New study examines how the drought will impact economy

The Public Policy Institute of California (PPIC), a nonpartisan, non-profit research institution based in San Francisco, released an impact study on the California drought and how the drought will impact the state’s overall economy. While many are unsure of the long-term ramifications the California drought has had on the state, PPIC has identified a number of growing concerns, the biggest ones being the impact on the environment and poor rural communities.

“This drought is serving as a stress test for California’s water management systems,” said Ellen Hanak, director of Water Policy Center and co-author of report. “Californians have worked hard to limit its impacts, but the experience has also revealed major gaps in our readiness to cope with the droughts we expect in the future.”

PPIC explains the common social discourse associated with the drought: “Public discussions often frame drought policy in terms of trade-offs among different areas – for instance, cities versus farms, or farms versus fish. And to be sure, the drought is forcing difficult trade-offs,” the study reads. “Drought preparedness cannot eliminate all costs and consequences of water scarcity, but it can help lessen vulnerabilities and enable society to handle trade-offs in a transparent and balanced way.”

The California drought has impacted the quality and quantity of water flow. Because most of the water being used is from underground storage, farms, cities, hydropower and the environment are all relying on water affected by potential toxins from reduced water flows and high temperatures

Because of the severity of the California drought, many farmers and cities are pumping water to meet their demands. This excess pumping that reduces long-term reserves, known as overdraft, has had a negative impact on the state. The lack of government regulations on groundwater has led to sinking lands, higher pumping costs, drying of wells, rivers and wetlands. The effects of overdraft have impacted the Central Valley to the point of infrastructure damage. Bridges, reservoirs and major water canals, like the Delta Mendota, have seen extensive damage.

According to the study, there are four main areas of concern:

• Groundwater: The state and federal government need to create legislation to address groundwater pumping. Because so many farmers and cities are pumping emergency supplies, the ground around vital infrastructure is failing. Creating a long-term management plan will help alleviate this problem.
• Rural communities: Emergency support plans are needed for those in rural areas who rely on wells for their drinking water. When their wells run dry, they need to be able to receive assistance in obtaining water.
• Biodiversity: The different fish and wild birds are in need of fresh flowing water. It is vital for farmers to work with the government to flood farmland during particular times of the year. Doing this will ensure species remain intact and avoid extinction.
• Wildfires: Preventing wildfires are key during the California drought. Removing dead trees and thinning of forests reduces the likelihood of a wildfire from occurring.

“If the drought continues, emergency programs will need to be significantly expanded to get drinking water to rural residents and prevent major losses of water birds and extinctions of native fish species,” said Jeffrey Mount, senior fellow at the PPIC Water Policy Center. “California needs a longer-term effort to build drought resilience in the most vulnerable places.”

According to the study, there are three key areas that are working for the state:

• Diversified water portfolios: Investing in a variety of water projects and managing consumer demands.
• Regional infrastructure: Having multiple agencies invest in regional water supplies.
• Coordinated emergency responses: Cooperation between local, state and federal agencies has helped with emergency responses and reduced the economic loss caused by the California drought.