Economic Analysis
Economic Analysis Section
901 P Street, 2nd floor
P.O. Box 942836
Sacramento, CA
94236-0001
Phone: (916) 653-7101
Fax: (916) 651-9289
DWR economists are currently involved in a wide variety of projects, including water supply and quality, water use efficiency, flood damage reduction and ecosystem restoration. Current projects include:
California Water Plan Update: DWR economists are actively involved in the preparation of the California Water Plan Updates, including preparing population projections and estimating future urban and agricultural water demands. Economics staff who worked on the 2005 Water Plan Update include Marla Hambright, Jim Rich, Farhad Farnam and Ray Hoagland, who were extensively involved in the water supply/demand "Assumptions and Estimates" portion of the update
California Bay-Delta Surface Storage Program: The CALFED Bay-Delta Record of Decision (ROD), completed in August 2000, directed DWR and USBR to evaluate five surface storage proposals (Shasta Enlargement, North of Delta Off-Stream Storage, In-Delta Storage, Los Vaqueros Enlargement, and Millerton Enlargement or equivalent). A feasibility study has been completed (2004) for the In-Delta proposal which would provide capacity to store approximately 217,000 acre-feet of water in the south Delta. Ray Hoagland, Farhad Farnam, Jim Rich and Richard Bach Le participated in the economic analysis, which consisted of benefit/cost and regional impact analyses.
California Bay-Delta Authority/DWR/USBR "Common Assumptions" process: These three agencies are working cooperatively to develop a common set of evaluation approaches and assumptions for studying potential surface storage facilities listed above. A Common Assumptions economics workgroup has been tasked with identifying economic measures and models to be used in the economic analysis for all projects that are being evaluated. Ray Hoagland and Steve Cowdin are participating in this effort. The workgroup recommendations should be available in fall of 2006.
Prop 50 Grant Programs Proposition 50, the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002, was passed by California voters in 2002 to "�encourage integrated regional strategies for management of water resources and to provide funding, through competitive grants, for projects that protect communities from drought, protect and improve water quality, and improve local water security by reducing dependence on imported water." Grant programs that DWR economists Lorraine Marsh, Farhad Farnam and Steve Cowdin have particpated in by developing benefit/cost analysis guidelines and reviewing completed applications include Agricultural and Urban Water Use Efficiency, Water Desalination, and Integrated Regional Water Management.
Agricultural Water Suppliers Efficient Water Management Practices Act of 1990 (AB 3616): The intent of this act was to promote the implementation of voluntary, efficient water management practices (EWMPs) among agricultural water suppliers. It led to the creation of the Agricultural Water Management Council and the signing of a Memorandum of Understanding among agricultural water suppliers, environmental groups and other interested parties. As part of the EWMP evaluation process, a Net Benefits Analysis was developed that quantitatively and qualitatively evaluates technical, environmental, socioeconomic, financial, and third party impacts related to each EWMP. Accepted EWMPs are then included in an Agricultural Water Management Plan prepared by each water supplier. Lorraine Marsh and Steve Cowdin review the NBAs included in these agricultural water plans and provide comments to the DWR Office of Water Use Efficiency and the Council.
FloodSAFE: In response to the passage of Propositions 1E and 84 in the November 2007 election, DWR has embarked upon a multi-faceted program to improve public safety through integrated flood management. Several FloodSAFE programs require economics input, including the Central Valley Flood Management Plan (flood damage reduction anlyses), Risk Notification (development of flood risk information to include in letters to property owners behind State/federal project levees), and Building Code Update (estimating the costs and benefitss of proposed building code changes in flood prone areas protected by project levees).