What a difference a few weeks make. While severe drought still grips most of California, the drought may ever-so-slightly be losing its grip. Over the last few weeks, California received two large rainstorms that helped to alleviate some drought conditions. This week, more rain is on the way. AccuWeather projects that some areas of Northern California could see up to 5 inches of rain before the storm wraps up late this week. While this rain is certainly welcome news to all of us who live in California, we must also remember that adequate water storage capacity is the key to capturing the water that Mother Nature provides us. Continue reading
Is BDCP a Doable Deal Redux—Part 2
After reading the California Debt and Investment Advisory Commission’s study (“CDAIC Study”) on Bay Delta Conservation Plan (“BDCP”) financing considerations and risk, State Water Project (“SWP”) contractors and (especially) Central Valley Project (“CVP”) contractors should take a fresh look at the financial realities of relying on the BDCP. Unlike the study’s discussion of BDCP affordability, which was marred by economic flaws, the study offers a useful discussion of financing and risk that water agency board members should consider as part of their fiduciary duty in making BDCP decisions.
The study makes a good first step in scratching the surface of risk assessment of the BDCP. Prudence requires more risk assessment. Continue reading
Is The BDCP Doable—Redux, Part 1
Call me skeptical. After reading the California Debt and Investment Advisory Commission’s The Bay Delta Conveyance Facility: Affordability and Financing Considerations, my skepticism metastasized.
- The affordability analysis buries the cost of BDCP water—although it creates the opportunity for teachable moments in economics. (Part 1)
In contrast, the discussion of risk and financing considerations must be studied by anyone who has invested or intends to invest a nickel in the BDCP. (Part 2)
WARNING: you may regret your actions.
Water vs. Wildlife Part II: The Delta Smelt and California’s Water Supply
The drought gripping the Western United States has changed many things. Up until this year, we never had a zero percent allocation for the State Water Project. The media attention on the subject of water in California, including this week’s 60 Minutes segment on groundwater in the Central Valley, brings the issues we are facing in this state to the forefront of the general public. Despite these changes, a few things remain certain. Despite the recent rains, in the short-term, there is not enough water to satisfy all the demands of California’s water users. As such, citizens, business leaders and elected officials have to make the hard choices over which users should get limited water supplies.
As I mentioned in my Post last week, one of the most contentious debates over water allocation centers around the amount of water that we use for endangered species mitigation. Last week, I focused on the measures that the California Department of Fish and Game is taking to save the salmon populations in the state. This week, I will take a look at the smaller but no less contentious Delta smelt. This finger-sized fish has been the source of a series of contentious court battles and has affected the amount of water we can move through the Delta. In this piece, I will discuss the reasons behind the Delta smelt’s decline, the species’ effect on pumping in the Delta, and some recent court cases related to the fish. Continue reading