This document discusses the state water plan for Texas. It notes that water is key to Texas' economy, which has grown significantly and is projected to double in population by 2060 while water supplies decrease by 18%. Without implementing the state water plan to ensure sufficient water supplies, Texas could face water shortages that would be catastrophic to the economy, costing billions per year. The plan requires $17 billion in funding to develop needed water management strategies to provide enough water even during severe droughts.

1. State of Texas Water PlanWhat it CostsPresented by Senator Kip Averitt

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

3. WATER IS KEY TO OUR ECONOMYOne of the fastest growing statesin our country. Our population has more than tripled since 1950.206046 million201025 million19507 million

4. WATER IS KEY TO OUR ECONOMYTexashas the 2nd largest state economy in the nation.$1.8 trillion$1.1 trillion$1.2 trillionBased on Gross Domestic Product

5. WATER IS KEY TO OUR ECONOMYTexashas the 11th largest economy in the nation.

6. WATER IS KEY TO OUR ECONOMYThe Texas EconomyHas grown at $27 billion per year since 2001Leading producer of crude oil and hosts nearly 30% of U.S. petroleum refining capacityRanked 1st in U.S. livestock production, 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

7. WATER IS KEY TO OUR ECONOMYWe are on a collision course.By 2060, Texas will have 18% less water and twice as many people.

8. Water shortages could be catastrophic.

9. Water is Key to our EconomyBy 2060, water supplies will decrease 18 percent and population will double to 46 million.

10. WATER IS KEY TO OUR ECONOMYBy 2060, water demand will increase 19% and water supplies will decrease 18%.

11. “What you gonna do when the well runs dry?” Fats Domino, 1957

12. What are we doing?Regional and State Water PlanningConsensus-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.

13. What are we doing?Projected Water ShortagesWe do not have enough water to meet the state’s water demands during a serious drought.

14. What are we doing?Water Shortages for Different Water User GroupsYear 2010Year 2060

15. What are we doing?Cost of Eliminating State Water PlanTo implement water strategies, project sponsors will need access to $17 billion of project capital costs through various financing mechanisms.Financing State Water Plan Projects

16. What are we doing?Current Funding for State Water PlanAmount currently authorized for state loans and grantFor 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.

17. What are we doing?Projects Currently Funded through TWDB Financing$195$114$67$79$49$77$35State Water Plan Projects Funded as of August 2009 (millions)

18. What are we doing?Comparison of 2010-2011 State Water Plan appropriations to other general revenue expenditures (in millions)

19. What are we doing?Additional State Water Plan Project Funding (in millions)

20. What are we doing?Additional State Water Plan Debt Service (in millions)

21. Cost of complacency?

22. “We are finding out that water is about as valuable as oil, only we can drink water.” -Kinney County Extension Agent, 1956Cost of complacency?

23. 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 exhaustedLow water levels in the Guadalupe River crippled 11 power plantsPurchased water cost more than gasoline in areasThe state’s population was only 7 millionImpacts of drought: Past, Present & Future

24. Impacts of drought: Past, Present & FutureDroughts Today: North Texas 2006In 2006, extreme drought scorched North Texas. Estimated economic impacts were $4.1 billion.Extreme drops in water levels at several lakesLake Lavon was 15.5 feet below normalOfficials considered imposing severe water rationing

25. Impacts of drought: Past, Present & FutureDroughts Today: North Texas 2006In 2004, Lake Lavon was nearly full.

26. Impacts of drought: Past, Present & FutureDroughts Today: North Texas 2006In 2004, Lake Lavon was nearly full. By September 2006, the lake was at 39% of total capacity.

27. Impacts of drought: Past, Present & FutureDroughts Today: Central Texas 2009In 2009, a severe drought hit Central Texas. By March 2009, 100% of the state was in some form of droughtBy late September 2009, 23% of the state was under severe, extreme, or exceptional drought

28. Impacts of drought: Past, Present & FutureDroughts 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 lowsLake Travis was at 37% capacity and Lake Buchanan at 43% capacity230 public water systems declared mandatory water restrictions

29. Impacts of drought: Past, Present & FutureFuture DroughtsNot 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)206020602060201020102010

30. Placeholder for “Texas crumbling”(yvette still working on this)