California's Water Surplus: Selling H2O Westward

San Diego County is actively seeking to sell its surplus desalinated seawater to Western states experiencing critical water shortages. The region invested approximately $1 billion in a desalination plant following a severe drought in the 1990s. Currently operating at only a third of its capacity, the plant has created an excess supply available for transfer.

States such as Arizona, Nevada, and Utah, anticipating minimal Colorado River water due to drought and low snowmelt, are potential buyers. Discussions are underway with water managers in Arizona and exploratory agreements are being considered with Southern Nevada. Utah is also exploring partnerships for water, potentially involving Colorado River water rights.

San Diego has recently finalized deals to supply water to two utilities within California's Riverside County. The water authority aims to recoup its significant investment and stabilize future rate increases for its customers by engaging in these interstate and intrastate water sales.

Facilitating water transfers across state lines presents complex challenges, potentially requiring new federal legislation and consensus among the seven Colorado River basin states. A recent failure to agree on new operating rules for the river, coupled with emergency measures to protect Lake Powell, underscores the urgency of the Western water crisis.

The Bureau of Reclamation is currently developing new plans for the Colorado River, which may lead to significant water cuts for states like Arizona due to its junior water rights. These potential cuts could take precedence over interstate water trading discussions, highlighting the profound implications for water policy across the West.