A University of California economic analysis finds that California’s water supply deficiencies could create losses between $3.4 and $14.5 billion annually across agriculture and manufacturing sectors.
Using estimates that the state could lose 12% to 25% of its water supply by 2050, the study assessed impacts across scenarios that included the direct loss of agricultural water use and the indirect impacts on jobs and urban welfare.
Researchers found that four key factors are driving California's water supply shortage: Sustainable Groundwater Management Act implementation, climate change reducing the available snowpack, water allocations for ecosystem support and decreased Colorado River diversions for Southern California.
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Commissioned by the California Municipal Utilities Association, the report endorses a measure that would create the state’s first water supply target of 9 million acre-feet by 2040. Authored by Senator Anna Caballero, D-Merced, Senate Bill 72 has received support across agricultural interest groups, including the California Farm Bureau and the Agricultural Council of California.
The study suggests management changes must be driven at the state level through a statewide infrastructure and investment plan.
It also expressed optimism that technological advancements will increase the productivity of water recycling projects in lieu of traditional water resources, as well as desalination and increased stormwater capture.
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