Managing Interbasin Water Transfers
to Achieve No Net Loss

Fact Sheet

Introduction: House Bill 1437, passed by the Texas Legislature in 1999, authorizes LCRA to transfer up to 25,000 acre-feet of water per year to Williamson County under certain conditions. The bill requires an additional charge to be added to the base water rate to pay the costs of mitigating any adverse effects of the transfer of water to Williamson County from the lower Colorado River watershed. This water transfer also should result in “no net loss” of water to the Colorado River watershed. Water resources developed or conserved through the additional charge may be acquired from any source inside or outside of the Colorado River watershed and shall be used for the benefit of water services areas of LCRA’s irrigation operations.

Q: What prompted the need for an inter-basin transfer to Williamson County?
A: High growth rates and limited water supplies have forced water utilities to look outside of their county to meet demands. At the request of the City of Round Rock and Williamson County, the Texas Legislature passed HB 1437, which authorized LCRA to transfer up to 25,000 acre-feet per year to Williamson County. The bill also set some provisions to ensure that there would be “no net loss” of water from the Colorado River basin. It provided a mechanism to pay for the development of the water resource strategies necessary to make up the transferred water.

Q: Where is the water coming from and where will it go?
A: The water could be taken from Lake Travis or three diversion points in Travis County downstream of Mansfield Dam. The water would be pumped to Williamson County for distribution by the Brazos River Authority. The location of the intake and pipeline has not been determined.

Q: How soon will water become available?
A: No firm date has been set. Before water can be transferred, “no net loss” must be defined and a plan to mitigate the effect of the transferred water developed and approved by the LCRA Board. The plan is expected to be considered by the LCRA Board in December 2004. Thus, a date for water delivery will depend on LCRA Board approval and the time it takes to implement the water make-up system.

Q: What’s the definition of ‘no net loss’?
A: There is no rigid legal definition of this term to use in determining compliance with HB 1437. LCRA has contracted with The University of Texas LBJ School of Public Affairs to recommend a definition of the term “no net loss” for the transfer of water from the lower Colorado River basin to Williamson County. LCRA’s Board of Directors will ultimately adopt a definition to use in determining Williamson County’s compliance.

Q: If water is diverted upstream, how will LCRA protect its irrigation customers?
A: Under HB 1437, the supply of water and the cost to irrigation customers will be protected. Before water is transferred, LCRA must offset the transferred water by the development of an additional water resource or other water-use strategies to replace or offset the amount of surface water transferred. This may include the development of groundwater resources, reuse, conservation and other opportunities to reduce reliance on surface water for agricultural irrigation. These strategies must take into consideration the surface water and groundwater needs of the affected Colorado River basin users. Any additional costs for implementing this system will be paid for by Williamson County customers by a mitigation surcharge added to the base water rate. These surcharge funds will be deposited into a separate fund designated as the Agricultural Water Conservation Fund.

Q: How will this agreement affect the Highland Lakes?
A: Because of no net loss provisions in HB 1437, lake levels should not be affected by the sale of water to Williamson County.

Q: What is LCRA’s agreement with Brazos River Authority to deliver water to Williamson County?
A: The Brazos River Authority contract was signed in October 2000 and is based on LCRA’s standard 50-year water sale agreement with a few special provisions to comply with HB 1437. These provisions include a 25 percent surcharge and a clause that allows Brazos to terminate the agreement after 10 years or in October 2010.

Q: Who can I contact for more information?
A: Please address all your questions and comments about this project to the LBJ School – The University of Texas at Austin, by contacting David Eaton or Seda Tamur via mail, e-mail, fax or phone.
Mailing Address: LBJ School of Public Affairs
P.O. Box Y
Austin, TX 78713-8925
Phone number: (512) 471 8934
Fax number: (512) 471 9686
E-mail address: stamur@mail.utexas.edu