Tag Archives: urban water use

Building Drought Resilience in California’s Cities and Suburbs from PPIC

Then And Now: California's Drought Officially Declared To Be Over

M.Cubed partner David Mitchell is the lead author on this PPIC report that reviews the responses by urban agencies to the California’s recent drought and looks at the lessons learned. He’s speaking during a webinar on June 16 at noon. In addition, he co-authored an opinion article for the Sacramento Bee.

Maven’s Notebook: Fishing groups win lawsuit to overturn Delta water delivery contracts

This could have far reaching implications about how CVP contracts are renewed.

From the law offices of Stephan C. Volker: On July 25, 2016 the Ninth Circuit Court of Appeals ruled in favor of the Pacific Coast Federation of Fishermen’s Associations (“PCFFA”) and the San Fra…

Source: MAVEN’S NOTEBOOK – Water news

Why ag “savings” might not be the solution to urban water woes

Over the last couple of years, I’ve come across several examples of how increased agricultural irrigation efficiency hasn’t led to water savings. When interviewing a farmer in San Joaquin County about managing agricultural pumping loads, he described how he had invested $2,000/acre in a microdrip system for his tomato and melon fields. To avoid his subterranean systems, his farm has a GPS repeater that guides his tractors within a few inches. Another consultant described how they couldn’t find any flood irrigated tomato fields, a standard method in 2007, for a comparison survey for drip effectiveness. Fresno County tomato yields increased more than 25% from 2007 to 2012, and individual field yields have increased 50%.

The result is that growers are using the water they have to increase productivity. They also have moved into more permanent crops which deliver higher revenues per acre-foot. For example, almond acreage has more than doubled since 1995. And little additional water has been freed up for urban or environmental uses.

With the increased value of water to agriculture, urban agencies have lost much of their competitive edge in pursuing water transfers. In 2014, Westlands Water District paid Placer County Water Agency an unheard of $325/AF, and there were reports of some transfers costing several thousand dollars per AF to protect orchard investments. The urban agencies use to largely have this playing field to themselves, but that era looks to be ending.

The evolution of California’s water transfer market (albeit a bit dated)

Eric Cutter and I wrote a paper in 2002 that extended my dissertation chapter exploring how the state’s agricultural water management institutions, i.e., special districts like irrigation and California water districts, affected water transfer participation. We had built the first extensive transfer database in 2000 (On-Tap) for USBR and CDWR, using secondary sources, and used that analysis for the paper. Ellen Hanak of PPIC reconstructed a data set from primary sources a couple of years later, and updated it in 2012, so this data has been superseded. (Her 2012 coauthor Liz Stryjewski is now a consulting associate with M.Cubed.)

The paper discusses two important aspects not often touched upon: 1) the search and transaction settlement mechanisms are important to market success, and 2) the nature of the institutions managing agricultural water can affect willingness to participate. Another important aspect is that California already has about 10 MAF in long-term permanent water transfers embedded in the CVP and SWP contracts. The 2 MAF in short-term and more recent long-term transfers are on top of those already occurring. So California has already has a viable market contrary to ill-informed observations by others; the question is whether that market can and should be expanded further.

UCLA professor’s comments not helping California’s drought problem

An environmental horticulturalist for UC Cooperative Extension in Los Angeles, Don Hodel, has been getting a lot of press recently criticizing the State Water Board’s urban water restrictions. He advises that the Water Board should have advised targeting changes in watering practices rather than limiting supplies, and claims that urban restrictions were unneeded, implying that agriculture should bear the entire brunt. Unfortunately, he’s made at least two grievous errors in his assessment.

First, Hodel fails to understand that the actual implementation of the reductions is to be done by the local water utilities, not the Water Board. The Board only provided the targets, and the stick if the targets aren’t met. Hodel needs to complain to the utilities if he thinks they aren’t doing their job.

But of course, he’s equally naive about the huge problem of communicating about changing irrigation practices to millions of urban customers across hundreds (yes) of distinct water utilities. Of course, these utilities have been trying to get their customers to improve outdoor watering, but just getting their attention is a big enough problem.

Second, his real agenda is to imply that urban horticulture is more valuable the state’s agricultural industry. Urban agencies have only so much contractual and physical access to water supplies. To not cutback deliveries would require transferring water from farmers. But there’s at least two problems with that, the first being that agricultural water is much more valuable than Hodel imagines and second is that it’s not easy getting the water from northern to southern California.

It turns out that those farmers have been doing an exceptional job at improving their irrigation practices; the problem is that they’ve used that efficiency to increase output rather than to save water. The original proponents of agricultural water efficiency didn’t anticipate this response and the surplus didn’t materialize for urban users or the environment.

And even so, moving water from farm areas and treating it for domestic uses adds substantially to the cost of water. It’s the primary reason why urban water costs well in excess of $2,000 per acre-foot while agricultural water is much less than $500 per acre-foot. Water isn’t a particularly fungible good, and proponents of water transfers as the “solution” ignore this issue (along with the problems of market design and function.)

These types of moments are when I wished that journalists were better informed and able to filter out the uninformed “experts.”

Looking to the Aussies to solve California’s water problems

The San Francisco Chronicle ran an article how Australia changed its water infrastructure and usage in the face of the 12-year “Big Dry.” Earlier the Chronicle ran “5 fixes for California’s age-old water rights system” that drew on Australia’s experience. M.Cubed’s analysis of the state’s urban drought regulations included a synopsis of Australia’s experience. An interesting question is whether anyone has assessed the political-economic process that facilitated Australia’s transformation. What were the trade-offs made? How were key interest groups satisfied?

MWDSC looking to add recycled water to their portfolio

Metropolitan Water District is looking at spending up to $1 billion on recycled water supplies. MWD is considering a $15 million pilot in Carson to start. When I talked to the California Association of Sanitation Districts last month on the impacts of the drought, I highlighted that recycled water now may be a cost-effective supply source as the water market changes. In 2008, M.Cubed prepared with AECOM/EDAW and RMC East Bay Municipal Utility District’s Water Supply Management Program 2040. At that time, other resources such as water transfers were more attractive, but the economics are changing for a variety of reasons.  I’ll blog in the near future about how agriculture may no longer be an attractive source for urban supplies.

Far Reaching Impacts of the California Drought

I talked to the California Association of  Sanitation Agencies in San Diego on the drought situation, its economic impacts and available resources including recycled or “recovered” water. My presentation is here.

Assessing the economic impacts of drought regulations

M.Cubed was asked by the State Water Resources Control Board to prepare an economic assessment of the emergency regulations ordered by the Governor to reduce municipal water use by 25%. We gathered a team that included Roger Mann of RMann Economics, Tom Wegge of TCW Economics, Richard Howitt and Duncan MacEwan of ERA Economics, and prepared the report in about two weeks. The SWRCB included a summary of those findings in its regulatory digest.

The innovative aspect of our study is to steer away from a single point probabilistic estimate of the benefits of the regulations and instead to focus on the potential vulnerability and consequences of the risk of continued drought in the future.

The EO is intended to address potentially significant economic vulnerabilities – risks – rather than statistical or probabilistic expectations. If the drought and high temperatures continue in California, water saved as a result of the order will become increasingly valuable. Under these circumstances, costs estimated to be associated with the EO this year could be more than exceeded by greater adverse impacts next year if the EO had not been issued.

Australia had an extended drought that lasted 10 years before ending in 2012 that cut 1.6% off its GDP. For California that would be $35 billion in a single year which is multiples of the range of costs we estimated for the regulations. In other words, the probability of continued drought would have to be less than 4% to make this option uneconomic.

We also pointed out that while the water utilities will lose revenues this year, as mostly public agencies, they will have to make up those losses in the future. For this reason, those revenue losses should be treated as eventual economic costs.

RFF Library: 100 Years of California’s Water Rights System: Patterns, Trends and Uncertainty

A link to the recent study quantifying California’s water rights.

Environmental & Energy Valuation News

Environmental Research Letters (2014 v9 p084012; doi:10.1088/1748-9326/9/8/084012) / by Theodore E Grantham and Joshua H Viers
http://iopscience.iop.org/1748-9326/9/8/084012/

For 100 years, California’s State Water Resources Control Board and its predecessors have been responsible for allocating available water supplies to beneficial uses, but inaccurate and incomplete accounting of water rights has made the state ill-equipped to satisfy growing societal demands for water supply reliability and healthy ecosystems. Here, we present the first comprehensive evaluation of appropriative water rights to identify where, and to what extent, water has been dedicated to human uses relative to natural supplies. The results show that water right allocations total 400 billion cubic meters, approximately five times the state’s mean annual runoff. In the state’s major river basins, water rights account for up to 1000% of natural surface water supplies, with the greatest degree of appropriation observed in tributaries to the Sacramento and San Joaquin Rivers and…

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