Tulare Lake

Economic and water supply effects of ending groundwater overdraft in California’s Central Valley

University of California, Davis (UC Davis) | March 1st, 2016

Surface water and groundwater management are often tightly linked, even when linkage is not intended or expected. This link is especially common in semi-arid regions,

Surface water and groundwater management are often tightly linked, even when linkage is not intended or expected. This link is especially common in semi-arid regions, such as California. This paper summarizes a modeling study on the effects of ending long-term overdraft in California’s Central Valley, the state’s largest aquifer system. The study focuses on economic and operational aspects, such as surface water pumping and diversions, groundwater recharge, water scarcity, and the associated operating and water scarcity costs. This analysis uses CALVIN, a hydro-economic optimization model for California’s water resource system that suggests operational changes to minimize net system costs for a given set of conditions, such as ending long-term overdraft. Based on model results, ending overdraft might induce some major statewide operational changes, including large increases to Delta exports, more intensive conjunctive-use operations with increasing artificial and in-lieu recharge, and greater water scarcity for Central Valley agriculture. The statewide costs of ending roughly 1.2 maf yr-1  of groundwater overdraft are at least $50 million per year from additional direct water shortage and additional operating costs. At its worst, the costs of ending Central Valley overdraft could be much higher, perhaps comparable to the recent economic effects of drought. Driven by recent state legislation to improve groundwater sustainability, ending groundwater overdraft has important implications statewide for water use and management, particularly in the Sacramento–San Joaquin Delta. Ending Central Valley overdraft will amplify economic pressure to increase Delta water exports rather than reduce them, tying together two of California’s largest water management problems.

Economic Impacts of SGMA on San Joaquin Valley Dairies and Beef Cattle

Dairy Cares (California Cattle Council) | January 30th, 2023

Economic Impacts of the 2020–22 Drought on California Agriculture

University of California, Merced (UC Merced) | November 22nd, 2022

California just ended its third consecutive year of drought, resulting in the driest three-year period in the instrumental record. Multi-year deficits in precipitation in

California just ended its third consecutive year of drought, resulting in the driest three-year period in the instrumental record. Multi-year deficits in precipitation in the state’s usually wetter northern regions have been compounded by increased crop evaporative demands, leading to water scarcity impacts to agriculture across the state. Although 2020 was a dry year, water reserves stored during the wetter years of 2017 and 2019 greatly diminished drought impacts during that year. The water outlook changed rapidly in 2021—the third driest water year on record with the highest evaporative demand. The northern regions of the state—including the Sacramento Valley, the Scott and Shasta valleys, the Pit River valleys (northern intermountain valleys), and the Russian River—faced unusually dry conditions. Drought emergency conditions in 2021 were proclaimed first in the Russian River, Scott River and Shasta River basins, which faced subsequent curtailments. Water curtailments were extended to the Sacramento Valley later in the season. Water for local agriculture, ecosystems, exports, and water quality protection in the Sacramento-San Joaquin Delta were compromised by low water reserves. Atmospheric rivers in October and December 2021 provided temporary drought relief for a portion of the state, but record low precipitation from January-September allowed for extreme drought conditions to reign into the 2022 water year. To overcome persistent precipitation deficits and below-average storage in major reservoirs, the state again implemented water rights curtailments and low water deliveries from the State Water Project. The US Bureau of Reclamation announced reduced Central Valley Project deliveries—including unprecedented cutbacks to senior contractors in the Sacramento Valley—and local agencies implemented cutbacks as a first tier of drought response measures. Compared with the 2021 water year, however, 2022 brought less severe water cutbacks in the San Joaquin Valley. This report provides estimates of the economic impacts to agriculture for first three years of the current drought, which began in 2020. We use a combination of climate, hydrologic, agricultural and economic models, supplemented by informal surveys of irrigation districts and remote sensing data. The study includes nearly 88% of the 8.7 million acres of irrigated crop area in the state (LandIQ, 2019) excluding idle land. Our preliminary analysis for 2020–21 (Medellín-Azuara et al. 2022), focused on the Central Valley, and also examined the Russian River basin (North Coast), and northern intermountain valleys in Siskiyou, Shasta, and Modoc counties. Here, we expanded our spatial coverage to include the Central Coast, South Coast, and Colorado River.

Economic tradeoff between domestic well impact and reduced agricultural production with groundwater drought management: Tulare County, California (USA), case study

Hydrogeology Journal (Springer) | November 8th, 2021

Formal policy analysis can aid resource management where groundwater is used intensively. Approaches for developing equitable and effective pumping allocations for drough

Formal policy analysis can aid resource management where groundwater is used intensively. Approaches for developing equitable and effective pumping allocations for drought are evaluated in the context of the 2012–2016 drought in Tulare County, California, USA. Potential economic impacts of policy alternatives on two user groups with conflicting interests are considered. Tradeoffs between losses of agricultural profit and response costs for domestic wells that run dry are estimated for various maximum groundwater depth policies. A welfare maximizing approach for identifying policies that limit depth to groundwater is evaluated and found to be ineffective because agricultural opportunity costs are much larger than domestic well costs. Adding a fee for additional drought groundwater pumping is proposed as a more impactful and balanced management policy approach. For the case study presented, a fee range of $300 to $600/acre-foot ($300–$600/1,233 m3) yielded an effective groundwater management policy for reducing domestic well impacts from drought and balancing agricultural impacts of drought with the need to replenish additional drought pumping in wetter years. Recent management policies enacted in the study area agree with this finding. These results may provide a useful perspective for analytically examining and developing groundwater management policies near the study area and elsewhere.

Economic-engineering optimization for California water management

American Society of Civil Engineers (ASCE) | May 15th, 2003

An economic-engineering optimization model of California’s major water supply system is presented. The model’s development, calibration, limitations, and resu

An economic-engineering optimization model of California’s major water supply system is presented. The model’s development, calibration, limitations, and results are reviewed. The major methodological conclusions are that large-scale water resources optimization models driven by economic objective functions are both possible and practical; deterministic models are useful despite their limitations; and data management, reconciliation, and documentation are important benefits of large-scale system modeling. Specific results for California indicate a great potential for water markets and conjunctive use to improve economic performance and significant economic value for expanding some conveyance facilities. Overall, economic-engineering optimization even if deterministic can suggest a variety of promising approaches for managing large systems. These approaches can then be refined and tested using more detailed simulation models. The process of developing large-scale models also motivates the systematic and integrated treatment of surface water, groundwater, facility, and water demand data, and identification of particularly important data problems, something of long-term value for all types of water resources analysis.

Economics of a State Water Resources Program

Legislative Analyst's Office (LAO) | July 9th, 1957

Effective at Any Scale: Watershed-based Decision Support Tools

San Francisco Estuary Institute (SFEI) | July 1st, 2016

EcoAtlas  tools apply the USEPA’s three-level wetland monitoring and assessment framework for wetland and stream protection in a variety of California watersheds, an

EcoAtlas  tools apply the USEPA’s three-level wetland monitoring and assessment framework for wetland and stream protection in a variety of California watersheds, and it can be adjusted to more generally support natural resource planning, assessment, monitoring, and reporting. EcoAtlas operationalizes the Wetland and Riparian Area Monitoring Plan (WRAMP) by enabling users to assess the abundance, distribution, diversity, and condition of wetlands in the landscape or watershed context.

Efficient Water Use in California: Water Rights, Water Districts, and Water Transfers

Rand Corporation (Rand) | November 13th, 1978

Emergency Measures to Provde Water Resources in California and Improve Disaster Response in Certain Areas

The White House | January 24th, 2025

Ending groundwater overdraft without affecting food security

Nature Portfolio (Springer Nature) | June 14th, 2024