Author Archives: Rodney T. Smith

About Rodney T. Smith

Rodney T. Smith, Ph.D., President of Stratecon Inc.—an economics and strategic planning consulting firm—advises public and private sector water users on the acquisition, sale and leasing of water rights and water supplies in the western U.S. He is routinely involved in economic valuation of water rights, water investments, and negotiation of water acquisition and transportation agreements and has served as an expert witness in the economic valuation of groundwater resources, disputes over the economic interpretation of water contracts, economics of water conservation and water use practices, and the socio-economic impacts of land fallowing. For more information, see www.stratwater.com.

A Lesson for Water Quality Regulation: Listen to Prices in Credit Markets

EPA’s Ethanol Regulation provides an informative case study for the water industry about regulation.  Defining tradable rights in regulatory targets provides flexibility in achieving regulatory goals.  Probably equally as important is that the prices established in those markets provide immediate feedback on the economic impact of regulation.  Continue reading →

Will There Be Buyers of Bay Delta Conservation Plan Water?

Beats me!  Let’s see.

California’s Department of Water Resources (“DWR”) argues that BDCP water is a bargain.  I do not find the pitch compelling.  The cost of water is understated.  The BDCP water supply is “non-firm” and not at all comparable to alternatives discussed.  What should be done?  Use a subscription process and find out if federal and state water contractors are willing to enter into contracts to purchase BDCP water.  Continue reading →

State Legislator Calls for Texan Interstate Comity and A New Policy Direction

State Representative Lyle Larson (R-San Antonio) recently called for a new bold plan to solve the Lone Star state’s outsized water challenges in a guest column in the Waco Tribune Herald.  He proposed “an open dialogue with our neighboring states and investing in new technology to bolster our state’s water supply, rather than relying on the same approaches that have failed to provide us a water supply for future generations.”  He finds Texas’s future can be found outside courtrooms and in conjunctive groundwater-surface water projects based on interstate cooperation. Continue reading →

Does the Bay Delta Conservation Plan Yield a Reliable Water Supply?

Nope.

Remarkably, DWR’s operational studies suggest that the BDCP’s water supply benefits are mostly in normal and wet years.  Supply reliability means the ability of a water resource to provide water in drought conditions.  The BDCP mantra about water supply reliability has stood the concept on its head.  The missing link: storage.  Without it, the BDCP project looks like a new junior priority water resource for California water users.  Continue reading →