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The "with fish" scenario includes four sets of direct impacts: <br />1. Construction of Water Delivery Projects - In the baseline projection for the 10-county <br />region several water delivery projects are constructed and water is delivered (NIIP, ALP, <br />SJ-C). Supplying instream water for the fishes may require that some of these projects be <br />foregone and some modified. The consequence is that the volume of water available for <br />agricultural uses will be reduced, and the level of activity in the construction sectors will <br />decline. <br />2. Electric Power Impacts -Providing flows for the endangered fishes has implications <br />for the production of electric power at the Navajo Dam. Power production will decline <br />during the peak period, and the city of Farmington will be have to purchase power from <br />the grid at a higher cost. <br />3. Agriculture Impacts -Water will not be available for use in irrigation since some of the <br />projected water delivery projects will be canceled or modified. The total volume of <br />irrigated acres will be reduced as compared to the baseline projections. <br />4. Recreation Impacts -impacts to recreation move in both directions. Some water <br />projects which include reservoir-based recreation will be forgone. This foregone <br />recreation will be tempered by potential increases in angling opportunities as a result of <br />increased water left in streams for fish recovery purposes. <br />The method of incorporating these four duect impacts into the I-O model is to introduce a <br />reduction in the allocation of water to agriculture, electric power, and recreation which use water <br />directly and translate into a reduction in output in those sectors, and to determine amount of <br />economic activity in the construction sector that will be forgone due to canceled water <br />development projects. <br />21 <br />