SWIRFT — established by the Texas Legislature and approved by voters in 2013 to fund projects in the State Water Plan — was created through the transfer of a one-time, $2 billion appropriation from the State’s “Rainy Day Fund.” This money will be leveraged with revenue bonds over the next 50 years to finance approximately $27 billion in water supply projects throughout Texas.
The State Water Implementation Revenue Fund for Texas (SWIRFT) is authorized to offer multi-year, low interest loans for water projects.
For more information about SWIRFT and other Texas Water Development Board programs, go to www.twdb.texas.gov.
The Texas Water Development Board (TWDB) approved three financial assistance applications for SWIRFT submitted by the West Authority in 2015. The multi-year, low-interest loan commitment was for a total of $812,140,000. With SWIRFT funding, the West Authority expects to save more than $400 million in debt service payments on low-interest bonds to fund the construction of a regional network of pipelines, pump stations and water treatment and storage infrastructure that will one day bring up to 150 million gallons of treated surface water a day to residents in northwest and west Harris County, and northern Fort Bend County.
The Texas Water Development Board (TWDB) approved an additional $50 million commitment to the West Authority in 2017 through the State Water Implementation Revenue Fund for Texas (SWIRFT) administered by the TWBD. The original multi-year commitment approved for West Authority projects in 2015 was approximately $812 million, and in late July 2017, the TWBD made an additional $50 million available, which the West Authority will use to partially fund its share of costs needed to expand Houston’s Northeast Water Purification Plant by 320 million gallons per day. Partners in the project include the City of Houston, the West Authority, the Central Harris County Regional Water Authority, the North Fort Bend Water Authority, and the North Harris County Regional Water Authority.
The lower interest rates attached to SWIRFT bonds, as opposed to interest rates available in the general bond market, result in significant cost savings for the West Authority and its residents over the life of the loans. Municipalities, counties, water authorities and other water providers whose projects have been included in regional water plans can apply for SWIRFT funding. The state adopted this new approach to funding to help these entities turn water plans into water supplies.