The approval of an up to $1.8 billion State Water Implementation Revenue Fund for Texas (SWIRFT) bond issue by the Texas Water Development Board has raised concerns regarding the financing of local water projects in the state. With nearly $3 billion in requests to use the fund for various projects, including seawater desalination in Corpus Christie and a reservoir and pump station expansion in Brazoria County, questions have been raised about the allocation of funds and potential benefits to private companies.
One of the main issues that have been highlighted is the approval of $747.5 million in multi-year financing for the Brazosport Water Supply Corporation, which primarily benefits The Dow Chemical Company. Board Member George Peyton noted that Dow is the ultimate credit behind the financing, signaling a departure from the board’s normal requests from municipalities where ratepayers are responsible for paying off the debt. This raises concerns about the transparency and fairness of the financing process, especially when a private entity stands to gain significantly from public funds.
While the projects aim to improve water supply and mitigate drought conditions in the region, the financial arrangements raise doubts about the equitable distribution of resources. The Corpus Christi Water Authority’s plan for a seawater desalination plant, expected to produce 30 million gallons of potable water daily, is a step towards addressing water scarcity issues. However, the reliance on public funds and questionable financing for private entities like The Dow Chemical Company cast a shadow over the project’s intentions.
With the Texas Water Development Board already having $8.18 billion of debt outstanding as of June 30, the approval of additional bond issues raises concerns about the state’s financial obligations. The board’s decision to issue $1.8 billion in SWIRFT bonds, in addition to previous bond series, indicates a growing reliance on debt to finance water projects. The long-term implications of this approach, especially when private entities benefit significantly from public funds, warrant a closer examination of the financing process.
The approval of financing for private entities like The Dow Chemical Company sets a precedent for other companies seeking access to industrial-scale water resources. This could lead to a trend where private entities apply for public funds through the Texas Water Development Board, creating more opportunities for profit-driven ventures in the water sector. The potential impact on future projects, including the allocation of resources and the transparency of financing arrangements, requires careful consideration to ensure that public funds are used effectively and equitably.
The approval of significant funding for Texas water projects, including seawater desalination and reservoir expansions, raises concerns about the financial arrangements and potential benefits to private companies. The reliance on public funds to finance projects that primarily benefit private entities requires a critical examination of the transparency, fairness, and long-term implications of such decisions. As the state continues to address water supply challenges and drought conditions, it is essential to prioritize the equitable distribution of resources and ensure that public funds are used responsibly for the benefit of all Texans.