John Montgomery Texas Water Policy Fall 2014 Wastewater Reuse in Texas Executive Summary Wastewater is on the cusp of a revolution in Texas, but there are crucial stumbling blocks that must be removed before it can succeed. Wastewater has a long history of reuse in Texas, and its current preeminence is driven by both external and internal pressures. Externally, population growth and climate change are forcing rapidly expanding metropolitan areas to seek new sources of water or to stretch out existing supplies. Internally, the rising cost of obtaining new water sources is driving cities to seek bolder conservation measures. The obstacles to broader wastewater adoption include systemic water ownership issues in the Texas legal system and resulting regulatory hurdles. Legally, the separation of groundwater and surface water ownership into different classifications fractures management of wastewater reuse projects. This is because very different requirements exist depending on the origin of the water to be reused. Regulation-wise, this separation foments a complicated hierarchy of rules that serve to protect prior appropriations of surface water rights owners. In terms of groundwater, the state’s tradition of supporting private property rights and local control creates a fractured system that prevents the advancement of new projects. Solutions to these problems are incremental and constructive. The first solution is to establish regulations for direct potable reuse projects. The second solution is to establish environmental flows as a part of return flow requirements for municipalities. Finally, common standards for managing Aquifer Storage and Recovery (ASR) projects need to be given to all Groundwater Conservation Districts (GCD) in Texas. Making the rules clear will remove much of the regulatory ambiguity that is caused by Texas’ water ownership rules, and will foster a new era of wastewater reuse projects in the state. Important Terms in Wastewater Wastewater: Water that has been beneficially used and is ready for treatment and either reuse or discharge back into the natural environment. Raw water: Untreated water, either from an aquifer or from a surface water source. John Montgomery Wastewater Reuse in Texas Return Flow: The minimum amount of water a rights holder must return to the raw water origin. Direct Reuse: When treated wastewater is sent for distribution within a network immediately after being treated. Potable: (less common) When treated wastewater is further purified for drinking water purposes and distributed to customers directly. Sometimes this system can be pejoratively known as “toilet to tap”. Nonpotable: (more common) When treated wastewater is distributed for non-human consumption or contact, usually for landscaping, agriculture, or industrial uses. Indirect Reuse: When treated wastewater is returned to a natural water body for storage and later extraction. “Accidental Indirect Reuse” has been occurring throughout human history. Environmental Buffer: The natural filtration and purification properties of a water body Aquifer Storage and Recovery: The injection of purified water into an aquifer for storage and later extraction. Instead of a surface body, the underground formation is the buffer. Bed and Banks Permit: TCEQ’s permit for using a state waterway as storage Environmental Flows: Water in mandated return flows reserved to benefit the environment A Context for Wastewater Reuse in Texas Wastewater reuse has a long history in Texas, a state with a legendarily arid climate. Originally the practice of reusing wastewater was limited to agriculture, but due to population growth and changing resource needs this practice has expanded to the industrial and municipal sectors as well. This section provides a brief history of wastewater reuse, a history that provides critical context for the future of wastewater reuse in Texas. Agriculture Agricultural reuse of wastewater goes back to the late 19th Century, predating water planning on the state level which did not begin in earnest until 1907. In 1901, the City of San Antonio leased all future rights to its raw sewage not otherwise claimed to the San Antonio Irrigation Company for growing cotton and sorghum. This practice expanded during the 1920s, especially in the arid Panhandle regions which were beginning to suffer from the climate disaster which would become known as the Dust Bowl. The City of Amarillo provided treated wastewater to ranchers in the area to provide for their cattle. Not only do these examples show the expansion of 2 John Montgomery Wastewater Reuse in Texas wastewater reuse, but also the increasing attention to environmental and public health concerns with wastewater reuse. Industry The Second World War saw the rapid expansion of electrical generation and industrial production in the state of Texas. The war effort demanded greater and greater amounts of natural resources, especially water since it is involved in every industrial process. Of the industries that rely on water, petrochemicals are the most demanding next to electricity generation. As such, the petrochemical industry is one of the leaders in industrial wastewater reuse in Texas. In 1944, the City of Big Spring began providing treated wastewater to the Cosden Oil and Chemical refinery. This treated wastewater was of a higher quality than the brackish groundwater the refinery had been relying on in the past, and marked a cost reduction for both the city and the company. The area around Big Spring is rich in petroleum and poor in water, a theme which will repeat in Texas history. In addition to the Big Spring facility, Odessa, Amarillo, and Lubbock began deals with petrochemical companies to not only reuse wastewater but also to improve the treatment infrastructure of the cities providing the water. These agreements allowed cities to leverage private funding to improve treatment, which in turn benefitted companies with cleaner water. Municipalities Municipal reuse of wastewater did not occur until after the legendary seven-year drought of the 1950s (The Drought of Record), which lasted seven years and resulted in untold costs. The early adoption of municipal wastewater reuse was out of a desire to limit potable water waste on landscaping and park space. The City of El Paso was the first to offer treated wastewater to municipal customers, and this service was utilized on athletic fields and park space. El Paso continues to be a leader in water management and reuse. The majority of these early wastewater reuse projects were direct nonpotable reuse, meaning that the treated wastewater was never returned to drinking water standards and was primarily intended for landscaping use. The practice of municipal wastewater reuse continues today, though the majority still represents either direct nonpotable of indirect reuse systems. Current Reuse 3 John Montgomery Wastewater Reuse in Texas A survey by the Texas Water Development Board (TWDB) of water producers across the state shows that in 2010 approximately 62,000 acre-feet of wastewater was used annually as direct nonpotable reuse. In addition, about 76,000 acre-feet of wastewater was used annually as bed and banks permitted indirect reuse (relying on environmental buffers and natural formations to store and purify wastewater). The number of entities receiving permits from the Texas Commission on Environmental Quality (TCEQ) for direct non-potable water reuse rose from 1 in 1990 to 187 by June 2010. There is a legacy here, and the City of Austin’s “purple pipes” represent a practice that has been in place for over 40 years. The growing reliance on wastewater by agriculture, industry, and municipalities has created a complex system of regulation that will be examined further. This review of historical wastewater reuse demonstrates its usefulness in dry periods. The public still reels at the notion of wastewater for direct potable reuse, but there is no motivation like survival to change peoples’ minds. What those in the past learned, and what Texas will need to act on, is the importance of conservation in arid climates. Wastewater reuse represents lowhanging fruit for industry and cities when it comes to stretching water resources. It took a World War for industry to get on board, and it took the Drought of Record for municipalities to see the need for wastewater reuse. Texas will always have pressure on its water supplies, but the changes in supply and demand now seen are rapid and multifaceted. The next section examines how demographics, climate change, and economics are forcing Texans to reconsider wastewater reuse, and how state agencies are coping. Statewide Trends Increase Pressure to Reuse Wastewater This section explores the external trends that are driving water conservation efforts in Texas, with wastewater reuse among them. After these considerations, projections of future water supplies in the state according to the TCEQ and the TWDB will be reviewed. Texas has become one of the most desirable places to live in the United States. This popularity drives explosive population growth, city expansion, increasing industrial output, and new land uses. With more people and the same amount of natural resources, competing claims are inevitable. All of these trends mean increased demand for water, and new pressure to either find new sources or to stretch out those that already exist. This need is exacerbated by a changing climate and projected water shortages. 4 John Montgomery Wastewater Reuse in Texas Population and Industry Growth The growing population is perhaps the largest driver of the state’s current water woes and will continue to do so for the foreseeable future. Between the years 1950 and 2000 Texas’ population went from 7.7 million to 20.8 million. According to the United States Census Bureau, over 1000 new residents move to Texas each day. One can only assume that they are not bringing their own water supply with them. The current population continues to grow and is expected to double by the year 2060. This population growth is engaged in a feedback loop with industrial output. Jobs attract more people to the state but industry also relies on a steady supply of skilled labor to remain competitive. This industrial output, combined with population increases, has driven up demand for electricity (a water intensive industry). In the next ten years, the Electric Reliability Council of Texas projects demand increasing by 14%, or by 10,000MW. To put this in perspective, electricity generation accounts for 49% of the water withdrawn from state water ways each year. Therefore an increase in electricity demand also spells growing need for new water supplies and conservation. Unless Texans act, at some point in the future the state’s new urban population will be faced with either keeping the lights on or keeping the faucet flowing. Urban Sprawl and Land Use Along with this increase in population comes new land uses, namely the expansion of cities into former rural countryside. According to a report done by the Texas A&M Institute of Renewable Natural Resources, Texas lost over 1 million acres of rural land between 1997 and 2012. These rural land losses correlate to increasing property values, which can be linked to population pressure on urban areas. The loss of these rural lands is especially significant for the water cycle, since undeveloped open space stores and filters water more effectively than developed space. The expansion of Texas’ cities into the countryside is fueled by relatively cheap land prices, a lack of planning and weak regulations. This means that as Texas cities expand, there is little to stop them from adversely affecting the state’s water supply. Therefore, as the population continues to grow, cities will have to grapple with sprawling infrastructure and drier surrounding areas. Climate Change Just in case things did not seem desperate enough, there is also mounting evidence that the climate will become more extreme in the coming century, placing additional strain on Texas’ 5 John Montgomery Wastewater Reuse in Texas water supply. According to the State Climatologist, John Nielson-Gammon of Texas A&M University, climate change will negatively affect the state’s water supply from 5 to 15% over the next 50 years. This means that in the face of increasing demand, the supply will also shrink. Surface water will be particularly hard hit, since it is subject to extreme evaporation rates in hotter and drier weather. In addition to diminished water supplies, rising sea levels threaten coastal aquifers with becoming too brackish. Finally, the increasing temperatures projected with climate change will strain aging infrastructure in sprawling metropolitan areas. Water will be more expensive to source, treat, and distribute. State water planners are aware of this information, but the planning and regulatory structure of the state precludes them from taking bold action (see next section). State Water Planning These trends of climate change, population growth, industrial growth, and urban land use will put a severe strain on Texas’ already thin supply of fresh water. The TWDB, to its credit, has taken a fresh look at the state’s water planning efforts and has produced reports that forecasts supply and demand for Texas groundwater through the year 2060. Some of these reports include Groundwater Availability Models (GAMs) and Modeled Available Groundwater (MAG), which are based on local input, scientific data, and economic forecasting. While the TWDB does not have direct control over local long-term planning, GAMs and MAGs act as an important beacon for policy makers since they provide computer simulations of local aquifer conditions. While conditions vary from aquifer to aquifer, the overall projections show a depletion of groundwater over the time period studied. As cities rely more on groundwater for their supplies, heeding these projections will become crucial. In addition to these local aquifer projections, the TWDB offers a state-wide assessment of water conditions called the State Water Plan (SWP), which was last released in 2012. Included in the SWP are projections on how the water shortfalls will be made up and recommended strategies for governments to address drought. This report dives into great detail on the past of wastewater reuse in Texas, and also discusses strategies for moving forward over the next 50ish years. Some key highlights from the SWP regarding wastewater reuse are highlighted below. 6 John Montgomery Wastewater Reuse in Texas FIGURE 1 The graph on the left shows where new supplies of water are projected to come from by 2060. Wastewater reuse will account for 14% of new supplies, which is a significant increase over its current allocation. The graph presented below shows the growth in wastewater reuse through 2060. Source: TWDB History of Water Reuse in Texas FIGURE 2 Source: TWDB: State Water Plan 2012 The above chart demonstrates that reuse supplies will increase by 27% through 2060. This fascinating chart also shows that the most gain for water reuse will come from indirect reuse projects, which include bed and banks permits as well as reservoir storage. As the next section will discuss, these sorts of indirect reuse projects are subject to unique regulation and complexity that make them more difficult to execute. It is also important to mention the lack of information on direct potable reuse projects, because the state does not yet have regulations for these in place. 7 John Montgomery Wastewater Reuse in Texas There have been two pilot projects exploring the possibility direct potable reuse, one in Brownwood, TX and the other in Wichita Falls, TX, with that project coming online in 2014. These sorts of projects show what lengths cities are willing to strive to secure new sources of water. Cities Face Rising Expenses In the face of all the outside pressures, cities and industry are going to greater lengths to obtain water. Brownwood’s and Wichita Falls’s hunt for new water is indicative of systemic failures in the Texas water system. Past reliance on surface water, which is more sensitive to changing climate, has created a crisis in many parts of the state and has shifted water resource development to groundwater. Some areas have a head start in solving these problems. Kerrville and the Upper Guadalupe River Authority have implemented ASR which lets them store reuse water underground where it is not subject to evaporation. In addition, the city of El Paso has been operating the world’s largest inland desalination facility to manufacture new water for its needs. Finally, the City of San Antonio has settled a costly deal that will deliver it CarrizoWilcox Aquifer water far into the future. These cities have turned to groundwater to help meet the demand for new water sources. The bottom line is that water is becoming more expensive to obtain, and that wastewater reuse is rapidly becoming the “low-hanging fruit”, which will allow cities to stretch out these more expensive sources of water. Despite this promise, there are numerous regulatory pressures on cities that preventer wider wastewater reuse projects. As water costs rise and cities look further afield for new water sources, the following regulatory issues need to be addressed. Regulatory Obstacles for Municipal Wastewater Reuse Present-day wastewater reuse is administered by a mix of state and federal rules. These have evolved over time to address environmental concerns and to meet strict public health standards. Many of these rules create confusion and prevent wider adoption of wastewater reuse. Texas’ two-tiered water management structure, the rights of downstream water rights holders, the storage and transportation of treated wastewater, and narrowly defined terms in regulation create friction for those seeking wastewater project approvals from the state. This section will examine the current state of federal and state regulation of wastewater, and then delve into how these regulations prevent wider adoption of this conservation measure. 8 John Montgomery Wastewater Reuse in Texas Federal Regulations As far as federal rules are concerned, the Clean Water Act and the Safe Drinking Water Act are the main mechanisms for enforcement. The Clean Water Act applies for indirect reuse projects, where treated wastewater is discharged back into natural waterways. This is in keeping with the federal government’s desire to preserve the waterways of the United States. If bacteria or chemical contamination went undetected, there could be dire consequences. Similarly, the Safe Drinking Water Act comes into play when the treated wastewater is intended for human consumption. This enforcement is intended to protect human health, and the Safe Drinking Water Act standards act as the golden standard for clean drinking water. Even if the treated water is not intended for direct human consumption, potential contact with people is enough to trigger this regulatory mechanism. Enforcement of these rules is done by the Environmental Protection Agency (EPA), and the Texas Commission on Environmental Quality (TCEQ). State Regulations In addition to enforcing federal rules, the TCEQ recommends additional quality standards for Texas. The Texas Surface Water Quality Standards are the TCEQ’s main set of guidelines for the treatment and management of wastewater for indirect potable reuse and direct nonpotable reuse. These applications, while they may come into contact with people, are not intended for direct human consumption. Treated wastewater can be released into a state waterway, and even if people swim in that waterway it will not be considered potable or for direct reuse. As stated throughout this research, the state of Texas does not yet have rules in place for direct potable water reuse projects. This means that the few projects that are currently active rely either on federal standards or an ad hoc set of guidelines from the state. The current state regulations by the TCEQ and the TWDB promote conservation measures while not giving cities the tools they need to more widely implement wastewater reuse. Texas’ Two Tiers Texas has a fractured water ownership system that establishes separate legal frameworks for surface and ground waters. Groundwater is governed by the common law “rule of capture” which means property rights extend to the center of the earth and that property owners can exploit as much groundwater as they want. If a property owner wants to sell their water to a neighbor or a far-flung city, there is little in state law to prevent these transfers. This ease of 9 John Montgomery Wastewater Reuse in Texas access can account for most of the state’s reliance on groundwater resources. Approximately 60% of the state’s water sources are groundwater, and cities like San Antonio are able to secure groundwater from private property owners in distant counties. Contrarily, surface water is deemed the property of the state and is strictly administered through a system of permits and water rights. While the TCEQ issues permits for surface water rights, each river basin is administered by a river authority that oversees the management of these water rights. Many water rights are actually owned by river authorities who “sell’ the use of that water to their customers and the authorities’ water management plans must be submitted to TCEQ on a regular basis for approval. This surface water rights system is based on the rule of prior appropriation, meaning an entity’s claim to water is based on how early it obtained that right. Seniority rules, and those downstream can file grievances with the TCEQ to redress any perceived shortfalls in water supply. There is an entire paper to be written about how this dual system complicates wastewater issues, but this section will focus on how the origin of recycled water affects its permitting. Wastewater that is to be reused can originate from groundwater or state-administered surface water. In the case of the former, there is almost an unlimited amount of discretion for the entity wishing to reuse groundwater. This is because according to common law, that entity owns the groundwater in perpetuity or until it is released into a state water way. This promotes cities and industry to seek groundwater sources since it diminishes the legal complications of ownership. Many cities, such as San Antonio, want to release treated wastewater that originates as groundwater into a state water way and then retrieve it once it has run the course of the river. San Antonio would argue that this is a benefit to downstream water rights holders (discussed in the next section). However, state regulations (Texas Water Code § 11.042(b)) prevent this sort of offset from happening since surface water based return flows must be complete, and cannot be supplemented by groundwater based return flows. Wastewater that originated from a state surface water body is subject to more restrictions and cannot be replaced with groundwaterbased outflows. Entities are obliged to release treated wastewater that is the same or more as the original water they were allocated from the state. This means that a city like Houston must be able to release the entirety of its surface water allocation and cannot use groundwater to make up for a shortcoming. These requirements that prevent substitution of groundwater create a drag on 10 John Montgomery Wastewater Reuse in Texas indirect reuse projects since they rely on state surface water courses to act as storage mediums via the bed and banks permitting system. Water Rights All of the aforementioned rules that dictate return flows are in place to protect the rights of downstream water rights holders. These water right holders are often a major stumbling block against advancing wastewater reuse. For instance, the City of Houston relies on the reliable outflow of wastewater from Dallas in order to maintain its surface supplies. This is doubly important because of subsidence-related groundwater pumping restrictions in the Houston area. If Dallas were to more aggressively pursue water reuse, it could potentially be at the detriment of those downstream. Dallas would have to ensure that all the water taken from the rivers was put back in them or they could face a suit from downstream water rights holders. This issue of water rights plays out across all the state managed surface water ways of Texas. If a municipality wants to apply for a wastewater reuse permit, it has to demonstrate to the TCEQ and the TWDB that its reuse scheme will not negatively impact downstream water rights holders (Texas Water Code § 11.046(c)). Since wastewater return flows often constitute the whole of a river’s flow, they often constitute the whole of a downstream water right holder’s supply. If this high hurdle cannot be overcome, then a wastewater reuse project will not be permitted. The burden of proof is even more difficult since every river in the state has had its water over appropriated. The permitting requirement for ensuring reliable return flows coexists with the previously mentioned restrictions on return flow source water. Either the state’s strange water ownership laws need to be revisited or the wastewater permitting process needs to change how it deals with downstream water rights holders. While wastewater reuse can proceed under the current two tiered system, meaningful reform of the state’s water ownership laws would help push wastewater reuse into a new era. These ownership issues that affect water rights also influence how treated wastewater is stored and transported. Narrowly Defined Terms Perhaps the most problematic term in the wastewater reuse permitting system in Texas is “beneficial use”. Prior to action by the TCEQ in 2012, municipalities had to apply for an agricultural wastewater reuse permit to water public spaces and parks. This is because the term “beneficial use” was too narrowly defined and did not include municipal applications. While the 11 John Montgomery Wastewater Reuse in Texas TCEQ has remedied this issue somewhat, the applications for wastewater reuse are still too narrowly defined. For instance, direct potable reuse projects or projects that seek to ensure environmental flows are not considered under the current TCEQ rules. That means if a city wants to discharge wastewater into a river system to ensure enough water flows to the coast for marine and wildlife use, it cannot officially be permitted to do so. Furthermore, the lack of provisions for direct potable reuse are holding cities back from implementing these new projects. Storage and Transportation As mentioned previously, the regulatory framework in Texas favors indirect reuse projects while making them more complicated at the same time. Indirect reuse projects, by their very nature, require a natural body of water to act as a storage and filtration system. As shown in the previous section, the TWDB forecasts that most growth in wastewater reuse projects will be with indirect systems featuring environmental buffers. The problem with relying on indirect systems is that they are susceptible to evaporation, management issues and complicated permitting processes. The bed and banks applications essentially request the use of a state waterway as a storage medium but cannot interfere with water rights holders in a broken system. It is curious to see the TWDB foresee indirect reuse as the most viable alternative since there are so many disincentives for its use. For instance, interbasin transfers between river systems are generally frowned upon despite their ability to move water where it is needed. The idea of storing water for future use in rivers which are over appropriated and over regulated hardly seems reliable. New ways to store water have been pursued by many cities in the state. Aquifer Storage and Recovery is a viable alternative to these indirect reuse systems, but it too faces many regulatory obstacles to wider adoption. Aquifer Storage and Recovery ASR is a newer form of indirect reuse that relies on underground formations to store waste and act as an environmental buffer. Instead of treating wastewater and then pumping it into a surface wateway, treated wastewater is purified to drinking water standards and then pumped at fixed rates into suitably isolated aquifers. 12 John Montgomery Wastewater Reuse in Texas FIGURE 3: Source: United States Geological Survey The aquifers used for ASR projects must be geologically isolated for a number of reasons: pumping water into aquifers can disrupt the operation of nearby wells; nearby wells can draw on water that was placed there by the original injector because of common property rights; and environmental regulations require monitoring of water quality throughout the process. These restrictions mean that if a city wants to undertake an ASR project, they have to ensure they can own the water they pump into the ground. If not enough steps are taken to ensure ownership, then any adjacent landowner can effectively take their water. Cities can ensure this ownership either by buying the water rights of adjacent properties from landowners, buying the physical land over an aquifer, or by forming a GCD to operate the ASR project and enforce pumping restrictions. The fractured nature of GCD administration in Texas, combined with state's common law ownership structure for groundwater, makes the commissioning of ASR projects especially difficult. Of the nearly 100 GCDs in the state of Texas, only 12 have rules adopted for ASR projects. The very nature of local groundwater control means that even if the TCEQ or the TWDB wanted to promote ASR across Texas, they would face the opposition of locals. In addition to this, a city could be required to offer water services to all of the residents of a GCD 13 John Montgomery Wastewater Reuse in Texas that allows ASR. This requirement alone can make ASR unattractive to many cities that do not wish to expand their service network. The City of San Antonio has taken this concept a step further and is diverting their access Edwards Aquifer water into the Carrizo Aquifer through an elaborate ASR scheme. The city purchased a 3200 acre land tract to base their ASR project over and adjacent well owners had to be compensated. In addition, a special agreement had to be reached with the Evergreen Groundwater Conservation District to facilitate the project. This included the expansion of this GCD in order to win over adjacent well operators who were afraid of having their supply cut off by ASR. Finally, in an effort to placate worried residents, San Antonio promised not to draw down water from the project unless Stage III drought restrictions were in place. ASR is an attractive possibility for new water storage in Texas, but the San Antonio case demonstrates that there are too many regulatory hurdles to be crossed. The obstacles to wider wastewater reuse are many and the preceding sections have laid out just a few of them. Texas’ two levels of water administration, between surface and groundwater, create numerous regulatory glitches that have to be accounted for in a wastewater reuse project. Perhaps most damning from this system is the complex water rights that restrict new water projects on state water courses. Narrowly tailored regulations within the TCEQ make wastewater projects harder to approve. The issue of water storage is exacerbated by this complex system of water rights, with surface storage becoming less viable. The major potential solution for storage can be found in ASR, but it still has many regulatory wrinkles to be ironed out. The next section will discuss policy recommendations that can help fix these ailments. Potential Policy Solutions to Promote Wastewater Reuse: #1 Establish Direct Potable Reuse Regulations More and more cities will begin direct reuse projects for the many reasons outlined in this paper. Similar to its provisions for other forms of wastewater reuse, the TCEQ and the TWDB should adopt rules which make direct potable reuse projects easier across the state. Examples of successful systems can be found in Australia, which has an entirely different water ownership system as in Texas. Concerns in that country, however, are driven by competing water quality standards. The TCEQ can avoid these issues by relying on the federal Clean Drinking Water Act 14 John Montgomery Wastewater Reuse in Texas standards. In these new provisions for direct potable reuse, the TCEQ should also take care to incorporate individual river basin concerns. Pros: The introduction of rules for potable reuse would establish uniformity across the many projects already under way in the state. Direct potable reuse would eliminate much of the evaporation loss that is incurred through traditional indirect reuse projects. Regulation for this type of reuse system has extensive precedent in other countries, such as Australia. Also, the TCEQ has a ready supply of regulatory language to choose from within the Texas Water Code. Administratively, these sorts of projects are no more complicated than other wastewater reuse projects. Cons: Direct potable reuse would eliminate many of the return flows that are currently required in most water rights permits. The process of amending a water rights permit is currently difficult to navigate, and it is likely that the TCEQ would incorporate many of these obstacles into a new direct potable reuse scheme. The restriction of return flows would also potentially impugn the water rights of downstream rights holders. Any actions in the past that might affect water rights holders have been a nonstarter for the TCEQ. To this point, the individual river basin authorities would see these moves as an encroachment on their authority to regulate rivers. #2 Establish Environmental Flow Allowances for Bed and Banks Permits Cities will seek more ways to utilize natural bodies of water for the storage of water, as evidenced by TWDB projections. San Antonio sought additional justification for this bed and banks approach through environmental flows, which were denied by the TCEQ. Environmental flows should be a legitimate reason for the discharge of water into state surface water courses, and the TCEQ should adopt such an allowance. Pros: Establishing environmental flows for wastewater reuse projects would give more stable access to water supplies for the lower portions of river systems. In a system that is over allocated, there is no buffer or extra that can be used as flexible supply. Establishing an appropriate environmental flow buffer would cancel out some of the uncertainty over supply that would arise from direct potable reuse, and could be used as a “sweetener” to allow greater direct potable reuse in upper river basins: If Dallas is going to reuse more wastewater, then they should also have to ensure enough discharge for environmental functions as well as municipal use down river. Furthermore, the environmental impacts of 15 John Montgomery Wastewater Reuse in Texas river over allocation could be mitigated if there was a specific set aside for the environment. This is especially crucial where rivers flow into bays and estuaries since marine life and wildlife in these areas are dependent upon a careful balance of fresh and salty water. Finally, environmental flows would raise the cost of water overall and would drive the development of more wastewater reuse projects. Since return flows would have to include environmental flows, water users would enforce conservation measures more robustly. This would help Texas make the most of its water. Cons: Just as with recommendation #1, the downstream water rights holders in a river system would likely be opposed to reserving some water (or as they would see it, some of their water) for environmental purposes. This is despite the fact that this newly reserved environmental flow water would be available to them, when before such a change there would have been no consideration of additional outflows for any purpose. In addition, the quality of the treated wastewater would have to be carefully assessed and monitored to prevent harm to those that depend on it. Finally, the creation of an environmental flow requirement would add to the return flow requirements for upstream cities and other big water rights holders. This means that water users would have to minimize waste and invest in new infrastructure. Finally, the higher cost of water that would incorporate environmental flows would put a strain on municipal water systems which traditionally operate at a loss. #3 Establish Statewide GCD Standards for ASR Projects ASR projects are complicated, and their potential impacts can be far reaching. As such, the citizens in communities around the geologic formations selected for ASR projects need adequate representation of their interests. While it would not be possible to establish uniform scientific standards, there are some basic administrative principles that should be implemented by all GCDs. GCDs are in unique positions to offer this representation, but are currently lacking in policies and regulations for the execution of ASR. Therefore, the TWDB should establish minimum state wide ASR standards for GCDs that represent consensus administrative needs. In addition to this, the TCEQ should work more closely with ASR-linked GCDs to ensure all environmental concerns are addressed before a project is allowed to raise capital. It tends to be the case that once capital is raised for a project, it creates momentum that is hard to reverse. 16 John Montgomery Wastewater Reuse in Texas Education of the local community would also go a long way. Focusing on establishing uniform best practices for GCD administrators would help pave a clearer path for ASR projects. Pros: Empowering GCDs to work on ASR would maintain local control of these projects. Citizens can elect GCD board members, and would be able to exert more influence in ASR accommodations. In addition, GCDs are one of the few entities in the state that has the legal authority to limit groundwater pumping. This crucial amount of control over the management of aquifers makes them a natural fit for ASR. Finally, the introduction of standards for GCDs and ASR would open the gate to further reforms of GCDs, which are sorely lacking at the present. This could create a domino effect that brings groundwater under better public management. Cons: Any efforts to exert uniform standards on GCDs have been met with intense skepticism in the past, due largely to the ethos of local control. In addition, local ignorance about the science of ASR makes adoption difficult. Area property owners would see the inclusion of ASR management and pumping restrictions as a usurpation of their property rights. In addition to this, ASR projects may be undertaken in areas that do not presently contain GCDs. It is likely that an ASR project executor would establish a special GCD for this situation, but it is not guaranteed. In addition, municipalities that wish to undertake ASR projects may find additional regulation of these projects by the state objectionable. Finally, the TCEQ has a poor track record of enforcing water quality standards and this would place additional burdens on this capability. Conclusions Water is not going to get any more plentiful or inexpensive in Texas. Climate change is driving up temperatures, evaporation, and moisture loss, while also lowering the frequency of rain. Population pressures the state to find greater amounts of new water. Sometimes the best new source is making the most of the old. There are many small scale projects currently underway to enhance Texas’ wastewater reuse, but there are obstacles to wider adoption. Regulation by the TCEQ, inaction by GCDs, and the confusing structure of water ownership in Texas mean that wastewater reuse is only shuffling along when it should be leaping. This report has highlighted some of the most egregious obstacles to wider wastewater reuse adoption, and has offered some 17 John Montgomery Wastewater Reuse in Texas concrete suggestions for improving Texas policy. There is no cure all for the state’s water woes, but reusing wastewater is a proven system that can help. 18 John Montgomery Wastewater Reuse in Texas Bibliography Australian Academy of Technological Sciences and Engineering. (2014). DIRECT POTABLE REUSE IN AUSTRALIA - A DISCUSSION PAPER. Retrieved December 6, 2014, from Australian Water Recycling Center of Excellence: http://www.australianwaterrecycling.com.au/projects/direct-potable-reuse-in-australia-adiscussion-paper Brown, J. (2013, March 7). Water Reuse Will Require Regulatory Revisions; in Texas, TCEQ is Revising Its Rules. Retrieved December 6, 2014, from The University of Texas School of Law, Energy Law Center: http://www.utexas.edu/law/centers/energy/blog/2013/03/waterreuse-will-require-regulatory-revisions-in-texas-tceq-is-revising-its-rules/ Brown, J. (2014, January 31). SAWS Application for Bed-and-Banks Permit Highlights Tension in Having Dual Surface Water and Groundwater Regimes. 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