THE ENHANCED ROLE OF WATER CONSERVATION IN THE COST-BENEFIT ANALYSIS OF WATER PROJECTS1

The concept of water conservation has increased in importance because of revisions in the rules and procedures for performing cost-benefit analyses of federal water projects. These revisions include a requirement that nonstructural and water conservation measures be incorporated into economic assessments of projects. Project analyses will now proceed as if water supplies were allocated “most effectively,” that is, to their highest valued uses. A related requirement provides that the net benefits of any project should now be valued using willingness to pay measures. A specific cost-benefit methodology accommodating the revisions is constructed and discussed. Informational requirements for applying this methodology are identified. In addition to being consistent with federal mandates, this technique offers important advantages over the traditional “requirements” approach to water supply planning.     

EMERGING CONCEPTS FOR THE CONDUCT OF STATE WATER RESOURES PLANNING1

ABSTRACT: The development of water resources planning at the state level is discussed. Although there are significant specific differences among state planning programs, some common general principles of state water resources planning are emerging over time. In the interest of reconciling conflict over water allocation states are engaged in policy clarification, mediation of interst group conflict, and provision of baseline information.     

STATE WATER CONSERVATION STRATEGIES AND ACTIVITIES1

States have the potential to play a major role in moving water conservation from conferences and reports that identify its advantages to actual practice. The research identifies four generic “strategies” that categorize the states' approaches toward conservation and reports on the states' current conservation activities. The four strategies are: reliance on agricultural advisors, leverage incentives, performance standards, and mandatory actions. Four levels of state conservation activity exist. California and Florida maintain the most extensive programs; Arizona, Massachusetts, New Jersey, North Carolina, and Oklahoma also have numerous programs but significantly lower staff commitments; eight additional states maintain more modest conservation effotts. Elsewhere, state directed conservation actions remain minimal and limited to those provided as agricultural advice. The study found support for water conservation the norm among water supply planners.     

CHANGES IN WATER POLICY IN THE PEOPLE'S REPUBLIC OF CHINA1

ABSTRACT: Ideology has predisposed the People's Republic of China against the use of prices to allocate water. Prolonged drought in north China has made the Chinese more aware of their unfavorable water resource inventory and the expense of expanding supply. Therefore, as part of the economic liberalization commenced since the death of Mao Zedong, China has started to make more active use of pricing to regulate demand and reduce the need for supply expansion.     

CONSERVATION PRACTICES AND ATTITUDES AMONG MARYLAND WATER SUPPLY MANAGERS1

ABSTRACT: In addition to offsetting water supply shortages, water conservation is recognized as serving many purposes, ranging from reduced energy consumption to lower capital costs. Since the discussion of these benefits has been a recent development and has generally excluded local water supply managers, a question arises as to whether supply managers are implementing conservation programs to exploit these benefits. A survey of the managers at 35 Maryland water utilities provides insight into the prevailing attitude toward conservation in a water rich eastern state. The results indicate that most managers continue to view conservation only as a short term response to temporary supply shortages. Only 12 Maryland utilities have undertaken any form of water conservation activity and just two systems have ongoing, comprehensive conservation programs. Institutional, perceptual, economic, political, and time constraints all contribute to the managers’attitudes and general inaction. If water conservation is to be widely practiced, these issues must be addressed and the benefits attributed to conservation must be better documented and articulated to supply managers.     

WATER SUPPLY FORECASTING IN REAL-TIME1

ABSTRACT: A strategy is developed for making seasonal water supply forecasts in real time. It links the traditional regression based forecasting techniques to real-time data acquired by systems such as the Soil Conservation Service SNOTEL and the U.S. Bureau of Reclamation Hydromet networks. The concept is based on interpolating between the forecast values obtained by using real-time data in the forecast equations that bracket the real time. Different interpolation procedures were examined and the procedure for calculating confidence intervals about the forecast estimates is developed. The entire conceptual procedure is demonstrated using data from the Reynolds Creek, Idaho, experimental watershed maintained by the USDA-ARS Northwest Watershed Research Center in Boise, Idaho.     

IMPACT OF DROUGHT ON QUALITY OF POTENTIAL WATER SUPPLY SOURCES IN THE SANGAMON RIVER BASIN1

ABSTRACT: The analysis of stream flow and several water quality parameters in six Illinois rivers showed both deterioration and improvement in quality indicators during 1976–1977 drought. The adverse impacts were an increase of ammonia and manganese concentrations and, to a lesser degree, increased concentrations of phenol and specific conductance. At the worst point during the drought, the 12-month moving average of monthly ammonia concentration in the Sangamon River was about 620 percent higher than the antecedent value. On the other hand, average concentrations of nitrites and nitrates, total iron, and the number of coliform bacteria significantly decreased. This positive response suggests that streams which are considered unsuitable for municipal supply due to high levels of these quality indicators may be used as emergency sources during droughts.     

IMPACT OF DROUGHT ON QUALITY IN A NEW JERSEY WATER SUPPLY SYSTEM1

ABSTRACT. New Jersey, together with other states in the northeast, was stricken with drought during 1961-66. The effect of this drought was most severe in the northern part of the State. The water quality of the Passaic River, which drains the urban, industrialized northeast, perhaps deteriorated the most among the major drainage systems. This river system is used as a raw-water source by 10 water suppliers. The impact of the drought upon the water supply of the Passaic Valley Water Commission, the most downstream of the basin's suppliers, which supplies an average of about 90 million gallons a day to more than 650,000 persons, is evaluated herein. The drought's impact on the raw-water quality is appraised by the comparison of before-and-after qualities of dissolved solids, dissolved oxygen, biochemical-oxygen demand, turbidity, and hardness. For example, at the worst point during the drought, monthly average dissolved-solids content in the raw water were about 210 percent, hardness, about 167 percent, and biochemical-oxygen demand about 270 percent higher than antecedent values. In general, the study concludes that the drought produced a deterioration in both raw and finished water quality, and is estimated to have increased chemical-treatment costs during the drought by about $650,000.     

THE CONTINUING EVOLUTION OF AN AUSTRALIAN WATER RESOURCES POLICY1

ABSTRACT: Australia's extremely limited water resources highlight the need for policy guidelines for management. During the 1970s, there was the gradual evolution of a national water resources policy, facilitated by a nationally agreed statement of objectives and culminating in a federal policy statement presented in 1979. However, the Australian constitution gives major responsibility for water resources to the states. Further, the federal policy statement seems to assume that each state has a water resources policy and that it accords with the nationally agreed objectives. This is not the case, and the practical management of Australia's water resources falls short of the principles set out in the policy document. The River Murray, the nation's major water resource, provides ample evidence of this fact. With very limited water resources, Australia urgently needs to reduce the disparity between principle and practice in their management.     

IMPACT OF WATER CUTBACK ON SUGARCANE PRODUCTION IN THE FLORIDA EVERGLADES1

ABSTRACT: Sugarcane (Saccharum spp.) was planted in six lysimeters containing Pahokee muck (Lithic Mediaprist) where water tables were maintained at 30, 60, and 90 cm depths. The main objective was to study the impact of a 40 percent water cutback (108 mm) on sugarcane production during the period near the end of the dry season (i.e., May). The water cutback treatment was simulated through manipulation of water table depth. Due to the high available water capacity of the muck soil and selection of a sugarcane cultivar ‘CP63-588’ (which has a high tolerance of water table fluctuations), the sugarcane growth, and the yields of sugarcane biomass and sugar were not significantly different as a result of the treatments with and without 40 percent water cutback during a period of two months. This result is in good agreement with the 1981 cane yield in the Everglades Agricultural Area where a 35 percent water cutback was imposed during the 1981 drought.     

PERCEIVED WATER QUALITY AND THE VALUE OF SEASONAL HOMES1

ABSTRACT: The impact of degraded water quality on the value of seasonal homes adjacent to St. Albans Bay on Lake Champaign in northern Vermont is estimated using hedonic price functions. The Value of properties located adjacent to the bay are depressed by about 20 percent, or $4,500 on average, compared with similar nearby properties on the larger but cleaner lake. Water quality degradation resulted in decressed property values of approximately two million dollars in the area surrounding the Bay.     

NONPRICE WATER CONSERVATION PROGRAMS AS A DEMAND MANAGEMENT TOOL1

ABSTRACT: Water providers nationwide are implementing nonprice conservation measures such as education, public information, appliance retrofit and ordinances, with the expectation that these programs will reduce residential water demand. However, little empirical information exists on the effectiveness of nonprice conservation programs in reducing water demand. Previous econometric studies indicate these programs have had minimal impact. We examine the types and number of major nonprice conservation programs that have been implemented during an 11-year period in seven cities in the southwestern United States. A cross sectional, monthly time series residential water demand model, with parameters to control for variation in prices, temperature, precipitation and other factors, was used to empirically investigate the effectiveness of nonprice conservation programs in reducing water demand. We found significant reductions in use ranging between 1.1 percent and 4.0 percent per program. Because of the lack of information, we were unable to distinguish the effectiveness of individual or specific types of programs. Beyond finding that nonprice programs can be effective in reducing demand, questions regarding the efficiency and benefits to be achieved by conservation remain. As a step towards separating and evaluating the effects of individual programs, program benefits and efficiency, we recommend that utilities maintain more detailed and consistent information regarding the implementation of their nonprice programs.     

CAPITAL COSTS OF RURAL WATER SYSTEMS: AN EMPIRICAL APPROACH1

ABSTRACT: In the last two decades the federal government has provided substantial capital to construct rural water distribution systems. Loans at subsidized interest rates and front-end grants through the Farmers Home Administration have been the main source of this capital. Recent federal policy redirections have reduced substantially the availability of grants and subsidized loans. Because of design and material differences, capital cost estimates from urban systems are not uniformly applicable to rural water services. This study presents an econometric analysis of capital costs, using Illinois rural water system construction contract bids. Cost equations by systems components representing 90 percent of capital costs are estimated. The type of information developed here can be used in initial planning and optimization design models contributing to the efficient provision of rural water services.     

IMPACT ON RESIDENTIAL WATER CONSUMPTION OF AN INCREASING RATE STRUCTURE1

ABSTRACT: A two-step procedure is used to estimate the impact of an increasing rate structure on residential water use. An error components regression procedure is used to estimate demand relationships for a period prior to the rate change. Water use is predicted for the post rate change period, assuming that the rate structure was not changed. Comparison of actual with predicted use indicate that water use declined as a result of the imposition of the increasing rate structure.     

TECHNIQUES FOR DETECTING TRENDS IN LAKE WATER QUALITY1

ABSTRACT: With the advent of standards and criteria for water quality variables, there has been an increasing concern about the changes of these variables over time. Thus, sound statistical methods for determining the presence or absence of trends are needed. A Trend Detection Method is presented that provides: 1) Hypothesis Formulation - statement of the problem to be tested, 2) Data Preparation - selection of water quality variable and data, 3) Data Analysis - exploratory data analysis techniques, and 4) Statistical Tests - tests for detecting trends. The method is utilized in a stepwise fashion and is presented in a nonstatistical manner to allow use by those not well versed in statistical theory. While the emphasis herein is on lakes, the method may be adopted easily to other water bodies.     

STATE LEGISLATIVE RESPONSE TO THE CENTRAL ARIZONA PROJECT1

This research deals with the manner in which the Arizona Legislature dealt with the issue of the Central Arizona Project. Due to the massive costs and impact, the Central Arizona Project was handled by the Legislature in a nonroutinized manner. There was no Legislative precedent for dealing with such a major public work project. Given the Legislature's annual program concerns and priorities, it is neither structurally nor psychologically geared to respond to the Central Arizona Project in terms of placing it within an agenda of priorities even for discussion.     

THE EFFECTS OF AGE AND WATER FLUCTUATIONS ON FISH POPULATIONS1

ABSTRACT Two lakes having similar soil types were studied to determine the effects of age and water fluctuations on plankton, benthos and fish populations. Bluff Lake is an older man-made lake which is drawn down in the mid-summer. Oktibbeha County Lake is a young lake and the water levels are maintained. Chemistry data from the two lakes indicate that their chemical properties are very similar. Neither lake would be considered very fertile. Net plankton populations in Bluff Lake and Oktibbeha County Lake were comparable when analyzed on a number of organisms per liter basis. Fluctuations of water levels did not seem to have an effect on the net plankton populations. The benthic population in Bluff Lake is slightly higher than that found in Oktibbeha County Lake. This is true for both numbers and weight per square meter. The species composition of benthic organisms in the two lakes were similar. Based on one-acre samples from each lake, Bluff Lake has a more balanced fish population than does Oktibbeha County Lake. Neither, however, seems to support populations of game fish in which a high percentage of these are in the available or harvestable range. Both lakes contain high populations of gizzard shad.     

PHOSPHORUS MANAGEMENT TO PROTECT LAKE WATER QUALITY1

ABSTRACT: The Hallett Quarry gravel pit lakes are an active sand and gravel extraction operation located 0.4 km north of the City of Ames, Iowa. During periods of drought, these lakes serve as a supplemental water supply for Ames. A modified version of the Vollenweider input-output model was used to predict future water quality under various watershed land use, drainage, and lake configurations. The dominant factor controlling the future water quality of the lakes was found to be the nutrient input. It is recommended that a management plan to protect the future water quality should be oriented towards reducing the sources of phosphorus to the lakes.     

CAN STATE AND LOCAL GOVERNMENTS ASSUME MORE OF THE COSTS OF WATER DEVELOPMENT?1

ABSTRACT As availability of funds in the federal budget for water development has decreased recently, pressure has increased for state and local governments to pay a larger share of the costs. In this situation a difficult question immediately arises-what is the capability of state and local governments to pay a larger share? Of course, there is no easy answer. Expenditures of public funds are policy outcomes of a government's political process in which political, economic, legal and other factors are involved in complex relationships. The traditional sources of capital funds for state and local governments include bond proceeds, tax revenues, and federal financial aid (state aid is also a major source of local government funds). The issuing of bonds is hampered by a variety of legal debt limitations, but there are means for circumventing the limitations. State and local governments vary widely in amounts of taxable resources available and in the extent to which these resources have been tapped. More effective use of revenue resources could be made in some cases. New sources of capital funds for water development ought to be considered-a fee on the use of water per se, for example. Costs associated with water use currently are imposed to cover development costs, but a state might impose additional use fees earmarked for a state water development fund.