Texas’ thirst for economic growth raises water supply worries By EPN Staff Texas must get serious about its future water needs, spending steadily and smartly to protect its massive economy from the high likelihood of a devastating drought, an influential state think tank argues in a recent study. Texas 2036 avoided specific recommendations in its report, focusing mostly on potential ramifications if water issues aren’t addressed. But the report argues it will be cheaper to act now, calling for an “invest to grow” strategy rather than delaying. Why it matters “The $2.5 trillion Texas economy and a workforce adding six-figure numbers of new talent each year need water to grow,” the report states. “But each boardroom making these investment decisions needs confidence that there is enough water for them to operate tomorrow, the next day, and 25 years from now, or they will not locate facilities in Texas.” The group’s head of infrastructure and natural resources policy told Houston Public Media that Texas 2036 will focus on water infrastructure during this year’s legislative session, working with lawmakers to find and fund improvements. Among the ideas: A dedicated funding stream for water projects along the lines of what’s in place now for state highways, likely through the Texas Water Fund, which the legislature created in 2023 and seeded with a one-time $1 billion appropriation. The bigger picture The report, put together by the Center for Energy Studies at the Baker Institute for Public Policy at Rice University, lays out big numbers and stark consequences: $70 billion in unmet drinking water infrastructure needs over the next 20 years $20 billion in wastewater needs As much as $80 billion in additional spending needed to increase the state’s total water supply The danger of a 2% gross domestic product loss in a serious drought, amounting to a $50 billion annual hit “Such large stakes reinforce the case for preemptive investment in water infrastructure,” the report states. The prospect of drought In the 1950s a record drought reshaped Texas as people moved from rural areas to cities, the report states. Cities tapped groundwater reserves and a boom in reservoir construction essentially quadrupled capacity. Advances in drilling technology and rural electrification were key, the report states, and Texas no longer has the cushion it had in the 1950s to absorb a similar drought. It would likely be, the report states, “hydrologically infeasible.” Yet prolonged drought is likely, the report concludes. “Tree rings suggest droughts similar to the 1950s version (and sometimes worse) afflicted Texas at least once per century,” it states. More context Water concerns haven't stopped growth so far - Texas' economy is consistently one of the country's fastest growing. And water issues are not unique to Texas. In September, The Pew Charitable Trusts put the country’s total water infrastructure needs at more than $1 trillion over the next 20 years, based on Environmental Protection Agency estimates of wastewater, stormwater and drinking water funding deficits.
