A Study of Economic and Financial Policies for State Water Projects

State of California (California) | August 5th, 1959

Achieving State Goals for the Sacramento-San Joaquin Delta

Legislative Analyst's Office | January 15th, 2015

The Sacramento-San Joaquin Delta (Delta) is a biodiverse ecosystem that covers about 1,150 square miles and supports over 700 species of fish and wildlife. The Delta is a

The Sacramento-San Joaquin Delta (Delta) is a biodiverse ecosystem that covers about 1,150 square miles and supports over 700 species of fish and wildlife. The Delta is an important source of water for the state and is used to convey water from Northern California to Southern California. The Delta faces several significant problems, including: (1) a decline in key native fish species, (2) reductions in the amount of Delta water available for use elsewhere, (3) water pollutants that cause harm to species and increase treatment costs, and (4) levees at significant risk of failure. The state has engaged in numerous efforts to address these problems and achieve its "coequal goals" for the Delta: water supply reliability and ecosystem restoration. There are many opportunities for the Legislature to improve the success of these efforts. We identified several issues for its consideration, including (1) demands for Delta water, (2) uncertain funding sources and slow implementation of some key activities, (3) limits on the effectiveness of governance in the Delta, and (4) challenges to restoring the Delta ecosystem. By addressing some of these issues, the Legislature can improve the likelihood that its goals and objectives for the Delta will be realized.

Adaptability and adaptations of California’s water supply system to dry climate warming

Climactic Change, Springer | November 27th, 2007

Economically optimal operational changes and adaptations for California’s water supply system are examined for a dry form of climate warming (GFDL CM2.1 A2) with year 2

Economically optimal operational changes and adaptations for California’s water supply system are examined for a dry form of climate warming (GFDL CM2.1 A2) with year 2050 water demands and land use. Economically adaptive water management for this climate scenario is compared to a similar scenario with the historical climate. The effects of population growth and land use alone are developed for comparison. Compared with the historic hydrology, optimized operations for the dry climate warming scenario raise water scarcity and total operation costs by $490 million/year with year 2050 demands. Actual costs might be somewhat higher where non-economic objectives prevail in water management. The paper examines the economical mix of adaptation, technologies, policies, and operational changes available to keep water supply impacts to such modest levels. Results from this screening model suggest promising alternatives and likely responses and impacts. Optimized operations of ground and surface water storage change significantly with climate. Dry-warm climate change increases the seasonal storage range of surface reservoirs and aquifers. Surface reservoir peak storage usually occurs about a month earlier under dry-warm climate change.

Advancing Affordability through Water Efficiency

Pacific Institute | September 19th, 2022

This paper examines the relationship between water conservation and efficiency and affordability. Specifically, it examines the near-term effect of water conservation and

This paper examines the relationship between water conservation and efficiency and affordability. Specifically, it examines the near-term effect of water conservation and efficiency on utility bills, i.e., water, wastewater, and energy bills, for conserving households and the longer term effect on water and wastewater costs for the larger community. Finally, the paper identifies common barriers for low- income and other hard-to-reach customers to participate in conservation and efficiency programs, and proposes strategies to overcome those barriers.

Advancing Hydro-Economic Optimization to Identify Vulnerabilities and Adaptation Opportunities in California’s Water System

California Natural Resources Agency | August 27th, 2018

Long-term shifts in the timing and magnitude of reservoir inflows will affect water supply reliability in California. Hydro-economic models can help explore climate chang

Long-term shifts in the timing and magnitude of reservoir inflows will affect water supply reliability in California. Hydro-economic models can help explore climate change concerns by identifying system vulnerabilities and adaptation strategies for statewide water operations. This work contributes a new open-source limited foresight implementation of the CALVIN model, a hydro-economic model including roughly 90% of California’s urban and agricultural water demands. The model includes the ability to determine water allocations on an annual basis without knowledge of future availability, and to efficiently evaluate ensembles of streamflow projections representing a range of possible future climates. We then assess the vulnerability of the statewide system to changes in total annual runoff and the fraction of runoff occurring during winter, which primarily depends on temperature. Results are analyzed with a focus on adaptation strategies, aided by the economic representation of water demand in the model. These strategies include changes to reservoir operating policies, and conveyance and storage expansion. As water availability decreases, model results show quadratic increases in shortage cost, and corresponding increases in the marginal costs of adaptation strategies and environmental flow constraints. Reservoirs adapt to warmer climates by increasing average storage levels in winter and routing excess runoff to downstream reservoirs with available capacity. Both small and large changes to reservoir operations were observed compared to historical hydrology, showing that no single operating strategy achieves optimality for all reservoirs. Increasing the fraction of winter flow causes small increases in total shortage cost, indicating the ability to manage a changing hydrologic regime with adaptive reservoir operations. The results of this project improve estimates of the cost of climate change to California’s water system under a range of future conditions and highlight adaptation strategies that minimize costs of increased hydrologic variability. 

Approaches for groundwater management in times of depletion and regulatory change

University of California, Davis (UC Davis) | June 1st, 2018

New legislation and related regulations in California mandate groundwater management to avoid undesirable results from excessive groundwater pumping and other hum

New legislation and related regulations in California mandate groundwater management to avoid undesirable results from excessive groundwater pumping and other human activities. Required aspects of management planning that will occur in well over 100 alluvial groundwater sub-basins across the state include scientific foundation and public transparency. While the details of individual groundwater management approaches will be particular to conditions in each management area, there will be common elements based on similar aspects of many groundwater systems in the state. The process of beginning to implement groundwater management for a large part of the state poses challenges. Use of scientific knowledge and methods of analysis developed in academia and industry will be helpful to the overall effort. This dissertation considers aspects of groundwater management that are expected to be common among many planning efforts. Inactive water supply wells acting as conduits for contaminant migration is considered through field examples and use of recently available databases regarding existing well constructions and water quality. Nonpoint source pollution effects on groundwater quality from conduit wells are investigated and selective regulatory action is explored as an option for addressing an issue that is too large for complete solution with available resources. Options for managed aquifer recharge are explored for a combined urban-agricultural area through use of a recently released land use database. A hydro-economic analysis is performed using linear programming to evaluate the efficacy of an on-farm recharge approach. Future work may include development of additional insights within the context of the study areas presented as well as extensions that consider new geographic areas and additional related considerations.

Atmospheric rivers drive flood damages in the western United States

Science Advances, American Association for the Advancement of Science (AAAS) | December 4th, 2019

Atmospheric rivers (ARs) are extratropical storms that produce extreme precipitation on the west coasts of the world’s major landmasses. In the United States, ARs caus

Atmospheric rivers (ARs) are extratropical storms that produce extreme precipitation on the west coasts of the world’s major landmasses. In the United States, ARs cause significant flooding, yet their economic impacts have not been quantified. Here, using 40 years of data from the National Flood Insurance Program, we show that ARs are the primary drivers of flood damages in the western United States. Using a recently developed AR scale, which varies from category 1 to 5, we find that flood damages increase exponentially with AR intensity and duration: Each increase in category corresponds to a roughly 10-fold increase in damages. Category 4 and 5 ARs cause median damages in the tens and hundreds of millions of dollars, respectively. Rising population, increased development, and climate change are expected to worsen the risk of AR-driven flood damage in future decades.

Benefit Accounting of Nature-Based Solutions for Watersheds

Pacific Institute | March 1st, 2021

Nature-based solutions (NBS) have the potential to combat pressing global problems, including climate change, water security and biodiversity loss. This guide builds on

Nature-based solutions (NBS) have the potential to combat pressing global problems, including climate change, water security and biodiversity loss. This guide builds on Benefit Accounting of Nature-Based Solutions for Watersheds Landscape Assessment (Shiao et al., 2020), which highlights the barriers for businesses to implement NBS at a large scale. The primary challenge for corporations is that there is no standardized method to identify, estimate and monitor the benefits that NBS can provide, making it hard to build the case for investments in these solutions.

Benefit-Cost Analysis of The California WaterFix

University of the Pacific, Center for Business and Policy Research | August 17th, 2016

This benefit - cost analysis of the California Water Fix was prepared by Dr. Jeffrey Micheal with the University of the Pacific Center for Business and Policy Research; D

This benefit - cost analysis of the California Water Fix was prepared by Dr. Jeffrey Micheal with the University of the Pacific Center for Business and Policy Research; Dr. Michael is an opponent of the project. He writes, "This analysis is based on data and assumptions in the revised environmental documents produced by DWR to support the proposal’s environmental review. The results show the WaterFix costs are four times larger than its benefits, and thus the project is not is not economically justified."

Bulletin No. 13, South Coastal Basin Investigation, Value and Cost of Water for Irrigation in Coastal Plain of Southern California

California Department of Water Resources (DWR) | June 1st, 1933