The following report covers the board meeting the Texas Water Development Board (TWDB) held on January 14, 2021, covering modifications to the TAC, anticipated interest rate subsidies and financing, and approving requested project financing. A link to the agenda and meeting can be found here.
The HillCo report below is a summary of remarks intended to give you an overview and highlight of the discussions on the various topics discussed. This report is not a verbatim transcript; it is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.
Item 1: Approve the publication and adoption of 31 TAC Chapters 363, 371, and 375 (Kendal Kowal)
- Relates to state funding programs, state drinking water developing fund program, and the clean water revolving fund program
- Will implement changes from 86th legislature, clarify agency rules, and conform language to practice
- Each application would be required to state if they comply with contractor requirements
- Remaining changes include minor amendments to conform language and non-substantive clarification
- Proposed rules were published and no comment was received
- Recommends approval
Motion to adopt, second; Approved
Item 2: Briefing and discussion regarding anticipated interest rate subsidies and financing terms that would be available through the Clean and Drinking Water State Revolving Fund programs under the State Fiscal Year 2022 Intended Use Plans (Mark Wyatt)
- TWDB intends to continue offering applicants best interest rates possible
- Sustainability of the SRF programs is reliant on interest rate subsidies
- Current low interest rate levels, the prior interest rate subsidy methodology is no longer considered sustainable
- TWDB adjusted interest rate subsidies to ensure long-term health of the program
- Minimum interest rates were established for 2020 IEP list
- Changes benefited the SRF program short and long-term financing possibilities while still offering competitive rates
- Amount of available funding is estimated at $250 million for Clean Water SRF, and $150 million through Drinking Water SRF
- Established minimum loan amount
- Amended IEPs have enhanced the Board’s ability to offer applicants the best rates possible while ensuring sustainability of the SRFs
- New method would offer significant, 30-40% savings
- Remaining capacity levels will be carried over into FY 2022
Member discusses active management of financing programs and the benefit of active managing. Wants to know where the information on rates and process of application can be found online, and what resources are available for new contractors/members.
- Considering hosting webinars to inform new customers
- Information will be available online on the TWDB website
- Lays out contact information for if new customers have questions
Member discusses changes and flexibility TWDB brings to times of uncertainty and the competitive rates they bring to customers
No action required on this item
Item 3: Approve by resolution a request from the City of Houston (Harris County) for $325,000,000 in multi-year financing from the Clean Water State Revolving Fund for construction of wastewater system improvements (Nancy Richards)
- 4th most populous city in the nation
- Settlement with US DOJ requires city replace sewer mains over the next 15 years
- City requests financing to replace sewer pipelines to reduce sewer overflows and optimize sewer lines
- Executive administrator recommends approval
Member comments on the benefits of helping the City improve its sewer system
Motion to approve the proposed resolution, second; Approved
Item 4: Approve by resolution a request from the City of Pearland (Brazoria County) for $75,000,000 in financing from the Clean Water State Revolving Fund for planning, design, and construction of a wastewater treatment plant expansion project (Nancy Richards)
- 20 miles from Downtown Houston
- Fast-growing population
- City’s water reclamation facility has reached 75% of its permanent flow capacity
- Per requirements, city must now consider expansion/upgrade of the facility
- Plan will expand capacity from 4 to 6 million gallons per day, and redirect some flow from other plants in the city to the central plant
- Recommends approval
Member comments on the benefits of upgrading water reclamation plants and increasing efficiency
Member requests staff keep board up to date on guidance application and usefulness
Motion to approve the resolution, second; Approved