On June 13, the Lambda Alpha International (LAI) Global Water-Land Series Group (Group) hosted the Introduction to Water and Land Economics Global Webinar; introductory in nature, the webinar was designed as a foundation for a plethora of future webinars on more specific topics.
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| Baja California Sur Pacific Ocean Coast Photo courtesy of Holly Elmore Images |
The esteemed panelists included Jay Lund, Ph.D, Vice Director, Center for Watershed Sciences & UC Davis Distinguished Professor, Civil & Environmental Engineering, Steve Suau, P.E., Consultant at Carbon Life, and Brad Bass, Ph.D, Senior Policy Analysist, Employment & Social Development Canada & University of Toronto Status Professor. Steve and Brad are Ei Advisors and members of the Ei Regenerative Working Group.
Below is a synopsis of the webinar agenda:
Jay Lund - Overview & History
- Overview of the current water supply and quality scenario and its implications on land economics; give history and name institutions involved in water management.
- Western N America specific challenges, solutions, and success stories.
Steve Suau - Integrated Watershed Management
- Four elements of integrated watershed management.
- Florida specific challenges, solutions, and success stories.
Brad Bass - Algal Blooms, a Economic Perspective
- Overview of the algae blooms that segue into challenges with non-native/invasive species.
- Solutions available at a regional level as well as examples of successful local programs in the Canadian Great Lakes region.
Welcome & Introductions
LAI VP Craig Binning, LAI Simcoe (Toronto) Chapter member, welcomed webinar attendees and gave an overview of the nearly 95-years-old land economics honorary. As he introduced Jim, Craig highlighted Jim's 30 years of LAI membership.
LAI VP Craig Binning, LAI Simcoe (Toronto) Chapter member, welcomed webinar attendees and gave an overview of the nearly 95-years-old land economics honorary. As he introduced Jim, Craig highlighted Jim's 30 years of LAI membership.
In his introductory remarks, Jim explained that the Group is a subcommittee of the LAI Global Initiatives Committee; the Group's purpose is to create global programming tied to many facets of water and how it relates to land economics.
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| The Hernando de Soto Bridge in Memphis, TN Photo courtesy of Holly Elmore Images |
The Group intends to educate on the many dimensions of water-land economics, focus on the array of challenges facing diverse geographic regions, and highlight regional success stories.
Following Jim, Holly explained that this webinar was designed as introductory in nature and to serve as a platform from which to address the specific topics outlined by Jim. Holly gave personalized introductions of each of the panelists and then began the webinar with Jay's presentation.
Within her introductory remarks, Holly showcased the diversity of expertise within the panelists: Jay shares his engineering acumen from an academia perspective, Steve is "boots-on-ground" with implementation of watershed-management projects, and Brad represents a federal government viewpoint as well as his background in science and economics.
Overview & History - Jay Lund
Jay opened his presentation with the interaction between land and water and how the availability and quality of water has a direct impact on land values. Beyond the recreational and aesthetic value, proximity to water is necessary for agriculture and urban development. Jay emphasized the important role water access plays in the ability to fight fires. Additionally, water may serve as transportation outlets that support an area's economic vitality.
Proximity to water may also negatively impact land value due to excessive, regular flooding and hurricane/storm damage.
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| Arial view of the Inner Baltimore Harbor Photo courtesy of Holly Elmore Images |
According to Jay, current water issues include:
- Management for droughts
- Groundwater over-draft
- Contamination of aquifers – nitrate, salts
- Contamination of rivers – pesticides, nitrate, nutrients
- Water allocations among users
- Managing with greater variability
Jay emphasized that surface water contaminates quickly and can also be cleaned-up in a reasonable amount of time with concerted effort. However, the nitrate and salt contamination in the aquifers is nearly impossible to resolve and is considered permanent.
The decentralized water management comes with advantages and disadvantages, especially with the multiple layers of government involved.
In the early 1900's, the U.S. Government invested in huge water projects in the North Western lands to foster economic growth and populate the area. At the time, the economy was driven by agriculture. Yet, in the modern-day economy, agriculture only comprises about 5% of the North Western U.S. economy. Thus, there are tensions from regional water systems designed to serve an economy that no longer exists.
Jay detailed the following challenges of the western arid climate:
- Long seasonal droughts every year
- Multi-year droughts
- Salination
- Water and land competition (users and ecosystems)
- Floods too!
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| Results of mega drought in CA Photo source: nvelichko/Shutterstock via NewScientist |
Infrastructure cannot solve the overall water-deficit challenges. Every infrastructure-based solution brings new problems, particularly for the environment and sustainability.
In conclusion, Jay emphasized that water and land values always interact and water availability usually enhances land value; water regulation and management affects land economics. Interactions with water have supported and ended civilizations for millennia.
Jay's PPT presentation is available for download at this LINK.
* a significant portion of the Overview and History section was derived from Jay's PPT presentation and transcript of the recorded webinar.
Integrated Watershed Management - Steve Suau*
Though he has exceptional local-government experience, Steve mentioned that the majority of his 40-year career was spent in the private sector with two partners. One was a water-policy expert and the other a hydrogeologist who focused on ground water and aquifers; Steve's experience was in hydrology and engineering. With the diverse backgrounds, their company covered the bases for extensive water-related projects throughout Florida.
According to Steve, the four principles of integrated watershed management are:
- Natural systems
- Water quality
- Flood protection
- Water supply
Integrating the four principles into strategic plans, decision making, and project implementation is key to successful watershed management.
An overall effective strategy for water-demand management, is Right Water for Right Use:
- Non-potable water for outdoor irrigation
- Use of water-efficient fixtures for indoor potable water
- Tiered water-rate structures
The Right Water for Right Use strategy resulted in a decreased per person average daily water usage from 105 to 85 gallon from 2003 to 2017 in Southwest Florida. During the same timeframe, the population increased 40% yet the water consumption only increased 20%.
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| Big Cypress National Preserve Swamp in the Florida Everglades Photo courtesy of Holly Elmore Images |
A significant project during this time frame was the straightening of the 103-mile meandering Kissimmee River and its floodplain into a 52-mile straight canal from Orlando to Lake Okeechobee. As it flowed, the canal carried agriculture contaminants into Lake Okeechobee.
To the south of Lake Okeechobee, excess fresh water from Florida's summer-rainy season flowed into the Everglades creating Florida Bay, a thriving estuary. Incentivized to compete with Cuba's flourishing sugar production, the federal government redirected the south flow to east and west flows towards Florida's coasts. The flow diversion created the Everglades agricultural area, about 500 to 600,000 acres.
The east/west canals carry tremendous amounts of agricultural and industrial nutrients, mainly nitrogen and phosphorus, to both coasts; the nutrients are food for algae blooms that are economically and environmentally disastrous for the coastal communities.
Unintended, yet predicable, consequences include:
- Dire need for fresh water in Florida Bay
- Blue-green algae in the Indian River Lagoon
- Red tide in the Gulf of Mexico
The Florida Water Resources Act of 1972 (Chapter 373, F.S.), established that all water in Florida, on the surface or in the ground, is a public resource managed by the Florida Department of Environmental Regulation through designation of five Water Management Districts (WMDs). The districts were largely delineated around the major watersheds in Florida, not around political boundaries, and have a committed revenue stream based on a percentage of real estate taxes.
Water district responsibilities include:
- Regulation and permitting of water use as well as land development
- Monitoring of science - an enormous amount of data is collected that is critical for decision making
- Land acquisition and restoration for improved water quality
- Infrastructure improvements
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| Dead fish from the 2018 red tide outbreak Photo courtesy of Holly Elmore Images |
In Steve's words:
FARMS - Facilitating Agricultural Resource Management Systems - is a private/public partnership developed by the SWFWMD and the Florida Department of Agriculture and Consumer Services as a cost-share reimbursement program for agricultural projects that reduce groundwater withdrawals from the Upper Floridan aquifer through conservation and other alternative water-supply best management practices (BMPs). Water-quality and natural-systems-improvement BMPS may also be cost-shared in priority areas.SUCCESS: 20 yrs, 240 FARMS Projects, Water Conserved = 20 mil gallons-per-day
In recent years, the SWFWMD embarked on what Steve refers to as the most significant water-restoration project in the world. Yet very few people, even in Florida, are aware of the project. The water district used dynamite to literally blow up the dams on the Kissimmee River, purchased the river flood plains, and restored the meandering 103-mile river. Wildlife immediately returned.
Big Sugar remains an obstacle to cleaning up Lake Okeechobee of agricultural chemicals, stopping the east/west flow of excess water, and restoring fresh-water replenishment to the Everglades and Florida Bay. In 2007 then Governor Crist spoke to the U.S. Sugar Corporation, “I have an idea that might solve all our problems. Why don’t we just buy you out? If Sugar is polluting the Everglades, and we are paying to clean the Everglades, why don’t we just get rid of Sugar?”
In November 2014, about 75% of Florida voters approved an amendment to the state constitution; the amendment requires one third of documentary-stamp revenue to be placed into the Land Acquisition Trust Fund and spent on a variety of environmental programs and initiatives. These funds may prove ample to execute Governor Crist's idea.
Steve's PPT presentation is available for download at this LINK.
* a significant portion of the Integrated Water Management section was derived from Steve's PPT presentation and transcript of the recorded webinar.
Algal Blooms, a Economic Perspective - Brad Bass*
In his presentation, Brad uses algal blooms as an example in his evolution of studying the economic impact of an environmental phenomenon. With excess phosphorous the main catalyst, in 1970 Lake Erie was in dire conditions from algal blooms and other pollution.
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| President Nixon & Prime Minister Trudeau signing the GLWQA April 15, 1972. Courtesy of the EPA |
Through regulations focused on wastewater-treatment facilities, erosion control, and phosphate-concentration levels in laundry detergents, the Great Lakes achieved a 60% reduction in phosphorous loadings through the 1980's
With the onset of chemical-agriculture practices, Ontario’s agricultural heartland was becoming the largest source of this bioavailable phosphorus.
Additionally, there were New Factors at Play:
- Population growth and land use changes
- Changes in phosphorus discharges from urban and agricultural landscapes due to changes in land use and land-management practices
- A changing climate
- increased frequency of severe storms
- increased temperatures
- longer growing seasons
- Ecosystem changes - aquatic invasive species
- changes to water clarity and nutrient flows caused by Zebra and Quagga mussels
- Bioavailable phosphorus increasing
- linkages to above factors
Lake Erie responded with algal plumes/blooms, and hypoxia that resulted in devastating fish and other marine-life kills.
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| Lake Erie algal bloom Source: QUEST Ohio |
Zebra mussels, an invasive species, fueled Cladophora outbreaks close to the beaches. Along with a colleague, Brad discovered that zebra mussels were an excellent growing medium in green roofs. Thus, Brad replicated natural processes in technology.
By 2013, Brad noticed the complexity arising from scientific understanding and chose to address the interaction between climate and management of the land. Within the complexity of the scenario, Brad looked at the dynamics of phosphorus movement through a landscape and how green infrastructure might be placed to mitigate this flow.
In 2015, Brad resonated with Aristotle's famous quote: The more you know, the more you know that you don't know. Brad concluded that the complexity arose from the following factors:
- Impact of social and economic factors on adoption of new management practices
- Scientific understanding
- Linkages between different spatial scales
- Interaction between climate and management on the land
When assessing the cost of algal blooms, Brad chose to embrace an economist's, versus an accountant's, perspective and focus on the impact of blooms on social welfare. In his economic analysis, Brad used loss of well being as the barometer of algal blooms' direct cost to the economy,
The following cost categories were used to assess the ecological benefits provided by the lake-water quality:
- Commercial fishing
- Water users: industries (including municipal drinking water treatment plants)
- Recreational users: individuals that participate in lake-based recreation
- Non-users: individuals that do not use the lake but are concerned about its quality
- Tourism: the “tourism industry”.
- Property owners along the lakeshore
Using the above categories, the study assessed the estimated economic impact on the Lake Erie Economic Basin in three scenarios: business-as-usual, policy intervention, and a stable lake. For 2020, total annual benefit of implementing best-management practices was $350.4 million, with the largest benefit of $118.9 million for carbon sequestration.
Brad concluded his presentation showcasing that humanity's demand for ecological resources exceeds the capacity to regenerate in one year; if the entire global population lived in accordance with United States standards, it would require nearly five earths to provide the ecological resources for the living standard.
Brad's PPT presentation is available for download at this LINK.
* a significant portion of the Algal Blooms, an Economic Perspective section was derived from Brad's PPT presentation and transcript of the recorded webinar.
Question & Answer Session
With the impressive presentations complete, Jim moderated a Question & Answer (Q&A) session. The below is copied with minor edits from the recorded webinar's transcript.
With the impressive presentations complete, Jim moderated a Question & Answer (Q&A) session. The below is copied with minor edits from the recorded webinar's transcript.
What are the top two or three pricing initiatives that could rationalize or optimize the use of water in the Western United States?
Jay: There's a big difference, I think, between pricing you want to do for the different sectors. Agriculture is the by far the biggest human-based water user, at least in in the West. It's important that water be priced so as to show the opportunity costs, at least in the other economic sectors. And I think that will be sufficient. I think the the true opportunity cost of that water use is often higher than the economic-opportunity costs. But if you get it up to the economic-opportunity costs. I think you're doing pretty well.
Brad mentioned the value associated with the carbon sequestration aspect of the programs featured. Please talk more about how carbon sequestration works in that case and how it creates the value included in your report.
Brad: We were surprised that carbon sequestration was the biggest benefit; we expected the biggest benefit to be directly in the reduction of phosphorus. What we realized is that many of the best management practices increase vegetation. It's not that they necessarily decrease energy, decrease energy use, but they do increase the ability of the soil to sequester carbon in the surface vegetation.
For the cost estimate, we took the current price of carbon globally and calculated how much it would increase over the next 30 years. One reason the benefit was so large is the price of carbon; the sequestered carbon could be sold as carbon credits or otherwise receive payment for the sequestered carbon.
How does the carbon sequestration work in the context of the water itself?
Brad:
It's not the water; it's the actions you do to protect the water on the land that lead to the carbon-sequestration benefit. All of those best management practices are in the soil themselves. If you put up a tree line or wind break, you're going to end up planting a lot of trees. If you put in a cover crop, you're going to increase the amount of vegetation cover on your soil: you could double it, or at least increase it by a third every year. If you restore a wetland, the vegetation in that wetland is going to sequester more carbon than it otherwise would. If you were to restore fragile land with trees that would actually sequester a tremendous amount of carbon.
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| Cover crops is a farming BMP that increases carbon sequestration. Photo courtesy of Holly Elmore Images |
A related question. In your cost-benefit analysis, you put a value or a cost number on in-action versus the cost of action. How do you translate the costs that are done on a kind of the inaction to actual financing that gets applied to these solutions?
Brad: The government of Canada had actually experimented with a using climate bonds to finance
greenhouse gas-reduction activities. If you purchased it, a bond would be used to invest in those specified activities. And I thought, now that we know what the cost of inaction is, we have the basis to create ecological bonds for water quality in the Great Lakes. It was a proposal that I started before leaving the department for another role, and I don't think anybody picked up on it.
Steve, in the context of Florida's scenario, if you could see one policy implemented at the Federal level, what would would it be? And in in the same manner at the state level. What would you see as being policy actions that can be taken at the federal and state levels to address the issues Florida experiences?
Steve, At the state level, reinitiate discussions, to terminate sugar farmed in the Everglades; it is important to work together with the local communities who rely economically on the sugar farms. Due to the devastating environmental destruction from the sugar industry, there is opportunity to work with those communities to create a more resilient economy based upon the value of the world's only Everglades as an attraction.
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| Organic farming grows healthy soil Photo courtesy of Holly Elmore Images |
The USDA Organic Transition Initiative subsidizes farmers in the 3-year period, moving from conventional, chemical agriculture to organic, biology-based agriculture.
In Florida, the citrus industry is exploring a return to biology-based agriculture; the chemistry-based agriculture devastated the soil ecosystem, and the citrus orchards are suffering from diseases and viruses. Production levels deteriorated back to 1963 levels.
A shift to biology-based, organic agriculture would significantly reduce the nitrogen and phosphorous loads in the waterways fueling algal outbreaks. Chemical-based landscape and grounds-maintenance practices also contribute to nitrogen and prosperous levels in the waterways, though in lower quantities.
Brad, The state of Vermont used to give out an award for innovative phosphorus reduction, and 2019 that award went to someone who developed the Biochar filter.
Steve, Biochar is an expensive way for removing phosphorus; we found that woody material, even sawdust, was quite effective.
Going back to the agricultural question, sugar seems to be a big element, and Florida's water juice. Hawaii phased out the sugar industry - are there any lessons to be learned for a transition out of sugar in Florida? Or are Hawaii and Florida completely different markets?
Steve, The type of agriculture is not the main issue; it is the location of the sugar farms just south of Lake Okeechobee where the fresh water flows into the Everglades and eventually to Florida Bay.
So there is an ability to to accommodate the sugar industry in Florida?
Steve, Yes. In the past there was an issue with the location of the dairy farms. Thus, the State purchased the dairy farms and relocated them to another part of Florida. A similar scenario could work for the sugar farms.
Is the sea-level rise likely to affect coastal land values, restoration, and recreation activities?
Jay, We have a saying in ecosystems for aquatic ecosystems, at least in estuaries. that elevation is destiny; I think that is going to be true. The urban coasts will probably harden like the Dutch have done over 1,000 years or so. Some coasts are too expensive to harden, and we will simply let them go.
Sea-level rise is a particular challenge for barrier islands and places subject to hurricanes, like the entire Florida coast.
The big coastal cities that have ample resources, are very well organized, and have access to tremendous expertise will still face sea-level rise challenges. It' will be fairly expensive for them to raise their waste facilities, their drainage systems, and their wastewater-discharge systems. Additionally, the cities must protect their their land from flooding.
One final question: with Florida such a low-lying state, how will it be impacted by sea-level rise?
Steve, The state legislature is actively incentivizing coastal communities to prepare for sea-level rise and will provide revenue to fund projects implemented in consideration of sea-level rise.
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| Recent "sunny-day" flooding in Miami Photo: Steve Rothaus / Miami Herald |
Most homes and buildings on the barrier islands are elevated due to hurricanes and are expected to fare well with sea-level rise. Planning for the infrastructure including roads, utilities, water & sewer lines, and lift stations is underway. Yet, roads can only be elevated so much. Sea-level rise is an exceptional challenge for the barrier islands.
... and sea-level rise will have a huge impact real estate values.
Jim, in San Francisco, the northern waterfront plans require the elevation of the seawall and the finger peers by up to 4 feet, which costs billions and billions of dollars. Sea-level rise is a problem that we're all going to be facing in the future.
After the Q&A session, Jim thanked the speakers for their outstanding presentations and those who attended the webinar. Jim reminded all that the webinar was recorded for post-event viewing.
Holly closed the webinar with announcement of the fall webinar topic: Agriculture’s Impact on Water Quality & Quantity and Land Economics that will be orchestrated in a similar format.
To view the recorded Introduction to Water and Land Economics webinar, click HERE.
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About Lambda Alpha International (LAI)
LAI is the honorary global network for thought leaders in all fields related to the preservation and sustainable development of land.
LAI is a growing network of chapters in the United States, Canada, Mexico, Europe and Asia. Each chapter offers a wide variety of programs with industry leaders, discussion forums, community service projects and networking events.
Membership is highly selective through a nomination process initiated by an LAI member. Nominees for LAI membership must demonstrate ten or more years of experience in their fields, professional distinction, and outstanding contributions to the community in their field of endeavor.
LAI is committed to excellence and high professional standards to make a difference. A value to members is knowing you are someone who helped make that difference.
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Tax-deductible donations in any amount are greatly appreciated to support Ei's important work.
About Elemental Impact:
Elemental Impact (Ei) is a 501(c)3 non-profit founded in 2010 as the home to the Zero Waste Zones, the forerunner in the nation for the commercial collection of food waste for compost. In June 2017, Ei announced the Era of Recycling Refinement was Mission Accomplished and entered the Era of Regeneration. Current focus areas include Nature Prevails, Soil Health | Regenerative Agriculture, and Water Use | Toxicity.
The Regeneration in ACTION Magazine articles, From Organic Certification to Regenerative Agriculture to Rewilding Landscapes: an evolution towards soil integrity and SOIL & WATER: the foundation of life, published to explain and substantiate the importance of Ei’s rewilding urban landscapes work within the Nature Prevails focus area. What We Eat Matters is an emerging platform that intertwines within the three focus areas.
The Holly Elmore Images Rewilding Urban Landscapes-album folder documents two active pilots: the Native-Plant Landscape Pilot and the Backyard Permaculture-Oriented Pilot.
MISSION:
To work with industry leaders to create best regenerative operating practices where the entire value-chain benefits, including corporate bottom lines, communities, and the environment. Through education and collaboration, establish best practices as standard practices.
Ei’s tagline – Regeneration in ACTION – is the foundation for Ei endeavors.
The following mantra is at the core of Ei work:
Ei is a creator, an incubator.
Ei determines what could be done that is not being done and gets it done.
Ei brings the possible out of impossible.
Ei identifies pioneers and creates heroes.
For additional information, contact Holly Elmore at 404-510-9336 | holly@elementalimpact.org.
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