1. Water Markets, Resource Issues, and Mediterranean Agriculture Leo Simon University of California, Berkeley Opening Discussion Comments Leo Simon University of California, Berkeley Opening Discussion Comments

2. Water Issues  Water quantity  Competing needs  Water quality  Salinity, nitrates,pesticides  Water location  Water quantity  Competing needs  Water quality  Salinity, nitrates,pesticides  Water location

3. California’s Major Rivers

5. California’s Population

9. Federal, State and Major Local Water Projects

10. CA DWR WATER PLAN 05

13. Water location  Northern supply  Southern demand  Infrastructure required  Maintenance  Growing demand  Climate change, earthquakes and the Delta  Northern supply  Southern demand  Infrastructure required  Maintenance  Growing demand  Climate change, earthquakes and the Delta

14. Jones Tract levee break, June 2 2004

15. Water Policy Constraints  Science  What’s feasible?  Economics  What’s cost-effective?  Regulation  What’s compliant with ESA, etc.?  Politics  What’s possible?  Science  What’s feasible?  Economics  What’s cost-effective?  Regulation  What’s compliant with ESA, etc.?  Politics  What’s possible?

16. Political Feasibility  Crisis has led to changes in CA water policy in the past (David)  Not only avenue  Three-Way Negotiations  Crisis has led to changes in CA water policy in the past (David)  Not only avenue  Three-Way Negotiations

17. Stakeholder Negotiations  Becoming more common in water policy  California  France  1992 law  Spain  Negotiation topics  Allocation of existing resources  Development of new resources  Funding new resources  Becoming more common in water policy  California  France  1992 law  Spain  Negotiation topics  Allocation of existing resources  Development of new resources  Funding new resources

18. Negotiation Design: 2 Key Elements  Issues/policies  What’s on the table  Participants  Who’s at the table  Issues/policies  What’s on the table  Participants  Who’s at the table

19. Stakeholder Negotiation  Deadlines matter  A crisis is “like” a deadline  The default outcome matters  If a stakeholder prefers the default to any change and his/her agreement is required, expect the negotiation to fail  Peripheral Canal  Deadlines matter  A crisis is “like” a deadline  The default outcome matters  If a stakeholder prefers the default to any change and his/her agreement is required, expect the negotiation to fail  Peripheral Canal

20. Concluding Thoughts  All options should be “on the table”  Governor  Allocating costs will be contentious  Need to get anti-dam groups to have an interest in changes relative to the status quo  Too bad about ESA(!)  All options should be “on the table”  Governor  Allocating costs will be contentious  Need to get anti-dam groups to have an interest in changes relative to the status quo  Too bad about ESA(!)