Corpus Christi advances desalination project amid Southwest states' water hunt

Corpus Christi is moving forward with Texas’ first seawater desalination treatment plant for municipal use with the aim of providing the Gulf Coast city a drought-proof water supply.

In a 6-2 vote last week, the by Gov. Greg Abbott directs the water development board to use the supply fund to finance projects that will lead to 7 million acre feet of new water supply by the end of 2033. Projects can include desalination, aquifer storage and recovery, and infrastructure to transport water and can involve public-private partnerships.

While there are no operational seawater desalination facilities in Texas, 53 municipal facilities treat brackish ground and surface water, according to the state water board.

New Mexico is plowing forward with Gov. Michelle Lujan Grisham’s $500 million proposal to spur private investment to treat brackish aquifer water and water produced from oil and natural gas extraction so that it could be used by industries the state wants to attract or expand.

In January, the state’s environment department said it issued a request for information “from individuals, businesses, academia, government agencies, and other stakeholders related to the sourcing, treatment, delivery, storage, and industrial uses of brackish water and produced water.”

Responses are due by March 31 with the state eying the issuance of a request for proposals and project-specific concept papers this summer.

The Democratic governor’s proposal, which calls for an initial $250 million raised from an internal debt sale backed by oil and natural gas severance tax revenue, was met with some pushback when it was presented to the New Mexico Senate Finance Committee Jan. 22.

The state would sell overnight senior severance tax notes to the New Mexico Treasurer’s Office and the proceeds would flow to the capital project fund where it would be used to purchase the treated water.

State Board of Finance Director Ashley Leach told the committee the notes would “sponge up cash” in the state bonding fund that is not otherwise used for debt service on long-term severance tax bonds, noting the state has used this practice for decades.

Democratic State Sen. George Munoz, who chairs the committee, said while he favors the idea of desalinating brackish water, he’s “not on board with the sponge bond issue.”

Using treated brackish water to augment New Mexico’s water supplies was highlighted in a 50-year water action plan Lujan Grisham unveiled Jan. 30.

“New Mexicans throughout the state need to take actions now to ensure we can have resilient water supplies in the future,” the governor said in a statement. “The 50-Year Water Action Plan elements are guided by science and innovation to ensure that our diverse communities and economies will continue to thrive.”

The state will be short 750,000 to 1 million acre feet of water within the next 50 years, according to the action plan, which also calls for tapping state, federal, and private sector money for conservation, infrastructure, and water and watershed protection efforts. Moderate to exceptional drought conditions covered 91.4% of New Mexico, according to the latest weekly data from the National Integrated Drought Information System.

Parched Arizona is looking at imported desalinated water as an option under a long-term water augmentation fund created by a 2022 state law that called for appropriations totaling $1 billion over three years. While the fund received $333 million in fiscal 2023, only $189 million was allocated in fiscal 2024 and Gov. Katie Hobbs’ proposed fiscal 2025 budget calls for appropriations of just $33 million a year over the next three fiscal years.

Still, the Arizona Water Infrastructure Finance Authority is taking steps to begin soliciting water supply projects with its board holding a workshop Friday on the potential roles it could play in them.

Authority Board member Andy Tobin said WIFA should be confined to making financial decisions.

“I think we’re supposed to be the loan company,” he said.

Chuck Podolak, WIFA’s director, told the board the purpose of the workshop was to lay out various approaches.

“These are a universe of choices and then we can get into the pros and cons and make some value judgements or express preferences,” he said.

Podolak has previously said bonds “are on the table” in conjunction with the augmentation fund and potential future public-private partnerships for water importation projects, which will be allocated at least 75% of the money.

A few of the 28 responses the agency received from its September request for information cited the potential for bond issuance.