1. WATER for TEXAS Water for the Future Carlos Rubinstein, Chairman Bech Bruun, Director Kathleen Jackson, Director

3. 3 HISTORIC AND PROJECTED TEXAS POPULATION GROWTH

4. HOW CAN WE RESPOND TO DROUGHT & GROWTH? Reservoirs Aquifers Conservation Reuse Aquifer storage and recovery Brackish groundwater desal Seawater desal

5. Local Political Subdivision serves as administrator Public, consensus-driven Local/regional decision making process REGIONAL WATER PLANNING GROUPS Region N (Coastal Bend) May 2014 Region B (North Central) April 2014 Region H (East) November 2014

6. 2012 STATE WATER PLAN 6 CONSERVATION AND REUSE 34% of volume 12% of total capital costs OTHER SURFACE WATER STRATEGIES 34% of volume 45% of total capital costs NEW SUPPLY DEVELOPMENT 32% of volume 43% of total capital costs

7. State Water Implementation Fund for Texas (SWIFT) 7  Infrastructure bank  Source of revenue for TWDB bond programs  Cash flow mechanism  Low-interest loans, longer loan terms, and loan deferrals

8. FINANCIAL ASSISTANCE THROUGH SWIFT Benefits of SWIFT: $800 million for initial round Financial incentives: – Low interest loans Maturities: 20-30 yrs Interest Rate Subsidy: 35.5% below TWDB cost of funds for 20 yr loans Subsidy reduced for 21-30 yr loans – Deferred loans Used for developmental costs: planning & design only Principal & interest deferral for up to 8 yrs Maturities: 20-30 yrs Interest Rate/Subsidy: 15% below TWDB cost of funds for 20-yr loans; TWDB cost of funds for 21+ yrs loans – Board participation Temporary TWDB ownership interest in regional facility Maturities: generally 34 yrs Interest rate: TWDB cost of funds At least: 10% for rural communities 20% for conservation or reuse 8

9. 9 PRIORITIZATION CRITERIA Highest consideration: Max Points Additional criteria: Max Points Serve a large population30 Local contribution & leveraging state, local, and federal funds 5 Assist a diverse urban and rural population 30 Financial capability of the applicant to repay 2 Provide regionalization30 Emergency Need5 Meet a high percentage of water supply needs 30 Readiness to proceed8 Effect on water conservation 15 Priority assigned by regional water planning group 15 Max “Highest Consideration” Subtotal50+Max “Additional Criteria” Subtotal50 Maximum Total Points: 100

10. SWIFT IMPLEMENTATION 10 Feb 3, 2015 Summer, 2015 TWDB considers and approves applications TWDB authorizes bond sale Fall, 2015 Abridged applications due TWDB prioritizes abridged applications TWDB determines availability of funds by category and financing terms Invitations to apply are extended Entities submit complete applications Spring, 2015 TWDB bond sale and closing Borrowers close loans

11. FEDERAL Financial Assistance Programs Drinking Water State Revolving Fund (DWSRF) Clean Water State Revolving Fund (CWSRF) FEMA Flood Mitigation Assistance FEMA Severe Repetitive Loss 11 ADDITIONAL TWDB FINANCIAL ASSISTANCE PROGRAMS The TWDB then allocates this funding to projects throughout the State

12. STATE Financial Assistance Programs Texas Water Development Fund (DFUND) Economically Distressed Areas Program (EDAP) Rural Water Assistance Fund (RWAF) Agriculture Water Conservation Loans & Grants State Participation 12 ADDITIONAL TWDB FINANCIAL ASSISTANCE PROGRAMS

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14. www.waterdatafortexas.org 14

15. INTERACTIVE STATE WATER PLAN WEBSITE 15 http://texasstatewaterplan.org

16. 16 OPPORTUNITY FOR GROWTH = MORE JOBS! Aldine Harris County June 2014 Stratford (Texas Panhandle) Sherman County September 2014

17. BUILDING A STRONGER TEXAS City of Kirbyville Jasper County May 2014 Brownsville Cameron County July 2014

18. HOW TO CONTACT ME 18 Kathleen Jackson, P.E. @twdb_kathleen 512.463.7847 Kathleen.Jackson@twdb.texas.gov www.twdb.texas.gov