Transcript EVALUATION OF 1872 WATER RIGHTS to SUPPLEMENT FLOWS

WATER MARKETS
IN WASHINGTON
Presented by:
Eugene N.J. St.Godard, P.G., C.HG.
Principal Hydrogeologist/Owner
Water & Natural Resource Group
P.O. Box 28755, Spokane, WA 99228
509-468-4876, [email protected]
WASHINGTON STATE
Water Markets:
The Basics and Why you Should Care
• Most basins are over-allocated
• Ecology is not issuing many new water
rights
• Closed Basins
• Instream Flows
• Growth = Water
WASHINGTON - IDAHO
• Both based on Western Water Law
– “Similar but Different”
• Water Markets driven by Individual State
Legislative Codes
– Have shared basins
– Washington downstream
• Water Availability is Primary Factor that drives
Water Markets
– Growth
– Hydrogeology
– Water Courses
Function of Water Markets
• Reallocate water supply based on
value
• Create incentive to conserve and
invest in water supplies
• Stabilize availability of water for
competing demands
Factors Controlling Development of Water
Markets
• Changing Conditions
• Urbanization/Environmentalism
• Supply and Demand
• Sellers and Buyers
• Infrastructure
• Storage and Delivery Systems
• Regulatory Framework
• Transferability
Forms of Water Markets
• Government or quasigovernment entities
• Water banks
• Private conveyances
– Washington seems to favor this form of
the market
WASHINGTON STATE
LEGISLATIVE CODES
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RCW 90.03 – Water Code (1917)
RCW 90.14 – Water Rights Claim Registration and Relinquishment
(1967)
RCW 90.16 – Appropriation of Water for Public and Industrial Purposes
RCW 90.22 – Minimum Water Flows and Levels (1969)
RCW 90.44 – Regulation of Public Groundwaters (1945)
RCW 90.46 – Reclaimed Water Use (1995)
RCW 90.54 – Water Resources Act (1971)
RCW 90.66 – Family Farm Water Act (1977)
RCW 90.80 – Water Conservancy Boards (1996)
RCW 90.82 – Watershed Planning Act (1998)
RCW 90.90 – Columbia River Basin Water Supply Act (2006)
Numerous Court Decisions
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http://www.ecy.wa.gov/laws-rules/ecyrcw.html
Water Banking
• The most common way to create
organized water markets
• May include water leased or sold
• 12 western states have active banks
• http://www.ecy.wa.gov/pubs/0411011.pdf
Washington - Water Resource
Management Act, RCW 90.42
• Creates trust water and water banks
• Trust water may be obtained by
conservation projects, donation, purchase
or lease
• Yakima water bank established to manage
trust waters for supply needs subject to
express limitations
HB 2860 Columbia River Bill
(RCW-90.90)
• Creates the Columbia River Water Supply
Inventory
• Creates the Columbia River Basin Water
Storage and Supply Account
• Requires Specific Allocation of “New” Water
• Creates the Columbia Mainstream Water
Resources Information System
• Seeks to construct water storage in tributary
channels for “new’ water
• 1/3 instream – 2/3 out-of-stream
POSSIBILTIES?
• Surface water storage impoundments holding 1
to 3 million AF of water
– Conducted study, narrowed from 21 sites to 2
• Lower Crab Creek
• Hawk Creek
• Water delivery system into the Odessa or other
declining basins via alternative feed routes?
• Aquifer Storage (Richland, others?)
• Water Storage in headwater drainages in which
a downstream water market can be developed
(lease water)?
PRIVATE MARKET
• SUPPLY – DEMAND in Washington State
is driving the market
• No water rights being issued/basins
currently over allocated
• Existing laws make the purchase and sale
of water rights a viable market
– quickest way to get water
– certain legal and technical requirements have
to be met to approve the transfer
PRIMARY WASHINGTON
CODES AFFECTING WATER
MARKET
• Surface Water RCW 90.03.380
– May change place and purpose of use or point of
withdrawal
• No increase in Annual Consumptive quantity
• No injury or detriment to existing rights
• Ground Water RCW 90.44.100
– May amend the point of withdrawal and manner or
place of use
• other existing rights shall not be impaired
WASHINGTON STATE
LEGISLATIVE CODES ALLOW:
• Change in place of withdrawal (GW) /
diversion (SW)
• Change/transfer in place of use
• Change in purpose(s) of use (e.g. irrigation,
industrial, etc.)
• Add points of withdrawal/diversion
• Add purpose(s) of use
• Other (e.g. consolidation, intertie, trust water)
• Combination of above
WATER MARKET CAN:
• Change/Transfer
– Surface water to Surface water
– Groundwater to Groundwater
– Surface water to Groundwater
• Senior surface water rights due to first in time-first in right
– Groundwater to Surface water
• Rarely done
• Same water source
– Surface water primarily moves down stream
• Can move upstream if no impairment to others
– Groundwater must be in the same body of water
– Hydraulic Continuity for surface to groundwater
Water Right Change/Transfer
in Washington State
• Directly through Ecology
– May take a long time
• Through the Water Conservancy Boards
– More timely and sometimes efficient
– Fees apply and vary in each county
How to process a water right
change/transfer
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File Application
Public Notice (30 day)
Investigation on Extent and Validity
Prepare Record of Examination
Record of Decision
30-day Appeal period
Ecology has final approval of all transfer
applications
KEY ANSWERS NEEDED
• Does the water right actually exists?
– Is the water right to be transferred actually a valid right and
is in Ecology’s database.
• Has the water right been put to beneficial use?
– Did the allocated water be used for a beneficial use as
described by Ecology, and has it been utilized since
certificated or claimed.
• How much of the water right has actually been
beneficially used?
– This is the key question – did all or a portion of the allocated
water be “beneficially used”. This is the quantity that the
crops consumed, or industry process actually used. It is not
the amount that was diverted or pumped.
NEEDS?
• Qi
– The instantaneous rate of which water can be
diverted/withdrawn
• Qa
– The annual quantity of water allowed under
the right
• Sometimes they don’t correlate and meet
the needs........
THE AFFECTS OF THE WATER
MARKET
• Water rights are moving downstream
• Water rights are being converted from
agricultural to domestic and municipal
uses
• Most headwater counties are agricultural
counties
– How does loss of water rights downstream
going to affect economy of headwater
counties in future
THE AFFECTS OF THE WATER
MARKET
• Surface water to Groundwater
– Good for instream flows?
– Stressing the aquifers
– Impairment to others
– Deepening wells
PRIVATE MARKET
• Water market is thriving in eastern and
central Washington
• Mostly changing agricultural rights to
domestic/municipal/industrial
RECENT EXPERIENCES
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Colville, Washington(2005)
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Chewelah, Washington (2006)
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Groundwater/Irrigation to Groundwater/Irrigation
$500/AF
CleElum, Washington (2008)
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Surface water/Irrigation to Groundwater/Residential
$800/AF
Fort Spokane, Washington (2008)
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Groundwater/Irrigation to Groundwater/Residential
$1,200/AF
Seven Bays, Washington (2008)
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Surface water/Irrigation to Groundwater/ nonag irrigation and municipal
>$2,000/AF
Spokane, Washington (2008)
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Groundwater/Irrigation to Groundwater Industrial
$300/AF
Surface water/Irrigation to Groundwater/Industrial
$4,800/AF
CleElum, Washington (2008)
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Surface Water/Irrigation to Groundwater/Residential-Municipal
>$4,000 AF
WHAT DRIVES MARKET PRICE
• Supply and Demand
• Location of water right
– Buyer that is higher in drainage has a small
market
• Fewer available water rights
– Seller that is higher in a drainage has a large
market
• Many potential buyers downstream
• Attributes of the Water Right
QUESTIONS?