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The Texas Water Development Board held a meeting to receive informational presentations regarding innovative strategies for dealing with water shortage and to address their regular agenda.
 
Informational Presentations
 
Carole Baker, Texas Water Foundation

  • Conservation is at the top of the conversation these days
  • Trying to find out how to get utility managers to look at conservation as a source of water
    • It is cheaper than new water supplies
  • Trying to figure out how to quantify savings from conservation
    • Working in Region H to develop methods for quantifying conservation
  • “Rates vs. revenue” has been a big issue for a while and is being discussed more in depth
    • Will be putting out a workbook in that regard in June; it will discuss how to adjust rates when conservation measures are being implemented
  • Trying to convince the legislature to appropriate funds for an educational campaign regarding water conservation
  • Saw recent polling data that showed the drought has increased the public’s attention to water quantity

 
Stephanie Gibson, Texas Legislative Associates

  • Speaking on behalf of the Texas WaterSMART program
    • Developed as a public private partnership to educate the public about water conservation
  • In the US there will be a $1 trillion shortage in infrastructure addressing water shortage
  • Outdoor usage has been noted as a top cause for water shortage
  • The economic impact of the green industry reaches around $18 billion per year  so water restrictions cause concern when they are increased and outdoor water usage is regulated
  • Performed a study that showed 95% of people knew conservation was a key to reducing water shortages but less than 25% of people knew how to conserve
  • Initial efforts (radio/online ads, billboard campaigns, newsletters, press conferences, op-eds, fundraising and seminars) saw a significant increase in conservation n the D/FW area
    • 40% of people polled said they would be willing to see a small increase in water bills if the money went toward consumer education
  • Outreach and messaging need to be continued in order to see further increases in conservation

 
Chloe Lieberknecht, Nature Conservancy

  • Water conservation requires changing behaviors and incentivizing the desired behaviors
  • Water challenges need to be discussed locally, regionally and statewide
  • Urban/rural partnerships are an important strategy
    • Reduced agricultural usage can free up water for urban use which can, in turn,  reduce agricultural water costs
  • Board member Bech Bruun noted the TWDB has funded two innovative agriculture conservation projects already

 
Debra Cerda, BESST, Inc.

  • Miniaturized down hole diagnostics are minimally invasive and low cost
  • Selective extraction can pull out the good water and leave the bad water behind while reducing the amount of contaminants that must be removed
  • Groundwater profiling tests flow rates and contaminant levels to isolate preferred streams
  • These water systems can provide a significant return on investment

 
Tyler Sutliff, Whisenant & Lyle Water Services, Inc.

  • TCEQ reports that 20,000 public supply wells exist in the state; 15% of these wells are stranded
    • Treatment facilities can be placed at every well head which is not economically viable
    • New wells can be drilled at a high cost as well
    • Wells can be profiled and rehabilitated which is the lowest cost option; average cost of $100,000 per well
  • Chairman Carlos Rubinstein asked if regional planning groups have showed an interest
    • Some have; looking at brackish well development; right now, just trying to introduce this strategy as another tool in the toolbox

 
Alan Plummer, Alan Plummer & Associates, Inc.

  • Water reuse is a viable strategy in reducing water shortage
  • By 2060 reuse will represent about 18% of the water supply
  • There are many opportunities to increase non-potable reuse in industrial sectors
  • Potable reuse projects are already in operation in Texas; projects in Texas include putting water back into reservoirs for recovery after it has been treated naturally as well as directly treating used water and introducing it back into the water supply
  • The Board is currently funding projects involving water testing and evaluating potential for potable reuse
  • Challenges to advancing reuse remain; there are no federal or state regulations that cover potable reuse; public acceptance is a big hurdle as well
  • Board member Kathleen Jackson asked about working with universities  to develop reuse strategies
    • Financing research and developing new technologies are important functions universities can perform

 
Howard Taylor, NRG Energy

  • Water shortage creates concern with businesses wishing to invest in troubled areas; water concerns relate directly to energy concerns
  • Texas consumes more than 17 million acre/ft of water per year; there are good opportunities to meet growth if innovate measures are considered
  • Want to bring sustainable resources to the table to produce treated water at a reasonable cost; it takes a lot of water to produce energy and a lot of energy to produce water
  • It takes a long time to permit, develop, procure and construct both energy and water production facilities
  • Want to focus on desalination as a method to mitigate water shortage; brackish water use is a solution to reducing desalination costs
  • The ability to evaluate and implement new technologies is critical to being able to meet the state’s water needs in the future
  • Bruun asked how partnerships are developed
    • To solve problems it takes partnerships; technologies are evaluated and new configurations are developed to find viable partnerships

 
Robert Puente, San Antonio Water System (SAWS)

  • The Board has played a crucial role in funding a feasibility study to get the SAWS aquifer storage and recovery (ASR) facility off the ground
    • The project cost $250 million but is now paying for itself; one of the largest facilities of its kind in the nation
    • Only covers a 3,200 acre footprint
    • Freshwater production, desalination and ASR projects are all taking place at the facility

 
Gary Walker, Sandy Land Underground Water Conservation District

  • 40 countries are currently participating in some type of weather modification; both precipitation  enhancement and hail mitigation
  • Cloud seeding is the principle of coalescing water droplets to form droplets big enough to fall through the use of a seeding agent such as salt or silver iodide
  • Cloud seeding can provide a significant ROI due to low cost of seeding and precipitation increase that takes place

 
Kyle Jensen, WaterSavr

  • LCRA expects to lose 20% of their remaining water supply to evaporation in the next few years
  • WaterSavr is the only commercially available, proven and safe product for the reduction of evaporation
    • Basically introducing an agent into the water that forms a layer on the surface of the water that serves as a barrier between the water and the environment
    • Can reduce evaporation by 30-35%
    • Composed of lime and alcohol that is made from coconut and palm oil
    • Product degrades completely in 72 hours
  • Cost is about $100 per acre/ft of water saved
  • Jackson asked about how the product works on reservoirs with wind
    • Distribution devices can be placed upstream of the wind to mitigate wind loss; if it is extremely windy the product should not be applied
    • Not sure about the impact of humidity
  • Rubinstein asked about the water savings numbers
    • Those numbers were determined across a two-season study with all types of weather conditions
  • Going to meet with Wichita Falls soon to talk about the possibility of using the product on their reservoirs

 
Geronimo Gutierrez, North American Development Bank
Alex Hinojosa, North American Development Bank
Renata Manning-Gbogbo, Cooperation Commission

  • Created in 1994; the Bank and Border Environmental Corporation were created to help develop and finance environmental infrastructure on the US/Mexico border
  • Currently just under 200 projects are certified at a total investment level around $7 billion mostly through NAD Bank financing
    • Over 40% represented by water and wastewater projects; almost 30% represented by renewable energy development
  • 140 projects certified have been completed at this point
  • Establishing lines, mains and pumps are most of the focus; making connections to households is another large part of the focus
  • The bank makes loans, gives grants and is not subsidized by any government entity
  • The bank has a Utility Management Institute that helps train municipalities and utility managers regarding projects and possibilities for better management
  • The timeframe for project approval is not very long but actual financing may take some time to ensure the money is being spent in the most efficient and effective way possible
    • A prioritization process was implemented as well as a bypass and schedule provision to expedite and implement projects more efficiently and on 5 year maximum timeframes
    • Separated funding is provided for project design and construction phases
  • Already over $600 million approved and dispersed in the border region
  • There are green building guidelines for water and wastewater projects which help decrease energy demand

 
Mary Scott Nabers, Strategic Partnerships, Inc.

  • The state needs as many funding options as it can get; public private partnerships (P3) provide a very attractive option but there are challenges to getting P3 projects off the ground
  • P3 is basically an agreement between a public agency and a private entity; the private sector entity brings the capital to the table
    • Risk is also transferred to the private sector
  • Texas is seen as a long term partner to the private sector but they need to be more confident working with P3 in Texas
  • There are many misconceptions with P3 projects; it is not the same as privatization; it is not only for brand new projects
  • Many public officials feel they do not have the in-house expertise to complete complex projects; P3 solves this issue

 
Regular Agenda
 
Briefing and discussion on HB 4 rule development
Todd Chenoweth

  • The Board has held work sessions regarding HB 4 implementation
  • Many different stakeholders attended the meetings  and provided comments
  • The Board’s prioritization system was a big point of discussion; conservation and reuse were other main themes
  • The next opportunity for public input will be the work session on May 29th in El Paso
  • Written comments have been received as well
  • The rulemaking is on track for a proposed rule in June 2014; there should be a final rule for consideration for adoption in December of this year
  • Rubinstein noted it is crucial to work with the safekeeping trust to ensure the desired returns are reached
  • Rubinstein noted the value of the previous stakeholder meetings has been in receiving the input to help draft a good rule that everyone can be happy with

 
Frank Rodelon, Consultant

  • The ability of utilities to repay loans must be considered; sufficient water rates are an integral part of their ability to do so

 
Overview and History of the Texas Water Development Fund Program
Jeff Walker

  • The Fund is a flexible and streamlined financial assistance program
    • Anything water, wastewater and flood related is eligible
  • The Fund received their first pot of money in the 1950s
  • Have recently funded well fills and meter replacements; both are very popular projects right now
  • Many entities save money by using the Fund by benefitting from the better financing rates
  • The LCRA Board recently requested funding from this fund for a project