Can Current Water Laws & Institutions Meet 21st Century Challenges?

Barton H. “Buzz” Thompson

Perry L. McCarty Director,

Woods Institute for the Environment

Robert E. Paradise Professor in Natural Resources Law

Federal Division of Responsibilities

Water quality

Species protection

Hydropower

Flood protection

Water allocation

Groundwater management

Water conservation

Federal State

The Critical Role of Public Water Agencies

Municipal SuppliersCity agencies (15%)

Public utilities (85%)

Agricultural SuppliersIrrigation districts

Water districts

Mutual water companies

Desirable Attributes

Sustainability

Integrated Management

Flexibility

Efficiency

Sustainability

Environmental Sustainability

Hanak et al (2009)

Sacramento – San Joaquin Delta

Resource Sustainability:Groundwater Overdrafting

Economic Sustainability

Integrated Management

Fragmented Governance

Fragmented Management of Surface Water & Groundwater

Cosumnes River (California)

Conjunctive Groundwater Management

Wet Growth

California Water Suppliers

All Water Suppliers with > 50,000 Customers

Findings:Few had taken steps in recent decades to protect watershed from encroachment

Mostly small acquisitions

Many now utilized watershed in manner that undercut water quality

E.g., logging

Flexibility

Water Markets Promise Adaptive Flexibility

Plus an Incentive to Conserve

San Diego

Imperial Irrigation District

And “Markets for Nature”

Trout CreekRanch

Deschutes Basin

Problem: The Law –Can You Transfer Conserved Water?

Poorly defined water rights

Junior claimsTransferor has been “wasting” water

Conflict between markets and regulation

Water is a public resource

Problem: Community Concerns

Conservation versus FallowingEconomic Studies

Short-term transfers generally have small impactTransfers of <20% water supplies generally have small impact

Problem: Is Any Water Really Being “Conserved”?

Problem: Dominance of Public Agencies

Holders of most water rights

Owners of most transportation facilities

“Entitlements” Also Undermine Flexibility

“Hetch Hetchy is San Francisco’s birthright.”

Efficiency

Water Pricing Policies

Tiered Pricing

Coachella Valley Water District (2009)

Questions?