California Drought Plan Takes Shape

Date: April 20, 2015

San Francisco Faces Smaller Restrictions Than Most Areas

Gov. Jerry Brown (D) and the State Water Resources Control Board on Saturday revised plans for California’s mandatory water cuts, the first in the state’s history. Officials estimate the new plan should reduce potable water use by 1.3 million acre-feet over nine months. For reference, the average household in California uses roughly half an acre-foot of water per year. The regulations require different levels of cutbacks from different municipalities and other water consumers, with the heaviest users facing the largest reductions. San Francisco is among cities with the lowest per-capita water usage in the state, meaning it faces only an eight percent reduction, compared to 35% reductions required in areas with the highest use. The regional disparities in cutbacks have spurred criticism from the hardest-hit areas. Agriculture is exempted from the majority of mandatory rules.

California farmers continue to receive criticism for their water use, with almonds receiving the harshest criticism. The state’s top crop for export is booming along with rising global demand, and with almond trees covering nearly one million acres in California and consuming a cumulative trillion gallons of water per year, almonds are an easy target. However, multiple outlets have demonstrated the importance of the crop on the economy and the dangers of forcing more severe water reductions on the perennial tree, as well as the cutbacks farmers have already made. Despite the drought, new analysis by Rabobank’s Vernon Crowder predicts, “California almond growers will continue to increase plantings and total production, leading to a rise of about 2 percent and 3.5 percent per annum, respectively, over the next decade.”

What Happens Next

The draft emergency water rules are scheduled for implementation early next month, most likely on May 5 or 6. Water use rules will likely evolve over time as the large-scale water shortage continues. Water Resources Control Board Chairwoman Felicia Marcus said, “We know we don’t know when it will end… All Californians need to step up more and prepare as if it won’t rain or snow much next year either.”

What It Means For Small Business

Since the record-breaking drought began in 2012, small businesses across the region have been deeply affected. Family farms have had to fallow fields and change crop distributions, retail establishments have adjusted operations to reduce water use, landscapers and swimming pool companies have borne serious restrictions, etc. As the drought drags on, the impact on independent business owners will amplify.

Additional Reading

The drought continues receiving heavy regional and national coverage. Media outlets covering the news include the Los Angeles Times, another article from the Los Angeles Times, the AP, Fusion, Southern California Public Radio, the Sacramento (CA) Bee, Reuters, a second Reuters story, CBS News, the Detroit (MI) Free Press, The Guardian (UK), and the Wall Street Journal Opinion page.

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