The dry heat of summer has brought to mind visuals of the old “Westerns” where the landscape was desolate and gritty, as were the characters. So saddle up for this edition of the Water Current where we provide a few news stories that caught our attention this past month.
The Good
A research paper on environmental water transactions in the Colorado River Basin provides some hope that with just a little more effort and funding, ongoing water conservation efforts can help to enhance environmental instream flows and improve fish habitat. The research modeled various types of water transactions and found that strategically spending 8% more on water trades resulted in a 3x improvement in habitat. The research concludes that “strategic investing and legal reforms yield outsized ecological benefits.” WestWater has been tracking the environmental water market for over 20 years and past Water Market Insiders (2014 and 2020) have reported on this important segment of the Western water market. It makes up roughly one-third of the annual volume traded, typically through leases and creative deal structures. This new research should motivate renewed interest from state agencies, non-profits, and donors in supporting environmental water transactions as part of future management in the Colorado River Basin.
How WestWater Can Help: WestWater has a long history supporting environmental water transactions. Reach out to us if you’d like to learn more or are considering any at your organization.
The Bad
A large segment of the southwest U.S. has been in a prolonged period of below-average precipitation and streamflow for the past 20+ years. Many research studies point to this as evidence of aridification while many water managers hope that climate cycles will shift back to wetter conditions. A new research study suggests that the southwest U.S. may have continued drought conditions in its future because decades-long climate cycles are stuck in their current state. If these findings hold true, then water managers should plan for more of the same in terms of hydrologic conditions, which may prompt renewed efforts in demand management, water supply acquisition, and water storage projects.
How WestWater Can Help: The evaluation of financially feasible water supply alternatives is one of the core specialties of the WestWater team. We’d love to discuss the current state of your water supplies, help identify additional water supply sourcing options, and support acquisition planning and execution, if necessary.
The Ugly
Interstate water conflicts are one of the hallmarks of western water law, akin to famous historic battles. They are often characterized by years (or decades) of litigation, divergent technical studies, and unhappy parties. Unfortunately, it looks like Nebraska and Colorado are headed toward litigation over the 1923 South Platte Compact between the states, with Nebraska filing a lawsuit with the U.S. Supreme Court. Nebraska claims that Colorado continues to divert and use more water from the river basin that it is entitled, resulting in Nebraska not getting its agreed flows at the state-line. Nebraska is also claiming that Colorado is making it difficult to construct the Perkins County Canal to capture high flows and divert more water to Nebraska. Colorado denies these allegations and says that it has been adhering to the Compact requirements. The value of water in the South Platte River and the economic opportunity it provides to both states will likely be a subject that comes up during the legal conflict to support state positions.
How WestWater Can Help: While we aren’t lawyers, WestWater has supported clients through our Expert Witness services as well as providing reports monitoring water law, policy changes, and regulatory updates.
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“The Water Current” is a monthly news digest that provides brief summaries of interesting and timely news stories related to water economics and water markets in the Western United States. Our team tracks new developments in water policy, management, and conflicts, sharing articles relevant to their work and services.