Wall Street’s reputation as one of America’s premier innovation machines can only be enhanced by a new futures contract that began trading publicly on Dec. 7. It allows investors to bet on the price of water in California.
Those who take the gamble are effectively betting that the spot price for water will rise during the life of the contract; they’ll pocket the difference. Sellers are betting that the price will fall.
Beside a river that winds through a mountain valley, the charred trunks of pine trees lie toppled on the blackened ground, covered in a thin layer of fresh snow. Weeks after flames ripped through this alpine forest, a smoky odor still lingers in the air.
The fire, called the East Troublesome, burned later into the fall than what once was normal. It cut across Rocky Mountain National Park, racing up and over the Continental Divide. It raged in the headwaters of the Colorado River, reducing thick forests to ashes and scorching the ground along the river’s banks.
The Friant Water Authority cleaned up some of the most important work in the last month of the year hashing out a legal settlement with farmers in southern Tulare County.
Represented by the Eastern Tule Groundwater Sustainability Agency farmers agreed to contribute at least $125 million to repair the significant subsidence-caused sag in the gravity-fed canal that has cut water deliveries by 60%.
Parts of the world economy may have been on pause during 2020, dampening greenhouse gas emissions for a while. But that didn’t slow the overall buildup of atmospheric carbon dioxide, which reached its highest level in millions of years.
If anything, research during the year showed global warming is accelerating. Symptoms of the fever include off-the-charts heat waves on land and in the oceans, and a hyperactive and destructive Atlantic hurricane season.
A dry start to California’s water year is reflected in the season’s first snow survey of the Sierra Nevada snowpack. The statewide snowpack is 52% of average for Dec. 30. On average, the Sierra snowpack supplies about 30% of California’s water needs.
“The first snowpack survey of the water year points to California’s climate variability, which is why a diverse water portfolio is needed to provide a reliable supply,” said Goldy Herbon, San Diego County Water Authority senior water resources specialist. “The Water Authority and its 24 member agencies have successfully diversified water sources, and continue to expand those sources, to ensure our supply meets the needs of the region’s 3.3 million people and its $245 billion economy.”
One of the best road trips I’ve ever taken was a sightseeing tour of the Colorado River, where it straddles the California-Arizona state line. I stood at the edge of Imperial Dam near the Mexican border, which diverts water to the farm fields of the Imperial Valley, then drove north to Cibola National Wildlife Refuge, home to lots of birds. I walked along the river in Laughlin, Nev., where there’s a hotel called the Colorado Belle that looks like a boat, and in Needles, Calif., where Snoopy’s brother Spike lives.
Extreme weather will surely have its own chapter in the turbulent history of 2020. The human and economic toll of Covid-19 was already enormous this fall, when it became clear that 2020 was on track to break the previous record for big weather disasters, fueled in part by climate change. From the derecho that battered the Midwest with hurricane-force winds to unprecedented wildfires that scorched more than 700,000 acres in Colorado and gave California its worst fire season in history, weather and climate events like these represented only a few line items in the latest tally of the nation’s billion-dollar disasters.
AJ Carrillo farms 18 acres outside of Hotchkiss, Colo., in the high desert of the Western Slope about an hour southeast of Grand Junction. When he irrigates his peach orchard, water gushes from big white plastic pipes at the top of the plot and takes half a day to trickle down to the other end of his five-acre orchard. Carrillo is planning to convert his Deer Tree Farm from flood irrigation, which is commonly used in Western Colorado, to a new and much more efficient style of irrigation – microsprinklers.
On a Saturday in late October, Carolyn Phinney stands hip-deep in a half acre of vegetables, at the nucleus of what will one day be 15 acres of productive farmland. “You can’t even see the pathways,” she says, surrounded by the literal fruits of her labors. The patch is a wealth of herbs, tomatoes, eggplants, peppers, kale, winter squash, and zucchini. So much zucchini — fruits the size of bowling pins hidden under leaves as big as umbrellas.
A month into California’s peak storm season, the lack of wet weather is beginning to weigh on the state’s water supply.
The snowpack in the Sierra and southern Cascades, which provides as much as a third of the water used by California cities and farms, is about 55% of average for this time of year. It hasn’t been this low at this time since 2017, when the state was emerging from a five-year drought.
