water, drought, and social justice in urban and rural california ellen hanak northern california...
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Water, drought, and social justice in urban and rural California
Ellen Hanak
Northern California Grantmakers Annual Conference — From Ideas to ActionMay 2015
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First, a brief overview of drought issues
Photo courtesy of Department of Water Resources Play Video
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Second, an overview of water spending
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
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20.0 Annual water system spending (2008–2011): $30+ billion
Federal (4%)
State (12%)
Local (84%)
Bill
ion
s o
f 20
12
$ p
er
yea
r
$2.2
$10.1
<$1 <$1
$16.9
Source: Hanak et al., Paying for Water in California (PPIC, 2014).
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What are the key equity issues?
Urban areas: Large systems Scale economies for
infrastructure (lower costs/household)
Better managed (safer) systems
Some ability to cross-subsidize lower income households through lifeline rates
Rural areas: Small systems No scale economies
(higher costs/household)
Systems harder to maintain (organizational challenges)
Generally lower incomes, outside funds often needed for system upgrades
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Growing challenges in both settings
Urban areas Rising costs and legal
uncertainties of lifeline rates
Drought resulting in price changes that can hit lower-income households hard
Rural areas Growing problem of
contaminated wells Drought resulting in
some wells going dry
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Urban water bills have been rising faster than inflation
Source: Hanak et al., Paying for Water in California (PPIC, 2014).
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Low-income households may face growing affordability challenges
Proposition 218 (1996) restricts lifeline rates– No new cross-subsidies
from other ratepayers without 2/3 voter approval
Drought and reduced water sales can cause revenues to fall below costs – Some utilities are
increasing fixed monthly service fees
Source: Hanak et al. Paying for Water in California (2014)
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Small, disadvantaged rural communities face special funding challenges
About 0.2% to 0.4% of state’s population in small communities with contaminated wells
$30-$160 M/year needed to address this problem
Prop 1 and other sources can help
But a dedicated statewide surcharge would provide more reliable support
Small systems (population <3,300) with contaminated wells and health violations
Source: Hanak et al., Paying for Water in California (PPIC, 2014).
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Dry wells are an added problem in rural communities with this drought
Emergency funds available
But support for individuals, smallest communities faces legal hurdles
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State general fund is most progressive source if funding water ≠ social cuts
The drought opens a window for reform
March 2012 March 2013 February 20150%
10%
20%
30%
40%
50%
60%
52%
45%
24%
1% 2%
23%
What Californians see as the state’s top issue:
Jobs, economy Water, drought
Pe
rce
nt o
f all
ad
ults
Source: PPIC Statewide Survey: Californians and their Government
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Thank you!For more info go to: www.ppic.org/water
Photo courtesy of Department of Water Resources
Water, drought, and social justice in urban and rural California
Ellen Hanak
Northern California Grantmakers Annual Conference — From Ideas to ActionMay 2015
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Notes on the use of these slides
These slides were created to accompany a presentation. They do not include full documentation of sources, data samples, methods, and interpretations. To avoid misinterpretations, please contact:
Ellen Hanak ([email protected]; 415-291-4433)
Thank you for your interest in this work.