Get the Facts:
California’s Looming Water Crisis Issue Impact Paper: Economy
The water system that contributed to California’s emergence as
one of the world’s major economic powers is faltering, with existing
facilities struggling to meet current demand. Despite significant advances
in water conservation, California’s water needs will grow over
the next 25 years as our population continues to increase and our climate
changes.
Though some regional projects have been completed, California has not
built a major new reservoir in more than 25 years, and our population
has nearly doubled in that time. In the late 1990s, California faced
an energy crisis because it failed to build power plants to keep up
with demand. We cannot afford to make that same mistake with water.
Experts agree that California’s aging levee system is at risk
of a major failure. With over 1,100 miles of century-old levees in disrepair,
our risks mirror those in New Orleans before Hurricane Katrina. We must
learn from those horrific events and work together to come up with viable,
sustainable solutions to California’s looming water crisis.
In addition to a deteriorating levee system that places homes, businesses
and farms at risk, the construction of new homes on increasingly vulnerable
flood plains is compounding the challenge. Given the continued growth
of California’s population, it is clear that new construction
is essential for the economic stability of our state. But we must find
solutions that address our water and flood protection needs to avoid
economic catastrophe when our current system fails.
Consider:
- A massive levee failure in the Sacramento-San Joaquin Delta could
cost the California economy up to $40 billion over a five-year period.
- Scientists say there is a two-thirds chance of a major levee failure
in the Delta in the next 30 years.
- A major levee breach would disable the state’s water supply
system for months, submerge thousands of acres of farmland, and wipe
out railroads and highways – all with a devastating impact on
the economy.
- Vital energy, communication and transportation facilities that
traverse the Delta would also be affected, at a cost to the economic
health of California.
If California’s vibrant economy is to continue to grow, we must
rebuild and rei-invest in our water infrastructure before disaster occurs.
A long-term, sustainable approach to California’s water crisis
is essential to maintaining California’s economic stability.
Consider:
- California’s trillion-dollar economy is the eighth largest
in the world.
- California’s population is expected to exceed 50 million
by 2030.
- Without water, it would be virtually impossible for people to live
and work in an arid state like California, so a catastrophic Delta
failure could send California into a deep recession
Investing in California’s water infrastructure is essential to
maintaining California’s strong economy – and continuing
to attract new employers to further stimulate our economic future. Without
sustainable, long-term solutions to our looming water crisis, investors’
confidence in our state could erode. Particularly in the wake of catastrophic
Hurricane Katrina, we know too well what can happen without serious
forethought and planning. For the future of California’s economy,
we must work together to address these issues.
Learn more about California’s water infrastructure
needs.
Sources:
California Chamber of Commerce
California Department of Water Resources
California Department of Finance
Public Policy Institute of California
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