Oregon Coastal Community Water Supply Assessment by Gail L. Achterman Renee Davis-Born Irene Rolston Lisa Gaines Institute for Natural Resources Oregon State University June 2005 A Report to Oregon Sea Grant in fulfillment of Program Development Grant # NA084B-RDF5 Coastal Community Water Supply Assessment Table of Contents List of Tables .................................................................................................................................. 3 List of Figures ................................................................................................................................. 4 List of Abbreviations ...................................................................................................................... 5 Abstract ........................................................................................................................................... 6 Introduction ..................................................................................................................................... 7 Background ..................................................................................................................................... 8 The Water Infrastructure Funding Gap ............................................................................... 8 Drinking Water Regulation in Oregon ................................................................................ 9 Water Basin Planning ....................................................................................................... 15 The Coastal Community Water Supply Setting ............................................................................ 16 Coastal Community Water Suppliers................................................................................ 18 Water Use and Water Rights............................................................................................. 20 Water Availability............................................................................................................. 22 Analysis......................................................................................................................................... 23 Water Supply and Economic Development ...................................................................... 23 Information Needs for Water Planning ............................................................................. 24 Challenges and Opportunities to Meeting Future Water Supply Needs ....................................... 26 Challenges Facing Oregon Coastal Communities ............................................................ 26 Opportunities for Oregon Coastal Communities .............................................................. 32 Work Plan for a Comprehensive Assessment ............................................................................... 34 References ..................................................................................................................................... 36 Appendices .................................................................................................................................... 36 Appendix 1: Comprehensive List of Water Suppliers Appendix 2: Comprehensive List of Water Uses Appendix 3: Map of Water Availability Appendix 4: List of Interviewees Appendix 5: Identifying Characteristics of Water Suppliers 2 Coastal Community Water Supply Assessment List of Tables Table 1: State and Federal Agencies Involved with Water Supply Systems ............................... 10 Table 2: Characterization of Coastal Communities for Interviewed Water Officials ................. 18 Table 3: Coastal Community Water Suppliers ............................................................................. 19 3 Coastal Community Water Supply Assessment List of Figures Figure 1: Coastal Community Interview Locations ...................................................................... 17 Figure 2: Percentage of Small Community Water Suppliers by Owner Type .............................. 19 Figure 3: Percentage of Miscellaneous Water Suppliers by Owner Type .................................... 20 Figure 4: Percentage of Withdrawal Rates for Water Uses Excluding Fish and Wildlife ............ 21 Figure 5: Storage Capacity Measured in AF of Existing Water Rights ........................................ 22 4 Coastal Community Water Supply Assessment List of Abbreviations AF Acre-feet CFS Cubic feet per second CWS Community Water Supply DLCD Department of Land Conservation and Development EPA United States Environmental Protection Agency NTNWS Non-transient Non-community Water Supplies OAR Oregon Administrative Rule ORS Oregon Revised Statute PUC Public Utilities Commission SDC System Development Charges SDWA Safe Drinking Water Act TNCWS Transient Non-community Water Supplies USDA United States Department of Agriculture WABs Water Availability Basins WARS Water Availability Report Systems WMPC Water Management and Conservation Plans WRD Oregon Water Resources Department WRIS Water Rights Information System 5 Coastal Community Water Supply Assessment Abstract On the Oregon coast, however, the issue of water supply has become paramount, especially given the need to restore instream flows in order to restore coastal salmon runs and meet water quality standards. With the ebb and flow of population and the economic growth of Oregon coastal communities, three hypotheses have been generated about the ability of these communities to meet future water supply needs. The purpose of this project was to better understand the challenges and opportunities facing coastal community water suppliers as a whole and to ultimately improve the prospects for meeting future water needs. Findings show that contrary to the first hypothesis, most of those interviewed do not think that economic development is constrained by waters supply. However, it does appear that it would be difficult for state economic development officials to match businesses and industries interested in relocating to the Oregon coast with community water supply availability and reliability. Findings also show that the major problem facing community water suppliers in preparing water management and conservation plans cited by interviewees is financial. Though Oregon’s coastal communities face several planning, management, physical, economic, and regulatory challenges in preparing for future water supply needs, numerous partnership, conservation, and research and training opportunities exist. What is needed is an opportunity for a facilitated process of restructuring water supply systems. 6 Coastal Community Water Supply Assessment “In the coming decades, no natural resource may prove to be more critical to human health and well-being than water” (NRC, 2004:15). “The availability of an adequate water supply is essential to the continued health and safety of all Oregonians” (ORS 536.241(1)). Introduction A mounting array of water-related problems affects virtually every community in the United States, from small rural towns to large metropolitan areas. The future water crisis is not likely to be one catastrophic event; rather it will emerge from hundreds, if not thousands, of local and regional water problems. Understanding the frequency and magnitude of these problems is a difficult task because their extent is masked by the lack of information necessary to address them (NRC, 2004). A critical water problem is safe drinking water. Oregonians expect to be able to drink their tap water and to have reliable water service for their homes and businesses. Yet meeting drinking water standards and providing reliable water service is often difficult for small communities (NRC, 1997). More than half of Oregon’s coastal population is served by small systems (those serving 10,000 or fewer people). Most assessments and studies of water service for small communities focus on affordable water treatment technologies, institutional financial stability, and system maintenance and management training needs (NRC, 1997). These are the three critical issues facing small water systems nationally. On the Oregon coast, however, the issue of water supply has become paramount, especially given the need to restore instream flows in order to restore coastal salmon runs and meet water quality standards. Demand for water to support population and economic growth continues to increase in most areas of the coast, although water supplies are fixed and, in many areas, new water supply sources are unavailable. The unique beauty of the Oregon coast – its public beaches, its forested mountains and its scenic views – attracts thousands of tourists, seasonal residents, and retirees. Yet much of the traditional economic foundations of the communities (i.e., logging and commercial fishing) are dwindling. The majority of communities along the Oregon coast are small municipalities vulnerable to the slightest variation population and economic conditions, which can dramatically affect water providers’ ability to meet increasing (and sometimes decreasing) water demands as they try to remain viable and sustainable. With the ebb and flow of population and the economic growth of Oregon coastal communities, three hypotheses have been generated about the ability of these communities to meet future water supply needs. First, some suggest that economic development and diversification on the Oregon coast frequently is constrained by municipal and industrial water supply limitations (Quigley and Sylvia, 2000). Second, it is also suggested that economic development officials lack comprehensive information about the water resources (NRC, 2004) available in coastal 7 Coastal Community Water Supply Assessment communities, making it difficult for them to match prospects with specific communities. And third, coastal communities will be hard pressed to prepare Water Management and Conservation Plans (WMCPs) required by new Water Resource Department (WRD) rules because many lack even basic information about their systems, their customers, their water source(s), and the environmental concerns they face as they attempt to meet their future needs, both of which must be accounted for in the planning process. The purpose of this project was to address these hypotheses in order to better understand the challenges and opportunities facing coastal community water suppliers as a whole and to ultimately improve the prospects for meeting future water needs by undertaking a preliminary assessment of coastal community water suppliers with regard to current water rights, population trends, water supply source(s), service connections, and the availability of water resources in coastal areas. More specifically, we: (1) synthesized existing information about water suppliers, current water rights, and water availability; (2) characterized the research and analysis needed to assist coastal communities as they address future water supply needs in a cost-effective and sustainable manner; and (3) developed a work plan and budget for a comprehensive coastal community water supply assessment that could support and complement water management planning by coastal communities. This report presents findings from the preliminary assessment. Background Coastal community water suppliers operate within a complex federal and state regulatory system which allocates water rights, regulates water quality and service. In addition, coastal communities face an infrastructure funding gap as water systems built over the last century deteriorate. It is important to understand the regulatory framework and the funding gap in order to understand the planning and management challenges facing coastal water suppliers. The Water Infrastructure Funding Gap America faces an enormous gap between the amount of money available for drinking water infrastructure and demand for water services. The Environmental Protection Agency (EPA) pegs the shortfall at $277 billion annually for capital, operating and maintenance over the next 20 years (EPA, 2005). The Congressional Budget Office (CBO) concludes that “current funding from all levels of government and current revenues generated from ratepayers will not be sufficient to meet the national’s future demand for water infrastructure.” (CBO, 2002). The American Society of Civil Engineers (ASCE) gives our drinking water infrastructure a D- grade in its Report Card for American Infrastructure (ASCE, 2005). Oregon’s drinking water systems face a $4.2 billion shortfall over the next 20 years (EPA, 2005). The shortfall between available government grants, loans, rate revenues, and system needs falls disproportionately on smaller communities. This is because they lack the economies of scale enjoyed by larger systems and commonly operate at a loss on an operating basis. They also lack proper training, experience, tools, and funding (Brown, 2004). Without action our water systems 8 Coastal Community Water Supply Assessment will experience serious financial upsets that may shut some systems down – especially small systems like those on the Oregon coast. The large funding gap means that there are insufficient funds available for coastal communities to maintain and expand their systems. The grants and loans historically available have become extremely competitive. Local water systems have been forced to look to their own rate payers to finance needed maintenance and to rate payers and developers to finance expansions.1 Drinking Water Regulation in Oregon Safe Drinking Water Act The Safe Drinking Water Act (SDWA) was enacted by Congress in 1974 to protect drinking water quality nationwide (Safe Drinking Water Act, U.S. Code, vol. 42, secs. 300f et seq.) The SDWA applies to groundwater and surface water sources. The EPA establishes primary healthrelated standards that all public water system owners and operators must meet. The SDWA classifies public water systems into three categories: (1) community water systems (CWS), which serve the same population all year; (2) non-transient non-community water systems (NTNCWS), such as schools, factories and hospitals with their own water supplies which serve at least 25 of the same people for at least 6 months a year; and (3) transient non-community water systems (TNCWS) such as campgrounds, motels and gas stations which provide water to transitory populations in nonresidential areas (Code of Federal Regulations, vol. 40, section 141.2). The EPA has delegated its authority under the SDWA to Oregon, where the law is administered by the Oregon Department of Human Resources-Health Services (Oregon Drinking Water Quality Act, Oregon Revised Statutes Chap. 448). Oregon cares about drinking water safety, as shown by the Oregon Progress Board benchmark for drinking water. Benchmark 69 calls for 95 percent of Oregonians’ drinking water to meet health-based standards by 2005. This benchmark was achieved, even though 16 percent of community water systems still have health-based violations once a year. Two questions beyond the scope of this study are whether coastal systems met the benchmark and whether the rate of health-based violations is higher in coastal systems than statewide. Water System Planning Oregon, like many other states, divides responsibility for water resources administration and finance among several state agencies. Local community water suppliers deal with several different state and federal agencies relating to system development, operation, and finance (see Table 1). A useful compendium of the main programs was published in Guidelines for the Preparation of Planning Documents for Developing Community Water System Projects (2001). Community water suppliers must prepare water system master plans either as a requirement of state regulations or as a condition for state or federal grants and loans. These master plans identify water system needs and priorities. These requirements, however, only apply to 1 Oregon municipalities can impose systems development charges (SDCs) to help fund system expansion. SDCs cannot be charged for operation and maintenance. A capital improvement plan is required before any SDCs can be charged. ORS Sections 223.297 to 223.314. 9 Coastal Community Water Supply Assessment “community water systems” or suppliers serving 1,000 or more people. As discussed below, many small systems are exempt from any planning requirements. Table 1: State and Federal Agencies Involved with Water Supply Systems Agency Responsibility Oregon Economic and Community Development Department Oregon Department of Energy Oregon Department of Environmental Quality Oregon Department of Fish and Wildlife Infrastructure grants and loans generally Oregon Department of Human ResourcesHealth Services Oregon Department of Land Conservation and Development Oregon Public Utilities Commission Department of State Lands Oregon Water Resources Department Oregon Watershed Enhancement Board U.S. Army Corps of Engineers U.S. Environmental Protection Agency U.S. Department of Agriculture-Rural Utilities Service Infrastructure grants and loans-energy Water quality regulation generally Fish and Wildlife regulation, including endangered species and fish passage and screening Safe Drinking Water Act implementation and regulation including water supply master planning Land use regulation and public facility planning requirements Rate, quality and service regulation for “public utility” water suppliers State fill and removal regulations for instream work on water facilities Water quantity allocation and management, including instream flow management Watershed restoration planning and grant funding Clean Water Act regulations governing wetlands, fill and removal Implementation of the Clean Water Act and the Safe Drinking Water Act (delegated to State agencies with oversight) Infrastructure grants and loans Health Services: The Department of Human Resources-Health Services regulations require that community water systems with over 300 service connections have a current Water System Master Plan (OAR 333-061-0060). The plan must evaluate needs for at least 20-years and address water quality, service goals, SDWA compliance, recommended alternatives, implementation schedule, and financial options for proposed improvements. These Master Plans are generally used by cities with over 2,500 people to meet their land use planning requirements under Goal 11 (Public Facilities and Services). Under Goal 11, cities of this size and some unincorporated areas must adopt Public Facilities Plans addressing water service needs, again over 20 years. Capital Improvement Plans for specific projects must be developed for five years. If more than one water provider exists in a community, the Public Facilities Plans designate service areas for each provider. The Water System Master Plans/Public Facility Plans must be consistent with and support local comprehensive plans (for further information, see OAR 660011, Public Facilities Planning, DLCD). 10 Coastal Community Water Supply Assessment Water Resources Department: The Health Division and Department of Land Conservation and Development (DLCD) planning requirements focus primarily on the service side of water system operations: how will system development match land development and how will safe water be delivered to customers? The WRD adopted new regulations in 2002 establishing a Municipal Water Management and Conservation Planning program. The WRD program requires suppliers to develop Water Management and Conservation Plans (WMCPs) addressing how they plan to meet future water needs. The primary focus of the WRD is on allocation of public water resources, the physical sources of community water supplies. The WMCPs require municipalities to describe their systems, identify their water sources, and explain how the water supplier will manage and conserve supplies to meet future needs. The program emphasizes water conservation to meet new demand and encourages storage and transfers as alternatives to development of new water sources. The rules were developed in close cooperation with Health Services and DLCD in order to avoid inconsistent or duplicative requirements. Public Utility Commission: Some water systems are subject to regulation by the Public Utility Commission (PUC) as public utilities. The definition of public utility excludes systems owned and operated by special districts, cooperatives and municipalities, so most regulated public utilities are privately owned. PUC regulations ensure adequate service and just and reasonable rates (ORS Chapter 757). The PUC regulates some water utilities for rates and service and others only for service. Service standards address water quality and pressure and customer service. It can also establish exclusive service territories. There are four water utilities on the Oregon coast subject to both rate and service regulation and several more subject only to service regulation (for more information see, Overview of Water Regulation, August 2002 available at http://www.puc.state.or.us.). The PUC requires water utilities to file their Water System Master Plans with the PUC. Government Loans and Grants: In addition to the state agencies responsible for regulating the quality and quantity of drinking water and water utility service and rates, the Oregon Department of Economic and Community Development administers a number of grant and loan programs aimed at water suppliers including the Community Development Block Grant program, the Oregon Lottery’s Water/Wastewater Financing Program and Special Public Works Fund and the EPA’s Safe Drinking Water Revolving Loan Fund Program. Funding under these programs and federal programs administered by the USDA Rural Community Assistance Corporation require Water System Master Plans as a condition of the loans or grants. Some water utilities also use energy grants and loans from the Oregon Department of Energy. All of the water plans described above are required to be prepared by and for the existing water supplier. The regulatory programs focus on the water system or utility. Historically, the plans have been prepared by professional engineers as the foundation for capital improvement and specific project plans. The planning area is limited to the service area and any economically and politically feasible expansions. WMCPs require discussion of interconnections with other systems, but neither the WRD nor the Health Services rules require community water suppliers to address their relationship to other water users (irrigated farms or separate industrial systems) 11 Coastal Community Water Supply Assessment or drinking water suppliers in their hydrologic area. Thus, these plans generally do not address opportunities that may exist for water reallocation, water reuse or water supplier restructuring and consolidation. Land Use Regulation: Goal 11 (OAR 660-015-000(11)) aims at such a broader look at drinking water suppliers, establishing a state policy to, “plan and develop a timely, orderly and efficient arrangement of public facilities and services to serve as a framework for urban and rural development.” Comprehensive land use planning requires adoption of intergovernmental agreements when more than one provider exists in an area. Goal 11 regulates establishment and extension of water systems outside urban growth boundaries (UGBs) to prevent urban development in rural areas. Goal 11 prohibits extension of water facilities to serve new residential developments located outside urban growth boundaries where the proposed density depends upon receiving water from a community water supply system, except in certain circumstances (OAR 660-011-0065). Specifically, cities and special districts can serve existing developments outside UGBs if they have excess water to do so. New water systems can serve unincorporated communities outside UGBs either by taking an exception to Goal 11 or by meeting the requirements of OAR 660 Division 22. Municipal Water Rights To understand the current situation of coastal water suppliers, it is also important to understand the unique nature of municipal water rights under Oregon law. All surface and groundwater in Oregon belongs to the public. Anyone who seeks to use it must obtain permission to do so from the WRD by obtaining a water right. Once a permit to use water is issued by the WRD, it normally must be fully developed and put to beneficial use within 5 years, after which a permanent water right is issued. Until the 1980s it was relatively easy for any water supplier in Oregon to obtain a new water right if they needed one in order to meet demand. Until 1992, the WRD did not consider whether water was actually available to meet the demand requested in a new permit application (Bastasch, 1998). Prior to 1987, minimum stream flows were administrative rules, not water rights, so the water needed to meet them often was not considered in the review of new applications. In addition, even if surface water was unavailable, prior to 1988, a water supplier could drill a well and develop groundwater in most parts of Oregon. In 1988 new rules were adopted regarding groundwater interference with surface water flows which made it more difficult to obtain groundwater permits (OAR Chapter 690 Division 9). As a result of these new regulations on water availability, instream flow protection and conjunctive use of groundwater, it is much more difficult to obtain new water rights for any purpose, including community water supply. Recognizing that cities and special districts organized to provide essential drinking water for communities, Oregon law treats them differently than other appropriators. First, domestic water users and their suppliers are given a statutory preference over all other water uses in case of supply shortages (ORS 540.140). In addition, municipal water rights are not subject to cancellation for nonuse under ORS 537.410, like other water rights. Oregon water law also exempts municipalities from some of the time limits set for developing their water sources. 12 Coastal Community Water Supply Assessment These special provisions only apply to incorporated cities and special districts organized for the purpose of supplying water. They do not cover all of the “quasi-municipal” suppliers, like homeowners associations. (OAR 690-300-0010(29) and (40) definitions of municipal and quasimunicipal use). Unlike other water users, municipal suppliers are allowed to grow into their water permits over time using an incremental perfection method. Before 1997, the WRD routinely granted 5-year extensions of time to develop municipal water permits. Many communities hold water rights permits allowing appropriation of significantly more water than is needed by their current customers based upon anticipated future growth (Bastasch, 1998). The Attorney General advised the WRD in 1997 that the public interest could be considered when granting permit extensions and that extensions could be granted for the time needed to complete development. This advice led to development of new rules on permit extensions and to formation of a Community Water Supply Work Group to address extension of municipal permits. Simultaneously, Waterwatch of Oregon challenged the extension of a permit to appropriate water from Tenmile Creek held by the Coos Bay North Bend Water Board, due to its concern about the impact of municipal use on the instream water right in the creek. Specifically, Waterwatch argued that the Board had to complete construction within 5 years under ORS 537.230(1). In 2004, the Court of Appeals ruled in Waterwatch’s favor, finding that construction indeed did need to be completed within 5 years, Waterwatch of Oregon, Inc. v. Water Resources Commission, 193 Or. App. 87, 88 P. 3d 327 (2004). The Community Water Supply Work Group effort resulted in new rules for municipal permit extensions (OAR Chapter 690 Division 315) and the new rules for Municipal Water Management and Conservation Plans, as described briefly above (OAR Chapter 690, Division 86). Long-term permit extensions were linked to the requirement that a WMCP be prepared. The WRD will now authorize the use of water under extended permits in 20-year blocks as long as the WMCP justifies the need for the water and shows that the municipality is managing and conserving water responsibly. Although the Waterwatch case is under appeal to the Supreme Court, the decision could require the rules to be revised. A comprehensive guidebook for municipal water suppliers to use in preparing their WMCPs was published in May 2003, Water Management and Conservation Plans: A Guidebook for Oregon Municipal Water Suppliers (Economic and Engineering Services, Inc., available at http://www.orcities.org/publications/). Almost all municipal and quasi-municipal (special districts) water supplier must prepare WMCPs, but systems with less than 1,000 users are exempt, just as they are exempt from Health Service Water System Master Plan requirements. One of the hypotheses of this study was that coastal communities will be hard pressed to prepare WMCPs because many lack even basic information about their systems, their customers, their water source(s), and the environmental concerns they will face as they attempt to meet their future needs, all of which must be accounted for in the planning process. WMCPs have four main sections: (1) Water Supplier Description (OAR 690-086-0140); (2) Water Conservation 13 Coastal Community Water Supply Assessment Element (OAR 690-086-0150); (3) Water Curtailment Element (OAR 690-086-0160); and (4) Water Supply Element (OAR. 690-086-0170). The WMCP Water Supplier Description must include: A description of the supplier’s source(s) of water Delineation of the current service area (with population estimates) Assessment of adequacy and reliability of existing supplies (including the risk of restrictions due to priority date, protection of at risk species, instream flow requirements, water quality impacts and risks, and access) Quantification of present and historic use Summary of water rights held Description of customers served and water use summary Identification of interconnections with other suppliers System schematic and Quantification of system leakage. As discussed below, coastal water providers face difficulties in compiling some of this information. The WMCP must also contain a water conservation element. Conservation is a key way to meet future needs without developing new supplies. Plans must address full metering of systems; meter testing and maintenance; annual water audits; leak detection; repair and replacement; rate structure based on water use; rate structure and billing practices that encourage conservation; public education; technical and financial assistance programs; retrofit/replacement of inefficient fixtures; and, reuse, recycling, and non-potable opportunities. As discussed below, some of the information needed to complete this portion of the WMCP is also not readily available to coastal water suppliers. The Water Curtailment Element of the WMCP requires a solid understanding of the supplier’s water supply. Specifically the rules require a 10-year assessment of water supply deficiencies and capacity limitations. Once this assessment is completed, the WMCP is required to include pre-defined stages of alert, triggers for each stage, and curtailment actions. Again, it is often difficult for small communities to compile the assessment, especially since it must address both water quality and water quality risks. The WMCP Water Supply Element addresses why additional water is needed. This information is essential for either permit extensions or to support new water right applications. It requires preparation of a demand forecast and comparison of demand to available supplies. Specifically this element must include: Delineation of current and future service areas Population projections for service area 14 Coastal Community Water Supply Assessment Schedule to fully exercise each permit Demand forecast Comparison of projected need and available sources Analysis of alternative sources (existing sources, new sources, conservation and interconnections) Quantification of maximum rate and monthly volume Mitigation actions under state and federal laws (including actions required to comply with environmental laws and regulations such as the Clean Water Act, the Endangered Species Act, fish passage and screening regulations and the Safe Drinking Water Act). Again, small providers face real challenges preparing this element. Water Basin Planning Water Basin Plans Community water providers are required to prepare their own water system plans, as discussed above. Yet municipal and domestic water use is only one of many users of water in a watershed. Oregon recognized the importance of planning for all future water uses in 1955 when it required preparation and adoption of an “integrated and coordinated program for use and control of all the water resources of the state” (ORS 536.300(2)). This program became a series of basin plans for each basin in the state, including plans for the North Coast, Mid-Coast, Umpqua, Rogue and South Coast (OAR 690, Divisions 501, 515, 516, 517 and 518). These plans are administrative rules which specify the water uses allowed in each basin. This is technically referred to as classification of water uses (ORS 536.340). While innovative in 1955, the basin plans are now largely out of date (Bastasch, 1998 at 63-64). For example, the South Coast plan has not been revised since 1984. Yet, under Oregon law, all units of government are to give these plans “due regard” in their own planning efforts (ORS 536.360). The WRD has recently considered how to change or replace the basin planning process to address immediate community water supply challenges. The Water Resources Commission considered the topic at a workshop in February 2003, recognizing that the state does not have a comprehensive plan to ensure it can meet the water needs of streamflow-dependent resources and a growing economy and population. Governor Kulongoski recently requested federal funding for a long term water supply assessment in the FY 2006 federal budget. Through the Bureau of Reclamation’s Water 2050 program, the WRD and the Governor are seeking funds to develop new ways to package and analyze water resource data in order to help communities address their full range of water needs, including community water supply. Watershed Assessments and the Oregon Plan for Salmon and Watersheds Beginning in the 1990s, a new type of basin planning began in Oregon with the formation of local watershed councils. Watershed councils are locally organized, voluntary, non-regulatory groups established to improve the condition of watersheds in their local areas (ORS 541.350). 15 Coastal Community Water Supply Assessment Twenty-six watershed councils have been formed in coastal communities.2 The watershed councils generally work in close cooperation with local soil and water conservation districts.3 These groups have prepared comprehensive watershed assessments of their watersheds using the Oregon Watershed Assessment Manual which was published by the Oregon Watershed Enhancement Board in July 1999. Watershed assessments can provide critical information for community water suppliers as they develop their WMCP’s. If completed in accordance with the Assessment Manual, the assessments should contain a complete list of surface and groundwater rights, water availability at 50 and 80 percent exceedance and identify flow restoration priority areas. All of these elements are addressed in Component IV of the Manual on Hydrology and Water Use. Building on the assessments, most watershed councils have developed action plans for watershed restoration. For this project, we were unable to obtain and review all of these assessments to cross check the data we developed with that contained in the assessments. The watershed assessments form the foundation for targeting watershed restoration activities under the Oregon Plan for Salmon and Watersheds, Oregon’s comprehensive watershed restoration program (for further information, see http://www.oregon-plan.org/). Any future development of community water supplies will need to be done in the context of overall watershed restoration priorities, particularly since they are designed to meet key state and federal regulatory requirements under the Clean Water Act and the Endangered Species Act. The Coastal Community Water Supply Setting The study area for this project was limited to coastal community water suppliers located within tidal reaches – up to 5 miles east of the Oregon coastline (Figure 1). Though some water suppliers in the statutorily-defined coastal zone are located in and serve communities in the Coast Range, water suppliers within the tidal reach experience unique issues that may impact their water supply and water supply planning needs, including salt-water intrusion and increased water demand due to significant seasonal increases in population such as tourism. Synthesizing information from existing databases and interviewing coastal water officials and WRD officials provided an opportunity to document and explore first-hand the issues and experiences facing coastal community water suppliers. Databases such as the WRD’s online Water Rights Information System (WRIS), the Oregon Department of Human Resources online Drinking Water Program database, and the Oregon Secretary of State’s audit division website on The 26 include, from north to south, the following councils: Nicolai/Wickiup, Young’s Bay, Skipanon, Necanicum, Ecola Creek, Lower Nehalem, Tillamook Bay, Nestucca/Neskowin, Salmon/Drift, Siletz, Yaquina Basin Planning Team, Alsea, Siuslaw, Smith River, Umpqua, Tenmile Lakes Basin Partnership, Coos, Coquille, Floras Creek/New River, Elk/Sixes River, Port Orford, Euchre Creek, Lower Rogue, Hunter Creek/Pistol river, Chetco, Winchuck. 3 There are seven soil and water conservation districts on the coast corresponding to the counties: Clatsop, Tillamook, Lincoln, Lane, Douglas, Coos, Curry. 2 16 Coastal Community Water Supply Assessment municipalities and special districts provided detailed documentation of and direct access to lists of all public drinking water suppliers, water rights applications, permits, certificates, and maps. These data sources were used to create two distinct and comprehensive lists of information on water suppliers and water users (see Appendices 1 and 2). A separate set of maps showing water availability was prepared with the assistance of WRD staff (Appendix 3). Using the water supplier database, a list of active public water systems in Oregon coastal communities was compiled to select potential interviewees. Communities were then characterized by (1) size of water system; (2) human population growth rate; and (3) the hydrogeology of the Oregon coast. Since different size water systems experience different infrastructure and operational constraints and opportunities, water system size was characterized based on the number of individuals served (i.e., small, 5000 or less; medium, 5001 to 10,000; large, more than 10,000). Change in human population was characterized as negative (less than 0), low (025% change), moderate (26-49%) and rapid (50% or greater). The third category used to characterize the communities was their hydrogeology because there is a distinct geological difference between areas north of 43˚ N latitude (marine-based sedimentary) and areas south of 43˚ N latitude (volcanic sedimentary). Figure 1: Coastal Community Interview Locations Though there were combinations of these characteristics that did not describe a specific active water system on the list, the purposive sampling of the interviewees attempted to cover as many combinations of categories as possible. Eighteen interviews were conducted in order to capture the full diversity of information needs associated with long-term water management and conservation planning in Oregon’s coastal community. Table 2 shows the communities, listed north to south, in which a water official was interviewed (for a list of interviewees, see Appendix 4). 17 Coastal Community Water Supply Assessment Table 2: Characterization of Coastal Communities for Interviewed Water Officials Community Size of Water System * Population Growth Rate ** Hydrogeology *** Astoria Warrenton Cannon Beach Manzanita Nehalem Lincoln City Newport Waldport Florence Coos Bay-North Bend Bandon Port Orford Gold Beach Brookings Large Large Small Small Small Large Medium-Large Small Medium Large Small Small Small Medium Negative Rapid Moderate Moderate Negative Moderate Moderate Rapid Rapid Slow Slow Slow Slow High Marine-based Marine-based Marine-based Marine-based Marine-based Marine-based Marine-based Marine-based Marine-based Marine-based Marine-based Volcanic Volcanic Volcanic * Small (5,000 or less); Medium (5,001-10,000); Large (more than 10,000) ** Negative (less than 0%); Slow (0-25%); Moderate (26-49%); Rapid (50% or greater) *** Marine-based hydrogeology (areas north of 43˚ N latitude); Volcanic hydrogeology (areas south of 43˚ N latitude) Coastal Community Water Suppliers Coastal communities are served by a diverse array of water suppliers (Appendix 1). For purposes of this study, detailed information on these water suppliers was complied (see Appendix 5 for identifying characteristics). The list of suppliers includes many who do not have water rights issued by the WRD. This is an important category of water users which is missed by anyone simply reviewing water rights records to determine water uses. Water rights are not needed for appropriation of groundwater for domestic uses of 15,000 gallons per day or less, or for commercial or industrial uses of 5,000 gallons per day or less (ORS 537.545). While originally intended to cover homes and small industry, cumulatively exempt uses supply a great deal of water. 15,000 gallons a day can easily serve 15-30 families. Exempt wells now serve many small subdivisions in the coastal area and elsewhere (Bastasch, 1998; Glennon, 2002). We compiled the list by comparing the WRD database with the list of drinking water suppliers regulated by Health Services. We double-checked the list against the list of government entities required to file annual audits with the Secretary of State. Information was collected regarding the percentage of population served by various owner types, the percentage of population served by various types of water systems and the percentage of population served by surface water and ground water sources. Demographic information was also collected for each community being served by municipal and other water suppliers. This information was used to determine population trends over a 20 year period (1980-2000). 18 Coastal Community Water Supply Assessment Compilation and analysis of the data show that 181 water suppliers operate in coastal communities within Oregon’s tidal reaches (Table 3). Five water suppliers serve large communities, more than 10,000 people each, a total of 79,745 individuals. All of these water supplies are owned by local governments and rely heavily on surface water for their Table 3: Coastal Community Water Suppliers Size of Community Served * Large Medium Small Number of Water Suppliers (n=180) 5 4 171 Total Population Served 79,745 23,700 90,466 Water Supply Ownership Local government Local government Various ownerships Primary source of water Surface water Surface water Surface water * Small (5,000 or less); Medium (5,001-10,000); Large (more than 10,000) water source (89.8% (44 of 49) of their permits for surface water withdrawals). Four water suppliers serve medium communities between 5,001 to 10,000 people each, serving a total of 23,700 people. Similar to large community water suppliers, these water supplies are owned by local governments and rely heavily on surface water for their water sources. Seventy-nine percent (19 of 24) of their permits are for surface water withdrawals. Water suppliers serving small communities, 5,000 people or less, were substantially more dominant in terms of number of systems on the Oregon coast than those serving large and medium communities. These 171 small community water supplies serve 90,466 State Gov’t individuals. Though their owner types range 0% broadly (see Figure 2) local governments Special 34% still provide over half of the water to this population. Similar to large and medium communities, nearly all of this population (97%) is served by community water systems. The remainder of the population is served by transient non-community water systems (2%). Also like large and medium communities, small suppliers rely heavily on surface water for their water sources, with 79% of populations served by surface water withdrawals. Local Gov’t 54% Private 12% Figure 2: Percentage of Small Community Water Suppliers by Owner Type 19 Coastal Community Water Supply Assessment Using SDWA classifications, over half of Oregon’s coastal population is served by “small systems” since the cut-off for that classification federally is 10,000 (our small and medium categories). Out of a total population (193,911) served by community water systems, 58 percent (144,166) are supplied by small and medium systems. As noted above, the literature shows that these smaller systems are much more likely to face supply, operations and maintenance problems than larger systems. As noted above, many non-municipal suppliers are not listed in the WRIS Federal Agency database. Entities included in this list 20% range from state parks and federal campground facilities to schools, church Local Gov’t camps, and businesses. Based upon the State Gov’t 5% Health Services database, these suppliers 50% Mixed serve 21,541 individuals. Owner types 1% for these water supplies vary widely (see Figure 3), with state government Private providing just over half (50.1%) of the 24% water to this population. Unlike Figure 3: Percentage of Miscellaneous Water municipal water suppliers, nearly all of Supplies by Owner Type the population (93%) served by nonmunicipal suppliers are operated under transient non-community water systems, with only 1% served by community water systems. Also in contrast to large, medium, and small communities, these miscellaneous water suppliers rely more heavily on groundwater than surface water for their water sources, with 65% of population served by groundwater withdrawals. Water Use and Water Rights In order for coastal communities to understand the full range of alternative supply sources, they should know who else is using water in their areas and for what. Given the difficulty, if not impossibility of developing new water supplies, it can often be easier to transfer existing water rights from one use to another or to interconnect existing systems. For example, a city could transfer an existing industrial water right from a closed mill to municipal use and connect the industrial diversion and water system to the city system. Even if the rights cannot be transferred, it may be possible to “retire” existing rights to mitigate the environmental impacts of fully developing an existing permit or as a condition of obtaining a wholly new permit. An example of this would be for a city to acquire an unused, but still valid, industrial water right and agree to cancel it as mitigation for development of its own supplies. For these reasons it is important to understand all of the water use in coastal areas. The WRD categorizes water users by use types. The WRD defines use types as agricultural, domestic, municipal, fish and wildlife, industrial, irrigation, livestock, power, recreation, and 20 Coastal Community Water Supply Assessment other.4 For each category of use, information was compiled about the specific use for which individual water users have existing water rights, including Industrial Irrigation 12% rate and/or storage capacity 23% associated with individual rights (see Appendix 3). Total withdrawal rates for each use type, total storage capacity for each use type, proportion of Domestic 35% withdrawal rates allocated to each use type (Figure 4), and Agricultural proportion of storage capacity 30% Livestock allocated to each use type were 0% assessed for all of the use types. This analysis does not Other Recreation 0% Power include information on users of 0% 0% statutorily exempt groundwater Figure 4: Percentage of Withdrawal Rates for Water Uses Excluding wells serving the miscellaneous Fish and Wildlife public water suppliers, commercial, and industrial uses discussed above because there is no record of their actual use levels and no easy way to identify these users from readily available databases.5 An analysis of coastal water users and rights by use type found that 97% of water rights are set aside for fish and wildlife use, such as instream use. Of the total rate associated with the existing water rights for coastal water users – 60,558 cubic feet per second (cfs) – fish and wildlife accounts for 58,692 cfs. This summary is meaningless from a practical standpoint, however, because virtually all of the existing rights for fish and wildlife are instream flow rights with priority dates after 1955. This makes them fairly junior on most systems so they seldom affect water deliveries. Because of this, the data was reanalyzed excluding the fish and wildlife category. The reanalysis shows the various types of water uses with domestic use (641.8 cfs), followed closely by agricultural (551.7 cfs), then irrigation (526.4 cfs), and industrial users (223.6 cfs). Proportional representation of these relationships is shown in Figure 4. Farms use proportionately less water (53 percent for irrigation and agriculture) in the coastal area than in the rest of the state, where over 80 percent of water is used for irrigation alone (Bastasch, 1998). Water storage can be an important part of meeting community water demand, particularly in an area like the Oregon coast where water needs reach their peak when streamflows are lowest. The storage capacity, measured in acre-feet (AF), associated with the existing water rights for coastal 4 OAR 690-300-0010 defines all types of water uses recognized by the WRD. One way to determine the number of active statutorily exempt groundwater wells would be to review well log records and then compare them, in some way, with current land uses, but this would be quite time-consuming. 5 21 Coastal Community Water Supply Assessment water users totals 74,753 AF. As shown in Figure 5, the majority of all storage capacity (38,736 AF) is associated with industrial uses, with domestic water storage being the second highest use type in this category. 40000 Industrial 35000 Domestic 30000 Livestock 25000 Recreation 20000 Power 15000 Other 10000 Agricultural 5000 Irrigation 0 Fish and Wildlife Acre-Feet Figure 5: Storage Capacity Measured in AF of Existing Water Rights Water Availability Availability of water supply is driven by seasonal precipitation patterns. Filling reservoirs in winter can provide a critical back-up supply for coastal communities to tap during summer months. Water availability calculated at 80% exceedance (the standard applied when new water rights applications are considered) is shown in maps by month for coastal basins as defined by the WRD (see Appendix 3). In addition to accounting for water availability, as represented by water availability at 80% exceedances, the research team obtained maps of areas for flow restoration priorities for recovery of salmonids in Oregon. These priorities were jointly determined by the Oregon Department of Fish and Wildlife and WRD as part of the Oregon Plan for Salmon and Watersheds. These priorities directly affect water suppliers ability to develop additional water supplies. Quantitative information about water availability in individual water availability basins (WABs) is available via WRD’s online Water Availability Report System (WARS) database. A qualitative analysis of water availability at 80% exceedance for coastal basins, as shown in maps of available monthly water flow reveals that all five coastal basins have no water available for at least three months between July and November. All basins experience no available water in August and September. In three basins (the Umpqua, South Coast, and North Coast) no water is available over even longer periods, except for the lowermost reaches. For instance, in August, September, and October, the North Coast Basin has no water available except in the lowermost reaches of large rivers such as the mainstem of the Nehalem River. Similarly, the South Coast Basin has no water available except in the lowermost reaches of large rivers during the months of July, August, September, and October. In the Umpqua Basin, no water is available in nearly the 22 Coastal Community Water Supply Assessment entire basin during the months of August, September, and October, except in the lowermost reaches of the mainstem of the Umpqua River. In the Rogue Basin, no water is available in nearly the entire basin, including the lowermost reaches of the mainstem Rogue River, during July, August, September, and November. There is a temporary improvement in October, however, when a small portion of the western basin has water available, but that availability plummets again in November. The situation in the MidCoast Basin is only slightly better in August, September, and October. While no water is available in much of the basin during this time, most watersheds closer to the coast have between 1 and 100 cfs available, depending on the location and the month. Analysis Water Supply and Economic Development The first two hypotheses addressed by this project are that (1) economic development and diversification on the Oregon coast is constrained by municipal and industrial water supply limitations; and (2) that economic development officials lack comprehensive information about the water resources available in coastal communities, making it difficult for them to match prospects with specific communities. Contrary to the first hypothesis, most of those interviewed do not think that economic development is constrained by waters supply. They believe that their communities’ existing water rights will support them during the next 20-50 years. This response, in part, may be because most communities are experiencing little to no growth of large, water-consumptive businesses. Some large communities do, however, have existing water-consumptive industries such as wood- and seafood-processing plants, and have sought new industries that would use large amounts of water, like pulp mills and steel mills. Most communities, however, expect future growth in the areas of small manufacturers and businesses associated with the service industry, which are not large water users. Based upon our review of readily available databases about water supply systems, it does appear that it would be difficult for state economic development officials to match businesses and industries interested in relocating to the Oregon coast with community water supply availability and reliability. Water system master plans prepared for Health Services or as public facilities plans are not readily accessible. They lay out a plan for water for 20 years, but do not always evaluate how likely it is that the proposed supplies can be developed. WMCPs require more detailed analysis of potential new supplies, but most communities have not prepared them yet. Information about water rates is not readily available anywhere for all communities although surveys have been prepared in the past. The past surveys were criticized because the survey did not reflect the varying nature and reliability of the systems. Rates are often important information in siting facilities. 23 Coastal Community Water Supply Assessment Economic development officials have identified two additional problems. They receive many more requests for funding of drinking water infrastructure system improvements than they have money to meet. They have no basis upon which to prioritize these requests in terms of their contribution to the state’s economic development goals. Second, they are often caught between two or more water suppliers in particular communities involved in disputes about how their respective systems should be developed. They see a need for specialized dispute resolution services to assure that community needs are met. Information Needs for Water Planning The third hypothesis addressed by this project was that coastal communities will be hard pressed to prepared WMCPs due to lack of readily available information, particularly about their water sources and the environmental concerns they will face in the future. The WMCP requirement only applies to municipal or quasi-municipal water suppliers who request permit extensions or new water rights. Suppliers serving less than 1,000 customers and those who are close to fully perfecting their water rights do not have to prepare these plans. On the Oregon coast, water suppliers serving 22 percent (20,313 individuals) of those served by small community water systems fall into this category. These small systems with less than 1000 customers also are exempt from the Health Services water system master plan requirements. This means that the WRD, land use planners and other suppliers in the area of these small systems will not have readily available information about how these communities plan to meet their future water needs. The Water Supplier Description element of the WMCP can largely be met by water suppliers. The two portions likely to pose difficulties are the delineation of the current service area and the assessment of adequacy and reliability of existing supplies. Providers should be able to easily determine their own service area. The challenges are determining: (1) who has adjacent or overlapping service areas; and (2) who else is supplying water within the municipal systems service area. As discussed above, both the Public Utility Commission and land use authorities have the authority to establish exclusive service areas, but there is no readily available method of determining where these areas are located. It is likely that few such exclusive areas have been established. Since there is no record of statutorily exempt wells, there is no way for municipal suppliers to easily determine how many subdivisions, commercial and industrial facilities and homes are supplied by wells. The Health Services Drinking Water program database lists suppliers by county, but does not show service areas for these providers. On the coast many small subdivisions and recreational vehicle parks developed over the years with their own water systems, so the challenge of working with these independent systems is greater. One example of the problems these systems pose is an RV park now served by a city. The park has a major leak they refuse to fix. The city does not want to shut off the water because the park residents are low income elderly. The park owner has no idea where the water lines are, presumably because the system was privately built over time and never mapped. The most difficult section of the WMCP is the assessment of adequacy and reliability of existing supplies. The Guidebook suggests that suppliers should: 24 Coastal Community Water Supply Assessment “assess the reliability of [their sources] with regards to existing or future restrictions, such as those that may be imposed through priority date, protection of threatened or endangered species, instream flow requirements, statewide stream clean up plans, threats of future contamination and loss of access from nearby pollution sources, or groundwater limits established by the state (e.g. groundwater limited on [sic] critical areas.” (Economic and Engineering Services, 2003) The objective is to quantify the actual amount of potential water available under each water right or certificate held by the supplier. Predicting the future is always challenging. Some of the needed information should be available in the Watershed Assessments prepared by local watershed councils and SWCDs, especially information on listed species and water quality. If Total Maximum Daily Load allocations have been prepared under Department of Environmental Quality rules (OAR Chapter 340 Division 42), or the water source is listed on the Section 303(d) List (http://www.deq.state.or.us/wq/WQLData/SearchChoice02.htm), more information should be available on potential restrictions needed to meet water quality standards. WRD’s local watermasters can provide information on priority dates of all water rights to the supplier’s source and information on when water rights have been restricted in the past. It is difficult, however, to independently access this information. Actual usage patterns by various users are completely unavailable to the public so that seasonality and peak use cannot be assessed. These are key factors for assessing reliability and for determining how to optimize use by multiple parties. Suppliers with multiple water rights find it difficult to integrate all of their different rights and show how and when they will be used. Many of the rights were obtained before there was good gauging of flows. The amount of the water right on the face of the permit or certificate, the so-called “paper right,” does not match actual use. In some places, the suppliers lack actual use information for their different water sources. The disparity between paper rights and actual use, on a source-by-source basis, is difficult to sort out, yet required by the rules. The Water Conservation Element of the WMCP must include discussion of water reuse. Most water suppliers do not know who the other major water users are in their area. This makes it difficult to identify potential buyers for wastewater from sewage treatment plants. The WMCP Water Supply Element will be difficult to prepare for many of the reasons discussed in terms of the supplier description element. The lack of information about alternative sources is particularly problematic. It is difficult to identify alternatives related to interconnections or reallocation when it is hard to figure out who the other water users in the area are and how much water they use compared to their rights. 25 Coastal Community Water Supply Assessment The major problem facing community water suppliers in preparing WMCPs cited by interviewees is financial. They all know and work with capable engineering consultants who can develop the needed information, but small cities often lack funds to hire them. And the cities have cut back to skeletal staffs, limiting their ability to gather the information themselves. Challenges and Opportunities to Meeting Future Water Supply Needs Beyond addressing the specific hypotheses developed for this project, the research team learned a great deal from the interviews about coastal water suppliers. Most literature suggests that the problems with small water supply systems result from poor planning and management (Braden and Mankin, 2004). We found that Oregon’s coastal communities face several additional challenges attributable to their physical circumstances, local economies and regulatory environment. Challenges Facing Oregon Coastal Communities Coastal Geography The Oregon coast is a rugged land where mountains and rivers meet the sea. The landscape itself poses unique challenges for coastal suppliers. One manager noted that information on geomorphology is critically needed, especially to assess groundwater supplies and groundwatersurface water interaction. Florence is blessed with an extensive freshwater aquifer while on the mid-Coast it is difficult to find groundwater at all. When it is found, it is in “tiny pockets with the aquifers drying up in the Fall.” This may provide a partial explanation for the reliance of medium and large communities on surface water, rather than groundwater. Not only is groundwater supply limited along much of the Coast, where it is available it often has high mineral content making it unsuitable for drinking water, or expensive to treat. In most of the country, water providers have switched to well water because it is easier to comply with SDWA requirements and avoids many environmental regulatory problems. When communities depend on surface water sources, they must build treatment plants. Groundwater users can avoid many of the treatment requirements. One respondent said his major long-term planning objective was to get off surface water. With coastal suppliers’ dependence on surface water, the location and cost of treatment plants becomes a decisive factor in system planning. The coastal terrain itself affects the ability of systems to consolidate, even if they wanted to. First, coastal headlands, mountains, rivers and bays separate systems. The cost of interties and pipeline extension is very high. Communities are spread out along a narrow coastal band linked by Highway 101. The landscape supports diverse fish and wildlife at the intersection between land and sea. Virtually all coastal rivers support anadromous fish like salmon and cutthroat trout, many of which are listed under the Endangered Species Act. Extensive wetlands surround the estuaries. Special coastal zone land use management goals must be met under state law. These environmentally sensitive landscapes require extra care and create more permitting 26 Coastal Community Water Supply Assessment challenges than exist for systems elsewhere. Coastal water suppliers face special problems from the severe weather that can batter the area in the region. The mountains are notoriously unstable and landslides are common. They can easily sever water lines. Floods and waves from ocean storms can also wash out diversion works and pipelines. Another physical reality for some coastal water suppliers is that the watersheds they depend upon are fairly small. Coastal streams are often short and high gradient. This increases the seasonality of the flows, makes construction of storage more difficult and means lower overall yields. State water laws and regulations have never considered the tidal influence on coastal streams. This creates another challenge. The systems used to establish instream flows needed for fish and aquatic life do not take tidal influence into affect. Since instream water rights have become a key factor in permit extensions and in seeking new water rights, questions now arise about whether the instream rights accurately reflect needs in the area of tidal reach. Seasonality Coastal communities’ water use is highly seasonal. Use in the winter is often one-third of that in the summer, even though lawn and garden watering is fairly limited in most communities. Demand can jump anywhere from two- to five-fold from the winter months to the summer. Virtually all communities mention the number of homes not occupied by permanent residents and the number of hotel and motel rooms. Newport estimates that its population increases from 9500 residents in the winter to 20,000 to 25,000 during the summer tourist season. The summer peak corresponds to low flow periods in surface water sources. Water planners typically forecast growth by projecting census numbers. But the census only counts permanent residents, not the seasonal users. Projecting water use is further complicated by changes in the nature of tourist facility use. For example, a resort built as a hotel would be addressed for water use purposes on the basis of standard occupancy rates. But now that many hotels and resorts have become part of time share operations, their occupancy rates are much higher than anticipated. The seasonality of use has direct implications for financing system expansion. Local communities in Oregon receive economic development and infrastructure funds based upon their “population,” the census count. Yet coastal communities must size their system for summer peaks that are much greater than the census population. This factor is not taken into account in state funding allocations. The seasonality of the population creates another financing problem when it comes to passing bond measures. Only the permanent residents can vote, not the summer home or lot owners. In communities that still have fish processing plants, up to half of the peak demand can be attributed to the plants, which are heavy water users. The plants have explored opportunities to 27 Coastal Community Water Supply Assessment conserve water through efficiencies and water reuse, but conservation and reuse have not been widely adopted by the industry. Water reuse is not a major factor in most communities along the Coast because most do not have major industrial or irrigation users who could readily reuse municipal wastewater. Virtually all water suppliers face summer peaks, but most are not this extreme. The standard response to meeting the peaks is to increase storage by building reservoirs or doing aquifer recharge and storage. Storage is limited now on the Coast and permitting new reservoir storage is difficult because of the listed species and valuable fisheries in coastal streams. Geomorphology limits the opportunity for aquifer storage and recharge on much of the Coast. Despite the grim reality of water availability during these critical summer months, most of those interviewed say that summer peak water needs are manageable today. Yet a few communities, large and small alike, with medium to rapid population growth are very concerned that existing water rights on current sources cannot continue to meet the demand, even in the short-term (i.e., 5 years). Environment Some communities are unconcerned about environmental constraints. Others are very concerned about these issues, especially Endangered Species Act requirements. In particular, they are concerned about the longevity of existing water permits since they may not be able to be extended due to instream water rights for fish, thus reducing water availability for municipal uses. This concern is especially prevalent in coastal areas due to the streamflow restoration priorities for salmon recovery. The maps of streamflow restoration priorities for salmon recovery show that priority restoration areas are spottily distributed through all of the coastal basins. Some coastal officials expressed concern about the complexity of permitting requirements. Permits are needed for system maintenance as well as expansion. One commented that the various state and federal processes are often mutually exclusive, with one agency requesting one thing and another something else. Definitions of mitigation and mitigation priorities vary between agencies, making planning harder. Another said that regulatory processes were a “huge barrier” for his system, citing a situation where a winter storm washed out a diversion structure and it took four years to get approval to replace it. In addition to concerns about environmental constraints themselves, some interviewees expressed concerns about the ability of special-interest groups and local organizations seeking to limit growth to contest their water permit extensions and new permit applications. They are concerned that environmental challenges delay administrative proceedings and increase costs. Several system managers commented about the ownership of their watersheds. The SDWA requires source protection. The managers who owned their own watersheds felt this provided enormous benefit to their communities because they could manage the lands for water quality 28 Coastal Community Water Supply Assessment protection. Those who did not own their watersheds face challenges when land management activities and development impact their supplies. Everything from timber harvests and road building to subdivisions and septic systems were mentioned as problems. Water Rights Administration Most communities feel they have a good working relationship with WRD, and some are collaborating with the Department on activities such as monitoring water withdrawals and stream temperature to assess impact on instream flows. Nonetheless, they state that the largest challenge associated with long-term planning for water supply is the ability to obtain new water rights or to change the use existing rights. The recent court decision regarding Coos Bay-North Bend Water Board Tenmile permit alarmed several water officials, who said that the requirement that rights be developed within five years would destroy municipal water supply planning and development.6 The water rights system in Oregon was characterized as very difficult to navigate because of its complexity, uncertainty, and ambiguity. Several situations were mentioned where water suppliers had tried, or were trying, to transfer existing water rights to meet new needs. The water rights transfer system is not well-suited to deal with regional plans addressing multiple systems and water rights. It only addresses one permit at a time. One interviewee commented that the laws are not designed for the landscape; they preclude watershed scale water management. Many suggested that development of water banks would facilitate regional water system development, but current transfer laws make creation of water banks difficult and coastal residents are very concerned about making water a “commodity.” Another aspect of this problem that is especially difficult in the coastal zone is the number of small watersheds and tributaries. Transfers are difficult, if not prohibited, between one “source” of water and another. The definition of “source” for purposes of transfer restricts reallocation between small streams that discharge directly to the ocean. Water wheeling agreements have not been used very much in Oregon, further complicating transfers. As noted above, instream water rights do not consider tidal influences. And no provisions exist to consider tidal influences on wells in terms of water availability and conjunctive management of surface and groundwater. The connection between groundwater and surface water and the impacts of the conjunctive use management rules was raised by many as a problem. In many areas the nature and extent of the connection is not well known. A surface water-groundwater connection raises concerns about filtration/disinfection needs and instream water rights for fish and wildlife. As mentioned above in regard to WMCPs, many suppliers have more than one permit or water right. They face real challenges integrating water use under the various rights and there is no 6 The Court of Appeals decision in Waterwatch v. Water Resources Commission, April 2004, limited the ability of the WRD to grant extensions of time for the development of municipal water rights permits in Oregon. The 2005 Legislature is considering bills to address this issue. 29 Coastal Community Water Supply Assessment legal method to “consolidate” existing permits and rights. Several managers also expressed concern that in negotiations for permit extensions and new water rights, permitting agencies and environmental groups ask them to cancel existing rights as mitigation for the extensions or new rights. There is no standard “currency” for how to value the existing “paper rights” for this purpose, making the process time-consuming and frustrating. Several interviewees mentioned water users in or adjacent to their communities who rely upon statutorily exempt wells. Many of the problems associated with exempt wells are discussed above, such as the inability to transfer the rights associated with the wells to municipal systems. If exempt wells are acquired and closed, it is uncertain whether such “cancellation” of an existing right will count as mitigation. The exempt wells also can affect instream flows and yet their impacts are generally not regulated, putting further regulatory burden on municipal systems. Service Territories and Consolidation Most research on small water systems suggests that their major problems can often be best addressed by consolidation, contract service or support assistance (NRC, 1997). Cooperation between small water supply systems can take many forms (NDWAC, 2003). For instance, very small water systems can provide each other additional resources that will improve their technical, financial, and managerial capabilities. Working together also can provide benefits in equipment ownership, parts inventories, and human resources management (Maras, 2004). Such cooperation is one of the best methods for small systems to achieve financial, managerial, and technical capacity for long-term sustainability as well as to meet compliance requirements without the need for variances. As discussed above, there is no single authority for setting service territories for water systems. Several interviewees mentioned the difficulties created when the service area for the local water utility does not match the UGB for the utilities municipal owner. Problems arise in sorting out water service as areas served by small special districts or private systems are annexed into adjacent cities. Coastal communities have had a great deal of experience with consolidation and other forms of cooperation. A major success is the Community Issues Forum on the middle coast from Ona Beach to Cape Perpetua. The group meets monthly to discuss a wide range of community issues, including water supply. New working relationships between water providers have developed in the area as a result, especially in terms of sharing staff and equipment. Yet in other areas, “not knowing their counterparts” seems to be a hallmark. One manager was unsure whether this was a geographical issue or a cultural one. In all our interviews, water suppliers were generally unaware of the private and non-community systems, even if they knew about adjacent municipal and quasi-municipal systems. Actual consolidation and regional supply development has been much more challenging. The Rocky Creek project is still under development in Lincoln County, with the cities of Lincoln City and Newport bearing the bulk of the costs. Discussions are also underway between Warrenton, 30 Coastal Community Water Supply Assessment Gearhart, Seaside and the Port of Astoria. A regional study in the Nehalem Bay area was done in 1993 resulting in formation of the Nehalem Bay Regional Water Board, but after the bond measure to support plan implementation was defeated, the Board ceased to exist. Nesika Beach and Gold Beach have had conversations about consolidation or supply cooperation, but there is no active effort. Territoriality regarding water supply is evident when various water suppliers have difficulties in collaborating. Small communities fear that if they participate in regional efforts they will lose their water rights, control of their water system and their community identity. They view other small communities as competitors fighting for population retention and growth and water. This issue was identified repeatedly as a key impediment to collaboration. A further impediment to consolidation is created by the terms of some federal loan programs. One situation was mentioned where a small system as resisted annexation to a city by contending that since they have received federal grants and loans to upgrade their system, they have to maintain the whole system. Thus annexation of part of system to the city would violate the terms of their federal agreements. This has not been verified, but a report from the National Research Council (1997) found that once individual systems begin to spend money to keep their service afloat, the system administrators or owners often resist relinquishing system control, even when doing so would be the most cost-effective alternative. Funding The enormous funding gap faced by coastal communities is discussed above. A particular problem mentioned repeatedly in the interviews is the pressure by customers to keep water rates down. Without rate increases, there are few resources to maintain and improve infrastructure. There are many different rate designs in coastal communities and rates vary quite widely. Many communities rely on SDCs to finance system expansion. Some have had elections on these charges and faced building moratoriums if they did not pass. Infrastructure Some communities facing the risk of degrading infrastructure with accounts of aging wooden water lines, but most interviewees feel that they are addressing maintenance problems to the extent of their financial capacity. A few communities mentioned an additional problem of older subdivisions adjacent to municipalities that have their own water systems, which may be unpermitted and/or in disrepair. The municipalities are reluctant to take over these failing systems due to the infrastructure restoration expense exposure. Institutional Large and small communities noted the challenge of working with different state and federal agencies with different requirements. They say that mixed messages from agencies is problematic. All water providers must work with both the WRD and the Department of Human Resources at a minimum. The multiplicity of overlapping regulatory responsibilities among state and federal agencies reflected in Table 1 makes managing water systems challenging for any 31 Coastal Community Water Supply Assessment jurisdiction and especially so for small systems. Local Capacity Large and small communities alike have successfully worked with consultants on water-supply planning, including development of WMCPs. The primary constraint they face on this front is the fiscal capacity to hire consultants. Yet many of the medium and small communities were unaware of the technical assistance programs that exist. The very small systems and “tiny communities” were described as “knowing nothing.” These systems are not required to prepare any of the land use, public facility or water system plans required of systems with more than 1,000 customers. This is where local capacity is most lacking. Opportunities for Oregon Coastal Communities To pursue a cooperative approach, scholars and practitioners argue that communities need a collective vision of their future (Flora, 2004), that information needs to be used more effectively to manage and operate small water systems (Braden and Mankin, 2004), that there needs to be less variation in the interpretation of regulations (Braden and Mankin, 2004), and that the idea of consolidating systems needs to be better understood and encouraged (Braden and Mankin, 2004). Instrumental to the success of cooperation, and possibly consolidation, is that such efforts are aided by impartial facilitators, negotiators, or organizers who are outside of the involved organizations and have expertise in visioning (NRC, 1997; Flora, 2004). Cooperative efforts designed for an area or region are essential, particularly if the cost of compliance is to be reduced (NDWAC 2003). In short, there is a need for a facilitated process of restructuring systems, including removal of barriers and provision of incentives (Shanaghan, 1994). This conclusion from the literature was underscored in our interviews and in meetings with state economic development officials. Some coastal communities are pursuing cooperative efforts. For instance, in the recent past, a number of water purveyors from the central coast came together with WRD staff to discuss basic issues regarding water supply. Such community forums might be useful as collaborations are explored in the future, especially given that local officials water officials, particularly for the smaller systems, do not know or work with one another. Partnerships Respondents expressed many ideas they had for cooperatively improving water supply. For instance, intertying water supplies is more common when adjacent communities have different water-supply characteristics (i.e., one has a shortage and one has a surplus, or one has storage and the other does not). Partnerships such as water purchasing arrangements among neighboring communities (i.e., municipalities and water districts) also interest coastal water officials. At least one community already is selling surplus water to a water cooperative. 32 Coastal Community Water Supply Assessment Some communities already are partnering with their neighbors to obtain permits for new water sources (e.g., groundwater) and build new facilities (e.g., filtration plant). Such partnerships rely on trust and a balance of risk and benefits; for example, one jurisdiction owns the water right and land on which well is situated, while the other owns the transmission lines and equipment. Many communities of varying sizes that are adjacent to one another have discussed the idea of regionalization and/or consolidation. Some communities are open to the idea of water trading and/or banking that would allow them access to new water rights in exchange for their existing water rights being used for instream uses. However, more information is needed to understand how this would work over large areas. Reallocation Only 35 percent of the water withdrawals on the coast are for domestic use (see Figure 4). Agriculture (30 %), irrigation (23%) and industrial (12%) users account for a total of 1,301.7 cfs. As the nature of agriculture and industry change on the Oregon coast, there would appear to be great opportunities to reallocate water to meet the needs of growing communities. To assure that agriculture and industry are sustained along with communities, however, a shared vision of the overall community future and its water needs for all purposes is essential. In our interviews, we were unable to identify any situations in which all water users are coming together to address their needs and opportunities. It is possible that some discussions occurred during preparation of watershed assessments and action plans, but no one mentioned it in our interviews. Conservation and Environmental Conservation measures are not regularly applied in most communities, but system operators realize that conservation could extend existing water supplies. Some communities are pursuing new ways to use water more efficiently (e.g., checking transmission lines for leaks, public education), but very few are changing their rate structures to promote conservation. Several small communities are interested in moving away from surface water as a sole source, instead preferring to rely on a combination of surface- and ground-water sources or switch to groundwater, which could reduce adverse impacts to fish and aquatic life. Research and Technical Assistance More research into wastewater treatment, stormwater management and aquifer recharge was identified as important from the standpoint of at least one large community. The impact of tidal influence on water ways and water rights also was mentioned as an area for additional research. This topic encompasses such issues as hydraulic exchange between tidal flow, surface water, and groundwater; saltwater intrusion and the potential for additional water availability if tidal flow impacts were taken into account. With regard to technical assistance, respondents identified the need for technical assistance to small-group domestic systems. These systems are not subject to the long-term facility planning requirements of state land-use laws. Often they do not know the details of their water rights. Several communities also saw the benefit that training and assistance with social collaboration and governance restructuring could provide in working through issues of partnering on water 33 Coastal Community Water Supply Assessment supply projects. This assistance might include an evaluation of how existing water supplies could be managed differently. Restructuring water supply systems for cooperation is no easy task. Various social and institutional aspects need to be addressed before cooperation occurs. For instance, distrust of government agencies and other water systems is a persistent problem, often leading to water system suppliers being unable to communicate with one another (Dziegielewski and Bik, 2004). Cooperation cannot happen without the support of state, regional, and local institutions. New and expanded state leadership is essential to promote cooperation among small systems. For instance, impediments to facilitating voluntary transfers of water include not only the interrelated nature of water use and various cultural and social factors, but also the expensive state review processes that are not designed to facilitate transfers (NRC, 2004). A coordinated regional planning process can prevent problems associated with resistance to relinquish control of a system that is not costeffective and lack of motivation to join with other systems (NRC, 1997). Work Plan for a Comprehensive Assessment The findings of this study serve as the foundation for the development of a work plan for a comprehensive assessment of coastal community water supply – Building Capacity for Coastal Community Water Supply Planning. The purpose of the Capacity-building Project is to build the capacity of coastal water suppliers to cost-effectively meet their future needs through community collaboration based on information-sharing and joint problem-solving. This goal will be met through two inter-related objectives. Objective 1: Conduct a comprehensive coastal community water supply assessment that will support and complement water suppliers’ planning efforts. The three activities comprising this objective are: Activity 1(a): Conducting a literature review on community-based water supply planning processes; Activity 1(b): Convening a steering committee to assist in identifying barriers and opportunities associated with alternative approaches to current watersupply planning and defining “hydrographic neighborhoods”; and, Activity 1(c): Conducting a census survey of the 180 coastal community water suppliers identified within the tidal reach areas of the Oregon coast to validate the results of the preliminary assessment, to understand regionally-based water supply issues and characteristics, and to examine the feasibility and acceptability of current and new water supply planning approaches. Objective 2: Develop a new framework for community-based water supply planning, through two activities: 34 Coastal Community Water Supply Assessment Activity 2(a): Conducting four, two-day community-based water supply planning workshops in the identified “hydrographic neighborhoods”; and, Activity 2(b): Developing a protocol and handbook for fast-track communitybased water supply planning. The Capacity-building Project takes advantage of the opportunity to share the preliminary assessment with a broad range of coastal community water stakeholders, expand the assessment, and create new collaborative processes for community-based water supply planning. Experience elsewhere demonstrates that when community leaders understand where and how water is being used, they begin to uncover ways in which to more efficiently use and reallocate water. If "hydrographic neighborhoods" can be identified as local, geographic water supply planning units, and if information on water use and demand can be shared within these neighborhoods, Oregon coastal communities can be empowered to develop the cooperation needed to meet their water needs cost-effectively. Successful implementation of the Capacity-building Project will enable us to create a planning framework that answers the questions – Who needs to be involved? What information is needed to begin building community collaborations for long-term water supply? What is the appropriate geographic area for planning? What planning process can build relationships and reach agreement on actions to be taken? What are the common needs and opportunities for water supply planning in coastal communities? What are the roles and responsibility of state government to support these efforts? By addressing these questions, the Capacity Building Project could help Oregon develop a water supply planning method that results in timely on-the-ground solutions to water supply needs at an appropriate regional level. 35 Coastal Community Water Supply Assessment References American Society of Civil Engineers. 2005. Report Card for American Infrastructure: Drinking Water. [on-line] http://www.asce.org/reportcard/2005/page.cfm?id=24. Braden, J.B. and P.C. Mankin. 2004. Economic and financial management of small water supply systems: Issue introduction. Journal of Contemporary Water Research and Education 128: 1-5. Brown, C.E. 2004. Making small water systems strong. Journal of Contemporary Water Research and Education 128: 27-30. Dziegielewski, B. and T. Bik. 2004. Technical assistance needs and research priorities for small community water systems. Journal of Contemporary Water Research and Education 128: 13-20. Economic and Engineering Services, Inc. 2003. Water Management and Conservation Plans: A Guidebook for Oregon Municipal Water Suppliers. [on-line] http://www.orcities.org/publications/ Flora, C.B. 2004. Social aspects of small water systems. Journal of Contemporary Water Research and Education 128: 6-12. Glennon, Robert Jerome. 2002. Water Follies: Groundwater Pumping and the Fate of America’s Fresh Waters. Island Press. Maras, J. 2004. Economic and financial management capacity of small water systems. Journal of Contemporary Water Research and Education 128: 31-34. National Drinking Water Advisory Council (NDWAC). 2003. Recommendations of the National Drinking Water Advisory Council to U.S. Environmental Protection Agency on Its National Small Systems Affordability Criteria. U.S. Environmental Protection Agency, Washington, D.C. National Research Council (NRC). 1997. Safe Water from Every Tap: Improving Water Service to Small Communities. Committee on Small Water Supply Systems, Water Science and Technology Board, Commission on Geosciences, Environment, and Resources. National Academy Press, Washington, D.C. National Research Council (NRC). 2004. Confronting the Nation’s Water Problems: The Role of Research. Committee on Assessment of Water Resources Research. National Academy Press, Washington, D.C. 36 Coastal Community Water Supply Assessment Quigley, K. and G. Sylvia. 2000. Municipal water management in Oregon Coastal Communities: Surmounting the "Conservation Paradox". Prepared for: Coastal Oregon Marine Experiment Station (COMES); Oregon Sea Grant Corvallis, Oregon Shanaghan, P.E. 1994. Small systems and SDWA reauthorization. Journal of the American WaterWorks Association (May): 52-62. State of Oregon. 2001. Guidelines for the Preparation of Planning Documents for Developing Community Water System Projects. State of Oregon. Salem, Oregon U.S. Congressional Budget Office (CBO). 2002. Future Investment in Drinking Water and Wastewater Infrastructure. November. U.S. Environmental Protection Agency (EPA). 2005. Third Drinking Water Needs Survey and Assessment. February. [on-line] http://www.epa.gov/safewater/needssurvey/pdfs/2003/report_needssurvey_2003.pdf. 37 Coastal Community Water Supply Assessment APPENDICES 38 Coastal Community Water Supply Assessment Appendix 1: Comprehensive List of Water Suppliers See submitted Final Report CD for all data. Excel file Appendix 1 includes: Worksheet 1: Water Supplier by Population Order Worksheet 2: Water Supplier by Basin (Community Profile) Worksheet 3: MU, Private, and Special Water Suppliers Worksheet 4: Non-WRIS Water Suppliers by Basin Worksheet 5: Charts for Non-WRIS Water Suppliers Worksheet 6: Charts for All Water Suppliers Worksheet 7: Curry County Water Supplier Charts Worksheet 8: Coos County Water Supplier Charts Worksheet 9: Lane County Water Supplier Charts Worksheet 10: Lincoln County Water Supplier Charts Worksheet 11: Tillamook County Water Supplier Charts Worksheet 12: Clatsop County Water Supplier Charts 39 Coastal Community Water Supply Assessment Appendix 2: Comprehensive List of Water Uses See submitted Final Report CD for all data. Excel file Appendix 2 includes: Worksheet 1: Pie Charts, Excluding Fish and Wildlife Worksheet 2: Agricultural Use Worksheet 3: Domestic Use Worksheet 4: Fish and Wildlife Use Worksheet 5: Industrial Use Worksheet 6: Irrigation Use Worksheet 7: Livestock Use Worksheet 8: Power Use Worksheet 9: Recreation Use Worksheet 10: Other Use 40 Coastal Community Water Supply Assessment Appendix 3: Maps of Water Availability Available Flow by Month, North Coast Basin Available Flow by Month, Mid Coast Basin Available Flow by Month, South Coast Basin Available Flow by Month, Rogue Basin Available Flow by Month, Umpqua Basin 41 Coastal Community Water Supply Assessment Appendix 4: List of Interviewees Dan Bartlett, City Manager Astoria, Oregon Mike Nitzsche, City Manager Nehalem, Oregon Mitch Mitchum, Public Works Director Astoria, Oregon Doug Parrow, Natural Resources Specialist Oregon Department of Water Resources Rodger Bennett, City Manager Florence, Oregon Sam Sasaki, City Manager Newport, Oregon Leroy Blodgett, City Manager Brookings, Oregon Rob Schab, General Manager Coos Bay-North Bend Water Board Jeff Denney, Public Works Director Gold Beach, Oregon Joy Gannon, Public Works Director Cannon Beach, Oregon Rick Glick, Legal Consultant Williamson & Wyatt Jerry Taylor, City Manager Manzanita, Oregon Matt Winkel, City Manager Bandon, Oregon Davis Wright Tremaine, Legal Consultant Williamson & Wyatt Martha Pagel, Schwabe, Legal Consultant Williamson & Wyatt David Hawker, City Manager Lincoln City, Oregon Ken Knight, City Manager Port Orford, Oregon Nancy Leonard, City Administrator Waldport, Oregon Ed Madere, City Manager Warrenton, Oregon 42 Coastal Community Water Supply Assessment Appendix 5: Identifying Characteristics of Water Suppliers Category Name of water supplier Definition Name of permit applicant/holder County of operation Clatsop, Coos, Curry, Douglas, Lane, Lincoln, or Tillamook Owner type Local government, private, or special district Type of water system Community water system (CWS), transient non-community water system (TNCWS), non-transient non-community water system (NTNCWS), or state regulated water system (SRWS) Number of connections Number of connections from water supplier to water users Population served Number of persons served by water supplier Permit number* OWRD permit number for permit applicant’s use of unappropriated waters of the State of Oregon Certificate number** State record of water rights certificate Source type surface water or groundwater Source name Maximum acre-feet Name of aquifer, creek, lake, reservoir, river, spring, stream, or well If source is a storage reservoir Rate Measured in cubic feet per second (cfs) * Includes, when available, a direct link to the online permit information at the OWRD Water Rights Information System ** Includes, when available, a direct link to the online certificate of existing water rights 43