interviews
Water and the American West
by Richard Frank
October 25, 2021
This interview with Richard Frank, professor of environmental practice at the UC Davis School of Law and Director of the California Environmental Law and Policy Center, was conducted and condensed by franknews.
frank | Can you tell me a little bit about the story of water and how it's tied to the West, and to California in particular?
Richard | A friend of mine who's a Court of Appeals Justice here in California wrote an opinion on a water law dispute and started it with the quote, "the history of California is written on its waters." And I think that the point is true of the entire American West.
Water policy and legal issues are inextricably tied to the development of the Western United States; water is the limiting factor in so many ways to settlement, to economic development, to prosperity, and to the environment and environmental preservation.
Can you talk about the difference between groundwater and surface water– and the policies that regulate each?
There are really two types of water when it comes to human consumption. There's surface water: that is the water that is transmitted by lakes, rivers, and streams. Then there is groundwater, and a substantial amount of water that Americans and the American West rely on is groundwater. That is water that is stored in groundwater aquifers, which are naturally occurring groundwater basins. Both groundwater and surface water are critical to the American West and its economy and its culture.
Traditionally a couple of things are important to note, first of all, water is finite. Second, water gets allocated in the Western United States generally at the state level. There's a limited federal role. Primarily, policy decisions about who gets how much water for what purpose are made state by state.
I think allocation is really interesting in that it's more state-level than federal. How was water and the allocation of water in California designed? Is it a public-private combination? What goes on in terms of the infrastructure of water?
Another very good question. The answer is it depends. Most of our water infrastructure is public in nature.
Again, in the American West, the regulation of water rights is generally done at the state level, but the federal government, historically, has a major water footprint in the American West because it has been federal dollars and federal design and management that really controlled much of the major water infrastructure in the American West — you know, Hoover Dam, and the complex system of dams and reservoirs on the Colorado River in California, with the Central Valley Project that was built and managed by the federal government with Shasta Dam on the upper Sacramento River as the centerpiece of that project. But we also have a California State Water Project, the key facility being the Oroville Dam and reservoir on the Southern River that is managed by state water managers. If we were starting over, that kind of parallel system would make no particular engineering or operational sense.
But, we are captive to our history.
And then you have these massive systems of aqueducts and canals that move water from one place to another throughout the American West. They are particularly responsible for moving water from surface water storage facilities to population centers. In the last 50 to 75 years, these population centers have really expanded dramatically, so you need massive infrastructure to deliver water from those storage facilities, the dams, and reservoirs, which generally are located in remote areas to the population centers. So it takes a lot of time and energy to transport the water, from where it is captured and stored to where it is needed for human use.
California has faced continuous drought – what measures is the state taking now to manage water?
Just to frame the issue a little bit — we have, as I mentioned, a growing population in the American Southwest at a time when the amount of available water is shrinking due to drought and due to the impacts of climate change. We have growing human demand for residential and commercial purposes and at the same time, we have a shrinking water supply. That is a huge looming crisis.
And it is beginning to play out in real-time. You see that playing out in real-time. For example, several different states and Mexico rely on Colorado River flows based on an allocation system that was created in the 1920s, which is overly optimistic about the amount of available water. From the 1920s until now, that water supply has decreased, and decreased, and decreased. Now you have interstate agreements, and in the case of Mexico, international agreements that allocate the finite Colorado river water supplies based on faulty, now obsolete, information. It is a real problem.
What measures do you take now, knowing this information?
If you look at the US Drought Monitor, it is obvious the problem is not limited to the Colorado River. We are in a mega-drought, so cutbacks are being imposed by federal and state water agencies to encourage agricultural, urban, and commercial water users to cut their water use and, and stretch finite supplies as much as possible through conservation efforts.
In California, we have the State Water Resources Control Board, the state water regulator in California, and they have issued curtailment orders. Meaning, they have told water rights holders, many of whom have had those water rights for over a hundred years, that, for the first time, the water that they feel they are entitled to, is not available. Local water districts are also issuing water conservation mandates; the San Francisco water department is doing that, in Los Angeles, the metropolitan water district, is urging urban users to curtail their efforts.
And then agriculture. Agricultural users — farmers and ranchers — have had to get water rights in many cases through the federal government, as the federal government is the operator of these water projects. They have contracts with water users, individual farmers, ranchers, or districts, and they are now issuing curtailment orders. They're saying, we know you contracted for X amount of water for this calendar year, but we are telling you because of the drought shortages we don't have that water to supply. Our reservoirs are low at Lake Shasta or at the Oroville Dam.
When you drive from San Francisco to LA on the five, you see a lot of signage from the agricultural farming community about water. There's apparently some frustration about this. What are the other options for them?
About 80% of all human consumed water goes to agriculture. That is by far the biggest component of water use, as opposed to 20% used for urban and commercial, and industrial purposes.
Over the years, ranchers and farmers, and agricultural water districts assumed that the water would always be there — as we all do.
And the farmers and ranchers have, in hindsight, exacerbated the problem by bringing more and more land into production. You see on those drives between San Francisco and Los Angeles, particularly in the San Joaquin Valley, all these orchards are being planted. Orchards are more lucrative crops than row crops — cotton, alfalfa, and rice. But, if you are growing a row crop, you can leave the land fallow in times of drought.
We don't have to plant. If the water stopped there, or if it's too expensive to get, it may make economic sense, but if you have an orchard or a vineyard it's a high value, those are high value crops, you don't have that operational flexibility and they need to be irrigated in wet years and in dry years. Now, you see these orchards, which were only planted a few years ago, are now being uprooted because the farmers realized that they don't have the water necessary to keep those vineyards and orchards alive. For ranchers, the same thing is true with their herds. They don’t have enough water for their livestock.
The water shortage has never been drier than it is right now. Farmers and ranchers are being deprived of water that they traditionally believed was theirs and they're very understandably, very unhappy about it. They see it as a threat to their livelihood and to the livelihood of the folks who work for them. Their anger and frustration are to be expected, but it's nobody's fault.
To say, as some farmers do, that it is mismanagement by state and federal government officials, I think is overly simplistic and misplaced in the face of a mega-drought. Everybody's going to have to sacrifice. Everybody's going to have to be more efficient in how they use water. All sectors are going to need to be more efficient with the water that does exist.
Looking at this percentage breakdown of water use – is it actually important for individual users to change their water habits?
Well, every little bit helps. When you're talking about homeowners, about 70% of urban water use is for outdoor irrigation. So we're talking parks and cemeteries and golf courses and folks' yards. You know, that used to be considered part of that American dream and the California dream — you would have a big lawn in front of your house and behind your house. Truth be told, that has never made much sense in an arid environment. That's where the water savings in urban areas is critical in the way it really involves aesthetics rather than critical human needs, like water for drinking and bathing and sanitation purposes. There is a growing movement away from big lawns, and away from the type of landscaping that you see in the Eastern US — there is no drought in the Eastern United States. As Hurricane Ida and other recent storms have shown, the problem is too much water, or rather than too little in most of the Eastern United States. So it really is a tale of two countries.
We just need to recognize that the American West is an arid region. It has always been an arid region, we can't make the desert bloom with water that doesn't exist. We need to be more efficient in how we allocate those water supplies. And it seems to me in an urban area, the best way to conserve and most effective way is to reduce urban landscaping, which is the major component of urban water use.
You also write about water markets and making them better – for those who don’t know, what is the water market?
Water markets, that is, the voluntary transfer of water between water users, is more robust in some other Western states. Again Arizona and New Mexico come to mind. California somewhat surprisingly is behind the curve. We are in the dark ages compared to other states. Water markets are kind of anecdotal. There is not much of a statewide system. It is done at the local level, through individual transactions without much oversight and without much transparency. And I have concerns about all of those things.
I believe conceptually watermarks are a way to stretch scarce, finite water resources to make water use more efficient. I can, for example, allow farmers or ranchers to sell water to urban uses or commercial usage or factories in times of drought.
Farmers sometimes can make more money by farming water, than they can by farming crops.
There are efficiencies to be gained here.
The problem in my view is really one of transparency. The water markets are not publicly regulated, and some of the people who are engaging in water transactions like it that way, frankly, they want to operate under the radar.
In my opinion, water markets need to be overseen by a public entity rather than private or nonprofit entities. We need oversight and transparency, so that folks like you and myself can follow the markets to see who's selling water to whom, for what purpose, and make sure that those water transfers serve the public interests and not just the private interests.
There have been a number of stories in the New York Times and the Wall Street Journal and the Salt Lake City Tribune about efforts in some parts to privatize water transfer. Hedge fund managers are buying and selling water, as a means of profiting. And it strikes me that when you're talking about an essential public resource — and in California, it is embedded in the law that public water is an inherently public resource, that water is owned by the public and it can be used for private purposes, but it is an inherently public resource — the idea of commoditizing water through the private, opaque markets is very troublesome to me. I think it represents a very dangerous trend and one that needs to be corrected and avoided.
Why is California so behind?
There's no good reason for it. It's largely inexplicable that since the state was created on September 9th, 1860, we've been fighting over water. In the 19th century, it was miners versus farmers ranchers. In the 20th century, with the growth of urban communities, the evolution of California into one of the most populous states with 40 million Californians, it has been a struggle between urban and agricultural uses of water.
In the second half of the 20th century, there was a recognition that some component of water had to be left in streams to protect ecosystems, landscape, and wildlife, including the threatened and endangered wildlife. That suggestion has made agricultural users in California angry. You will see those signs that allude to the idea that food and farming are more important than environmental values. I don't happen to believe that's true. I believe both are critically important to our society. But the advocates for the environment have a proverbial seat at the water table. So that's another demand for water allocation that exists.
Do you maintain optimism?
Yes. I think it's human nature to look on the bright side. I try to do that through research scholarships and teaching. There are models for how we can do this better in the United States. Israel and Saudi Arabia and Singapore are far more efficient with their water policies and efforts. Australia went through a severe megadrought. They came out of it a few years ago, but they used that opportunity to dramatically reform their water allocation systems. That's an additional model. I think most people would agree in hindsight that their previous system was antiquated, and not able to meet the challenges of climate change and the growing water shortage in some parts of the world.
Here in the United States, we can learn from those efforts. There are also some ways to expand the water supply. Desalination for one. Again, Singapore and Saudi Arabia have led the world in terms of removing the salt content from ocean water and increasing water supply that way. In Carlsbad, California, north of San Diego, we have the biggest desalination plant in the United States right now, and that is currently satisfying a significant component of the San Diego metropolitan areas’ water needs. It's more expensive than other water supplies, but the technology is getting more refined, so the cost of desalinated water is coming down at a time when other water supplies, due to shortages and the workings of the free market are going up.
At some point, they're going to meet or get closer. Unlike some of my environmental colleagues, I think desalination is an important part of the equation.
In a proposal that came up in the recall election, one of the candidates was talking about how we just need to build a canal from the Mississippi River to California to take care of all our problems. That ignores political problems associated with that effort, as well as the massive infrastructure costs that would be required to build and maintain a major aqueduct for 2000 miles from the Mississippi to California. That's just not going to happen. Some of those pie in the sky thoughts of how we expand the water supply, I think, are unrealistic.
interviews
Energy Access Is The Foundation Of True Democratization
by Shazia Khan
February 13, 2019
This interview with Shazia Khan, an environmental lawyer, expert in off-grid clean energy solutions, and founder of EcoEnergy, was conducted and condensed by frank news.
Can you tell me about your background and how you came to this work?
I'm a Pakistani-American. I visited Pakistan a lot as a child, and speak the language, so I have a lot of personal ties there. My professional background is as an environmental lawyer. Energy is my area of specialization. I started my career at the World Bank, but had this idea in my mind, even when I was in law school. How do we take something like energy access and make it a priority for the private sector? Which is often times the group that has the resources to make the changes that need to be changed. What can you structure to create incentive for them to get involved and support a social mission or goal?
The idea came in 2001, but since then so much has changed. This concept of social enterprise and entrepreneurship, which didn't have a name back then, started to evolve in a really beautiful way. A lot of companies in the private sector, and a lot of investment firms, decided that a triple bottom line, including an environmental and a social impact component to their investment decisions, was important. For whatever reason, it's important to them, whether it's part of the PR campaign, or whether it's genuinely important to them, it doesn't really matter. What matters is that some resource dollars are now being allocated towards social impact projects.
While I was at World Bank, my boss's boss was working on the Inga Dam Power Project. The World Bank decided they were going to increase their renewable energy portfolio by 20%. They started by building huge hydropower plants all over the world. The Inga Dam Power Project would have the ability to electrify all of Sub-Saharan Africa and parts of the Middle East, but they put it in the Democratic Republic of Congo, which was and still is, quite conflict ridden.
Even if somehow the energy that was generated wasn't all diverted for industrial or commercial purposes, how was it going to trickle down to people living off the national electric grid? Would there be an incentive to electrify those people? The way energy access has unfolded in the West is through government subsidized programs. There's been grid expansion so that anybody, no matter how remote, within the country, will be electrified. But emerging economies and frontier markets don't have the money to do that. So what can they do? One thing they can do is leverage technology. Mobile technology has made a lot of things possible that weren't possible 20 years ago, certainly not 50 years ago.
I started thinking about, is there a more grassroots approach to electrification, and does it have to be as expensive as it is now? Does it have to be that a power plant has to be built, it has to cost millions of dollars, sometimes billions of dollars, and then need to be very labor intensive? Even after the fact, the costs are so high, is the customer whose been connected able to pay for that service? Maybe not. I run across people all the time where power lines go over their homes in rural Pakistan, and they choose not to be connected because it might cost them $60 or $70 a month. The reason it's so expensive is because they're having to cover the cost of building that infrastructure.
What we do is called distributed solar. It's taking small solar home systems and putting them on the roofs of homes and small businesses. Some people are like, "That's cute, but it's not a long term solution. You really need to wait for the infrastructure for the grid connectivity."
That's really antiquated, and as soon as people found that cellular phones were actually much more convenient and much cheaper, they started adopting them in a widespread manner. That's happened all over the world, and wasn't anticipated. In this same way, I feel that distributed solar can be adopted, deployed rapidly, much more efficiently, and cheaply, than traditional grid expansion.
I did field work in 2008 in Pakistan, and in 2009 launched a non-profit called Eco Energy Finance. The purpose of Eco Energy Finance was to build a business case for affordable solar energy for off-grid people in Pakistan. We had to do extensive market research first to understand who this group of people were, what all the different segments were, and then what their purchasing power was? What their purchasing power was genuinely. Not, "Let's shove this product down their throats and hope that they can afford it, but what can they actually afford? And can we match a technology and a product to them, and distribute it to them?”
I met my co-founder in 2010. He was working on energy access surveys, and I had just received a very small grant. We decided to team up and build a skeletal team of 12 people to go and collect this data. We went to 44,000 households. Really trying to understand the true picture of what their lives were. We wanted to understand their consumer preferences without any sort of bias. What type of technology or what use cases are really going to fit their lifestyle? Then we spent three years market building.
We tested a number of different products, and within that time, a new technology became available. It's called "Pay-As-You-Go Solar." The concept is that in the same way somebody in a developing country will go every month and pay for their cell phone. Pay-As-You-Go technology for solar allows you to do the same thing. You go to the same mobile money agent and you give them a fee – we can remotely unlock the corresponding amount of electricity to them, and they get an automatic receipt on their cell phone. If they don't pay, we can shut the system off remotely. When they do pay again, we can turn it back on. It's just like a cell phone.
Only 13% of people in Pakistan have bank accounts. We're, at the same time, generating a credit score for them and deciding who we're going to take a bet on because ultimately what we're doing is financing the cost of a solar home system for them. We're buying it, they pay us a deposit, and then they give us monthly payments until the system is theirs. They can also pay rent every month and we can just perpetually rent the system to them.
We did that for seven years, had 200 customers, and a repayment rate of over 85%, which is pretty high. We decided, "Okay, this is a commercially viable model that we can take to investors." So we re-launched as Eco Energy Global. Eco Energy Finance, the non-profit still exists and we will use it again to go and explore other markets, but Eco Energy Global went out to raise investment money.
Things are going well, but it's been a long road.
To clarify, you’re using off-grid solar as your primary energy system? Do you feel like that's the future of energy? That everything will be private?
I think we'll get a happy medium. For instance, our customers all have these independent solar systems on their houses. But that's because they're coming from having zero demand, to now having a little bit. Eventually we’ll have to connect them. We’re going to be piloting a mini grid next year. I think what will end up happening is that people will either have community based micro or mini grids, and they will be able to plug and play the systems they already have into that system.
Alternatively, in areas that are much more established, I think there will be a way for private, maybe community based solar to feed into and supplement the grid that already exists. I don't think in developed countries the grid is going away necessarily. It's relatively affordable. It's relatively efficient. But I think there are other ways to have an interface between these newer technologies where people feel like they have more say and more control in the fuel source. People will start pushing towards renewable and demand that of their utility companies. As long as there's a way to integrate new energy capacity being generated into those systems, I think that's where a lot of the work and the evolution will come.
With solar and wind I worry about resiliency. When you're dependent on something natural that you can't control, and there is no mass process for storing energy, what happens in a scenario where there is no sunshine, or too much sunshine? How do you deal with that?
That's a really great question, and that's becoming an increasingly important question as time goes on. There's this race for storage capacity. How do you take renewables and store them? I think a lot more innovations will come out of that. In a country like Pakistan with very high solar radiation, it's not as much of an issue just because it's sunny all the time.
Does too much sun ever cause outages?
No. Our customer will be able to power the product for four hours during the day, and then they'll have, say 16 hours of power. There is a battery being used. There is a battery in the system. The batteries will have to get larger and larger and more and more efficient. It's not a problem to us right now, but that will be a problem for the whole industry moving forward.
A race in the tech to create storage.
Yes.
How affordable is solar?
We've got a solution that's a four watt solution that costs $35 a system. Somebody will pay a couple dollars a month for 18 months until they pay it off. Then there's a larger system that's a 12 watt, and costs $80. People will pay $9 a month until they pay that off. Then there's the one we sell the most, the 50 watt system, and that costs $100. Whatever configuration a person wants, we can supply them with that. Then like I said, we're going to be piloting a mini grid soon too.
What we really look to do is figure out what people are currently spending and then try something comparable in cost to, or less than, what they are already spending. A lot of the small business owners, for instance, don't usually use kerosene, they use diesel generators, but that diesel generator might cost $35 a month. We can offer them something for $28 a month, and as they're paying $28 dollars a month to us and paying off the product, the fuel source becomes free. Whereas a diesel generator you have to pay in perpetuity.
Are you looking also to integrate this idea into U.S. energy systems?
Probably not to be honest with you. There's 1.4 billion people globally who are completely off the grid, zero electricity. We will look more at markets similar to Pakistan. We're looking at Afghanistan next. I'm really interested in looking at overlooked markets, and for whatever reason, people are not interested in going into these countries, but there's definitely a demand. Bringing something as basic as electricity could be life changing.
We're not the only ones doing this. I would say globally there's about 15-20 entrepreneurs just like me who do this in frontier markets. I met colleagues that are working in the Philippines, all over east and west Africa, Vietnam. Any place there's a high density population and a huge off grid population is a good place for us to go to.
Energy access is a basic infrastructure people need to improve the quality of their life. Electricity is an underlying basic infrastructural need that needs to be in place before anything else can be delivered.
If somebody has to walk eight hours a day to go and collect fuel wood, they're contributing to deforestation, and that eight hours a day could be spent doing something more productive. As far as countries like the United States, what I see happening is that consumers have demands unlike the consumers of 20, 30, 50 years ago. People care about where their money is going, where their dollar is going, and they want to know that it's being used in a way that drives what their personal values are. Consumers will probably be demanding more and more clean energy, to be integrated into the traditional grid system. The technology to become grid independent if you're a person that wants to do that, is becoming available. So, that might happen too.
I wonder how we'll be able to participate in clean energy on a large scale in Western countries with our current grid.
It takes, on average in a developing country, nine years to have a grid line built out to you and hook you onto it. That's somebody's entire childhood. Being an environmentalist with my family originating in Pakistan, I was thinking, this is a country of 210 million people. It's about to be the fifth largest country in the world in terms of population, and the population's not slowing like it is in India or in China. How are we going to meet the demand of these new people? Two thirds of the population is under the age of 35. We need to figure out ways to meet the demand. They're going to continue to have growing energy needs.
How do you define energy democracy?
Democratization means giving people access to the basic infrastructure that's available to people in other parts of the country. If you extrapolate from that globally, developing countries are not able to contribute to their local or national economies, or to the world economy, because they don't have access to basic infrastructure, and that's why they're not able to break the cycle of poverty.
It has to be done. Now it’s just how are we going to do it, and how can we do it quickly, and can we think of new ways to do it? Why do we have to rely on antiquated ways of doing things now that we have new technology? It's an equalizer.
International development experts have figured out it's really important for developed countries to help developing countries have democratized energy, and for everybody in these countries to have access to basic infrastructure, like clean drinking water, electricity, healthcare, and education. It makes for a much more stable population.
Any time we speak with or work with the U.S. government, there is a clear recognition that if the United States wants to spend their money on security, outside of military aid, building basic infrastructure and making sure people have access to basic infrastructure, is good for security.
That's interesting.
We need people to have a chance at living within a certain standard. You don't know where the next major insight or breakthrough is going to come from. If people don't have a fighting chance to develop a thought or an idea, because they're so focused on meeting their basic needs, those innovations won't come to light. A rising tide lifts all boats.
If we can leverage technology to make energy access quickly and cheaply and efficiently, I think it's a win-win globally. It's definitely a priority globally. It's one of the sustainable development goals. It's Number 7 in the Universal Energy Act, so there is a recognition globally that this should be a priority, and it's just a matter of getting there.
There are a lot of us working on it, we'll get there eventually.