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Managing the Crisis: Essential Tools for Urban Water Managers

Managing the Crisis: Essential Tools for Urban Water Managers. Water Education Foundation and ACWA April 16, 2009. How do we allocate water during a shortage?. Efficiency Standards. Command & Control. Historical Usage. Financial Contribution. Economic Efficiency.

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Managing the Crisis: Essential Tools for Urban Water Managers

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  1. Managing the Crisis:Essential Tools for Urban Water Managers Water Education Foundation and ACWA April 16, 2009

  2. How do we allocate water during a shortage? Efficiency Standards Command & Control Historical Usage Financial Contribution Economic Efficiency

  3. Finding your Sweet Spot Efficiency Standards Command & Control Historical Usage Financial Contribution Economic Efficiency Command & Control Historical Usage Your Agency

  4. Finding your Sweet Spot Goal: To determine a set of criteria that can evaluate these policy approaches. • The Criteria that are most important will help guide an agency to the right policy approach. Command & Control Historical Usage Your Agency

  5. How Do You Allocate Water? • How do you allocate resources to end users? • Who should pay for drought penalty? • If one views the additional charge as a penalty, it does not fall under Proposition 218. • Confirm with your Legal Counsel

  6. Equity - What is fair? Enough to meet Water needs? In proportion to financial contribution? • As much as customers • are willing to pay for?

  7. What other criteria may be of importance? Easy to implement Easy to administer Easy to understand Freedom of choice Nexus for drought pricing

  8. Not all Water is Equal • Policy: Majority of cut back should occur in outdoor water use Sanitary Use Economic Discretionary or Aesthetic

  9. Command and Control • Target “Wasteful Water Use” by adopting Drought Ordinance • Limit outdoor irrigation • No driveway hose-offs • No car washing Example: City of Los Angeles No residential sprinklers between 9AM – 4 PM No car washing or hosing off driveway

  10. Command and Control

  11. Historical Usage Allocation Example: Santa Clara Valley Water District, East Bay MUD

  12. Historical Usage

  13. Efficiency Standards • Establish efficiency standards for customers: • Indoor water use • Outdoor water use Does not penalize historical conservation Does not reward historical water abusers

  14. Efficiency Standards Indoor Allotment Indoor Usage X = Gallons per day Number of Residents

  15. Efficiency Standards Outdoor Usage

  16. How do you define irrigable? Meter size? Zip Code? Parcel Size? • % of Parcel? • Lot size • - footprint? GIS?

  17. Efficiency Standards Define Seasonal Needs H2O How much water is lost? Define “allowable” crops

  18. Efficiency Standards – Eastern MWD Example

  19. Efficiency Standards– Targeting Conservation Outdoor: Change crop coefficient or adjust ET Indoor: Reduce gallons per day allocated

  20. Efficiency Standards

  21. Financial Contribution Allocate water in proportion to customers’ financial contribution to the system More water will be allocated to the largest meters

  22. Financial Contribution

  23. Economic Efficiency • Price water based on willingness to pay and the desired level of aggregate consumption P2 • Based on economic theory that resources can be allocated efficiently based on price • Some water should be provided economically to provide for basic, sanitary needs P1 Q2 Q1

  24. Economic Efficiency

  25. Criteria Evaluation

  26. Questions?

  27. Contact Info Sanjay Gaur Principal Consultant Red Oak Consulting sgaur@pirnie.com (o) 213-327-1640 (c) 213-327-4405

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