Videos Highlight Water Finance Event

The drought has focused attention on water supply and highlights the crucial role of funding in supporting our water system, said Ellen Hanak, PPIC senior fellow, at a half-day conference PPIC hosted last week at the Sacramento Convention Center. The conference focused on the issues highlighted in the PPIC report Paying for Water, which pinpoints funding gaps in five key areas of water management. Hanak opened the conference with a presentation of her report, starting with an overview of how California pays for water. She noted that state general obligation bonds make up just a small part of the $30 billion spent annually on the water system.Most funding, about 85 percent, comes from local sources—rates, fees, and taxes. However, legal obstacles make it difficult for local agencies to raise money. Hanak then summarized the areas in which the state is failing to deliver the level of services California residents expect. She closed with a roadmap of recommendations for funding reform.

In the first panel discussion, experts from local water agencies and the governor’s office took up the issue of “fiscal orphans” for which there is no clear revenue stream—areas such as flood control, stormwater, and safe drinking water for small, disadvantaged communities. panelists talked about their challenges and successes in building better integrated systems in these orphan areas.

The second panel tackled a series of tough questions: How can the state partner with local and regional agencies to improve water management? What has the state done well and what can it do differently? Panelists with both state and local perspectives joined this lively discussion.

The third panel considered some of the legal challenges posed by Propositions 218 and 26. Panelists said these constitutional amendments have pushed water authorities to be more transparent in their use of taxpayer funds. But the measures and the courts’ interpretations of them have also made it more difficult to fund water solutions.

Drought Watch: Saving the Fish

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

In a recent California WaterBlog post, Peter Moyle of the University of California, Davis—a frequent collaborator on PPIC projects—highlights an issue not much discussed in the context of this drought: we ignore fish and wildlife at our peril. California is home to 122 different species of native fishes, including 32 kinds of salmon and trout. These fishes are part of the unique natural heritage of California and, as Moyle points out, most are on a trajectory toward extinction. A poorly managed drought can hasten this process.

State and federal laws that protect endangered species reflect the high value society places on native biodiversity. The sweeping Delta Reform Act of 2009, passed by bipartisan majorities, went a step further, placing ecosystem health on par with water supply reliability. Above all, history shows that failure to manage fish and wildlife well during a drought can have very expensive long-term consequences for water management once the rains return.

So what, if anything, is being done for fish in this drought?

The short answer is “not much.” Most discussion at both the state and federal levels has focused not on whether to relax environmental standards, but on how much to relax them. In the coming weeks many petitions will be filed with the State Water Resources Control Board for exemptions from water quality and flow standards. The board has already exempted the Central Valley Project and the State Water Project from meeting flow standards for the Sacramento–San Joaquin Delta, which is home to many endangered fishes, including salmon and steelhead. The emergency drought legislation making its way through the state legislature includes significant sums to provide relief to communities hard hit by the drought, but very little to help reduce stress on the environment. On the federal level, the legislation pending in the House would reduce protections for the environment, while the Senate bill—introduced by California’s two U.S. senators—offers little to improve conditions for fish.

Moyle points out that although native fishes adapt well to drought, they are hampered by the many modifications we have made to our rivers, the way we manage water, and our policies regarding fish harvests and hatcheries. He offers some well-known prescriptions for drought management and some novel ideas, including trucking fish to cool water sources and establishing fish triage panels with the authority to allocate water to keep fish alive through a drought. Equally important, his post reminds us that the actions that help the environment most during a drought are those taken long before the drought begins.

 

Drought Watch: A Better Way to Manage Water for Fish

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

As California’s drought wears on, state and federal regulators will be under increasing pressure to loosen environmental standards that protect native fish and other wildlife. Relaxing flow standards in rivers and streams is always problematic; the standards exist because many native species are already in a precarious condition. But during droughts, regulators often make this decision as part of a balancing act, in order to make additional water available to cities and farms. Usually, the standards are relaxed without requiring any payment from cities or growers for the added water they receive. Yet the environmental consequences of relaxing standards can be costly, requiring special efforts to protect and recover species in other ways—such as with conservation hatcheries that help maintain populations of endangered species outside of their natural environment.

In a recent op ed in the Sacramento Bee, we joined a group of researchers from UC Davis, UC Hastings, and Stanford University to propose a new way for California to approach this challenge. The basic idea: instead of giving the water away, California should create a special environmental water market to sell to growers and cities the water made available by relaxing environmental standards. The revenues would be used to support fish and wildlife recovery. This special environmental market would be an extension of the water trading that already happens during droughts. It would help meet California’s goals of both ensuring reliable water supplies and protecting the environment, even during the dry times.