IMPACTS OF A SEVERE SUSTAINED DROUGHT ON COLORADO RWER WATER RESOURCES1

ABSTRACT: The impacts of a severe sustained drought on Colorado River system water resources were investigated by simulating the physical and institutional constraints within the Colorado River Basin and testing the response of the system to different hydrologic scenarios. Simulations using Hydrosphere's Colorado River Model compared a 38-year severe sustained drought derived from 500 years of reconstructed streamflows for the Colorado River basin with a 38-year streamflow trace extracted from the recent historic record. The impacts of the severe drought on streamflows, water allocation, storage, hydropower generation, and salinity were assessed. Estimated deliveries to consumptive uses in the Upper Basin states of Colorado, Utah, Wyoming, New Mexico, and northern Arizona were heavily affected by the severe drought, while the Lower Basin states of California, Nevada, and Arizona suffered only slight shortages. Upper Basin reservoirs and streamflows were also more heavily affected than those in the Lower Basin by the severe drought. System-wide, total hydropower generation was 84 percent less in the drought scenario than in the historical stream-flow scenario. Annual, flow-weighted salinity below Lake Mead exceeded 1200 ppm for six years during the deepest portion of the severe drought. The salinity levels in the historical hydrology scenario never exceeded 1100 ppm.     

A GAMING EVALUATION OF COLORADO RWER DROUGHT MANAGEMENT INSTITUTIONAL OPTIONS1

ABSTRACT: Researchers representing each of the Colorado River Basin states as well as the Secretary of the Interior were presented with an interactive computer simulation of a progressively increasing drought and were given the collective opportunity to change the ways in which basin-wide and within-state water management were conducted. The purpose of this “gaming” exercise was to identify rules for managing the Colorado River which are effective in preventing drought-caused damages to basin water users. This water management game was conducted three times, varying the collective choice roles for management of the river yet staying substantially within the current institution for management of the Colorado River known as the “Law of the River.” The Law of the River was quite effective in minimizing drought impacts upon consumptive water uses. Additional effective drought-coping measures to protect consumptive uses consisted mostly of intrastate water management improvements which states were able to implement independently. The Law of the River did not protect non-consumptive water uses, such as hydroelectric power generation, water-based recreation, endangered species, and water quality from drought, as well as it protected consumptive water uses. Players reached collective choice decisions to cope with rising salinity, equalize storage between the upper and lower basins, and protect endangered species. While these measures had some success, only reductions in withdrawals for consumptive uses, particularly in the upper basin, could have substantially lessened adverse impacts.     

MITIGATING IMPACTS OF A SEVERE SUSTAINED DROUGHT ON COLORADO RWER WATER RESOURCES1

ABSTRACT: We evaluated the effects of institutional responses developed for coping with a severe sustained drought (SSD) in the Colorado River Basin on selected system variables using a SSD inflow hydrology derived from the drought which occurred in the Colorado River basin from 1579–1616. Institutional responses considered are reverse equalization, salinity reduction, minimum flow requirements, and temporary suspension of the delivery obligation of the Colorado River Compact. Selected system variables (reservoir contents, streamflows, consumptive uses, salinity, and power generation) from scenarios incorporating the drought-coping responses were compared to those from Baseline conditions using the current operating criteria. The coping responses successfully mitigated some impacts of the SSD on consumptive uses in the Upper Basin with only slight impacts on consumptive uses in the Lower Basin, and successfully maintained specified minimum streamflows throughout the drought with no apparent effect on consumptive uses. The impacts of the coping responses on other system variables were not as clear cut. We also assessed the effects of the drought-coping responses to normal and wet hydrologic conditions to determine if they were overly conservative. The results show that the rules would have inconsequential effects on the system during normal and wet years.     

MANAGING THE COLORADO RIVER IN A SEVERE SUSTAINED DROUGHT AN EVALUATION OF INSTITUTIONAL OPTIONS1

ABSTRACT: This paper presents a summary of the findings and recommendations of the studies of severe, sustained drought reported in this special issue. The management facilities and institutions were found to be effective in protecting consumptive water users against drought, but much less effective in protecting nonconsumptive uses. Changes in intrastate water management were found to be effective in reducing the monetary value of damages, through reallocating shortages to low-valued uses, while only water banking and water marketing, among the possible interstate rule changes, were similarly effective. Players representing the basin states and the federal government in three gaming experiments were unable to agree upon and effect major changes in operating rules. The conclusions are (1) that nonconsumptive water uses are highly vulnerable to drought, (2) that consumptive uses are well-protected, (3) that drought risk is greatest in the Upper Basin, (4) that the Lower Basin suffers from chronic water shortage but bears little drought risk, (5) that opportunities exist for win-win rule changes, (6) that such rule changes are extremely difficult to make, and (7) that intrastate drought management is very effective ^m in reducing potential damages.     

THE LAW OF THE COLORADO RIVER: COPING WITH SEVERE SUSTAINED DROUGHT1

ABSTRACT: The waters of the Colorado River are divided among seven states according to a complex ‘Law of the River’ drawn from interstate compacts, international treaties, statutes, and regulations. The Law of the River creates certain priorities among the states and the Republic of Mexico, and in the event of a severe sustained drought, the Law of the River dictates the distribution of water and operation of the elaborate reservoir system. Earlier work indicated that there is remarkable resilience in the system for established uses of water in the Lower Basin of the Colorado River. This work shows, based on an application of the Law of the River using computer modeling of operations of facilities on the Colorado River, that there may be serious environmental consequences and related legal restraints on how the water is used in times of shortage and that the existing legal and institutional framework governing the Colorado River does not adequately address all the issues that would be raised in a severe sustained drought. Several possible legal options for dealing with drought in the context of the Law of the River are identified.     

SOCIAL IMPLICATIONS OF SEVERE SUSTAINED DROUGHT CASE STUDIES IN CALIFORNIA AND COLORADO1

ABSTRACT: Survey data collected in the San Joaquin Valley of southern California and the Grand Valley of western Colorado reveal that residents of both areas believe that a severe sustained drought is likely to occur within the next 20–25 years and that their communities would be seriously impacted by such an event. Although a severe sustained drought affecting the Colorado River Basin would cause major economic and social disruptions in these and other communities, residents express little support for water management alternatives that would require significant shifts in economic development activities or in water use and allocation patterns. In particular, residents of these areas express little support for strategies such as construction and growth moratoriums, mandatory water conservation programs, water transfers from low-to high-population areas, water marketing, or reallocations of water from agricultural to municipal/industrial uses. This rejection of water management strategies that would require a departure from “business as usual” with respect to water use and allocations severely restricts the capacity of these and similar communities to respond effectively should a severe sustained drought occur.     

USE OF A HYDROLOGIC MODEL IN A BASIN-WIDE WATER ALLOCATION PROCEEDING1

ABSTRACT: The Montana Department of Natural Resources and Conservation developed a hydrologic model to help analyze the effects of allocating water for consumptive and instream uses in the upper Missouri River basin of Montana. The model, a PC-based FORTRAN program, uses a mass-balance approach to compute monthly streamflows, reservoir operations, hydropower production, and irrigation and municipal water uses throughout the 54,000 square mile basin for a 59-year base period. Simulation results are presented as monthly mean and percentile-exceedence values. The model was run for baseline conditions and six hypothetical water-allocation alternatives. Results were used by staff resource area specialists to assess potential impacts to water quantity and distribution, water rights, water quality, stream channel form, fisheries, wildlife, recreation, hydropower production, and economics. These analyses were presented to the public and the decision-making board in an environmental impact statement (EIS). Though, in many instances, the model did not allow for detailed, site-specific analyses, the model was an important tool and its simulation results formed the hydrologic basis for the EIS.     

HYDROLOGIC SCENARIOS FOR SEVERE SUSTAINED DROUGHT IN THE SOUTHWESTERN UNITED STATES1

ABSTRACT: This paper considers the risk of drought and develops drought scenarios for use in the study of severe sustained drought in the Southwestern United States. The focus is on the Colorado River Basin and regions to which Colorado River water is exported, especially southern California, which depends on water from the Colorado River. Drought scenarios are developed using estimates of unimpaired historic streamflow as well as reconstructions of streamflow based on tree ring widths. Drought scenarios in the Colorado River Basin are defined on the basis of annual flow at Lees Ferry. The risk, in terms of return period, of the drought scenarios developed, is assessed using stochastic models.     

COMPETING WATER USES IN THE SOUTHWESTERN UNITED STATES: VALUING DROUGHT DAMAGES1

ABSTRACT: Economic benefit functions of water resource use are estimated for all major offstream and instream uses of Colorado River water. Specific benefit estimates are developed for numerous agricultural regions, for municipal uses, and for cooling water in thermal energy generation. Economic benefits of hydropower generation are given, as are those for recreation on Colorado River reservoirs and on one free-flowing reach. Marginal and total benefit estimates for Colorado River water use are provided. The estimates presented here represent a synthesis of previous work, providing in total a comprehensive set of economic demand functions for competing uses of Colorado River water. Non-use values (e.g., benefits of preserving endangered species) are not estimated.     

THE IMPACT OF STOCKWATERING PONDS (STOCKPONDS) ON RUNOFF FROM LARGE ARIZONA WATERSHEDS1

ABSTRACT: Major water rights adjudications involving the Little Colorado River Basin and Gila River Basin are presently underway within Arizona. Water resource managers are faced with the prospect of evaluating and regulating tens of thousands of water diversions and uses. Stockponds comprise a large percentage of the total number of water diversions within these basins. Water balance studies conducted on the Little Colorado River watershed above Lyman Lake and on the Gila River watershed above Solomon, Arizona, indicate that the impact of stockponds on the water available to downstream users is insignificant when compared to total watershed production. Considering that there are an estimated 25,000 stockponds in the Gila River basin alone, rigorous case-by-case investigations and stringent regulation of individual stockponds may be impractical and unwarranted. Therefore, stock-pond claims within the context of the general adjudication process may be effectively handled by partial summary judgment, thereby allowing the court to concentrate on major water users and water rights issues.     

ASSESSING ENVIRONMENTAL EFFECTS OF SEVERE SUSTAINED DROUGHT1

ABSTRACT: Evaluation criteria for reservoir and stream resources were developed to provide decision makers with feedback on environmental consequences of water allocation decisions under conditions of severe sustained drought within the Colorado River Basin by using the AZCOL gaming simulation model. Seven categories of flow dependent resources were identified which highlight resource states associated with reservoirs or river reaches within the AZCOL model. AZCOL directly simulates impact of water management decisions on five resource categories: threatened, endangered or sensitive fish; native nonlisted fish; wetland and riparian elements; national or state wildlife refuges; and hatcheries or other flow dependent facilities. Two additional categories - cold and warm water sport fish - are not modeled explicitly but are incorporated in the evaluation of monetary benefits from recreation on Colorado River waters. Each resource category was characterized at each time step in the simulation according to one of four environmental states: stable, threatened, endangered, or extirpated. Changes in resource states were modeled by time and flow-dependent decision criteria tied to either reservoir level or stream flows within the AZCOL model structure. Gaming results using the AZCOL model indicate environmental impacts would be substantial and that water allocation decisions directly impacted environmental resource states.     

THE TREE-RING RECORD OF SEVERE SUSTAINED DROUGHT1

ABSTRACT: Frequent and persistent droughts exacerbate the problems caused by the inherent scarcity of water in the semiarid to arid parts of the southwestern United States. The occurrence of drought is driven by climatic variability, which for years before about the beginning of the 20th century in the Southwest must be inferred from proxy records. As part of a multidisciplinary study of the potential hydrologic impact of severe sustained drought on the Colorado River, the physical basis and limitations of tree rings as indicators of severe sustained drought are reviewed, and tree-ring data are analyzed to delineate a “worst-case” drought scenario for the Upper Colorado River Basin (UCRB). Runs analysis of a 121-site tree-ring network, 1600–1962, identifies a four-year drought in the 1660s as the longest-duration large-scale drought in the Southwest in the recent tree-ring record. Longer tree-ring records suggest a much longer and more severe drought in 1579–1598. The regression estimate of the mean annual Colorado River flow for this period is 10.95 million acre-feet, or 81 percent of the long-term mean. The estimated flows for the 1500s should be used with caution in impact studies because sample size is small and some reconstructed values are extrapolations.     

WATER TRANSFERS AND THEIR IMPACTS: LESSONS FROM THREE COLORADO WATER MARKETS1

ABSTRACT: This paper presents an analysis of the effects of different institutional arrangements and economic environments on water markets. Characteristics of water rights transfers in the South Platte Basin of Colorado and transfers of shares of the Northern Colorado Water Conservancy District (NCWCD) are compared to show how different institutional arrangements can affect the types and size distributions of transfers. The characteristics of water rights transfers in the prosperous South Platte are then compared with water rights transfer characteristics in the economically marginal Arkansas River basin of Colorado to identify the effects of different economic environments. Finally, the economic losses from reductions in irrigated acreage resulting from water transfers are estimated for the South Platte and Arkansas and compared with purchase prices by municipalities. Transfers in the South Platte were to new uses in the same basin, while more recent transfers in the Arkansas were to out of basin users. Transfers of South Platte rights and especially NCWCD shares were small and continuous over time, while transfers in the Arkansas were dominated by a few very large transfers. The negative impacts are judged to be more severe in the Arkansas basin than in the South Platte. Purchase prices paid by municipalities substantially exceeded capitalized transitional losses in the selling areas. In the South Platte, gains and losses were in the same basin, while the Arkansas absorbed the losses, with the benefits going to the purchasing basin.     

USE OF STREAMFLOW INCREASES FROM VEGETATION MANAGEMENT IN THE VERDE RIVER BASIN1

ABSTRACT: Although the effects of vegetation management on streamflow have been studied in many locations, the effects of augmented streamflow on downstream water users have not been carefully analyzed. This study examines the routing of streamflow increases that could be produced in the Verde River Basin of Arizona. Reservoir management and water routing to users in the Salt River Valley around Phoenix were carefully modeled. Simulation of water routing with and without vegetation modification indicates that, under current institutional conditions, less than one-half of the streamflow increase would reach consumptive users as surface water. Most of the remainder would accumulate in storage until a year of unusually heavy runoff, when it would add to reservoir spills. Under alternative scenarios, from 39 to 58 percent of the streamflow increase was delivered to consumptive users.     

SALINITY ISSUES AND WATER DEVELOPMENT IN THE GREEN RIVER BASIN,WYOMING1

Water development in the Green River Basin of Wyoming is projected to increase salinity downstream in the Green River and Colorado River, and thereby increase salinity costs to users of water from these two rivers. Despite these water quality and economic impacts to downstream water users, Wyoming will probably be able to develop its currently unused but allocated water supplies of the Green River Basin. The Colorado River Compact and Upper Colorado River Basin Compact are binding, and protect Wyoming's share of the Colorado River System waters for future use. The argument that water may be used to greater profit downstream is not sufficient to reduce Wyoming's allocation. In addition, the no-injury rule under the appropriation doctrine of law does not appear to protect prior downstream appropriations from increasing salinity in this case.     

INSTITUTIONAL OPTIONS FOR THE COLORADO RIVER1

ABSTRACT: In many interstate river basins, the institutional arrangements for the governance and management of the shared water resource are not adequately designed to effectively address the many political, legal, social, and economic issues that arise when the demands on the resource exceed the available supplies. Even under normal hydrologic conditions, this problem is frequently seen in the Colorado River Basin. During severe sustained drought, it is likely that the deficiencies of the existing arrangements would present a formidable barrier to an effective drought response, interfering with efforts to quickly and efficiently conserve and reallocate available supplies to support a variety of critical needs. In the United States, several types of regional arrangements are seen for the administration of interstate water resources. These arrangements include compact commissions, interstate councils, basin interagency committees, interagency-interstate commissions, federal-interstate compact commissions, federal regional agencies, and the single federal administrator. Of these options, the federal-interstate compact commission is the most appropriate arrangement for correcting the current deficiencies of the Colorado River institution, under all hydrologic conditions.     

Conservation Opportunities for Securing In-Stream Flows in the Platte River Basin: A Case Study Drawing on Casper,Wyoming’s MunicipalWater Strategy

The Platte River Basin consists of tributaries largely in Wyoming, Colorado and Western Nebraska, with the main stem in Central Nebraska. Critical wildlife habitat on the main stem requires additional in-stream flows. The watershed is one hosting multiple resources, a variety of users, and managed by an array of state and federal agencies. This study proposes a basis for securing in-stream flows for the Platte River. Candidate water supply mechanisms are suggested based on the way in which Casper, Wyoming secured water for its municipal needs. Canal lining is compared to a dam project, increasing reservoir storage, and purchasing water rights, with consideration also made for water pricing to reduce municipal use. Comparisons are based on economic efficiency, potential water conservation, and property rights criteria. Canal lining, coupled with demand management, is shown to conserve water best, given the set of efficiency and cost criteria for in-stream flow enhancement. The approach offers an opportunity to organize the water supply choice context in a transboundary watershed when quantitative information is limited.     

Management of Water Shortage in the Colorado River Basin: Evaluating Current Policy and the Viability of Interstate Water Trading1

Wildman, Richard A., Jr. and Noelani A. Forde, 2012. Management of Water Shortage in the Colorado River Basin: Evaluating Current Policy and the Viability of Interstate Water Trading. Journal of the American Water Resources Association (JAWRA) 48(3): 411-422. DOI: 10.1111/j.1752-1688.2012.00665.x Abstract: The water of the Colorado River of the southwestern United States (U.S.) is presently used beyond its reliable supply, and the flow of this river is forecast to decrease significantly due to climate change. A recent interim report of the Colorado River Basin Water Supply and Demand Study is the first acknowledgment of these facts by U.S. federal water managers. In light of this new stance, we evaluate the current policy of adaptation to water shortages in the Colorado River Basin. We find that initial shortages will be borne only by the cities of Arizona and Nevada and farms in Arizona whereas the other Basin states have no incentive to reduce consumptive use. Furthermore, the development of a long-term plan is deferred until greater water scarcity exists. As a potential response to long-term water scarcity, we evaluate the viability of an interstate water market in the Colorado River Basin. We inform our analysis with newly available data from the Murray-Darling Basin of Australia, which has used interstate water trading to create vital flexibility during extreme aridity during recent years. We find that, despite substantial obstacles, an interstate water market is a compelling reform that could be used not only to adapt to increased water scarcity but also to preserve core elements of Colorado River Basin law.     

ECONOMIC COSTS AND BENEFITS OF INSTREAM FLOW PROTECTION FOR ENDANGERED SPECIES IN AN INTERNATIONAL BASIN1

ABSTRACT: The U.S. Endangered Species Act (ESA) restricts federal agencies from carrying out actions that jeopardize the continued existence of any endangered species. The U.S. Supreme Court has emphasized that the language of the ESA and its amendments permits few exceptions to the requirement to give endangered species the highest priority. This paper estimates economic costs associated with one measure for increasing instream flows to meet critical habitat requirements of the endangered Rio Grande silvery minnow. Impacts are derived from an integrated regional model of the hydrology, economics, and institutions of the upper Rio Grande Basin in Colorado, New Mexico, Texas, and Mexico. One proposal for providing minimum streamflows to protect the silvery minnow from extinction would provide guaranteed year round streamflows of at least 50 cubic feet per second in the San Acacia reach of the upper Rio Grande. These added flows can be accomplished through reduced surface diversions by New Mexico water users in dry years when flows would otherwise be reduced below the critical level required by the minnow. Based on a 44‐year simulation of future inflows to the basin, we find that some agricultural users suffer damages, but New Mexico water users as a whole do not incur damages from a policy that reduces stream depletions sufficiently to provide habitat for the minnow. The same policy actually benefits downstream users, producing average annual benefits of over $200,000 per year for west Texas agriculture, and over $1 million for El Paso municipal and industrial water users, respectively. Economic impacts of instream flow deliveries for the minnow are highest in drought years.     

WATER ALLOCATION POLICY MODELING FOR THE DONG NAI RIVER BASIN: AN INTEGRATED PERSPECTIVE1

Abstract: Recent water sector reforms and increased scarcity and vulnerability of water resources, combined with declining public funding available for large scale infrastructure investment in the sector, have led to a greater awareness by the Government of Vietnam for the need to analyze water resource allocation and use in an integrated fashion, at the basin scale, and from a perspective of economic efficiency. In this study we focus on the development, application, and selected policy analyses using an integrated economic hydrologic river basin model for the Dong Nai River Basin in southern Vietnam. The model framework depicts the sectoral structure and location of water users (agriculture, industry, hydropower, domestic, and the environment) and the institutions for water allocation in the basin. Water benefit functions are developed for the major water uses subject to physical limitations and to constraints of system control and policy. Based on this modeling framework, we will analyze policies that can affect water allocation and use at the basin level, including both basin-specific and general macroeconomic policies.