TWDB outlines Texas Water Fund implementation plan

TWDB outlines Texas Water Fund implementation plan Posted on August 14, 2024

The Texas Water Development Board (TWDB) during its July Board meeting presented its implementation plan for the $1 billion voter-approved Texas Water Fund. The plan includes the amounts and criteria for each existing financial assistance program eligible to receive dollars transferred from the Texas Water Fund.

"Having the support of voters last November was the first step. Developing the implementation plan was the huge next step to get the Texas Water Fund dollars out the door to much-needed projects, and it's a tremendous accomplishment," said TWDB Chairwoman Brooke Paup.

With a focus on the Texas Water Fund's key priorities, the TWDB is first narrowing in on projects that address water conservation and water loss by proposing use of the Rural Water Assistance Fund (RWAF) and Water Loan Assistance Fund (WLAF).

The implementation plan identifies $195 million in financial assistance for the RWAF for communities under 10,000 and stipulates that some funding will be prioritized by disadvantaged and technical criteria, reserved for construction-ready projects, and allocated for high-risk or high-need projects. Financial assistance through the RWAF will be offered as 90-100 percent grant funding for communities.

The WLAF accounts for $90 million for water conservation and water loss projects and is intended for communities with a population between 10,001 and 150,000, with 70 percent of the financial assistance offered as grant funding.

In December 2023, the TWDB solicited project information forms for the State Fiscal Year 2025 Drinking Water and Clean Water State Revolving Funds. In response, nearly 70 were for water conservation and water loss projects requesting a total of more than $607 million.

To more quickly serve those projects using the Texas Water Fund, eligible water conservation and water loss projects were prioritized for financial assistance through the RWAF and WLAF. The project prioritization list was published for a public comment period this summer, and the Board will consider approving the project list at its August 15 Board meeting. The top-ranked projects will then be invited to submit full applications.

The TWDB cannot approve any Texas Water Fund transfers until project applications for which the money is intended have received a financial assistance commitment, but the Board anticipates inviting entities to apply for funding opportunities starting this fall and committing funding for projects over the next year.

The implementation plan, which includes seven components, is structured so the remaining $715 million will go toward a new statewide water awareness program, the State Water Implementation Fund for Texas (SWIFT)* program, potential bond leveraged funding through existing financial assistance programs, and the New Water Supply for Texas Fund.

"I appreciate state leadership and voters for prioritizing water needs with the Texas Water Fund," said TWDB Board Member L'Oreal Stepney. "We're excited about this plan, which will guide our next steps and put these dollars to work for Texas communities."

The TWDB is the state agency charged with collecting and disseminating water-related data, assisting with regional water and flood planning, and preparing the state water and flood plans. The TWDB administers cost-effective financial assistance programs for the construction of water supply, wastewater treatment, flood mitigation, and agricultural water conservation projects.

*The SWIFT program includes two funds, the State Water Implementation Fund for Texas (SWIFT) and the State Water Implementation Revenue Fund for Texas (SWIRFT). Revenue bonds for the program are issued through SWIRFT.

This article is posted in Financial Assistance.

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