Five Things You Need to Know About Water

We marked the launch of the PPIC Water Policy Center by convening a panel of leading experts to discuss key issues in state water policy. Participants were Richard Frank, director of the California Environmental Law and Policy Center at the UC Davis law school; Matthew Rodriquez, secretary of the California Environmental Protection Agency; and Karen Ross, secretary of the California Department of Food and Agriculture. Moderating the conversation was Lois Kazakoff, deputy editorial page editor at the San Francisco Chronicle. We invite you to watch the full presentation and discussion.

Before the panel discussion, I gave a brief opening talk called “Five Things You Need to Know About Water.” Here is a summary of the five points:

Water is complicated. There are no silver bullet solutions to California’s water problems—whether it be desalination, new reservoirs, or conservation. We need to be thinking about combining a lot of different tools and strategies. This also means that there are almost always unintended consequences, even for solutions that seem like no brainers. As an example, there’s a lot of public interest—and funding—now available for increasing local drought resilience by reusing treated wastewater. However, more water reuse often means less treated wastewater gets returned to rivers and streams, where it provides important environmental benefits and supplies for downstream communities. This doesn’t mean we shouldn’t be doing these projects, but it does mean we need to be aware of the consequences and trade-offs.

We have to go after more than the low-hanging fruit. The low-hanging fruit types of solutions tend to be incremental and piecemeal in nature. This is fine for things that can change incrementally, like improving water use efficiency. But some tough problems—like meeting the co-equal goals of water supply reliability and ecosystem sustainability in the Delta—will require tough, expensive, and politically difficult solutions.

Water solutions almost always have both winners and losers. This is obvious in a case like the Delta, where it’s simply not possible to find a fix that will make everyone better off. That’s because every available option involves tradeoffs in which at least one party doesn’t fare as well, whether it’s farmers in the Delta, farmers in the San Joaquin Valley, urban residents south of the Delta, or the Delta’s native fish and wildlife. It’s also true for projects that people like to think of as win-win, such as flood protection projects that move levees back to make more room for rivers. These projects also improve wildlife habitat, but they usually cost more than traditional flood control projects. As a society, we can aim for solutions that get the most benefits per dollar spent, but we also need to consider how to soften the blow if some groups are disproportionately bearing the costs.

Crises create hardship, but also opportunity. In particular, crises create openings to achieve major reforms that might not be possible in normal times. Thanks to a string of crises—and to bold action by leaders at the local, state, and federal levels—California is now experiencing a period of extraordinary change in water policy: In 2007, in the wake of Hurricane Katrina in New Orleans, we enacted legislation that doubled the federal standard of flood protection for cities in the Central Valley. In 2009, in the third year of drought, we adopted a legislative package that required more conservation, better water use reporting, and a new governance structure for the Delta. In 2014, in the midst of a much more severe drought, we enacted historic legislation that empowers and requires local agencies to sustainably manage our threatened groundwater basins. Much work lies ahead to effectively implement all of these reforms, and more big changes will be needed in other areas, such as finding ways to fill critical funding gaps in our water system.

It’s hard work, but it’s not hopeless. We’ve been making progress in addressing some key challenges, including improving the reliability and quality of our water supplies, and preparing to weather droughts and floods. Perhaps the toughest—and most conflict-ridden—challenge we face in California water is reversing the decline of our native aquatic ecosystems, which have been failing despite several decades of well-intentioned environmental laws and investments. But even here, one can point to promising approaches. There’s the example of Putah Creek, where the reintroduction of natural, variable flow patterns—albeit with just a fraction of the water nature used to provide—has favored the return of native species. There’s also the example of the Knagg’s Ranch in the Yolo Bypass, where leaving fields flooded a little longer before planting rice is making it possible to fatten up young salmon before they make their way back to the ocean, giving them a better chance of survival. These are creative examples from the playbook of “reconciliation ecology,” a pragmatic approach to managing our ecosystems alongside continued human uses of water and land resources.

These five immutable facts about California water guide the work of our center. California needs to ground policy decisions in reliable, non-partisan, science-based diagnoses of problems and potential solutions. That’s how we—along with our research partners throughout the state—hope to contribute to a better water future.

Welcome to the PPIC Water Policy Center

California is at a crossroads in managing water. The drought has sparked significant policy activity, but much work lies ahead. With changes expected in the state’s population, economy, and climate—and pressures from aging infrastructure and a deteriorating environment—California needs to develop meaningful, lasting, forward-looking water policies.

Today, we are pleased to announce the establishment of the PPIC Water Policy Center to help meet the state’s urgent need for timely information and innovative water management solutions. The center builds on the successful model of independent, nonpartisan research and constructive engagement that defines all of PPIC’s work.

Over the last decade, PPIC laid the groundwork for the center with high-quality research on major water policy issues and productive conversations about solutions. The center represents a significant ramping up of investment in this critical area, and we thank the S. D. Bechtel, Jr. Foundation for the seed funding to launch this effort.

The PPIC Water Policy Center will focus on three critical, interrelated water management challenges facing California in the 21st century:

  • Ensuring clean and reliable water supplies. Investigating and encouraging comprehensive, integrated approaches to water quality and quantity.
  • Building healthy and resilient ecosystems. Promoting the development of healthy and sustainable ecosystems using practical approaches to watershed management.
  • Preparing for droughts and floods. Helping California adapt to an increasingly variable climate.

The PPIC Water Policy Center staff will work closely with a broad, interdisciplinary network of top researchers from around the state—and with a wide range of policymakers and stakeholders—to strengthen the bridge between research and real-world policy debates.

In conjunction with the launch of the PPIC Water Policy Center, PPIC is releasing California’s Water, a set of nine short policy briefs on the state’s most critical water management challenges and the actions needed to address them. This briefing kit is designed to inform state leaders and to raise awareness more broadly about the important water management issues facing the state.

We invite you to download California’s Water and visit our new PPIC Water Policy Center online. We also invite you to stay up to date with PPIC Water Policy Center activities:

Drought Watch: The End of the Rainy Season

This is part of a continuing series on the impact of the drought.

California’s rainy season is pretty much over. Most years, 85% of the wet season’s rain and snow has already fallen by late March. While rain often falls in April and May, it is rarely enough to make a big difference in the overall water picture, and the forecast is now quite dry.

That means California’s water managers now have a good idea how much water will be available in the state’s reservoirs, snowpack, and groundwater basins.

The news is not heartening. While parts of the north coast did fairly well, the rest of California did not. The Sierras received about half of annual average precipitation. And as the record warm temperatures of last year have persisted, the snowpack is at an all-time low (now 8% of average). As California’s struggling ski area operators know all too well, most precipitation fell as rain, rather than snow.

Statewide, reservoir storage is about half of capacity. However, the almost non-existent snowpack provides no prospect for improvement in storage this spring—something water managers count on in most years.

This fourth consecutive dry year have led to some dire, even apocalyptic predictions, including that California will run out of water within a year. While managing this drought will be difficult, even painful in some regions, the state is not going to run out of water and there is no need to panic. Rather, prudent adjustments to water scarcity that began earlier in the drought will continue and intensify. These include:

  • Increased urban conservation. Californians cut their per capita water use last year, but they can do more. In particular, there is ample room to reduce outdoor watering, which makes up roughly half of urban water use. The State Water Resources Control Board has tightened restrictions on outdoor water use, and many municipalities will increase their conservation efforts.
  • Increased water trading. Robust water markets, involving willing sellers and buyers, are an effective way to manage scarcity. The Australians found this to be helpful during their crippling Millennium Drought. California’s water market helped many farmers keep their orchards alive in 2014. This year, cities with dwindling drought reserves are also looking to buy water – as illustrated by the recent deal between Sacramento Valley rice farmers and Metropolitan Water District, Southern California’s large water wholesaler. As demand for trading increases, so will water prices.
  • Increased use of groundwater. Groundwater pumping has grown since the drought’s onset, but California’s reserves of groundwater remain large—particularly compared to surface storage. Groundwater will continue to make up shortfalls in surface water this year. Unfortunately, past failures to manage groundwater have lowered the water tables in many basins, making water more expensive to extract and often requiring drilling new, deeper wells. The new Sustainable Groundwater Management Act will eventually address this problem, but not soon enough for this drought.

In short, California is not running out of water, just cheap water. A fourth consecutive year of drought will make both water scarcity and management possibilities increasingly apparent.

Video: PPIC Statewide Survey Briefing

As discussions continue in Sacramento about drought relief, funding for higher education and transportation projects, and an extension of Proposition 30 tax increases, PPIC surveyed public opinion on these and many other topics. At a briefing last week in the capital, PPIC researcher Jui Shrestha provided the survey findings. Among the key points:

  • Two-thirds of Californians say the regional water supply is a big problem, and two-thirds say people in their part of the state are not doing enough to respond to the drought.
  • While most adults say that spending money on the maintenance of California roads, highways, and bridges is very important, there is little support for increasing the gasoline tax or vehicle registration fees to do so.
  • Half of Californians favor extending the Proposition 30 tax increases, and about a third favor making them permanent.

Caring About Delta Levees During a Drought

When the sun is shining and our rivers are low, we tend to forget about levees. However, you can’t ignore the 1,100 miles of levees in the Sacramento-San Joaquin Delta. These levees—dikes, actually—have high water against them 24 hours a day, 365 days a year. They protect the islands of the Delta from flooding that would occur daily because island elevations are well below sea level—more than 25 feet below in some places.

This video is a simulation of what would happen if a severe earthquake hit the western Delta, causing widespread failure of levees. The simulation is a worst-case scenario: failure occurs in the summer when freshwater inflow from rivers is low. (The most recent large flooding in the Delta took place on a clear day in June 2004.) As the water drains from the channels into the islands, it pulls saltwater into the Delta from San Francisco Bay. This renders the water too salty for use by the 25 million people more than 3 million acres of farms that rely upon it.

The management of Delta levees has been a policy challenge for many decades. Most levees are managed by local reclamation districts. They are of varying quality. Yet these levees affect the reliability of water supplies from the Delta. They protect lives, property, and important infrastructure, and they control river and estuarine habitat.

In the 2009 Delta Reform Act, the legislature assigned the Delta Stewardship Council the task of determining how to invest state funds in the levees. As highlighted in our recent report Paying for Water in California, the cost of improving Delta levees ranges from $1.6–$2.4 billion, while available state bond funds total less than $400 million. Recognizing that needs far outstrip available resources, the council has chosen to set policies for prioritizing investments. This is both necessary and fraught with controversy because it ultimately determines whose needs are to be met and whose will not.

PPIC, with our research partners at the UC Davis Center for Watershed Sciences, have published numerous assessments of this problem. Over the next few months we plan to post summaries of this work to help inform policymaking and prioritization. Come rain or shine, flood or drought, Delta levees—and the resources they protect—need the state’s attention.

Drought Watch: Treating Stormwater as a Resource

This is part of a continuing series on the impact of the drought.

This weekend, the Southland got some much needed rain. This storm helped fill local reservoirs and moisten parched soils—bolstering the region for a fourth year of drought. Unfortunately, too much of this stormwater simply ran straight into local rivers and the ocean, picking up numerous pollutants along the way. Local and state officials want to change this by developing programs that capture and store more stormwater—simultaneously reducing pollution and improving water supplies.

In California, it’s hard to pay for such programs, given our complicated laws on local water finance. To gather ideas about how the state might help, two Senate committees held a joint informational hearing last week. I provided some context on funding issues and opportunities, drawing on PPIC’s recent work on water system finance.

Stormwater is one of California water’s “fiscal orphans.” It faces a critical funding gap—on the order of $500 to $800 million annually—in large part because of constraints introduced by Proposition 218, a constitutional amendment approved by voters in 1996. Around this time, stormwater management changed. What was once the routine job of getting storm drainage out of streets as fast as possible became the much more difficult job of preventing the contents of this drainage—an often toxic mix of fuels, fertilizers, pesticides, animal waste, and trash—from harming our waterways and beaches. Proposition 218 introduced strict requirements on how to calculate the costs of these programs, and it also required that local voters—rather than their elected representatives—approve any fee increases. Local governments have been in a bind ever since. They are required by law to manage this pollution, but they face voter resistance to paying for cleanups that mainly affect people living in communities downstream.

The new interest in treating stormwater as a resource—not just a nuisance—is part of a welcome shift toward thinking about California’s water in a more holistic way. For too long, we have been managing different aspects of our water in isolation—with separate programs for water delivery, wastewater treatment, and management of floods and stormwater. If it is done right, capturing stormwater in rain gardens and wetlands can filter out the pollution while storing the water for later use. Recent court rulings and Assembly Bill 2403 (enacted in 2014) helped clarify that the costs of capturing stormwater for water supply can be included in the bills for water delivery. This makes better management easier: increases in water rates require customer oversight but not direct voter approval.

However, more action is needed because some of the costs of stormwater programs relate strictly to managing pollution. The legislature should consider other ways to help local agencies raise the needed funds. One promising direction involves expanding the scope of a 2001 law. This law (AB 810) authorized two Southern California water agencies to apply revenues from the extra charges on water bills for overwatering landscapes—a source of polluted runoff during the dry summer months—to stormwater programs. It’s worked well, and it would be easy to extend this authority to agencies around the state.

Another simple fix would be to let local agencies use their state transportation dollars—funded mainly by the tax on fuels—as matching funds for state grants that support stormwater projects. Under current rules, the state considers these transportation funds to be “state” monies, even though they are generated by local drivers and earmarked for local use. If those rules were changed, local governments that are revamping their streets to make them more bike- and pedestrian-friendly could also create rain gardens that capture, treat, and store stormwater—for a small added cost.

Steps like these are examples of low-hanging fruit that can help California get on a more sustainable path of managing its scarce water resources.

Drought Watch: Water Not Wasted to the Sea

This is part of a continuing series on the impact of the drought.

Northern California got a good soaking last weekend, with more than 10 inches of precipitation in many parts. This translated to healthy amounts of water flowing off the hillsides. Much of it is headed into our large reservoirs where—after three years of drought—there will be plenty of capacity to store it for later use for cities, farms, and the environment. But a significant amount made it into rivers in the Sacramento Valley. From there, that water is on its way to the Sacramento-San Joaquin Delta, San Francisco Bay, and ultimately the ocean.

To many, the notion of water to the ocean is akin to water wasted. It is perceived as serving no valuable purpose before mixing with salt water and being rendered useless.

This perception is understandable if we limit our thinking to benefits from direct use of water: manufacturing, industry, drinking, sanitation, or growing gardens and crops. But outside of improving habitat for native species, there are multiple indirect benefits derived from water currently running into the Delta.

The most conspicuous is improved water quality. January’s record low precipitation left the Delta unusually salty. A salty Delta poses problems for the more than 25 million people and more than three million acres of irrigated agriculture that make use of it. Salt is also a problem for farmers in the Delta who rely on local water for irrigation.

To keep the Delta fresh enough for exports and uses in the Delta during dry periods, water has to be released from upstream reservoirs. And a great deal of that released water has to pass through the Delta and into the Bay to keep salt water from encroaching on the Delta. The water used to create this hydraulic barrier cannot be recovered.

A wave of water coming down the Sacramento River freshens the Delta, naturally pushing the salty water out. Depending upon how we operate the export pumps, the effect of this flush can last a long time and allows dam operators to husband their stored water for use later in the year.

Last year, we had three of these flushing events in the late winter and early spring that cleaned up a very salty Delta. These events created benefits—by reducing dam releases necessary to keep things fresh—that lasted into the summer.

Indirect benefits of this water do not end at the Delta. Shorelines and marshes throughout the San Francisco Bay are eroding due to a lack of sediment. This is part of a long-term trend with many causes, but is largely due to the trapping of sediment upstream by dams and levees and a lack of sufficient river flows to move it out of the Delta and into the Bay.

Additionally, as the more than 20 operators of wastewater treatment plants in the Bay Area know, water quality is a major—and potentially very costly—issue of concern, particularly in the South Bay. Freshwater inflows to the Bay help improve water quality and help the Bay meet state and federal standards.

So when you see the brown water from this latest storm moving down the Sacramento River, out through the Delta into the Bay, keep in mind that it is hardly wasted, but rather is creating indirect but vital benefit for a broad range of users.

Commentary: Set Water Priorities to Prepare for Drought

This commentary was published today by the San Francisco Chronicle.

There are still two months left in the rainy season, but all indications are that California’s drought is extending into a fourth year — even with the soaking Northern California is expecting this weekend.

Already, state officials are making tough choices about priorities for water use. Nowhere is this more difficult than managing water for the environment . . .

(Continue reading on sfchronicle.com.)

Drought Watch: Managing—and Learning from—Scarcity

This is part of a continuing series on the impact of the drought.

California is entering a fourth year of drought. The welcome, wet conditions that appeared earlier this winter gave way to dryness during the latter half of December. Although forecasts suggest that wet weather may return later this month, the long-term moisture deficit is unlikely to be erased, leaving the state to continue grappling with water scarcity.

As unpleasant as droughts are, they offer an opportunity to assess how well prepared California is for managing its water resources. The usual approach to learning from droughts is to conduct assessments after the drought ends. Unfortunately, once the rains come—as they certainly will—the pressure to prepare for the next drought is greatly reduced.

Recognizing the need to learn from drought while it is ongoing, PPIC will hold a half-day conference on January 12 in Sacramento. The event, supported by the California Water Foundation, will include two keynote addresses—one on current drought conditions by the state climatologist and another from a member of the Australian National Water Commission on how that country managed an unprecedented, 13-year-long drought. In addition, there will be a conversation with four members of the California State Legislature on legislative priorities for addressing droughts. Finally, panels of state and local leaders will focus on institutional responses to the current drought and proposals for policy reforms in three areas:

Managing urban and agricultural water scarcity. To date, the consequences of the latest drought have varied greatly across California’s geographical regions and economic sectors. Impacts in large urban areas have been modest, while many smaller community water systems have faced significant shortages. Agriculture has been hit particularly hard, but the intensity of the crisis has varied depending on geography and availability of groundwater. The panel will explore wide-ranging proposals to reduce the effects of future droughts on urban and agricultural sectors.

Conserving ecosystems during drought. Acute water scarcity has posed a major challenge for the state and federal agencies charged with managing ecosystems that support fish and waterfowl. Difficult decisions, including temporary reductions in environmental standards and trade-offs between species, were made “on the fly” with limited scientific information. The panel will review lessons learned during this drought and consider new approaches.

Water allocation during drought. The state’s century-old law that governs water rights played a central role in managing the drought during 2014. For the first time since 1977, the State Water Resources Control Board had to restrict surface water use by some water rights holders. In addition, the board had to make tough choices about how to manage water for the environment and how to allocate water to protect public health. The panel will examine the strengths and weaknesses of the current approach to water rights, along with alternative approaches that might reduce conflict during drought.

The conference is now fully booked, with more than 400 participants registered to attend. But you can follow the proceedings via live webcast. PPIC will also post videos of the sessions after the event.

Drought Watch: What’s in Proposition 1?

This is part of a continuing series on the impact of the drought.

California voters are deciding the fate of Proposition 1—a $7.5 billion water bond. If Prop 1 passes, the water sector will get a big boost in funding. Prop 1 contains $7.12 billion in new debt (the remaining $400 million dollars is money that would be re-authorized from previously passed bonds).

So what kind of water projects will be funded if Prop. 1 passes? The bond focuses mainly on water supply ($3.6 billion) with the majority ($2.7 billion) designated as matching funds for storage projects. These matching funds are intended to support up to half the costs of projects that store water either in surface reservoirs or underground aquifers, and they can only be used to fund “public benefits.” Public benefits include, among other things, better flood protection and recreation opportunities, as well as improved environmental conditions. For instance, expanding surface reservoirs makes it possible to store more cold water, which can be released during warm months to support salmon habitat. Likewise, expanding ponds to recharge groundwater basins can create bird habitat.

The California Water Commission will determine which storage projects receive these funds through a competitive process. The rest of the water supply dollars are mainly for matching funds for water recycling and desalination projects ($725 million), with $100 million each for water conservation and groundwater sustainability planning.

Proposition 1 also has funds for the five areas PPIC has identified as critically underfunded “fiscal orphans” in our recent study of water system finance: ecosystems, drinking water quality, flood protection, stormwater pollution management, and integrated water resources management. Of the funds designated for water quality improvements, $520 million is intended for disadvantaged communities and $800 million is for cleaning up groundwater basins that have been contaminated with industrial and agricultural chemicals. Just over half a billion dollars is designed to encourage agencies to collaborate on water management priorities, with funds going to different regions for priority projects in Integrated Regional Water Management plans. These projects would overlap with the previously mentioned categories, and they would need to improve regional self-reliance and help adapt to the effects of climate change.

Since 2000, California voters have approved six water bonds, totaling nearly $20 billion dollars. These bonds looked a little different than Prop 1. Ecosystem improvement and flood protection were the main priorities, with smaller amounts for drinking water quality, integrated management, stormwater, and water supply projects (these bonds also had large amounts for parks and public access). While these bonds provided welcome support to these areas, they also came with fiscal tradeoffs: bonds are repaid with general fund tax dollars that also support other state programs.

The current drought is likely helping the bond’s chances of passage: according to the most recent PPIC Statewide Survey a record-high 68% of all adults say that the supply of water is a big problem in their part of the state. In this context, it is important to keep in mind that while continued investments in our water system will help us be better prepared for future droughts, this bond is not designed to provide immediate relief from the current one. Most water projects take time to design and build. And, whether or not Proposition 1 passes, the state’s water system will face significant challenges that require funding sources more reliable than a bond can provide.