33rd Real Property Retreat May 3, 2013 Yosemite National Park The State of California’s Water Perspectives on California’s Water Supply Reliability

Gwyn-Mohr Tully - Moderator Mark Cowin – Director, DWR David Guy – President NCWA Roger Patterson – Asst Director, MWD California Trends

 California Population Growth and Urbanization  2014 - 38 Million People (Canada 34 Million); 2050 - 51 Million People  43 million acres of agricultural land; 9 million acres irrigated  14 million houses; Development converts 40,000 acres of ag land per year

 Interest Groups Vying for Limited Water Resources  State, Federal and Local Agency Power and Interaction  Urban, Agricultural, and Environmental Interest Groups

 Climate Change  50 to 90 year wet and dry cycles in past (Prof Ingram, UC Berkeley 2014)  Current science indicates less snow pack (less snow precipitation, earlier snowmelt)  Many severe hydrologic droughts lasting 10 years recorded in dendrochronological record (tree rings)

California Precipitation 4

Variable & Extreme Over Time & Location

Most precipitation occurs November - March California Statewide Precipitation

SOURCE: http://education.usgs.gov/california/resources.html#water 5 California’s Average Major River Annual Runoff Systems ~71 MAF/Year

Distribution of Average Runoff 56 MAF North (80%) 15 MAF South (20%)

Distribution of Water Use 15 MAF North (33%) 29 MAF South (67%)

N California Water Supply Systems

4% 22% 12%

7%

55%

Local -- 38.3 maf Colorado -- 4.8 maf Federal -- 8.1 maf State -- 2.9 maf Groundwater -- 15.0 maf

1998-2005 average.. Does not include reuse or recycling. Quantities vary by year. California Storage Reservoirs

 Snow Pack

 Surface Storage

 Groundwater Storage Current Regional Snowpack from Automated Snow Sensors - % of April 1 Average

Current 7% Northern Sierra / Trinity Regional Snowpack: % of April Average 20% Central Sierra

Southern Sierra

15%

Statewide Average: 15%

Data as of April 23, 2014

Updated 04/23/2014 09:15 AM Ending At Midnight - April 22, 2014

LEGEND

Capacity Historical (TAF) Average

% of Capacity | % of Historical Current Average

Reservoir Trinity Lake Shasta Reservoir Lake Oroville Folsom Lake 53% | 65% 53% | 62% 53% | 66% 55% | 76% Conditions (As of April 22)

New Melones Don Pedro Reservoir 40% | 64% 53% | 73%

Exchequer Reservoir 26% | 46%

San Luis Reservoir 47% | 52%

Pine Flat Reservoir Millerton Lake 28% | 46% 38% | 54%

Pyramid Lake Castaic Lake 92% | 102% 80% | 89%

Graph Updated 04/23/2014 10:45 AM Groundwater Basins & Management  515 Basins & Subbasins • 61,900 square miles • In 57 of 58 counties • ~40% of California

 GW Management • Local/agency authority • 118 Management Plans • Cover ~25,900 sq. miles • ~42% of GW Basin area

DRAFT California has Numerous Forms of Water Rights and Entitlements  Riparian and Littoral  Public Trust Doctrine  Pre-1914 Appropriative  Pueblo Rights  Post 1914-Appropriative  Federal Reserved Rights  Overlying Groundwater Rights  Prescriptive Rights

 Appropriative Groundwater  Area of Origin Law Rights  Foreign, Developed and  Contract Water Entitlements Salvaged Water  Central Valley Project  Reclaimed and Recycled  State Water Project  Local Contracts Governance of California’s Water

 State of California is the “primary” authority  Numerous Federal Agencies and courts regulate and affect water

 Numerous State Agencies and courts regulate and affect water

 Cities and Counties regulate and affect water  Thousands of special districts, joint powers authorities, and private companies regulate and affect water (both land and water based) Fish Species and Water

 34 species and subspecies of fish are listed as either threatened or endangered by the State of California or the federal government

 Endangered and threatened fish species affect California water policy

 Protection of fish species affects water supply reliability Why must real property lawyers understand water issues?

 Water supply reliability is the primary issue in agricultural land valuation and crop production  Dry year reliability  Cost to acquire water assets in business planning  Land use planning decisions legally bound to tangible proof of water supplies and water supply plans  General Plans, Specific Plans, SB 610 Water Supply Assessments, SB 221 Water Supply Verifications  CEQA and the Vineyard Decision  Water issues affect corporate activity  Locating water-based business (e.g. brewery)  Oil business and fracking  Corporate Social Responsibility and Environmental Stewardship The Marriage of Land and Water

For better or for worse? How much worse? How Reliable is Your Water?

 Drivers of reliability  Hydrology, water right priority, regulatory issues, infrastructure capacity, competition for resources

 Protect against shortages  “Location, Location, Location”  Contractual protection  Diversifying a water supply portfolio

 Leveraging reliability to entice high-water using industries Panel of Experts

 Mark Cowin – Director, California Department of Water Resources

 David Guy – President, Northern California Water Association

 Roger Patterson – Assistant General Manager for Strategic Water Initiatives, Metropolitan Water District of Southern California