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Next Up: The Great Water Auction

December 1, 2013 By Eric Caine 2 Comments

Sold to the highest bidder!
Sold to the highest bidder!

Two facts determine water realities in California: (1) The state is out of water, and (2) In order to develop more than 499 units, builders must declare a long-term source of water.

Fact number two is the driving force in what has become a bidding war for the “available” water in a state that every year promises more water than it can deliver.

Since 2001, developers must declare a long-term water source prior to building. Before that, once the houses were up, water had to be delivered. As recently as 2008, courts began ordering dozens of building projects be put on hold until they could find water sources.

The outcome of the need to declare water sources has been more pressure to take  water from agriculture and the environment. The plan to build two huge tunnels to convey water south from the San Joaquin Delta, backed by water districts in southern California and the southern San Joaquin Valley, emphasizes the volume of water the tunnels can carry, with little regard for how much water is needed up north.

Water users in the southern San Joaquin Valley have already ruined enough water and soil to question their demands for ever more water. After draining the aquifer and poisoning the soil with salinity and nitrates, the question now is how much longer it makes sense to send water to unsustainable projects.

Supervisors in Kings County have already made it easier to convert 81,750 acres of farmland to other uses because the land is too contaminated to remain productive. Much of the acreage is in the Williamson Act, but county supervisors have admitted it no longer makes economic sense to try to farm the ruined soil.

But questions about soil and potential uses will be pushed aside as water becomes just another commodity. The big pushers—and big payers—for the tunnels will demand what they paid for, and that will make other uses for water subject to a bidding war the public can’t win.

Ultimately, water will be used to fuel growth simply because that’s where the money is. Those who’ve obtained water rights will sell them to the highest bidders, and the highest bidders in the end will be residential and commercial builders.

In Stanislaus County, which only a few years ago boasted one of the last viable aquifers in the San Joaquin Valley, growers on the County’s east side are draining the water so fast their neighbors’ wells are going dry. Watch for a strategy much like developers once used to provide water for housing.

Promoters of unsustainable agriculture will argue the dire need for water transfers while citing anecdotes about family farmers and the nation’s heritage. They’ll farm until the aquifer is gone and the soil is contaminated, then promote roads and population growth, even if it means diverting water from sustainable agriculture and fisheries.

In some cases, the pressure for population growth will drive water prices higher than the return on crops. This has already happened in southern California. When farmers realize they can make more money with less effort by selling water instead of crops, they sell water.

As housing prices rebound from the Great Recession, watch for a parallel rise in the price of water. And unless Valley citizens remain eternally vigilant, they’ll find their agricultural heritage has been hijacked by the highest bidder.

 

 

Filed Under: Environment, Featured Tagged With: Kern County farmland, San Joaquin Valley aquifer, Water in the San Joaquin Valley

Reader Interactions

Comments

  1. Gene Beley says

    December 8, 2013 at 7:49 am

    Excellent article, Eric Caine! When farmers can’t make money because the water costs rise too high, food prices at the supermarket will skyrocket. We’re then one step closer to the sci-fi movie, Soylent Green, which depicted the 2022 scenario when natural foods like fruits, vegetables and meat are extinct and earth is overpopulated. But you left out one big potential buyer for water: The oil companies who need fresh water for fracking in the Monterey Shale oil field and perhaps others to come. They will pay the highest price to farmers and anyone else who can provide it. The Kern Water Bank is an example of how there is already a trend toward mega-rich citizens gaining the right to own and resell California water. Anyone not familiar with the Kern Water Bank can Google MONTEREY AMMENDMENT to see how that all happened.

    The BDCP predicts construction of the twin tunnels will take 10 years. Gee, if they were to start in two years, that takes us to 2025. It’s always amazing how sci-fi usually ends up becoming true in some shape or form, whether Ray Bradbury’s writing about giant screens on the wall decades ago, or how we’re so close to Dick Tracy’s wrist watches with cell phones today. Will we be having to eat Soylent Green at the end of the tunnels construction? Only time will tell.

    Keep up the good writing, Mr. Caine!

    Reply
  2. Eric Caine says

    December 9, 2013 at 4:24 pm

    Thanks Gene. More people need to know about Mr. Resnick’s water bank and the inevitable scenario should water become a mere commodity. Glad to know you are following these issues.

    Reply

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