Increasing Demands for Water Requires Greater Efficiency, Water Banking and New Infrastructure

FOR IMMEDIATE RELEASE
December 8, 2010

LAS VEGAS -- Western governors meeting here this week discussed with private and government water experts how best to manage the increasing demand for water across the region in the face of dropping water levels.  Potential solutions include greater efficiency, more water banking, and dealing with an aging water infrastructure.

Attending the meeting were Governors C.L. “Butch” Otter (Idaho), WGA Chairman; Brian Schweitzer (Mont.); Bill Ritter (Colo.); Gary Herbert (Utah); Jim Gibbons (Nev.); and Governors-elect John Hickenlooper (Colo.) and Matt Mead (Wyo.).

“The whole idea of how we utilize water, share it and store it has long been an issue that has faced each and every state and federal administration,” Otter said.  “We recognize the problems, but we have to ramp up our efforts in achieving greater water efficiency and reuse and in addressing new infrastructure to store water.”

Joining the governors on Tuesday were Anne Castle, Assistant Secretary for Water and Science at the U.S. Department of Interior; Jeff Sterba, President of American Water; Paul Mulroy, General Manager of Southern Nevada Water Authority’s Las Vegas Valley Water District; and Debra G. Coy with Svanda & Coy Consulting.

Pat Mulroy touted the water use efficiency projects that Las Vegas has employed.  The Governors concurred, with both Colorado and Utah citing the significant and aggressive water savings goals that they have set for the coming decades.   However, the panelists agreed that water conservation alone would not solve the problem.

“The water supply and demand equation is out of balance,” Castle told the governors.

Mulroy said cooperation among states, regions and water users “is the only thing that will get us through if the droughts get worse.”  She described a shortage-sharing agreement among Colorado River water users to deal with extreme droughts, otherwise, some water users may be shut off completely.

Coy said there are billions of dollars in private capital ready to be deployed for new water supply infrastructure.

“We will need to overcome legitimate concerns about the role of the private sector in water supply and provide a reliable return on investment, but the capital is ready to be put to work,” Coy said.

The governors and panelists had a spirited exchange on market-based water transfers.  Several governors and panelists noted that water markets can provide a useful tool for transferring water to high economic value uses, particularly during water shortages.

Governor Ritter shared Colorado examples of farmers using rotating fallowing to free up water that is then leased to cities.  Mulroy cited the successful water transfer agreement between the Metropolitan Water District and Palo Verde Irrigation District in Southern California.  Governor-elect Matt Mead of Wyoming did express concern about the loss of agriculture and food production, noting that it can be difficult to return land to agriculture once it has been fallowed.

Governor Ritter noted the important connections between energy and water in the American West.  Many traditional and renewable energy sources require water to operate.

“We need to do a better job of integrating energy policy and water policy in the West,” Ritter said.

The WGA is leading a project to analyze the energy-water nexus in the context of transmission planning in the Western U.S.

Governor Schweitzer said although it seems the governors “talk about water every time we get together…I say we shouldn’t have a WGA meeting where we don’t talk about water.”

The governors also heard from an Australian official about his country already confronting water supply shortages in the face of long-term, severe drought.  Dr. James Horne of the Australian federal government described the his country’s response, including full-cost pricing and water markets, desalination in all major coastal cities to serve over 4 million people, and investing in science and models.

Following the water plenary discussion, NOAA Administrator Dr. Jane Lubchenco described the NOAA Climate Service.  Lubchenco noted that the NOAA Climate Service is being designed to help governors and other decision makers make informed decisions about water management and other key Western resource issues, including forests, wildlife and energy.  She urged the governors to work with NOAA to shape the climate service so it serves the states and addresses the highest priority questions.

The governors wrapped up their two-day meeting today with a discussion on “Fixing What’s Broken with the Endangered Species Act.”  Western governors have been strong advocates for species and habitat protection, but they also have called for common sense changes to the ESA to make it more effective in recovering species and preventing listings.  Officials of the Obama Administration joined the governors for the discussion.