Rio Grande Salinity Management Program: Preliminary Economic Impact Assessment
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Rio Grande Salinity Management Program: Preliminary Economic Impact Assessment Ari M. Michelsen - Texas AgriLife Research Tom McGuckin – New Mexico State University Zhuping Sheng - Texas AgriLife Research Ron Lacewell - Texas A&M University Bobby Creel – New Mexico Water Resources Research Institute Prepared for the Rio Grande Salinity Management Coalition December 2009 TX AgriLife Research NMSU NMWRRI Support for this project was provided by the U.S. Army Corps of Engineers, Albuquerque Office, New Mexico Office of the State Engineer, Texas AgriLife Research, Texas Water Resources Institute, Texas A&M University System, New Mexico State University, New Mexico Water Resources Research Institute and USDA, CSREES, Rio Grande Basin Initiative. DISCLAIMER The United States Army Corps of Engineers and the New Mexico Interstate Stream Commission on behalf of the Rio Grande Salinity Management Coalition (Coalition), in part, funded the work herein reported. This document fulfills or partially fulfills a contractual requirement and was sought by and provided to the Coalition to help meet the goals of the Coalition. The work was also supported by Texas AgriLife Research, Texas A&M University System, New Mexico State University, New Mexico Water Resources Research Institute and the Cooperative State Research, Education, and Extension Service, U.S. Department of Agriculture under Agreement No. 2008-34461-19061. This report is the work of a contractor and the findings and conclusions in this report are those of the authors and do not necessarily represent the views of the funding agencies and the Coalition. Implementation of any recommendations or formal adoption of the information is subject to further consideration of the Coalition. Preliminary Economic Impact Assessment Report Contact Dr. Ari M. Michelsen Research Director and Professor Texas AgriLife Research Center at El Paso Texas A&M University System 1380 A&M Circle El Paso, TX 79927-5020 (915) 859-9111 e-mail: [email protected] Salinity Economic Impact Assessment i TABLE OF CONTENTS DISCLAIMER............................................................................................................... i LIST OF FIGURES...................................................................................................... iv LIST OF TABLES .........................................................................................................v EXECUTIVE SUMMARY ............................................................................................ vi INTRODUCTION ..........................................................................................................1 Study Area .................................................................................................................................. 1 The Rio Grande Salinity Management Coalition........................................................................ 3 The Economic Assessment Process............................................................................................ 4 Types of Salinity Impacts........................................................................................................ 5 Previous Economic Assessment Studies................................................................................. 6 HYDROLOGY, SALINITY AND WATER USE .................................................................9 Study Area Water Allocation Compact, Treaty and Delivery Infrastructure .............................. 9 Characterization of the Rio Grande Flow ................................................................................. 10 Data Sources ......................................................................................................................... 11 Study Area River Flow.......................................................................................................... 11 Spatial and Temporal Variation of TDS................................................................................ 12 Statistical Analysis of Flow, TDS and Salt Load ..................................................................... 13 Statistical Analysis Results....................................................................................................... 14 Station at San Acacia ............................................................................................................ 14 Station below Caballo Dam .................................................................................................. 14 Station below Leasburg Dam................................................................................................ 16 Station below Mesilla Dam................................................................................................... 16 Station at El Paso .................................................................................................................. 16 Station at Hudspeth Canal Heading ...................................................................................... 17 Water Use.................................................................................................................................. 17 Agricultural Irrigation........................................................................................................... 18 Urban (El Paso) Supplies...................................................................................................... 19 ECONOMIC IMPACT ASSESSMENT METHODOLOGY................................................21 Agricultural Impacts ................................................................................................................. 21 Urban Municipal and Industrial Impacts .................................................................................. 25 Residential Impacts............................................................................................................... 26 Urban Landscape Impacts..................................................................................................... 28 Commercial Impacts ............................................................................................................. 29 Industrial Impacts.................................................................................................................. 29 Surface Water Treatment Plants Impacts .............................................................................. 31 ASSESSMENT OF ECONOMIC IMPACTS ....................................................................33 Agriculture Impact Estimates ................................................................................................... 33 Urban M&I Impact Estimates................................................................................................... 39 Residential Impact ................................................................................................................ 39 Urban Landscape Impact ...................................................................................................... 41 Commercial Impact............................................................................................................... 41 Industrial Impact ................................................................................................................... 42 Treatment Plants Impact ....................................................................................................... 42 Salinity Economic Impact Assessment ii Summary of Damages............................................................................................................... 43 Incremental Damages and Potential Benefits of Reducing Salinity ......................................... 43 CONCLUSIONS AND RECOMMENDATIONS ...............................................................46 REFERENCES............................................................................................................49 APPENDIX A .............................................................................................................59 Salinity Economic Impact Assessment iii LIST OF FIGURES Figure 1 Study area showing selected gauge stations, communities, and agricultural areas.......... 1 Figure 2 Average monthly discharges at selected gauge stations in the Study Area for the period of 1934 to 1993. ............................................................................................................................ 12 Figure 3 Average TDS of the river water for each month at different stations for the period of 1934 to 1993. ................................................................................................................................ 13 Figure 4 El Paso Water Utilities typical water distribution supply pattern................................... 26 Figure 5 Summary of benefits of incremental 200 mg/L TDS decrease in salinity...................... 44 Salinity Economic Impact Assessment iv LIST OF TABLES Table E-1 Summary of economic damages from Rio Grande salinity by water user category...viii Table E-2 Summary of economic benefits of reducing Rio Grande salinity ...............................viii Table 1 Study area damage estimate zones..................................................................................... 2 Table 2 Statistical analysis of flow rate, TDS, and salt load at selected Rio Grande stations ...... 15 Table 3 Crop acreage by crop; Socorro, Sierra, Dona Counties, NM, El Paso and Hudspeth Counties, TX................................................................................................................................