LCRA and Austin: Resolving a Water War Over Wastewater

Water for People and the Environment:Managing Texas Water Demands in the 21 st CenturyLCRA and Austin:Resolving a Water WarOver WastewaterLyn ClancyManaging Associate General Counsel, LCRAApril 27, 20121

Outline• The Background– Overview of projected water needs inlower Colorado River basin– LCRA-Austin History– Competing legal claims• Solution– Shared use of return flows– Collaborative water planning2

Source: 2011 Region K Water Plan, available at: http://www.twdb.state.tx.us/wrpi/rwp/3rdRound/2011_RWP/RegionK/4

Change in Population Distribution(1950-2000)Source: 2011 Region K Water Plan, available at: http://www.twdb.state.tx.us/wrpi/rwp/3rdRound/2011_RWP/RegionK/5

Source: 2011 Region K Water Plan, available at: http://www.twdb.state.tx.us/wrpi/rwp/3rdRound/2011_RWP/RegionK/6

LCRA-Austin History• Water Rights– two largest water rights holders in the region• Key Contractual History– 1938 Agreement• LCRA leases, rebuilds, operates Tom Miller Dam (LakeAustin)– 1987 Comprehensive Settlement• 250,000 acre-ft/yr plus water for power plants– 1999 Amendment• 325,000 acre-ft/yr• $100,000,000 pre-payment (use and reservation fees)7

Legal Proceedings• April 2002– Austin files application to secure rights to existing returnflows• Nov. 2002– LCRA files competing application to secure rights toAustin’s existing and future return flows• Aug. 2005– Austin files application to secure future return flows• Fall 2006-Nov. 2007 – SETTLEMENT– December 2006 – Memorandum of Understanding– June 2007 – Settlement Agreement– Nov. 2007 – Supplemental Water Supply Agreement• March 2012 – Joint Application Filed8

Issues UnderlyingReuse Dispute• Water Rights Impacts• Contractual Rights and Obligations• Environmental Issues• Historical Relationship9

Resolution of Dispute:#1 Share the Return Flows• LCRA & Austin filed joint application to securerights to return flows• Austin can implement unlimited direct reuse• Indirect reuse subject to:– environmental constraints– protection of LCRA’s historic reliance on return flows• Key point: Return flows will continue to be used formultiple beneficial purposes• Impact on contractual obligations clarified10

Percent of Total Flows asChallenges - Return FlowsReturn Flows in the Colorado River(between Mansfield Dam and Columbus)% of Flow as Return FlowsDateLCRA, January 2012Note: does not reflect downstream diversions11

Percent of Downstream Run of River Flowsas Return Flows in the Colorado RiverChallenges - Return Flows(between Mansfield Dam and Columbus)% of Flow as Return FlowsLCRA, January 2012201112

Austin’sDirect Reuse Program• Municipal & Manufacturing2010: 5,143 ac-ft/year2060: 40,468 ac-ft/year (est. $851/ac-ft)• Steam Electric2010: 2,315 ac-ft/year2060: 13,315 ac-ft/yearSource: 2011 Region K Water Plan, available at: http://www.twdb.state.tx.us/wrpi/rwp/3rdRound/2011_RWP/RegionK/13

Resolution of Dispute:#2 “LCRA-Austin Water Partnership”• Regular communication on matters ofmutual concern.• Joint evaluation, planning, andimplementing of strategies to optimizewater supplies to address the long-termwater needs of all of the City of Austin’sand LCRA’s customers and theenvironment.14

Questions?15