state of texas water plan
TRANSCRIPT
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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