As state regulators fret about how President Obama’s effort to combat climate change would affect the Texas power grid, a new study says the rules would be simpler to adopt than those regulators suggest – and that it would save the state billions of gallons of water annually.

In an analysis released Wednesday, CNA Corporation, a nonprofit research group based in Arlington, Va., said the federal proposal – which requires states to shift from coal power to cut carbon emissions – would slash water use in the Texas power sector by 21 percent. That would save the drought-ridden state more than 28 billion gallons of water each year.

“It’s a surprising finding,” Paul Faeth, the report’s author, said in a statement. “People don’t often associate water conservation with [carbon] cuts, but for Texas, they work together.”

The federal proposal would require Texas power plants to slash emissions by as much as 195 billion pounds of carbon dioxide in the next 18 years, according to a Texas Tribune analysis. That 43 percent reduction is among the largest percentage of cuts required among states.

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The state’s Republican leadership has loudly panned the proposal and is expected to sue once it becomes final. But behind the scenes, state regulators are examining how Texas might meet its carbon target.

The EPA suggests that Texas could meet its goal though a combination of actions: making coal plants more efficient, switching to cleaner-burning natural gas, adding more renewable resources and bolstering energy efficiency. Texas would have until 2016 to submit a plan to meet its carbon target.

CNA Corporation's analysis comes two days after the Electric Reliability Council of Texas (ERCOT), the state’s grid operator, said the proposal would threaten reliability and raise energy costs by as much as 20 percent by 2020 – not including the cost of new power lines needed to keep the grid running.

The CNA report, which relied on a model ERCOT has used in the past, said shifting away from water-guzzling coal power plants and boosting energy efficiency would ease Texas’ water woes.

Compared to Texas' grid operator, CNA painted a rosier picture of price and reliability effects. With big investments in natural gas and wind power, Texas is already on pace to meet 70 percent of its target by 2029, according to the study. Improving energy efficiency could move the state the rest of the way.

The federal proposal would increase the per-megawatt cost of electricity by 5 percent by 2029, but cut total system costs by 2 percent, the group said. 

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“We find that the state will be able to meet the final and interim targets with modest incremental effort,” the study said. 

Texas regulators are preparing to file formal comments to the EPA ahead of the Dec. 1 public comment deadline.