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Yakima River Basin Integrated Water Resource Management Plan

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Yakima River Basin Integrated Water Resource Management Plan Yakima River Basin Integrated Water Resource Management Plan Four Accounts Analysis of the Integrated Plan U.S. Bureau of Reclamation Contract No. 08CA10677A ID/IQ Prepared by ECONorthwest Natural Resources Economics ESA U.S. Department of the Interior State of Washington Bureau of Reclamation Department of Ecology Pacific Northwest Region Office of Columbia River October 2012 Columbia-Cascades Area Office MISSION STATEMENTS The Department of the Interior protects and manages the Nation’s natural resources and cultural heritage; provides scientific and other information about those resources; and honors its trust responsibilities or special commitments to American Indians, Alaska Natives, and affiliated island communities. The mission of the Bureau of Reclamation is to manage, develop, and protect water and related resources in an environmentally and economically sound manner in the interest of the American public. The Mission of the Washington State Department of Ecology is to protect, preserve and enhance Washington’s environment, and promote the wise management of our air, land and water for the benefit of current and future generations. Yakima River Basin Integrated Water Resource Management Plan Four Accounts Analysis of the Integrated Plan U.S. Bureau of Reclamation Contract No. 08CA10677A ID/IQ Prepared by ECONorthwest Natural Resource Economics ESA U.S. Department of the Interior State of Washington Bureau of Reclamation Department of Ecology Pacific Northwest Region Office of Columbia River October 2012 Columbia-Cascades Area Office This Page is Intentionally Left Blank Table of Contents 1.0 Introduction .................................................................................................................... 1 1.1 Overview of the Integrated Plan ...................................................................................... 1 1.2 Economic Analysis in the Context of the Integrated Plan ................................................ 1 2.0 National Economic Development Account .................................................................. 4 2.1 Fish Benefits ................................................................................................................... 8 2.2 Irrigation Benefits .......................................................................................................... 33 2.3 Municipal and Domestic Water Supply Benefits ............................................................ 45 2.4 Costs of the Integrated Plan ......................................................................................... 54 2.5 Comparison of Benefits and Costs ................................................................................ 55 3.0 Regional Economic Development Account ............................................................... 58 3.1 Analytical Approach ...................................................................................................... 59 3.2 Impacts of Construction Expenditures ........................................................................... 61 3.3 Operations and Maintenance Expenditures .................................................................. 70 3.4 Changes in Agricultural Production ............................................................................... 73 3.5 Summary of Findings .................................................................................................... 75 4.0 Environmental Quality and Other Social Effects Accounts ..................................... 78 4.1 Environmental Quality ................................................................................................... 78 4.2 OSE Evaluation ............................................................................................................ 84 5.0 References ................................................................................................................... 88 6.0 List of Preparers .......................................................................................................... 94 Appendix A. Fish Benefits ....................................................................................................... 1 A.1 Estimating Total Economic Value ................................................................................ A-1 A.2 Estimating Use Value .................................................................................................. A-3 Appendix B. Irrigation Benefits ........................................................................................... B-1 B.1 Description of Model .................................................................................................... B-1 B.2 Description of Data ...................................................................................................... B-2 B.3 Calculating Present Value of Benefits over Time ......................................................... B-5 B.4 Additional Agricultural Production Data ...................................................................... B-10 Appendix C. Municipal and Domestic Water Supply Benefits ..................................... C-1 Appendix D. Costs ........................................................................................................... D-1 List of Tables Table 1. Elements and Associated Actions Included in Integrated Plan ................................................. 2 Table 2. Summary of Benefits and Costs ............................................................................................... 7 Yakima River Basin Integrated Plan i Four Accounts Analysis of the Integrated Plan Table 3. Expected Increases in Salmon and Steelhead Populations Resulting from the Integrated Plan at Full Implementation ......................................................................................................... 10 Table 4. Fish Populations in the LPB Study: Past, Current, and Baseline Scenarios for Eastern Washington and Columbia River Migratory Fish .................................................................. 11 Table 5. Average WTP per Household for Low- and High-End Expected Increases in Fish Population Resulting from the Integrated Plan: Annual and Present Value ............................................ 22 Table 6. Present Value of the Integrated Plan’s Fish-Related Benefits ................................................ 22 Table 7. Comparative Findings on Household Willingness to Pay for Increased Salmon Populations .. 26 Table 8. Economic Use Value per Fish by Species and Fishery (2012 dollars) .................................... 28 Table 9. Distribution of Harvest Across Fisheries by Species ............................................................... 31 Table 10. Summary of Fish-Related Benefits ....................................................................................... 32 Table 11. Proratable Water Rights above Parker Gage ....................................................................... 34 Table 12. Scenarios Used in the Analysis of Irrigation-Related Benefits .............................................. 36 Table 13. Annual Net Farm Earnings during a Severe Drought Year for Baseline and Integrated Plan Scenarios ............................................................................................................................ 39 Table 14. Irrigation-Related Benefits Assuming a Range of Severe Drought Conditions ...................... 40 Table 15. 2007 Agricultural Production ................................................................................................ 42 Table 16. Economic Activity in 2009 in the 4-County Study Area and Across Washington ................... 61 Table 17. Components of the Integrated Plan ...................................................................................... 62 Table 18. Construction Expenditures of the Integrated Plan (2012 Q1 Dollars) .................................... 63 Table 19. Summary of Economic Impacts, by Type, from Construction Expenditures .......................... 65 Table 20. Distribution of Construction Impacts across Aggregate Industry Sectors, 4-County Study Area ............................................................................................................................................ 66 Table 21. Highest Level of Annual O&M Expenditures (2012 Q1 Dollars) ............................................ 70 Table 22. Summary of the Economic Impacts of the Highest Level of Annual O&M Expenditures ....... 71 Table 23. Distribution of Impacts of the Highest Level of Annual O&M Expenditures across Industry Sectors, 4-County Study Area ............................................................................................. 72 Table 24. Gross Farm Earnings (2012 Q1 Dollars) .............................................................................. 73 Table 25. Summary of Economic Impacts of Changes in Agricultural Production, Severe Drought Year ............................................................................................................................................ 74 Table 26. Distribution of Agricultural Impacts By Aggregate Industry Sector, 4-County Study Area ..... 75 Table 27. Summary of Economic Impacts in the 4-County Area, by Type of Expenditure .................... 76 Table 28. Summary of Economic Impacts in Washington, by Type of Expenditure .............................. 77 Table 29. Summary of Economic Impacts Relative to the Greater Economy .......................................
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