Below is the HillCo client report from the June 18 Texas Water Development Board meeting.

The Board met to hear updates and act on their agenda items.  This report focuses only on selected agenda items.

Overview of the State Participation Program

  • Program was authorized in 1985 to:
    • Encourage regional water supply and wastewater and flood control projects
    • Allow TWDB to acquire facility ownership interest
    • Fund excess capacity of future growth
    • Optimize projects
  • The existing program is funded with GO bonds and GR appropriations
  • GR pays debt service until the project develops sufficient rate base
  • Interest rates are based on TWDB cost of funds
  • Maximum 80% water and 50% wastewater participation
  • SWIFT/SWIRFT will provide funding for the projects from now on and no further appropriations will be made
  • Director Bech Bruun asked about money coming back in through the projects to fund other projects
    • It is uncertain when funding like that will be available; funds coming back in are used for various purposes

 
Consider authorizing publication of proposed amendments to 31 Texas Administrative Code (TAC) Chapter 371 relating to Drinking Water State Revolving Fund and 31 TAC Chapter 375 relating to Clean Water State Revolving Fund

  • The amendments will improve access for eligible applicants and improve clarity of the rules
  • Amending definitions, relaxing and extending maturity timeframes, replacing term “loan” to “financial assistance”
  • Proposal will be published in Texas Register and will have a 30 day comment period
  • Director Kathleen Jackson noted the importance of making these changes
  • The Board approved the amendments

 
Briefing and discussion on HB 4 rule development

  • Rules will come before the Board during the June 26 work session
  • There were stakeholder meetings and community meetings to engage the public regarding what they thought should be in the draft rule
  • The proposed rule has been developed and the next step is Board approval; the Board can also direct staff to make changes
  • Public comment will begin once the rule has been approved and published in the Texas Register
  • The executive administrator recommends that the public comment period be open until September 1, 2014
  • Three work sessions will be held around the state to take oral comments on the rules as well; details will be part of the official proposal and will be discussed at the June 26 meeting
  • When the public comment period concludes, comments will be summarized and the Board will adopt the final rule
  • Bruun asked about the Board wanting to bring forth modifications; should those items be brought to the meeting on the 26th and brought forward as motion items
    • Yes; they could be motions to approve with modification, approve as is, or to not approve
  • Chairman Carlos Rubenstein noted that because of statutory timelines it is important to bring all desired changes to the June 26 meeting to avoid extending the rulemaking process

 
Briefing and discussion on drought conditions in the state of Texas

  • Decent rainfall in the last month, especially in East Texas, has abated drought conditions somewhat
  • 10% of the state is experiencing no drought; 70% of the state is in moderate to bad drought conditions
  • Reservoir levels are no longer at all-time low levels but still only a fraction of a percentage higher than the all-time lows
  • About 55 systems are still reporting less than 180 days water supply