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The constitutional amendment creating the Texas water fund to assist in financing water projects. - a case study

Creation of the [Water Fund] Amendment Timeline:

Filed Voted on by Senate Voted on by House Governor Action
3/6/2023 4/3/2023 5/17/2023 6/9/2023

:bulb: Texas Creation of the Water Fund Amendment goes into Ballot on November 7, 2023.

Howdy Texans!:smile:, this is Sanjay Singh Negi from CivilXR. My company, CivilXR, is developing a webinar aimed at educating the environmentalists, state agencies, and other stakeholders about the billion-dollar "water" fund.

Introduction:

This year, Texas lawmakers have allocated over $2 billion to address critical water-related issues, including increasing water supplies, repairing failing water infrastructure, and preventing flooding.

If approved by voters this fall, one billion dollars from the state’s surplus money during this budget cycle will be directed towards water supply and water infrastructure projects. Additionally, new funds have been established, namely the New Water Supply for Texas Fund and the Texas Water Fund, which outline the allocation of these funds.

The proposed amendment aims to create the Texas Water Fund, which would be administered by the Texas Water Development Board. This board would have the authority to transfer funds between various water-related funds, such as the Water Assistance Fund No. 480, the New Water Supply for Texas Fund, the Rural Water Assistance Fund No. 301, or the Statewide Water Public Awareness Account.

Moreover, the Legislature has allocated $125 million to match federal water infrastructure funds, enabling Texas agencies to access over $750 million from the federal Infrastructure Investment and Jobs Act. These funds will be utilized for a range of projects, including replacing lead water pipes and addressing water contamination in drinking water systems.

Additionally, approximately $1 billion has been allocated for flood prevention. Out of the surplus, $550 million will be directed towards coastal barrier projects and the “Ike Dike,” a large gate system proposed for the mouth of Galveston Bay to protect the Houston area from hurricane storm surges. The remaining $625 million will contribute to Texas’ Flood Infrastructure Fund, supporting flood prevention projects outlined in the state’s first flood plan.

Quotes from Lawmakers:

  1. State Sen. Charles Perry (R-28):

    “Water infrastructure needs in Texas total in the billions in order to cover aging and failing pipes and build out new water supply. It is estimated that the state loses 136 billion of gallons of water a year to leaking water main pipes. Additionally, the state will be 7 million acre feet short of supply in the next 50 years. S.J.R. 75 allows the Texas voters to decide if the state will create the Texas Water Fund to continue investment in water for years to come.” [4]

Solutions:

To ensure the utmost efficiency of water projects, the Texas Water Development Board (TWDB) must operate with exceptional efficacy, particularly considering that initial flood plans estimated a funding requirement of over $36 billion.

Emerging technologies such as artificial intelligence, GPUs, satellite imagery advancements, and Chat GPT can play a crucial role in enhancing the efficiency of water projects. Monitoring the private sector’s pace of innovation is vital to achieve optimal results with the available resources. Once the fund is approved by voters, it will initiate projects that span several years, requiring a continuous and efficient approach.

Oil and Water Unanswered Questions:

Why are oil companies excited about the water bill? Is it water fund or oilers fund?

Oil and water typically do not mix well due to their different densities and Archimedes’ principle. However, in Texas, oil and water have become intertwined. West Texas is a region where oil companies are experiencing significant growth. With over 1.6 million drilled wells, striking black gold also means encountering the water table. The water generated as a byproduct of fracking is known as produced water. The board is mandated to finance projects that can produce 7 million acre-feet of new water supplies by December 31, 2033. These projects include treating produced water, desalination, and aquifer storage and recovery (ASR). Consequently, these initiatives heavily subsidize water treatment efforts by oil and gas companies. It is not surprising that the Texas Oil & Gas Association - TXOGA PAC, along with several oil giants, has advocated for the inclusion of “produced water” in the bill.

Stories of the poor:

Unfortunately, the bill does not include any specific provisions prioritizing disadvantaged communities.

Sandbranch, a small unincorporated community located just 20 minutes from Dallas, Texas, has never had access to reliable potable water in its nearly 150-year history. Along the borderlands in El Paso, Hidalgo, Maverick, Starr, Webb, and Cameron counties, there are approximately 2,300 colonias. Many of these colonias lack access to clean drinking water, and residents are forced to rely on bottled water.

Compelling Question:

Will the real Texas Water Development Board please stand up?

Given that the fund will be spent at the discretion of the TWDB, it raises the question of whether the board will continue to rank the projects of the fund based on the Social Vulnerability Index as one of the criterias. A map of Texas reveals a higher concentration of vulnerable communities across Texas compared to affluent ones. Balancing the allocation of resources becomes challenging when considering the dire conditions of water infrastructure in numerous communities. It can be difficult to prioritize certain projects while acknowledging the critical needs of all communities. Will the fund primarily benefit the biggest corporate supporters, such as ExxonMobil and Occidental Petroleum, or will it be distributed in a more equitable manner?

References:

  1. Texas lawmakers funded water supply, flood prevention in 2023 session. The Texas Tribune. Texastribune. https://www.texastribune.org/2023/06/01/texas-legislature-water-supply-flood-funding-infrastructure/
  2. (2001, February 3). The Hidden Tragedy of Sandbranch, Texas. Medium. https://medium.com/@waterinequitynetwork/the-hidden-tragedy-of-sandbranch-78e87c87a2b0
  3. Texas Legislature Online - 88(R) Bill Stages for SB 28. Capitol. https://capitol.texas.gov/BillLookup/BillStages.aspx?LegSess=88R&Bill=SB28
  4. Texas Creation of the Water Fund Amendment (2023) - Ballotpedia. Ballotpedia. https://ballotpedia.org/Texas_Creation_of_the_Water_Fund_Amendment_(2023)

A Billion-Dollar Texas Water Fund
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