Planning Group Makes Progress on 2016 Water Plan

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1 November 2014 Newsletter Next Meeting: TBD, 2015 at 1:00 p.m., subject to change. Please monitor for updates. Meeting Location: Trinity River Authority Central Wastewater Treatment Plant 6500 W. Singleton Blvd. Grand Prairie, TX (972) *Please note: Persons with disabilities who plan to attend the Region C Water Planning Group meeting and who may need auxiliary aids or services such as mobility assistance, interpreters for deaf or hearing-impaired persons, readers, large print, or Braille are requested to contact Lee Shaffer in the TRA Central Wastewater Treatment Plant at (972) at least five (5) work days prior to the meeting so that appropriate arrangements can be made. Members of the public interested in attending the RCWPG s public meetings must now provide government-issued identification to authorized personnel prior to entering the plant site. Please be sure extra time is allotted for this security check. No person will be allowed to enter the facility without proper identification. For more information about the Region C Water Planning Group, contact: James (Jim) Parks, RCWPG Chair North Texas Municipal Water District P.O. Box 2408, Wylie, TX Phone: (972) jparks@ntmwd.com Planning Group Makes Progress on 2016 Water Plan Over the past year, the Region C Water Planning Group (RCWPG) focused its planning efforts on a review and analysis of the region s existing water supplies including groundwater, surface water and water reuse so it could allocate those currently available supplies to water user groups (WUGs) and wholesale water providers (WWPs) across the region. With those available supplies matched up to WUGs and WWPs, it is now evident to the RCWPG where there are unmet needs that should be addressed in the 2016 Region C Water Plan. After evaluating water availability and existing supplies, and identifying water needs, the RCWPG submitted this technical data to the Texas Water Development Board (TWDB) in late July This is a critical step in the ultimate development of Region C s Initially Prepared Plan (IPP). To help the TWDB prioritize water projects for potential funding from the newly created State Water Implementation Fund for Texas, the RCWPG also recently submitted its prioritization of projects in the 2011 Region C Water Plan to the TWDB (see separate article: The Changing Face of Texas Water Project Funding ). Now the group turns its focus to identification and a more detailed analysis of potentially feasible water management strategies, in order to determine which should be included as recommended strategies in the Initially Prepared Plan (IPP) next year. The IPP, a draft version of the 2016 Region C Water Plan, is due to the TWDB by May 1, Shortly after this, in the summer of 2015, the RCWPG will host a public hearing on the IPP to gather public input on the proposed recommendations, before a final plan is prepared. The planning group must adopt a final version of the 2016 Region C Water Plan and submit it to the TWDB no later than Nov. 2, To receive this newsletter, send your name plus an and/or mailing address to Colby Walton at colby@cookseypr.com or via fax to Visit for the latest updates on RCWPG activities, documents, meetings and other water planning news, or contact Amy Kaarlela with Freese & Nichols at adk@freese.com.

2 Water Conservation and Reuse Remain a Top Priority Roughly half of Texas continues to experience drought conditions, with the current drought now extending to over four years in duration. The state s water reservoirs are only about 64 percent full, with dire water situations in some localized areas, such as Mineral Wells and Wichita Falls. In parts of Region C, the water situation is challenging, with severe and extreme drought conditions prevalent in the western portion. The eastern portion of the region is also facing drought conditions, though not quite as bad as in the region s western counties. Some area lakes are at or near alltime record low levels. Reservoir Percent Full* Arlington 63.3 Benbrook 68.4 Bonham 72.2 Bridgeport 38.6 Cedar Creek 74.8 Eagle Mountain 55.3 Fork 75.8 Grapevine 59.3 Jim Chapman (Cooper) 36.8 Joe Pool 92.9 Lavon 46.5 Lewisville 70.0 Livingston 96.5 Navarro Mills 84.6 Palestine 93.1 Ray Hubbard 58.6 Ray Roberts 76.2 Richland-Chambers 65.8 Tawakoni 58.5 Texoma 83.2 Worth 67.1 Major Reservoirs For Region C Water Supply *Levels as of 10/10/14 The region has seen sporadic rainfall in recent months, but in many cases, the rain hasn t fallen where it is most needed either on or upstream from major reservoirs (see Where the Rain Falls Really Matters article on next page). While there is some hope for an El Niño weather pattern this winter in Texas, with potential for abundant rainfall and cooler temperatures (thus reducing evaporation), the latest forecasts show a reduced likelihood of any El Niño. Even if one does occur, the odds are now greater that it will be a weak El Niño. Major water providers across North Central Texas are continuing to restrict water use in order to preserve the remaining water supplies. The good news is that they are seeing water demand reductions in response to their restrictions. These measures, including both temporary drought responses and permanent water conservation strategies, are important. As previously noted, however, they are only part of the bigger effort to ensure North Central Texas residents and businesses have enough water for the long-term. Water conservation and reuse are an enormous part of the region s long-term water management strategy. The 2011 Region C Water Plan calls for conservation and reuse together to account for 23 percent of the region s available water supplies. With only one-quarter of the state s population, Region C currently plans to develop 40 percent of the state s conservation- and reuse-related water supplies over the next 50 years. Those figures may continue to go up as subsequent regional water plans are developed, based on current trends. For water conservation tips and more information, visit or Update on Interregional Conflict Between Regions C and D The conflict between Regions C and D over the Marvin Nichols Reservoir project continues to play out, with a number of important developments taking place over the past 18 months. In May 2013, the 11th Circuit Court of Appeals affirmed a lower court ruling that the Texas Water Development Board (TWDB) violated SB 1 planning process requirements and TWDB rules by approving the 2011 water plans for Regions C and D. The lower court held that the TWDB s violation stemmed from its failure to resolve an interregional conflict between the two plans, relating to the Marvin Nichols Reservoir project. The 2011 Region C Water Plan identified the Marvin Nichols Reservoir project, physically located within Region D (Northeast Texas), as a recommended water management

3 strategy for Region C. The plan calls for the reservoir to supply nearly 490,000 acre-feet per year of water to water users in Region C and another 120,000 acre-feet yearly to Region D. Meanwhile, in its 2011 plan, Region D indicated that proposed reservoir s impact to timber, agriculture, environment and other natural resources resulted in interregional conflict that the TWDB had to resolve per statute and the agency s own rules. the the an the Subsequent to the court decision, the TWDB engaged the State Office of Administrative Hearings (SOAH) to mediate efforts at resolving this conflict. In May 2014, the TWDB s Executive Administrator submitted a final recommendation to the Board, recommending that the conflict be resolved by instructing the RCWPG to readopt its current regional water plan with Marvin Nichols Reservoir as a strategy, and the Region D group to amend its plan to reflect that the conflict has been resolved. The final recommendation also included several revisions and options based on public input received from both regions. The TWDB then requested legal briefs from Regions C and D, which were submitted prior to a public meeting in August. After the public meeting, the TWDB released an interim order directing Region C to conduct an analysis and quantification of the impacts of Marvin Nichols on the agricultural and natural resources of Region D and the state. This analysis was submitted to the TWDB in early November Next, Region D will have an opportunity to submit a written response to the Region C analysis, and at a future date, the matter will be scheduled for further TWDB consideration. After the final TWDB determination, a meeting will be held to review the TWDB decision, in addition to a public hearing. At that point, the 2011 Region C Water Plan would potentially be amended and/or re-adopted. Please stay tuned for further updates. Figure 1: Drainage Basins or Watersheds for Area Lakes (note: Cooper Lake, upper right, is also known as Jim Chapman Lake) Where the Rain Falls Really Matters (SOURCE: National Weather Service, Dallas/Fort Worth Weather Forecast Office) While North Texas has seen some rainstorms in recent months, the scattered nature of the heaviest rainfall has frequently meant that Region C s primary water supplies have seen little beneficial impact. To understand why, it s important to know where the critical watersheds are for the region s lakes. Figure 1 is a map of the region showing the drainage basin or watershed for each area lake. Significantly, the watershed for Lake Livingston (a water source for the greater Houston area), extends into and covers most of Dallas and Tarrant counties. This means that much of the rain that falls on Dallas or Fort Worth chiefly benefits another metro area on the supply side, although local rainfall can certainly help with a short-term reduction of water demands here. Also be sure to notice that only part of the Metroplex is in the watersheds of our water supply reservoirs. This means that heavy rain has to fall into a precise area on or directly upstream from the key reservoirs to help increase the region s water supply. Figure 2 shows the watersheds for the main North Texas lakes and reservoirs. Watersheds supplying the greater Dallas area are shaded in orange, while watersheds supplying the Tarrant Regional Water District are shaded in yellow. Again, notice that much of the rain that may fall on North Texas does not contribute to Metroplex water supplies. That s why it really matters not only how much rain North Texas gets, but also exactly where it falls during those relatively few times our region sees heavy rainstorms. Figure 2: Watersheds for the Main Reservoirs Supplying North Texas

4 New, Improved Groundwater Availability Model Nearly Ready for Launch Over the past two years, a critical groundwater modeling update has been underway, which will deepen Region C s understanding of available supplies in underground aquifers and affect the planning of future groundwater allocations in the North Central Texas area. Since Jan. 2012, Groundwater Management Area 8 (GMA 8) has been working on an update to its Northern Trinity/Woodbine Groundwater Availability Model (GAM). GMA 8 expects that the new GAM, which offers significantly enhanced detail and accuracy compared to the previous model, will provide increasingly reliable information about groundwater supplies across Region C, and beyond. GMA 8 is a management area created to assist Groundwater Conservation Districts in future planning for groundwater. It includes major aquifers such as the Trinity and Edwards (Balcones Fault Zone), as well as various minor aquifers, such as the Blossom, Brazos River Alluvium, Ellenberger-San Saba, Hickory, Marble Falls, Nacatoch and Woodbine. Its geographic reach is fairly broad, including part or all of 45 Texas counties and 11 Groundwater Conservation Districts. Its work is critical to Region C because most of Region C is covered by GMA 8, with the exception of Freestone, Henderson and Jack counties and a portion of Navarro County. Ultimately, the GAM plays a role in helping GMA 8 to set desired future conditions and determine how much groundwater can be considered available for purposes of regional water planning. mile grids in the old model. With this much higher resolution look at the aquifers, the new GAM will yield a much more detailed, finer-scale analysis. Earlier this summer, GMA 8 released an updated draft model for review and comment, and all affected regional water planning groups and GCDs were asked to provide feedback. As part of the updated GAM development, three runs of the model were performed for all GCDs located within GMA 8, giving the Districts an idea for how the new model predicts future aquifer conditions, compared to the old model. The project was completed on time and under budget on Sept. 1, 2014, with the delivery of a final draft model. GMA 8 expects to receive notification from the TWDB that the updated GAM has been adopted as the official GAM for the Northern Trinity and Woodbine aquifers by the end of GMA 8 will then use the new model to set desired future conditions within the aquifers, and these are expected to be completed by May 1, For more information, visit Since the updated GAM isn t yet finalized, it wasn t used to determine desired future conditions or available groundwater supplies for the current five-year cycle of regional water planning. The new GAM will yield valuable data for the next planning round, however, when Region C begins work on its 2021 Region C Water Plan. While groundwater is not a large source of water supply for Region C as a whole, expected to provide only about 3 percent of the region s total 2060 water supply, it is critically important in many rural areas that do not have ready access to surface water. With more reliable information from the new GAM, Region C will soon be able to make even better decisions about groundwater allocations in its future planning efforts. Within Region C, four Groundwater Conservation Districts (Northern Trinity GCD, Upper Trinity GCD, North Texas GCD and Prairielands GCD) undertook and funded $1.6 million, and provided a wealth of data, for the GAM update project. The new GAM is being developed by geoscience and engineering firm INTERA, Inc., along with the Bureau of Economic Geology and LBG-Guyton in cooperation with the Texas Water Development Board (TWDB). 5 Taylor 1 Montague Cooke Lamar Grayson Red Fannin River Delta Franklin 4 Hopkins 9 14 Wise Denton Collin Hunt Rains Rockwall Parker Tarrant Dallas Kaufman Hood Johnson Eastland Ellis Callahan Erath Somervell Navarro Hill Comanche Bosque Brown Hamilton Limestone McLennan Mills Coryell Falls Lampasas Bowie The old model, developed in 2004, had some fundamental issues, such as showing aquifers as a whole rather than revealing their nuanced layers and zones. The new model will address this shortcoming by dividing aquifers into quarter-mile grids, rather than the one- Bell Milam Burnet Williamson Travis Groundwater Management Area 8

5 The Changing Face of Texas Water Project Funding (SOURCE: Texas Comptroller of Public Accounts, Texas Water Report: Going Deeper for the Solution ) Water project funding in Texas is about to undergo a significant transformation. This change could have major, beneficial implications for communities in Region C seeking the lowest-cost option for financing badly needed water supply projects. In Texas, development of local water infrastructure is primarily the responsibility of local governments, who typically issue bonds to pay for projects. Such projects can be very costly, however, so many communities rely on state assistance for funding. The Texas Water Development Board (TWDB) provides a combination of federal and state funding, chiefly in the form of loans, for such water projects. This includes projects recommended in the State Water Plan. The Texas Legislature first appropriated funding for State Water Plan projects in 2007, providing about $80 million in general revenue funds. These funds enabled TWDB to issue nearly $1.5 billion in bonds at below-market rates to support project development. As a result of these appropriations, TWDB has been able to provide more than $1.05 billion in low-interest loans and grants supporting nearly 50 projects statewide. The projects encompass a wide variety of water management strategies, including groundwater desalination, water transmission lines, treatment facilities, wetland reuse projects, new groundwater wells and new reservoirs. The TWDB also issues bonds to help local water entities lower their borrowing costs. The Legislature sets strict limits on the amount of bonds they can issue. The Development Fund, or D-Fund, is the most significant source of one-timeuse bonding authority, providing more than $4.2 billion for one-time use. Of this total, however, $3.9 billion has already been used. The new face of water project funding in Texas emerged in 2013, when voters approved Proposition 6, moving $2 billion from the Rainy Day Fund into the State Water Implementation Fund for Texas (SWIFT) and the State Water Implementation Revenue Fund for Texas (SWIRFT). The newly authorized funds will be used to finance projects in the State Water Plan. Under the authorizing legislation, TWDB is required to prioritize regional water project proposals based on a set of criteria reflecting the size, diversity and needs of the population they would serve. As part of this process, the Region C Water Planning Group recently prioritized the projects included in the 2011 Region C Water Plan and submitted this list to the TWDB. The SWIFT/SWIRFT funds create a Texas revolving loan program that will ultimately reduce borrowing costs for local entities. Without state assistance, local water entities would have to borrow money or issue bonds backed only by their own locally generated revenues, usually at a much higher cost. Now, the TWDB may issue general obligation (GO) bonds using its existing $6 billion in evergreen bonding authority, or it may issue revenue bonds to help local entities access cheaper financing. Rules for disbursing loans from the newly created funds will be finalized by the TWDB no later than March 1, The new funds are expected to help finance more than $25 billion in water projects statewide over the next 50 years. It is also worth noting that at least 20 percent of loan proceeds must be used to target conservation and reuse projects, and at least 10 percent of loan proceeds must be used to target rural and irrigation conservation projects. Recognizing this, in 2011, Texas voters approved a constitutional amendment giving TWDB an additional $6 billion of evergreen bonding authority. This means that TWDB can re-issue bonds as previous ones are paid off. To date, TWDB has not used any of this evergreen bonding authority.

6 About the Region C Water Planning Group Region C is made up of all or part of 16 counties in North Central Texas: Collin, Cooke, Dallas, Denton, Ellis, Fannin, Freestone, Grayson, Henderson, Jack, Kaufman, Navarro, Parker, Rockwall, Tarrant and Wise. The Region C Water Planning Group (RCWPG) is one of 16 regional water planning groups chosen by the Texas Water Development Board (TWDB) to develop and revise a comprehensive state water plan for Texas through Each water planning group is responsible for preparing and adopting a regional water plan for its area. The RCWPG is made up of 22 members representing 12 different interest groups. Jim Parks Chair Water Districts Drew Satterwhite Member Water Districts Jody Puckett Vice Chair Municipalities Bob Scott Member Environment Russell Laughlin Secretary Industry Gary Spicer Member Electric Generating Utilities David Bailey Member GMA 12* Connie Standridge Member Water Utilities Bill Ceverha Member Public Jack Stevens Member Water Districts S. Frank Crumb Member Municipalities Kevin Ward Member River Authority Gary Douglas Member GMA 11* Dr. Tom Woodward Member Agriculture James Hotopp Member Municipalities Curtis Campbell Non-Voting Member Region B Dr. Thomas La Point Member Public Alva Cox Non-Voting Member Brazos G RWPG Harold Latham Member GMA 8* Darrell Dean Non-Voting Member Texas Dept. of Agriculture G. K. Maenius Member Counties Mike Harbordt Non-Voting Member Region I Howard Martin Member Municipalities Sharon Nabors Non-Voting Member Region D Jim McCarter Member Water Utilities Connie Townsend Non-Voting Member Texas Water Development Board Steve Mundt Member Small Business Adam Whisenant Non-Voting Member Texas Parks & Wildlife Dept. Bob Riley Member Environment *GMA = Groundwater Management Area