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WATER POLITICS

As California faces one of its worst droughts in two decades, The New York Times reports that building projects are being curtailed for the first time under state law by the inability of developers to find long-term water supplies.  As the article notes:

“…Water authorities and other government agencies scattered throughout the state, including here in sprawling Riverside County, east of Los Angeles, have begun denying, delaying or challenging authorization for dozens of housing tracts and other developments under a state law that requires a 20-year water supply as a condition for building.

California officials suggested that the actions were only the beginning, and they worry about the impact on a state that has grown into an economic powerhouse over the last several decades.

The state law was enacted in 2001, but until statewide water shortages, it had not been invoked to hold up projects.

While previous droughts and supply problems have led to severe water cutbacks and rationing, water officials said the outright refusal to sign off on projects over water scarcity had until now been virtually unheard of on a statewide scale.

“Businesses are telling us that they can’t get things done because of water,” Gov. Arnold Schwarzenegger, a Republican, said in a telephone interview.

On Wednesday, Mr. Schwarzenegger declared an official statewide drought, the first such designation since 1991.

“…The water in our state is not sufficient to add more demand,” said Lester Snow, the director of the California Department of Water Resources. “And that now means that some large development can’t go forward. If we don’t make changes with water, we are going to have a major economic problem in this state.”

The words “crisis” and “water” have gone together in this state since the 49ers traded flecks of gold for food. But several factors have combined to make the current water crisis more acute than those of recent years.

An eight-year drought in the Colorado River basin has greatly impinged on water supply to Southern California. Of the roughly 1.25 million acre-feet of water that the region normally imports from that river toward the 4.5 million acre-feet it uses each year, 500,000 has been lost to drought, said Jeff Kightlinger, the general manager of the Metropolitan Water District of Southern California.

Even more significant, a judge in federal district court last year issued a curtailment in pumping from the California Delta — where the Sacramento and San Joaquin Rivers meet and provide water to roughly 25 million Californians — to protect a species of endangered smelt that were becoming trapped in the pumps. Those reductions, from December to June, cut back the state’s water reserves this winter by about one third, according to a consortium of state water boards….

…As the denied building permits indicate, the lack of sufficient water sources could become a serious threat to economic development in California, where the population in 2020 is projected to reach roughly 45 million people, economists say, from its current 38 million. In the end, as water becomes increasingly scarce, its price will have to rise, bringing with it a host of economic consequences, the economists said….”