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Opinion: Amid a Drought, Disinformation Runs Rampant on California’s Waterways

Welcome to dry California, a place where we have one full reservoir: a reservoir full of hyperbole, propaganda, and political theatre. Long gone are the days of subtle jockeying, messaging, and warnings dressed down to make you aware of a possible, potential, or likely situation. Those messages are now replaced by panic and urgent crisis so radical that they more resemble a thirty-minute sitcom of comedy where credibility and accountability have no place.

Understanding the California Water Futures Market

California has recently established a water futures market that has brought with it some criticism as well as confusion. As the first of its kind in the country, it will function similarly to futures markets for other commodities. The market will allow water users to lock in a particular price they are willing to pay for water. This new futures market is entirely different from water markets that allow the purchasing of water allocations.

Aurora and Colorado Springs want More Water. The Proposed Solution — a New Reservoir — Would Have Far-Reaching Impacts

While most people in Colorado live on the Front Range, most of the state’s water is on the West Slope. That’s where the snowpack melts and makes its way into the Colorado River. Much of that water flows to places like Denver through a series of dams, reservoirs, pumps and pipes. Aurora and Colorado Springs want to bring more of that water to their growing cities, which are the state’s largest after Denver. To do that, they want to dam up Homestake Creek in Eagle County south of Minturn and create a reservoir that could supply water for thousands of new homes.

Dust Up Over Salton Sea Project at Red Hill Bay

When Imperial County officials broke ground on the Red Hill Bay project in 2015, it was heralded as the beginning of a new era around the Salton Sea. State officials were beginning a long-awaited restoration project that was projected to be done in two years. The 400-acre site on the eastern edge of California’s largest lake was underwater not too long ago, but water transfer and more efficient irrigation in the valley have cut the flow of water into the lake.

Rising Seas, Worsening Wildfires Endanger California Parks

Of all the existential threats California parks face — dwindling budgets, more visitors and costly, long-deferred maintenance — now comes a climate-driven conundrum: When is a park no longer a park? When its namesake trees disappear in a barrage of lightning strikes? When its very land is washed away by ever-rising seas?

Once Again, Lake Oroville and Other Reservoirs are at Drought Emergency Levels

If you were around here in 2014 or 2015, you were likely inundated with images of dried up reservoirs that looked like dirt canyons with little ponds in them, when a punishing drought forced the state to institute restrictions on water usage. Well, we’re likely headed for another summer of dried-up lawns (and wildfires) if Mother Nature continues to withhold the rain and snow that we need to make up for a super-dry November, December, and February.

Choose your landscape plants carefully to reduce your water use. watering your plants

One Simple Key to Watering Your Plants

When you’re replacing your landscaping with an eye to conserving water, it’s important to understand how much water plants really need. A quick, simple way landscape experts do this is a method the home landscaper can use, too.

Evapotranspiration (ET) is the process of assessing various factors to determine how much water plants use, and when they need it. ET explains and incorporates important environmental conditions such as solar radiation (sunshine) or cloud cover. The stronger the sun’s rays, the higher the ET.

Plant leaves work a lot like mini solar panels. Leaves gather energy plants use to transform water and carbon dioxide from the air into oxygen and sugars for growing.

Transpiration of moisture through leaves is similar to perspiration. It cools down the leaves. Water also evaporates from the soil itself around plants. The combined water loss from the plants and the soil together makes up evapotranspiration.

Understanding water loss in terms of ET helps you select the right plants for your sustainable landscaping by assessing your overall landscape water requirements, planning irrigation, and managing the Soil Moisture Account.

Drought Tolerant Plants Share Four Common Qualities

Plants with silver, leather-like leaves like this Agave are extremely water efficient. Photo: Charlie Neuman watering your plants

Plants with silver, leather-like leaves like this Agave are extremely water efficient. Photo: San Diego County Water Authority

Do you need help identifying climate-appropriate plant choices for your new sustainable landscaping? Look for these four characteristics shared by drought-tolerant plants.

Stiff, Leathery Leaves: These leaves hold and store water, and stay evergreen most of the year.

Silver or Hairy Leaves: Light-colored leaves reflect sunlight to cool the plant. Hairy leaves hold moisture longer, and also protect the plant from hot direct sun.

Tiny Leaves: Tiny leaves are tiny solar panels. Lots of tiny leaves are easier to keep cool than a single larger leaf because there is more surface area to receive energy and use evaporation to cool down.

Solar Tracking Leaves: Some plant leaves are sun worshipers. They will turn toward the sun’s path throughout the day. As the day progresses, you will see the leaves more horizontally oriented. The plant is shifting its solar panel leaves to minimize sun exposure. Many California native plants like manzanitas have this ingenious adaptation.

The Water Authority’s Sustainable Landscaping guidebook contains a Plant List with climate-appropriate plants. They are also highlighted throughout the guidebook.

This article is part of a year-long series inspired by the 71-page Sustainable Landscapes Program guidebook. The Water Authority and its partners also offer other great resources for landscaping upgrades, including free WaterSmart classes at WaterSmartSD.org.

Olivenhain Municipal Water District Logo landscape design workshops

OMWD Maintains its Winning Streak with its First‐Ever Two‐Year Budget

Encinitas, Calif. — Olivenhain Municipal Water District’s Board of Directors accepted at its March 17 meeting the Government Finance Officers Association’s Distinguished Budget Presentation Award. The award was presented in recognition of OMWD’s budget for Fiscal Years 2021 and 2022. This is the nineteenth consecutive year OMWD has received this recognition.

Desalination plant-credit ratings-water supply

Credit Agencies Affirm Water Authority’s Strong Ratings Despite Headwinds

All three major rating agencies – S&P, Moody’s, and Fitch – have affirmed the San Diego County Water Authority’s strong credit ratings, which will help the Water Authority optimize its debt portfolio and minimize the cost of financing important water reliability projects.

The reports cited the Water Authority’s strategic management, its conservative approach to water sales projections, and the benefits of the Water Authority’s rate case litigation that recently resulted in $44.4 million being refunded to local retail water agencies – among many other factors.

Significant challenges

However, rating agencies also noted significant challenges ahead, including efforts by Fallbrook Public Utility District and the Rainbow Municipal Water District to “detach” from the Water Authority – a move that could negatively impact ratepayers across San Diego County. If the two North County agencies leave per their plans, Water Authority analysis shows that the other 22 member agencies will have to pay $16 million to $46 million more per year to cover the cost of the departing agencies.

Moody’s said detachment could lead to a credit downgrade, which would increase borrowing costs for critical water reliability projects. S&P Global called detachment uncertainty “an additional credit stressor” – “especially if an approved detachment sets a precedent if members can easily detach from the authority.” S&P added that, “this would be further exacerbated if the two members are not required to pay for their portion of the associated debt and infrastructure costs that the authority has undertaken to provide reliable water sources.”

Solid financial position

Water Authority General Manager Sandra L. Kerl said, “The Water Authority maintains a solid financial position even in these difficult times, and the credit ratings reflect that. But the challenges are real as well, and they should unify the region to ensure that we continue to benefit from the safe, reliable water supplies we’ve invested in together for the past 30 years.”

In affirming their credit ratings, the services cited the Water Authority’s strong financial leadership, including prudent strategies to manage issues related to COVID-19, its success diversifying water supply sources, its commitment to infrastructure maintenance, and its financial reserves for managing contingencies, among other factors.

  • Fitch Ratings affirmed its AA+ rating and gave a stable outlook on March 15. Fitch noted the Water Authority’s “operating costs are low”  and credited the Water Authority for “significant investments in supply diversification (that) have allowed SDCWA to continue to meet water demands in its service area.” Fitch also accounted for the Water Authority’s current hiring freeze, spending cuts and deferral of $30 million in planned capital spending to proactively manage finances during the pandemic.
  • Moody’s Investors Service affirmed its Aa2 rating and stable outlook March 14. Moody’s said, “the stable outlook reflects our expectation that the Authority’s satisfactory operating performance will continue, supported by strong management practices in the face of challenges associated with variable water supplies, rising costs, and the coronavirus pandemic.” Moody’s added: “Liquidity, including a rate stabilization fund, remains sound serving to insulate the Authority from risks associated with variable water supplies, including California’s (Aa2 stable) current drought conditions, as well as unanticipated events such as the coronavirus pandemic.”
  • S&P affirmed its AAA rating on March 17 and issued a negative outlook based on “heightened business risks associated with potential projected declines in water sales.” On the plus side, S&P cited the Water Authority’s demonstrated ability to navigate highly variable demands and weather cycles. The agency also said, “management is taking important steps” to balance fixed and variable costs, and it praised the Water Authority’s “robust infrastructure maintenance and operational policies.”

Risks include detachment

All three agencies addressed risks, such as additional local supplies that reduce Water Authority sales and member agency detachment. As proposed by Fallbrook and Rainbow, the detachments would allow those agencies to avoid paying for water supplies and infrastructure that have been developed in collaboration with those agencies and are currently being used by those agencies to meet their customers’ needs. Abandoning those cost obligations would force other ratepayers countywide to cover their portion of the bills already incurred for decades of investments in supply reliability.

In May 2020, the Water Authority’s Board of Directors voted to oppose detachment unless four conditions can be met related to protecting Fallbrook and Rainbow ratepayers, avoiding negative impacts for other member agencies, protecting the Sacramento-San Joaquin Bay-Delta, and maintaining the Water Authority’s voting rights at MWD.

The issue is under review by the San Diego Local Agency Formation Commission, known as LAFCO. The LAFCO process, which is designed to provide for an impartial analysis of these issues, will allow the Water Authority and all other affected parties to determine if these conditions are satisfied. If not, the Water Authority will oppose detachment.

For more information about the Water Authority’s finances go to: www.sdcwa.org/finance-investor-relations. Information about detachment is at https://www.sdcwa.org/member-agencies/lafco-reorganization/.

Credit Agencies Affirm Water Authority’s Strong Ratings Despite Headwinds

March 17, 2021 – All three major rating agencies – S&P, Moody’s, and Fitch – have affirmed the San Diego County Water Authority’s strong credit ratings, which will help the Water Authority optimize its debt portfolio and minimize the cost of financing important water reliability projects. The reports cited the Water Authority’s strategic management, its conservative approach to water sales projections, and the benefits of the Water Authority’s rate case litigation that recently resulted in $44.4 million being refunded to local retail water agencies – among many other factors.