Economy has grown at $27 billion per year since 2001The leading crude oil-producing stateThe largest petrochemical producer; hosts nearly 30% of U.S. petroleum refining capacityLargestlivestock producer and 2nd in total U.S. agricultural salesIn 2008, over 70% of U.S. job growth occurred in TexasMore Fortune 500 companies are headquartered in Texas than any other state
State of Texas Water PlanWhat it Costs Presented by Senator Kip Averitt
Water is the key to one of the world's largest and most robust economies.
WATER IS KEY TO OUR ECONOMY One of the fastest growing statesin our country. Our population has more than tripled since 1950. 2060 46 million 2010 25 million 1950 7 million
WATER IS KEY TO OUR ECONOMY Texashas 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 Texashas 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 By 2060, water supplies will decrease 18 percent and population will double to 46 million.
WATER IS KEY TO OUR ECONOMY 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? Projected Water Shortages We 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 Year 2010 Year 2060
What are we doing? Cost of Eliminating State Water Plan To implement water strategies, project sponsors will need access to $17 billion of project capital costs through various financing mechanisms. Financing State Water Plan Projects
What are we doing? 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.
What are we doing? Projects Currently Funded through TWDB Financing $195 $114 $67 $79 $49 $77 $35 State Water Plan Projects Funded as of August 2009 (millions)
What are we doing? 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)
What are we doing? Additional State Water Plan Debt Service (in millions)
“We are finding out that water is about as valuable as oil, only we can drink water.” -Kinney County Extension Agent, 1956 Cost of complacency?
Past Droughts: 1950-1957 The 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
Impacts of drought: Past, Present & Future Droughts Today: North Texas 2006 In 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 2009 By 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 Droughts Not meeting future water demands could cost the state $9.1 billion per year by 2010 and $98.4 billion per year by 2060. (in billions) (in billions) 2060 2060 2060 2010 2010 2010
Placeholder for “Texas crumbling” (yvette still working on this)