When the
appointments to the Nevada Drought Forum did not
include anyone from Rural Nevada areas at risk of
having our water taken, we in Rural Nevada were suspicious. Now we
know why. The Nevada Drought Forum has recommended that we cast aside
Nevada water law (that has served us for over a century) and start
over with a new set of rules – which they call the “unbundling of
water rights.”
Again and again we
have seen in America that when the law doesn't allow the greedy to
take what they want, the greedy try to change the law. They usually
try to do this behind the scenes – with the least amount of
democratic process. And they try to convince us this is all for our
own good – by wrapping themselves in the “freedom” flag of
“free” trade. But for decades now, we have seen that “free”
trade has nothing to do with “fair” trade. Follow the money. The
filthy rich are getting richer, and the rest of us are not.
Over a decade ago,
we saw the world reject water privatization as an instrument for
price gouging, anti-competitive behavior, corrupt practice, and
fraud. But being discredited doesn't stop the greedy. They just
repackage the scam, come up with new terms, and try to change the
laws again.
It's blatantly
obvious that “unbundling” of water rights is an intentionally
obscure term for the commodification of water. And commodification is
the key to unrestrained exploitation. With commodification there can
be speculation. With speculation, expect high prices. But that's just
the tip of the exploitation tsunami.
The Michael Young –
Nicholas Institute for Environmental Policy Solutions/Duke University
report Unbundling
Water Rights: A
Blueprint for Development of Robust Water Allocation Systems in the
Western United States proclaims that “the key difference
between the current and proposed governance systems is the
appointment of boards that take over many of the responsibilities
currently undertaken by the courts.” Now think about that… an
appointed board (The Nevada Drought Forum) recommends that appointed
boards take over the duties of the courts. This “take over”
implies that the greedy have been losing in the courts.
Repeatedly, the
Southern Nevada Water Authority (SNWA) has been losing in the courts
in their attempts to take water from Rural Nevada with their
Groundwater Development Project (The
SNWA Watergrab).
One of the primary reasons Nevada Courts have ruled against SNWA has
been the potential detrimental effects on senior water rights
holders. So; now we have an appointed board (The Nevada Drought
Forum), essentially headed by SNWA General Manager John Entsminger,
recommending that we effectively get rid of senior water rights and
the courts. The implications are obvious.
But we don't have to
speculate. Unbundling has been practiced elsewhere. There are
examples worldwide. The Michael Young/Nicholas Institute/Duke
University Unbundling Water Rights report cites Australia as a
successful example. But not everyone considers the “unbundling”
of water in Australia to be such a success. In fact, ABC
Australia
reported that “The water market conspicuously failed to live up
to the expectations of the National Water Initiative, driving down
water storages in the Murray-Darling Basin to critically low levels
at a time when conservation should have been paramount. The dire
consequences for the environment, communities and economy of the
Basin were clear for all to see… For eight long years the nation's
most vital river was not allowed to flow into the sea.”
Now wait a minute.
The Michael Young report repeatedly uses the word “robust” to
define unbundling. They even define “robust” to mean; “that the
resultant water rights, allocation, and governance systems are
designed to work well during times of extreme stress.” Of course,
they didn't define what “work well” means. Allow me to help. It
appears “work well” in Australia's case means outside investors
made lots of money.
A large number of
offshore players have been quite active in Australia's water market.
But the greedy have been keen on covering their tracks. Australian
water law prohibits public access to details on water rights holders.
Back in the days of
water privatization; foreign companies came in and bought up water
companies and did a poor job of delivering water to consumers at
hyper-inflated prices. Now, with unbundled water rights, foreign
companies can simply buy up water rights and sell them back to
consumers at hyper-inflated prices. The big difference is that now
those companies don't have to deliver any water. All they have to do
is speculate. In other words, unbundling is actually easier to
exploit than privatization.
And what about the
Michael Young/Nicholas Institute/Duke University Unbundling Water
Rights report that claims that unbundling will “improve
environmental outcomes”? The claim sounds impressive, but there
wasn't any explanation of how this would inevitably happen because of
unbundling. Moreover, Adrian Walsh of the University of New England,
in The Commodification
of the Public Service of Water: A Normative Perspective,
states: “Commodification will, in most cases, be at odds with
commonly endorsed environmental values and will limit any
government's ability to act in an environmentally sensitive and
sustainable manner.” Admittedly, the Unbundling Water Rights
report did mention that the environment could be protected if Nevada
writes separate “plans” (laws) to protect the environment. But
don't expect any significant environmental protections in a State
with a Republican Governor, Senate, and House. (Of course, we didn't
expect the Democrats to protect us either. The last Democratic
candidate for Governor was a former head of SNWA.)
So, after
Australia's environmental misery with unbundling, commodification's
bad reputation, and no foreseeable responsible environmental
legislation in Nevada; could Michael Young be whitewashing
the potential environmental risks? It certainly looks like it. And if
so, this casts doubt on the whole Unbundling Water Rights
report to Nevada.
Michael Young
recommends in the Unbundling Water Rights report that these
new policies be “rolled out quickly” in Nevada. And why? So that
we can be “leaders”. He also recommends that; “Rather than
preparing a single integrated water resource bill for consideration
by the Nevada's Legislature, it may be more appropriate to prepare
separate bills”. And why? No reason given. These look like “Shock
Doctrine” tactics – which are to wait for a crisis to ram through
exploitative laws that benefit only the greedy. And if they separate
these bills, it will be even more difficult for Nevadans to fight
them.
Astonishingly,
Nevada's State Engineers haven't simply waited
for this “Shock Doctrine” water crisis. Actually, they have
historically enabled it by over-allocating water rights
in Nevada. In defense on the Nevada State Engineers, they haven't
really had the political power to say no. But in places like Diamond
Valley, where the USGS claims that sustainable use is about 35,000
acre feet per year, State Engineers have allocated 70,000 acre feet
per year, and actual use may be as high as 100,000 acre feet per
year! Disastrously, this water crisis was enabled by those who were
supposed to protect us from this very thing.
It appears that
Nevada bureaucrats have created a water crisis which our politicians
are now being enticed to make worse by passing bills to further
enable unrestrained exploitation.
...But it's even
less democratic than that. The Michael Young Unbundling Water
Rights report states: “Under existing legislation… the state
engineer could declare a groundwater resource to be a critical
management area and could require preparation of and implement a
water resource sharing plan… the state engineer would appear to
have sufficient authority to pilot test the proposed right system in
the Diamond Valley and the Humboldt Basin.”
In other words,
initially, we the people don't have any say in this comprehensive
change in Nevada water law. Of course, the Michael Young/Nicholas
Institute/Duke University Unbundling Water Rights report
explains that an election could be held after five years – where a
majority of water rights holders could change things back to
senior/junior water rights. But there isn't even a mention of any
options for those with minority opinion. It's like the lamb and the
pack of wolves voting on what to have for dinner. If senior water
rights holders realize they've been taken advantage of; they likely
won't be able to go to court, they will likely be in the minority in
the valley, and if foreign speculators buy up junior water rights in
their basin, senior water rights holders could eventually be in the
minority to foreign water investors, hedge funds, or even big cities.
But the water users
most likely to suffer from unbundling are the small family farms.
Anthony S. Kiem's article Drought
and Water Policy in Australia concludes; “there are also
some significant limitations and the people and industries that are
negatively impacted by water trading are hit hard.” And; “However,
these benefits are limited to the larger, well-informed irrigators at
the expense of the smaller “family farm” organizations”... I
wouldn't vote for that. But nobody gets to.
In the Humboldt
Basin, the Michael Young Unbundling Water Rights report
recommends; “the existing authority (the 15-person Humboldt River
Basin Water Authority) be disbanded and replaced.” Now I'm pretty
sure no one on that existing authority voted to be reduced to an
advisory position on a “community reference panel.” This takeover
is unnecessary. It is effectively a coup d'état
that seizes power away from local control and puts it in the hands of
the State politicians and bureaucrats that got us into this crisis!
...But at least the
former board of the Humboldt River Basin Water Authority will still
have some input – unlike environmentalists and Native
Americans – that didn't even get mentioned.
Of course, the
Michael Young/Nicholas Institute/Duke University Unbundling Water
Rights report did include some good ideas. Nevada's water
resource plan should:
-
“Allow water account holders to carry forward as many unused water allocations as desired from one season to the next.”
-
“Require all significant water use to be metered and recorded in a robust accounting system.”
-
“Discourage intentional overuse by setting the penalty for a water account deficit of more than 21 continuous days at three times the cost of restoring the account to a zero balance.”
These are good
ideas. But we don't have to unbundle water rights to accomplish them.
Nevada has been
offered three spoons of sugar to go with our tainted Kool Aid.
We need to realize
the obvious: The long-term answers to our water issues do not include
selling it off to anyone who wants to buy it.
Allow me to
speculate for a moment:
What if this
“unbundling” process is really a surreptitious effort by the big
cities to buy up Rural water rights for cheap? What if the big cities
and the speculators have devised a way to copy the Los Angeles buy up
of Owens Valley water by purchasing those water rights on the open
market? What if this whole unbundling scheme is all a scam to force
the hyper-exploitation of Rural Nevada?
For some unexplained
reason, the Michael Young/Nicholas Institute/Duke University
Unbundling Water Rights report states; “Well written plans
give priority to the water needed for conveyance.” And they define
conveyance as; “water delivered to other systems or states”. This
one statement reveals the blatant bias of this report. They want us
to accept that water to be shipped out of a basin should have
priority over water that stays in the basin. A basic understanding of
sustainability dictates that exported water should have the lowest
priority. One can't sustain an environment, or an economy, when the
highest priority is shipping out the deserts' most valuable resource
– water. So, why would Michael Young want to give priority to the
water “needed” for conveyance? He didn't say. But maybe it has
something to do with the financial support he received.
The Michael
Young/Nicholas Institute/Duke University Unbundling Water Rights
report was funded by:
-
Bechtel Foundation – founded and funded by Stephen D. Bechtel Jr., co-owner of Bechtel Corporation. That's right, the company known for big engineering projects, including water pipelines. And most telling; the same Bechtel that was thrown out of Bolivia by rioting citizens for their privatized water company that was accused of price gouging and deficient water deliveries.
-
Pisces Foundation – works closely with Bechtel Foundation
-
Walton Foundation – known to support ALEC (a corporate bill mill)
-
Rockefeller Foundation – known for supporting big agricultural interests
These foundations
have done many good deeds. Their general intentions are good. But
there is no guarantee that these foundations are above reproach on
every issue. These are not grass roots organizations.
And it only makes sense that the best place to hide bad intentions is
in an organization delivering on good intentions. Considered
separately, these financial supporters (excluding the Bechtel
Foundation) don't arouse many suspicions. However, when considered
together (along with the unrestrained exploitation recommendations of
the report), one might feel compelled to question the integrity of
those who donated money to support this report – and of course, the
integrity of those who wrote this report.
There is potentially
big money in water – the 21st century's oil.
Yet water is life.
We had better be
very careful who's advice we take.