Funding Mechanism Inventory and Evaluation

California Department of Water Resources (DWR) | December 13th, 2018

This document supports information contained in Chapter 4 of the California Water Plan Update 2018. The purpose of this document is to provide a description of th

This document supports information contained in Chapter 4 of the California Water Plan Update 2018. The purpose of this document is to provide a description of the current and novel funding mechanisms, as well as assumptions used in the funding analysis (described in Funding Scenario Analysis supporting document). The Funding Mechanism Inventory and Evaluation supporting document evaluates the current and novel funding mechanisms available to implement water resources management actions. Funding mechanisms need to be appropriate for the management actions being funded (i.e., have a nexus and applicability), be available when needed (i.e., have inter-annual reliability), and have political support (i.e., political viability). Many potential funding mechanisms are available for financing water resources management from State, local, federal, or private sources. Any of these could be applied for different capital and ongoing management actions. This document discusses a range of funding mechanisms and their potential use for capital or ongoing management actions. For capital management actions, the mechanisms include (1) existing, authorized funding streams, such as the State general fund or local taxes and assessments, and (2) limited-duration capital finance mechanisms, such as general obligation (GO) bonds or local bonds. Ongoing management actions are best supported by consistent reliable funding from mechanisms such as general fund, taxes, rates, or assessments. The characteristics of each funding mechanism are detailed in this document and are important considerations for the funding analysis in Chapter 4 of the California Water Plan Update 2018. Novel mechanisms are included in the funding analysis for demonstration and are not a substitute for the studies and legislation required for creation of these mechanisms. Local and federal mechanisms also are included to provide an understanding of historical and future cost sharing potentials. For additional information on historical expenditure levels of State, local, and federal funding mechanisms, seeHistorical Expenditures and Current and Future Funding Needs supporting document.

Funding Opportunity for Voluntary Participation in the Lower Colorado Conservation and Efficiency Program

U.S. Bureau of Reclamation (USBR) | October 12th, 2022

Funding Scenario Analysis

California Department of Water Resources (DWR) | December 13th, 2018

This document supports information contained in Chapter 4 of the California Water Plan Update 2018. The purpose of this document is to provide a description of the fundin

This document supports information contained in Chapter 4 of the California Water Plan Update 2018. The purpose of this document is to provide a description of the funding analysis as well as the scenarios evaluated by the funding analysis. This supporting document provides the analysis called out for in the California Water Plan Update 2013 Finance Planning Framework Component 8, which recommended the development of a decision support system (DSS) to provide guidance to the State on tradeoffs in a funding plan. To respond to this recommendation, this supporting documentation describes a funding tool used in the funding analysis and how scenarios were used in the tool to evaluate tradeoffs of different approaches to funding the recommended actions described in Chapter 3 of the California Water Plan Update 2018. The funding analysis used information about historical expenditures and funding need developed in the Historical Expenditures and Current and Future Funding Needs supporting document and information about existing and novel funding mechanisms developed in the Funding Mechanism Inventory and Evaluation supporting document. 

Funding Water in Times of Financial Uncertainty: The Case for a Public Goods Charge in California

Stanford University | January 15th, 2015

Funding for water-related public purpose projects has become increasingly scarce in California. Utilities are facing new challenges that require additional capital while

Funding for water-related public purpose projects has become increasingly scarce in California. Utilities are facing new challenges that require additional capital while the state’s legal system has restricted the ability of local governments to raise funds. This fiscal landscape requires the water sector to find new ways to finance water-related public interest projects, including conservation and efficiency programs, monitoring and evaluation, and infrastructure maintenance and modernization. California must also generate supplementary funds for new water technology research, development, and dissemination if the state is to continue to grow despite dwindling water supplies. In recent decades, California has relied heavily on general obligation (GO) bonds to finance a variety of water-related projects. GO bonds, however, are unreliable funding mechanisms as they require voter approval if they survive the legislative process, and they can be costly in the long run as they are repaid with interest. Additionally, GO bonds violate the beneficiary-pays principle as the entire state repays a debt that benefits taxpayers in certain regions more than others. This research paper looks at a supplemental funding mechanism, a Public Goods Charge (PGC), as an additional way for California to provide for water investment in the future. In a PGC scheme, ratepayers are charged a small, usage-related fee, and the funds are subsequently allocated to public interest projects at the local, utility, state, and broader scales. This method was used to fund electricity public purpose programs in California from 1998-2011, resulting in over $5.8 billion collected by the state’s three main Investor Owned Utilities (IOUs), with additional funds collected by local Publicly Owned Utilities (POUs), for energy innovation over 14 years. Utilities and the state as a whole benefitted economically and environmentally from the increased funding for energy efficiency, renewables, and research and development. The electricity PGC helped to transform California’s energy landscape into one that includes more modern and sustainable infrastructure systems. Significant energy savings were also achieved during the PGC era.

Further Trade Wars Will Harm California Agriculture

University of California, Davis (UC Davis) | September 30th, 2024

As protectionist policies gain momentum in the United States, the future of California’s agricultural trade faces pessimism. With proposals to expand tariffs on imports

As protectionist policies gain momentum in the United States, the future of California’s agricultural trade faces pessimism. With proposals to expand tariffs on imports from China and other nations, California farmers—who depend on global markets as an outlet for their almonds, wine, and other agricultural goods—are aware that there would be trade retaliation from our trading partners. If a significant new trade war develops, California could see a quarter of its agricultural exports wiped out, costing the state’s economy $6 billion annually.

Future Atmospheric Rivers and Impacts on Precipitation: Overview of the ARTMIP Tier 2 High-Resolution Global Warming Experiment

American Geophysical Union (AGU) | March 14th, 2023

Atmospheric rivers (ARs) are long and narrow weather features often referred to as “rivers in the sky.” They often transport water from lower latitudes to higher lati

Atmospheric rivers (ARs) are long and narrow weather features often referred to as “rivers in the sky.” They often transport water from lower latitudes to higher latitudes typically across climate zones and produce precipitation necessary for local climates. Understanding ARs in a warming climate is challenging because of the variety of ways an AR can be defined on gridded data sets. Unlike weather features such as tropical cyclones where identification methodologies are similar, algorithms that determine the characteristics of ARs vary depending on the science question posed. Because there is no real consensus on AR identification methodology, we aim to quantify the algorithmic uncertainty in AR metrics and precipitation. We compare 16 different ways of defining an AR on gridded data sets and present the range of possibilities in which an AR could change under global warming. Generally, ARs are projected to increase but the amount of that increase is a function of the algorithm. Across all algorithms and focus regions, AR precipitation is projected to become more extreme.

Future Changes in Global Atmospheric Rivers Projected by CMIP6 Models

American Geophysical Union (AGU) | January 31st, 2024

Future dryness in the southwest US and the hydrology of the early 21st century drought

National Academy of Sciences (NAS) | December 14th, 2010

Recently the Southwest has experienced a spate of dryness, which presents a challenge to the sustainability of current water use by human and natural systems in

Recently the Southwest has experienced a spate of dryness, which presents a challenge to the sustainability of current water use by human and natural systems in the region. In the Colorado River Basin, the early 21st century drought has been the most extreme in over a century of Colorado River flows, and might occur in any given century with probability of only 60%. However, hydrological model runs from downscaled Intergovernmental Panel on Climate Change Fourth Assessment climate change simulations suggest that the region is likely to become drier and experience more severe droughts than this. In the latter half of the 21st century the models produced considerably greater drought activity, parti- cularly in the Colorado River Basin, as judged from soil moisture anomalies and other hydrological measures. As in the historical record, most of the simulated extreme droughts build up and per- sist over many years. Durations of depleted soil moisture over the historical record ranged from 4 to 10 years, but in the 21st century simulations, some of the dry events persisted for 12 years or more. Summers during the observed early 21st century drought were re- markably warm, a feature also evident in many simulated droughts of the 21st century. These severe future droughts are aggravated by enhanced, globally warmed temperatures that reduce spring snowpack and late spring and summer soil moisture. As the climate continues to warm and soil moisture deficits accumulate beyond historical levels, the model simulations suggest that sustaining water supplies in parts of the Southwest will be a challenge.

Future extreme precipitation amplified by intensified mesoscale moisture convergence

Nature Portfolio (Springer Nature) | November 18th, 2025

Extreme precipitation events are driven by complex multiscale atmospheric dynamic interactions, fuelled by available moisture. They are expected to intensify with

Extreme precipitation events are driven by complex multiscale atmospheric dynamic interactions, fuelled by available moisture. They are expected to intensify with climate change, posing increasing risks to human communities and ecosystems. However, current low-resolution climate models struggle to accurately represent key extreme precipitation-generating phenomena, limiting our ability to generate robust and reliable future projections. Here we present an ensemble of climate simulations with a 10-to-25-km resolution and an improved representation of mesoscale convective systems to assess future changes in daily extreme precipitation and its drivers. Our high-resolution simulations more realistically capture the observed spatial distribution and intensity of daily extreme precipitation over the historical period than the 100-km resolution counterparts. In a future scenario with high carbon dioxide emissions, daily extreme precipitation over land could increase by about 41% by 2100, mainly as a result of increased mesoscale moisture convergence. The impact of this dynamical contribution to extreme precipitation is underestimated by a factor of three in the low-resolution model. These results highlight the crucial role of high-resolution climate modelling in constraining future extremes and informing more effective climate risk assessments and adaptation strategies. Click here for a Science news article on the model and its evolution.  

Future increase in extreme El Niño supported by past glacial changes

Nature Portfolio (Springer Nature) | September 25th, 2024