Texas Water Development Board approves $309 million loan for project

The Texas Water Development Board on Monday, Jan. 28, unanimously approved a $309 million loan for the first two phases of the Brushy Creek Regional Utility Authority project. Here’s the TWDB press release on the board action. The Phase 1 commitment is for $170.6 million, with Phase 2 at $139.1 million.

Phase 1 of the project includes construction of a new temporary floating intake structure on Lake Travis, a raw water pipeline within the Trails End Road right of way, a new treatment plant in Cedar Park, and a new treated water pipeline. Construction is expected to begin in 2008 and be completed in 2010. Phase 1 FAQ.

Phase 2 of the project includes construction of permanent deep-water intake and raw water pipeline from the intake to the existing raw water pipeline. Construction is expected to be required no later than 2016, but it may be accelerated depending on drought conditions and lake levels. Phase 2 FAQ.

The TWDB’s commitment for Phase 2 funding is conditioned such that the BCRUA must obtain a reaffirmation of the commitment from the Board prior to closing the loan for Phase 2.  During this reaffirmation, the Board will consider any findings and recommendations regarding the environmental, socioeconomic, and permitting issues, as well as any other issues of concern to the Board.

One Response to “Texas Water Development Board approves $309 million loan for project”

  1. Judy Graci Says:

    In 2007, Willaimson County’s Senator Ogden, Chair of the Senate Finance Committee, appropriated $365M to the TWDB. Three months later this project filed a funding application for $358M. The project applied under D-Fund because it does not require joint liability or bond insurance. Most D-
    Fund loans are under $5M.

    * Leander and Cedar Park considered no other alternative water source.
    These Brazos Basin cities have a drought-proof, prolific aquifer available just east of Round Rock. This would be a second source of water!
    * Leander’s increased water supply contract has not been approved by TCEQ. No economic or environmental studies are planned on the project’s effect on Lake Travis. Lake Travis is the single most important economic and environmental driving engine of Central Texas.
    * D-Fund can not be used for projects that result in the inter-basin transfer of surface water necessary to supply the 50-year water requirements of the river basin of origin.
    * BCRUA has no eminent domain power within the Village of Volente without its consent. The project’s recommended industrial intake site is in an existing residential neighborhood. How will the project follow Volente’s zoning restrictions?
    * Leander’s ability to afford this project is questionable. Leander has 47% of the project cost and 12% of the population. In 2008 the estimated project cost increased by $63M, delaying $20M to Phase 2. What is the current project cost and cost per acre foot?
    * The BCRUA Master Agreement does not have joint and/or several liability, or bond insurance. If one city defaults, the others are not liable or responsible. Has default been explained to the residents of Leander? Is the BCRUA lien subordinate to the LCRA?

    The BCRUA is going after the wrong source of water. Lake Travis is drought prone, over-stressed and over-promised. How is the TWDB allowing this huge financial and health risk?

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