This is the third of a three-part series on water infrastructure policy for the 89th Legislature.
Earlier, I explained why water infrastructure funding will be one of the major issues of the 89th Legislature. Indeed, establishing a dedicated funding stream for water infrastructure needs — following the same model already used for transportation projects — will align Texas’ financial strategy with our long-term needs.
This alignment presents a catalytic opportunity for Texas’ water future. If approved, Texas can enhance our resilience to future droughts, secure water for economic growth, and fix the longstanding problems with broken systems.
But funding alone does not end the policy discussion.
If the Legislature, and potentially state voters, move forward with this opportunity to secure our water future, there are several other policy adjustments that need to occur to ensure the efficient and effective use of taxpayers’ dollars in the long run.
1. Track achievement toward solving water infrastructure challenges.
Texas faces two critical water infrastructure challenges. First, the state must expand its water supply portfolio to close the water supply deficit anticipated during long and severe droughts. Second, Texas needs to fix aging, deteriorating drinking water and wastewater systems that are becoming liabilities to the communities they serve.
The magnitude of both challenges can be measured with data. State and regional water plans both describe anticipated water shortages and the supply projects needed to close those deficits. Data also exists that can identify drinking water and wastewater systems that are either failing or at risk of failing. Examples here include contamination, boil water notices, water loss, and, among other data sets, regulatory violations.
If the Legislature approves a dedicated funding stream for water infrastructure, the state should develop performance measures that track progress toward addressing Texas’ water infrastructure challenges.
For example, if Texas faces a long-term water supply deficit, the state needs to track how this new funding stream is delivering timely projects that expand the state’s water supply portfolio. Other metrics could describe the number of failing or at-risk systems that are fixed each year.
Performance measures will be essential to track the long-term success of this change in financial strategy.
2. Lean into regionalization, harder.
The Legislature has already articulated a strong preference for the regionalization of water and wastewater projects. We have regional water planning groups and plans, and the words “regional” and “regionalization” are frequently used in the Texas Water Code to convey funding and regulatory preferences for water projects.
Regionalization offers the tremendous benefit of economies of scale and allows efficiencies in project costs, workforce utilization and water management, to name a few. Despite these benefits and the Legislature’s stated policy preference for regionalization, Texas has over 10,000 public water systems and wastewater operators.
Our water sector needs to shrink in order to grow.
If Texas seeks to expand its financial strategy for water infrastructure, then this policy ought to reinforce the regionalization of water projects.
3. Technical assistance remains a key ingredient.
Technical assistance provides financial, managerial, regulatory, engineering and operational support to water utilities. Third party providers often supply this assistance, oftentimes as a bridge between state financial assistance programs and small or rural communities with water infrastructure challenges.
In practical terms, technical assistance providers serve as critical “boots on the ground,” reaching out and working closely with communities to assess their water challenges and develop responsible solutions.
While technical assistance providers offer a proven model for helping small, rural communities access financial assistance programs, Texas’ technical assistance capacity is limited. Expanding this network would ensure communities that have fallen through the cracks can benefit from these financial assistance programs.
