 SB 1 BIG SESSION FOR CONSERVATION IN TEXAS 83rd Legislative Session GULF COAST WATER CONSERVATION SYMPOSIUM consumer notice of water loss water conservation plans 2
  • GULF COAST WATER CONSERVATION SYMPOSIUM HOUSE BILL 857 Rep. Lucio III and Sen. Ellis ANNUALWATERLOSSAUDITS 3
  • HOUSE BILL 1461 Rep. Aycock and Sen. Fraser CUSTOMERNOTIFICATION–SYSTEMWATERLOSS GULF COAST WATER CONSERVATION SYMPOSIUM4
  • HOUSE BILLS 3604 & 3605 Rep. Burnam and Sen. Hegar WATERCONSERVATIONPLANS GULF COAST WATER CONSERVATION SYMPOSIUM – Requires implementation of both DCP and WCP – Strengthens requirements for entities receiving financial assistance* from the TWDB: • water loss mitigation • BMPs • industry standards and certifications *mitigation must be in SWP if entity is using SWIFT 5
  • – Ensures that HOAs cannot prohibit use of drought- resistant landscape or water-conserving natural turf. – Allows HOAs to require the homeowner to submit a plan for such use. LANDSCAPING SENATE BILL 198 Sen. Watson and Rep. Dukes GULF COAST WATER CONSERVATION SYMPOSIUM6
  • SENATE BILL 1 Sen. Williams and Rep. Pitts –Water Conservation Education & Other • $1,000,000 education grants (Avg FY approp is $4.68M) • $2,000,000 for matching grants on ag irrigation metering. – Environment and Instream Flow Studies • $2,000,000 CONSERVATIONAPPROPRIATIONS GULF COAST WATER CONSERVATION SYMPOSIUM7
  • How has financing and prioritization been addressed for the 2012 SWP? “Trio of Bills” • Senate Joint Resolution 1 (Prop 6) – Constitutionally creates the SWIFT and SWIRFT Voter approval in November 5th, 2013 general election by 73%. • House Bill 1025 – Authorizes a one-time $2B transfer from the Rainy Day Fund to the SWIFT. • House Bill 4 – Provides for the structure, administration, and oversight of the funds. GULF COAST WATER CONSERVATION SYMPOSIUM8
  • HOUSE BILL 4 Rep. Ritter and Sen. Fraser • Maximized Financial Structure – $2B cash active management in SWIFT – Revenue bonding authority in SWIRFT + existing General Obligation bonding Authority • Administration – BIG ON CONSERVATION – Embraces conservation and reuse projects as part of overall strategy to meet future needs and recognizes the need to ensure rural areas are supported; and – Requires the regional and statewide prioritization of projects in the financing of the state water plan. GULF COAST WATER CONSERVATION SYMPOSIUM OVERVIEW 9
  • LEVERAGED MODEL WITH EXISTING TWDB PROGRAMS GULF COAST WATER CONSERVATION SYMPOSIUM HB4FINANCIALSTRUCTURE 10
  • CONSERVATION • Use of the Fund • Eligibility • Prioritization of Projects by TWDB GULF COAST WATER CONSERVATION SYMPOSIUM HB4ADMINISTRATION Independence Creek Copyright © 2010 Photographs by Charles Kruvand, from The Living Waters of Texas, Texas A&M University Press 11
  • “TARGETED GOAL” During the life of any 5-year SWP, the board shall undertake to apply: • 10% rural areas* • 20% water conservation or reuse^ *agricultural water conservation ^agriculture irrigation projects GULF COAST WATER CONSERVATION SYMPOSIUM SWIFTUSEOFFUNDS 12
  • FINANCIAL ASSISTANCE Applicant must: • submit and implement a water conservation plan • complete a water infrastructure financing survey. *All projects must be included in the state water plan GULF COAST WATER CONSERVATION SYMPOSIUM SWIFTELIGIBILITY 13
  • PRIORITIZATION Two-Tiers: Regional and Statewide • Regions must prioritize projects within each respective region using a uniform template developed by stakeholders committee – 5 minimal criteria • TWDB must develop a point system for the prioritization of projects at the time of its request for financial assistance, including: – high consideration factors – 7 other factors GULF COAST WATER CONSERVATION SYMPOSIUM SWIFTPRIORITIZATION 14
  • Decade of need Feasibility Viability Sustainability Cost effectiveness GULF COAST WATER CONSERVATION SYMPOSIUM MINIMUMCRITERIATOBEUSEDBYSTAKEHOLDERS REGIONAL PRIORITIZATION 15
  • Serves large population Assists both urban and rural Provides regionalization; OR Meets high % of water users’ needs GULF COAST WATER CONSERVATION SYMPOSIUM HIGHESTCONSIDERATION TOBECONSIDEREDBYTWDB PRIORITIZATION OF THE PROJECTS 16
  • Local financial contribution Financial capacity of applicant to repay Ability to leverage with local and federal funding Emergency need Readiness to proceed Projected effect on water conservation Priority given by region GULF COAST WATER CONSERVATION SYMPOSIUM OTHERFACTORS TOBECONSIDEREDBYTWDB PRIORITIZATION OF THE PROJECTS 17
  • CONSERVATION “Demonstrated or projected effect of the project on water conservation” • Prevention of water loss; and • Filing of a water loss audit which demonstrates accountability for reducing water loss and increasing efficiency in the distribution of water. GULF COAST WATER CONSERVATION SYMPOSIUM SWIFTPRIORITIZATION
  • How will it all work together? 8.3 million acre- feet of water short in repeat drought of record by 2060 16 regional water planning groups 9 million acre-feet of water supplied by 2012 SWP recommended strategies 562 recommended strategies produced by regional planning groups $53.1 billion in capital costs are needed to implement the plan 46 million people in Texas by 2060 19
  • 2012 SWP STRATEGIES % OVERALL GULF COAST WATER CONSERVATION SYMPOSIUM20 CONSERVATIONBYTHENUMBERS OVERALL
  • IRRIGATION AND MUNICIPAL CONSERVATION OUT OF $53B • Out of the TOTAL capital cost of the plan: – Irrigation $902M or 1.7% Overall – Municipal $24M or 0.05% Overall GULF COAST WATER CONSERVATION SYMPOSIUM 2012SWPCAPITALCOSTS MAJORCONSERVATION-$ 21
  • Other Surface Water, 54.18% Irrigation Conservation, 0% Municipal Conservation, 0.02% Other Conservation, 0% New Major Reservoirs, 15.08% Reuse, 10.36% Groundwater, 8.39% Groundwater Desalination, 2.77% Seawater Desalination, 5.94% Surface Water Desalination, 0.05% Conjunctive Use, 1.39% Aquifer Storage and Recovery, 1.82% Brush Control, 0% Weather Modification , 0% GULF COAST WATER CONSERVATION SYMPOSIUM CONSERVATIONBYTHENUMBERS REQUESTED 2012 SWP CAPITOL COST % REQUESTED OUT OF $27B 22
  • CONSERVATION SOLUTIONS • Reducing Water Loss Systems • Educational Programs • Customer-side Municipal Water Conservation Programs – Such As Retrofitting Toilets and Other Water- Using Devices With Low Flow • “PACE-like” Programs CONSERVATIONIDEASFORFUTURESWP GULF COAST WATER CONSERVATION SYMPOSIUM23
  • PROCEED WITH CAUTION • Article III, Sec. 52(a) is known as “the gift clause.” – “shall have no power”…”to lend its credit or to grant public money or thing of value in aid of, or to any individual, association, or corporation…” – Prohibits the use of public funds for private benefit THEGIFTCLAUSE GULF COAST WATER CONSERVATION SYMPOSIUM24
  • DEFINE PUBLIC PURPOSE • Texas caselaw supports 4-part test in defining “public purpose:” 1. Does the expenditure serve a public purpose? 2. Are there sufficient controls on the expenditure to ensure that the public purpose will be carried out; 3. Is the public protected in the use of the public funds to accomplish the intended result; and 4. Has adequate consideration passed to the political subdivision making the expenditure? PUBLICPURPOSEV.PRIVATEBENEFIT GULF COAST WATER CONSERVATION SYMPOSIUM25
  • What is the past, present, and future for SWIFT? GULF COAST WATER CONSERVATION SYMPOSIUM Agency Rulemaking Other Timelines 26
  • PAST: TWDB AND THE SWIFT • Governance changes: 3 full-time TWDB Members • Agency restructure into 6 planning divisions • Ag and Rural Ombudsman has been appointed, Doug Shaw • Public rulemaking process is underway GULF COAST WATER CONSERVATION SYMPOSIUM AGENCY 27
  • PRESENT: SWIFT PROCESS • Regional stakeholders adopt uniform standards (Dec 2013) • TWDB public work sessions – Conroe – Lubbock – Harlingen • Draft regional prioritization (June 2014) • Draft SWIFT rule (approx. June 2014) • Final regional prioritization (September 2014) • Final SWIFT rule (approx. December 2014 ,but no later than March 2015) RULEMAKING GULF COAST WATER CONSERVATION SYMPOSIUM28
  • FUTURE: SWIFT AND SWP • Regional plans due December 2015 *Along with new prioritization • State Water Plan published January 2017 GULF COAST WATER CONSERVATION SYMPOSIUM OTHERTIMELINES 29
  • January23,2014 QUESTIONS? ELIZABETH A. FAZIO, J.D., LL.M. DIRECTOR, HOUSE COMMITTEE ON NATURAL RESOURCES P.O. BOX 301872, E2.104 AUSTIN, TX 78769 TELEPHONE: (512) 463-0802 elizabeth.fazio_hc@house.state.tx.us GULF COAST WATER CONSERVATION SYMPOSIUM