$2 billion proposed to ensure water supply Lawmaker wants to tap state's rainy day money to ensure long-range supply

Rep. Allan Ritter, R-Nederland, filed two bills that would transfer money from the state's rainy day fund into a new account to help pay for water projects. Rep. Allan Ritter, R-Nederland, filed two bills that would transfer money from the state's rainy day fund into a new account to help pay for water projects. Photo: AP Photo: AP Image 1 of / 1 Caption Close $2 billion proposed to ensure water supply 1 / 1 Back to Gallery

A key Texas House member is proposing that the drought-plagued state invest $2 billion in new reservoirs, pipelines and other water-supply projects to satisfy the demands of its rapidly growing population.

Rep. Allan Ritter, a Nederland Republican, filed two bills Thursday that would allow a one-time transfer from the state's rainy day fund into a new account to help pay for water-related infrastructure.

House Bills 4 and 11, if adopted, would mark the first time the state has funded its long-range water plan, which warns of grave shortages by 2060 without more supplies.

Lawmakers previously balked at funding the plan because of its $53 billion price tag, but Ritter said a $2 billion capitalization could finance it entirely.

The money would be part of a revolving, low-interest loan program in which the state would lend to cities and other entities for water-supply projects. Once a loan is repaid, other projects could get financing.

"It is vital for the future of Texas that a dedicated source of revenue be established for funding the State Water Plan," Ritter said. "Our economy depends on it, our communities depend on it, and, ultimately, our daily lives depend on it."

The proposal has the support of House Speaker Joe Straus, a San Antonio Republican who has said Texas' water needs will be a high priority during the legislative session. He is expected to reappoint Ritter as chairman of the House's Natural Resources Committee.

The bills also received endorsements from groups as diverse as the Sierra Club, the Texas Farm Bureau and Texas Oil & Gas Association.

"Our entire economy depends on swift and appropriate action to address the state's water needs," said Tony Bennett, president of the Texas Association of Manufacturers. The bills "represent a serious response to a critical need."

'It's about priorities'

Laura Huffman, Texas director of the Nature Conservancy, praised the proposal, saying it not only would create a way to pay for new projects but also would prioritize them with an emphasis on conservation. One of the bills requires that at least 20 percent of the money be spent on efforts to save and reuse water, such as repairing and replacing leaking pipes in urban areas.

"It's not just about money," Huffman said. "It's about priorities, and conservation will always rise to the top as a smart investment."

Other lawmakers have proposed starting the fund with less money from the unencumbered rainy day fund, which is expected to hold $8.8 billion in August.

Lt. Gov. David Dewhurst and Rep. Lyle Larson, a San Antonio Republican, have proposed using $1 billion from the fund for water projects, while Sen. Kel Seliger, an Amarillo Republican, has said $1.6 billion would be needed.

26 new reservoirs?

Huffman said even if the dollar figures change, the proposed legislation would provide the basis for implementing the water plan.

"It's the third day of the session, and we have 137 to go," she said. "That tells me this is a priority, and Texans can rest easy knowing it's being dealt with in a substantive way. There is plenty of time to get the dollars right."

The state's water plan proposes construction of as many as 26 new reservoirs, as well as more desalination plants and pipelines and greater conservation, to meet the demands of a projected 46 million Texans in 2060.

If Texas does not develop new supplies, state officials say a repeat of the devastating 1950s drought, its worst dry spell on record, could cost businesses and workers $116 billion in lost income by 2060.

Some policy experts and environmentalists are skeptical of the state's projected needs, saying the estimate overstates demand by assuming each Texan will use the same amount per day in the future. Studies show people across the country are using less water now than they were 30 years ago.