Towards a Grand Bargain on California Water Policy

When it comes to water policy in California, perhaps the people are more savvy than the special interests. Because the people, or more precisely, the voters, by huge majorities, have approved nine water bonds in the past 25 years, totaling $27.1 billion. It is likely they’re going to approve another one this November for another $8.9 billion.

The message from the people is clear. We want a reliable supply of water, and we’re willing to pay for it. But the special interests – or whatever you want to call the collection of politicians, unelected bureaucrats with immense power, and other stakeholders who actually decide how all this money is going to be spent – cannot agree on policy. A recent article in the Sacramento Bee entitled “Why San Francisco is joining Valley farmers in a fight over precious California water,” says it all. “Precious California water.” But what if water were so abundant in California, it would no longer be necessary to fight over it?

As it is, despite what by this time next year is likely to be $36 billion in water bonds approved by voters for water investments since 1996, the state is nowhere close to solving the challenge of water scarcity. As explained in the Sacramento Bee, at the same time as California’s legislature has just passed long overdue restrictions on unsustainable groundwater withdrawals, the political appointees on the State Water Resources Control Board are about to enact sweeping new restrictions on how much water agricultural […] Read More

How Much California Water Bond Money is for Storage?

Californians have approved two water bonds in recent years, with another facing voters this November. In 2014 voters approved Prop. 1, allocating $7.1 billion for water projects. This June, voters approved Prop. 68, allocating another $4.0 billion for water projects. And this November, voters are being asked to approve Prop. 3, allocating another $8.9 billion for water projects. This totals $20.0 billion in just four years. But how much of that $20.0 billion is to be invested in water infrastructure and water storage?

Summaries of how these funds are spent, or will be spent, can be found on Ballotpedia for Prop. 1, 2014, Prop. 68, 2018 (June), and the upcoming Prop. 3, 2018 (November). Reviewing the line items for each of these bonds and compiling them into five categories is necessarily subjective. There are several line items that don’t fit into a single category. But overall, the following chart offers a useful view of where the money has gone, or where it is proposed to go. To review the assumptions made, the Excel worksheet used to compile this data can be downloaded here. The five categories are (1) Habitat Restoration, (2) Water Infrastructure, (3) Park Maintenance, (4) Reservoir Storage, and (5) Other Supply/Storage.

California Water Bonds, 2014-2018 – Use of Funds ($=millions)

The Case for More Water Storage

It isn’t hard to endorse the projects funded by these water bonds. If you review the line items, there is a case for […] Read More

California’s Transportation Future, Part Four – The Common Road

With light rail, high speed rail, and possibly passenger drones and hyperloop pods just around the corner, it’s easy to forget that the most versatile mode of transportation remains the common road. Able to accommodate anything with wheels, from bicycles and wheelchairs to articulated buses and 80 ton trucks, and ranging from dirt tracks to super highways, roads still deliver the vast majority of passenger miles.

As vehicles continue to evolve, roads will need to evolve apace. Roads of the future will need to be able to accommodate high speed autonomous vehicles. They will also need to be smart, interacting with individual vehicles to safely enable higher traffic densities at higher speeds. But can California build roads competitively? How expensive are road construction and maintenance costs in California compared with other states in the U.S.? How can California make the most efficient use of its public transportation funds?

PHYSICAL VARIABLES AFFECTING CONSTRUCTION COSTS

The Federal Highway Administration maintains a cost/benefit model called “HERS” (Highway Economic Requirements System) which they use to evaluate highway construction and highway improvement projects. One of the products of HERS is the FHWA’s most recent summary of road construction costs, updated in 2015. Its findings reveal both the complexity facing any cost analysis as well as the wide range of results for similar projects.

For example, on the FHWA website’s HERS summary page, Exhibit A-1 “Typical Costs per Lane Mile Assumed in HERS by Type of Improvement” data is presented in nine columns, each representing […] Read More

California’s Failure to Store Water Exemplifies its Political Dysfunction

In 2017, when cracks appeared in the Oroville Dam’s spillway, more than 180,000 Californians faced the prospect of floods. The emergency came a few years after Californians had overwhelmingly approved Proposition 1, a ballot measure to spend $7.1 billion on water-storage projects. In the drought-stricken Golden State, where runoff from rain and snowmelt races uselessly into the Pacific Ocean, the proposition won wide support, with voters approving it, two-to-one. But four years after passage, the state water commission has yet to assign a dime of funding for storage.

California once performed miracles in building infrastructure to quench the thirst of its residents and agricultural producers. In the 1960s, Governor Pat Brown oversaw construction of the San Luis Reservoir, capacity 2 million acre-feet. Approved for construction in 1963, it was completed by 1968—five years from start to finish. Those days are long gone. Any surface-storage project now faces years of litigation from environmental groups such as the powerful Sierra Club. At every stage in the construction process, delays of months or years ensue to resolve well-funded lawsuits launched under every conceivable pretext, from habitat destruction to inundation of Native American artifacts.

Nevertheless, the California Water Commission has finally announced its plans to fund new projects with the money from Proposition 1. Many Californians were surprised to learn that the proposition’s fine print stipulated that only a third of the money was ever intended to fund water storage. The rest is earmarked for other […] Read More

Why California’s Global Warming Solutions Act is Misguided Policy

California policymakers are expanding their war on “climate change” at the same time as the rest of the nation appears poised to reevaluate these priorities. […] Read More

How Much Water Went Into Growing the Food We Eat?

The average household purchases a relatively trivial amount of water from their utility, when compared to how much water they purchase in the form of the food they eat. For this reason, reducing residential water consumption will not make much of a difference when it comes to mitigating the effects of a prolonged drought.

To illustrate this point, it is necessary to determine just how much water is available to Californians, and how much of that water is being consumed by residential households in California. When making this analysis, one must not only estimate how much water California’s households purchase from their utility, but how much water is embodied in the food they eat.

TOTAL ANNUAL WATER SUPPLY AND USAGE IN CALIFORNIA

Here’s a rough summary of California’s annual water use. In a dry year, around 150 million acre feet (MAF) fall onto California’s watersheds in the form of rain or snow, in a wet year, we get about twice that much. [1] Most of that water either evaporates, percolates, or eventually runs into the ocean. In terms of net water withdrawals, each year around 31 MAF are diverted for the environment, such as to guarantee fresh water inflow into the delta, 27 MAF are diverted for agriculture, and 6.6 MAF are diverted for urban use. [2] Of the 6.6 MAF that is diverted for urban use, 3.7 MAF is used by residential customers, and the rest is used by industrial, commercial and government customers. [3]

Put another way, we […] Read More

How Gov’t Unions and Crony Capitalists Exploit Global Warming Concerns

If anyone is looking for evidence that government unions use their immense influence to support the growth of an authoritarian state, look no further than their unequivocal support for global warming “mitigation,” and all attendant agencies and laws to support that goal.

In 2006 California’s union-controlled legislature passed AB32, the “Global Warming Solutions Act,” a measure that was touted as a trailblazing breakthrough in the dire challenge to avoid catastrophic climate change. The premise behind AB32 is that CO2 is a dangerous pollutant, and that eliminating CO2 emissions is necessary to prevent the planet’s climate from overheating, with all the apocalyptic consequences; rising oceans inundating coastal regions, epic droughts cascading through the world’s fragile forests and killing them, extreme storms, acidic oceans, collapsing agriculture – the end of life as we know it.

Maybe that’s true – and maybe not – but how it’s being managed is a corrupt, misanthropic, epic scam.

If anyone is looking for evidence that government unions and crony capitalists work together – contrary to the conventional wisdom that presents the appearance that they are in conflict – again look no further than their shared support for global warming mitigation, expressed in the legislative mandate to reduce CO2 emissions. AB 32 implements this by forcing industrial entities to purchase permits to emit progressively smaller quantities of CO2, via an auction process that is expected to raise $20 billion per year to finance renewable energy investments.

Think about how government unions will […] Read More

When Will Unions Fight to Lower the Cost of Living?

A report issued earlier this year from California’s Office of Legislative Analyst “California’s High Housing Costs: Causes and Consequences,” cites the following statistics: “Today, an average California home costs $440,000, about two–and–a–half times the average national home price ($180,000). Also, California’s average monthly rent is about $1,240, 50 percent higher than the rest of the country ($840 per month).”

It’s actually much worse than that. Anyone living on California’s urbanized coast, from Marin County to San Diego, has to laugh at the idea that a modest home can be found for anywhere close to $440,000, or a decent rental can be found for anywhere close to $1,240 per month. In most urban areas within 50 miles of the California coast, finding a home or a monthly rental at twice those amounts would be considered a bargain.

These prohibitive costs for housing are mirrored in California’s unusually high costs for electricity, gasoline, water, and, of course, California’s unusually high taxes. The cost of living in California is one of the highest in the nation – along the coast, it’s probably the highest in the nation. For this reason, it’s completely understandable that California’s state and local government unions perpetually agitate for higher pay and benefits for their members. But they’re leaving everyone else behind.

The problem with the oft-repeated mantra “teachers, nurses, police and firefighters need to be able to live in the communities they serve” ought to be obvious. Nobody can afford to live in these communities, unless they’re […] Read More

Desalination Plants vs. Bullet Trains and Pensions

Current policy solutions enacted to address California’s water crisis provide an object lesson in how corruption masquerading as virtue is impoverishing the general population to enrich a handful of elites. Instead of building freeways, expanding ports, restoring bridges and aqueducts, and constructing dams, desalination plants, and power stations, California’s taxpayers are pouring tens of billions each year into public sector pension funds – who invest 90% of the proceeds out-of-state, and the one big construction project on the table, the $100B+ “bullet train,” fails to justify itself under virtually any credible cost/benefit analysis. Why?

The reason is because infrastructure, genuinely conceived in the public interest, lowers the cost of living. This in-turn causes artificially inflated asset values to fall, imperiling the solvency of pension funds – something that would force them to reduce benefits. Beneficial infrastructure is also a threat to crony capitalists who don’t want a business climate that attracts competitors. Affordable land, energy, and water encourage economic growth. Crony capitalists and public sector unions alike hide behind environmentalists, who oppose growth and development, all of it, everywhere – because no new developments, anywhere, suits their monopolistic interests. No wonder the only infrastructure vision still alive in California, the “bullet train,” is nothing more than a gigantic, tragic farce.

Urban Water Consumption is a Small Fraction of Total Water Use

Returning to the topic of water, a basic examination of the facts reveals the current drought to be a problem that could be easily solved, if it weren’t for […] Read More

The Abundance Choice

The prevailing challenge facing humanity when confronted with resource constraints is not that we are running out of resources, but how we will adapt and create new and better solutions to meet the needs that currently are being met by what are arguably scarce or finite resources. If one accepts this premise, that we are not threatened by diminishing resources, but rather by the possibility that we won’t successfully adapt and innovate to create new resources, a completely different perspective on resource scarcity and resource policies may emerge.

Across every fundamental area of human needs, history demonstrates that as technology and freedom is advanced, new solutions evolve to meet them. Despite tragic setbacks of war or famine that provide examples to contradict this optimistic claim, overall the lifestyle of the average human being has inexorably improved across the centuries. While it is easy to examine specific consumption patterns today and suggest we now face a tipping point wherein shortages of key resources will overwhelm us, if one examines key resources one at a time, there is a strong argument that such a catastrophe, if it does occur, will be the result of war, corruption, or misguided adherence to counterproductive ideologies, and not because there were not solutions readily available through human creativity and advancing technology.

Energy, water and land are, broadly speaking, the three resources one certainly might argue are finite and must be scrupulously managed. But in each case, a careful examination provides ample evidence to contradict this claim. […] Read More