FISCAL NOTES SEPTEMBER 2023 | 5 respond to changing climate conditions; improve efficiency of operations by reducing water losses; and deliver real-time data that allow for interactive decision-making. According to a 2022 report by the Texas Water Conservation Advisory Council, irrigation conservation represents the state’s best opportunity to achieve significant water use savings. This is because the SWP projections estimated that agriculture irrigation accounted for 53 percent of all water use in the state in 2020, the highest among all water use categories, followed by municipal water demand (Exhibit 4). EXHIBIT 4 PROJECTED WATER DEMAND BY WATER USE CATEGORY, 2020 Source: Texas Water Development Board Precision agricultural technology, coupled with expanded access to broadband connection, can help farmers reduce fuel and water usage. High-speed internet connectivity is necessary for digital technologies in agriculture to reach their full potential and substantially increase crop and animal yields, improve distribution and reduce input costs such as the expense of raw materials and labor. ADDRESSING TEXAS WATER NEEDS The variability in water supply and aging infrastructure throughout the state requires investments in the use, quality and impact of water. From its inception in 1957 through April 2023, TWDB has offered a variety of loan and grant programs providing approximately $33.6 billion in funding for the planning, acquisition, design and construction of water-related infrastructure and other water quality improvements. According to TWDB’s Water Supply and Infrastructure Division, since 2013 alone the TWDB has provided more than $12 billion to water infrastructure in Texas through the Drinking Water State Revolving Fund (DWSRF) program and the State Water Implementation Fund for Texas (SWIFT) program. Other TWDB programs, such as the Economically Distressed Areas Program and the Texas Water Development Fund (WDF), have provided additional funding for water infrastructure needs, according to TWDB. For projects that address aging infrastructure (outside the DWSRF and SWIFT programs), the WDF has increased funding. TWDB committed $20 million toward addressing aging infrastructure needs in 2022, up from $4.5 million in 2018. Additionally, the federal Infrastructure Investment and Jobs Act (IIJA), signed into law in 2021, appropriates more than $50 billion to the U.S. Environmental Protection Agency to improve drinking water, wastewater and stormwater infrastructure nationwide. Texas expects to receive approximately $2.5 billion through the IIJA to improve water and wastewater infrastructure over the next five years. According to TWDB, the agency received $222.3 million in 2023 from IIJA, of which 49 percent must be committed to projects in the form of principal forgiveness. SUPPORTING NEW RESOURCES FOR WATER The availability of sufficient water supplies to support business and industry, economic development efforts and public health and safety is vital to the continued strength of the state. “With the population ballooning and businesses booming, it comes as no surprise that Texas will need a lot of water to stay afloat. But planning for Texas’ future water needs requires the dedication and resourcefulness of organizations and passionate individuals,” Hegar says. The 88th Texas Legislature in 2023 supported Texas water with the passage of Senate Bill 28. The bill was passed to support the financial assistance provided by TWDB and the programs administered by the agency to fund water supply projects that create new water sources for the state including desalination projects, produced water treatment projects, aquifer storage and recovery projects, and the development of infrastructure to transport water that is made available by the new water supply projects. Texas voters will get the opportunity to weigh in on a proposed constitutional amendment to create the Texas Water Fund to help finance water projects in the state. This fund will only be established if the proposed constitutional amendment, Proposition 6, is approved by Texas voters in November. FN Read the full report, Texas Water: Present and Future Needs 2023, at comptroller.texas.gov/economy/in-depth/special-reports. Texas’ Water Demands Could Outpace Supply in Parts of Texas by 2070 LIVESTOCK / 2% MINING / 2% STEAM ELECTRIC / 5% MANUFACTURING / 8% MUNICIPAL / 30% IRRIGATION / 53% DEALERS’ CHOICE 32
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