WSP02976

• File Number: 8271.300
• Description: Colorado River Basin Salinity Control Program - General Information and Publications-Reports
• Basin: Colorado Mainstem
• Water Division: 5
• Date: 12/1/1979
• Title: An Economic Evaluation of the Salinity Impacts From Energy Development - The Case of the Upper Colorado River Basin
• Water Supply Pro - Doc Type: Report/Study

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in the Lower Basin caused by increases in
salinity level that have already occurred is
estimated to be $53 million per year and is
1 ikely to increase to $124 million per year
by zooa if no salinity control measures are
taken (U. S. Department of the Interior
1977). Federal and state governments are
actively involved in the Upper as well as
portions of the Lower Basin to control
sal,inity levels in the river. The Environ-
mental Protect ion A~ency, the Bureau of
Reclamation, the Soil Conservation Service,
state Water Resources Divisions, and Health
Divisions are carrying out various programs
and proposing others for 'the future. The
effectiveness of the proposed measures
needs to be investigated through comparison
of available alternatives in the context of
the effort required, as partially determined
by the amount of energy development. Some
preliminary studies to assess the energy
development impacts on water quality have
used simulation approaches (Utah State
University 1975, And"ersen and Keith 1977,
Bishop 1977). The results indicate that
energy development is likely to increase
salinity loading. An integrated framework of
economic aqalysis is needed to better define
the water quality changes and the consequent
environmental externalities that can be
expected to result from water reallocation
due to energy development.

In summary, prospective energy develop-
ment in the Upper Colorado River Basin is
expected to increase the demand for water
substantially. The resulting shift to higher
valued uses is expected to increase down-
stream salinity levels and consequent lower
basin damages. With the amendment of the
Colorado River System Implementation Plan
(Sect ion 120.5 to 40 CFR Part 120). numer ic
criteria (target concentrations) for salinity
have been establi shed. Several 'measures to
maintain or lower present salinity levels
are being pursued under the Colorado River
Salinity Program authorized by PL 93-320.
However, no known quantitative assessment has
been made to evaluate whether the 1972
salinity levels are "optimal" in any economic
sense. Also, the cost of control has not
been compared with the benefits of reduc€!d
salinity to the proposed concen,tration
s tdndards.

Consequently, present standards cannot
yet be defended on economie efficiency Or

dis,tributional grounds. Further, the planned
measures to control TDS levels are aimed only
at reducing salt loadin~. from natural and
man-induced activities. Management to reduce
the concentrating effects of additional
consumptive uses upstream is disregarded as a
control alternative. In fact, the proposed
regulations explicitly allow full development
of the compact-apportioned water in the Upper
Basin while maintaining salinity levels in
the lower main stream at 1972 levels.

One good aspect of the salinity regula-
tions is that they provide for review of the
standards at 3-.year intervals. If future
water allocations and salinit~ control
measures are appropr iately planned us ing
economic criteria, the cost of controlling
salinity can be minimized as salinity con-
centrations with maximum social benefits are
established.

The objectives of this research are to
a) assess the impact of energy development in
the Upper Basin on salinity of the Colorado
River; b) evaluate the costs of compliance
with established numeric salinity concentra-
tion criteria using proEosed salinity control
measures; c) compare (b) with minimum cost
alternatives to comply with salinity stan-
dards by explicitly investigating water
reallocation and possible salinity reduction
through dilution; d) determine socially
optimal salinity standards and compare -costs
and benefits associated with (b) and (c);
e) recommend policies based on this analysis
for future planning and implementation of
Upper Basin water allocation and salinity
control.

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In order to accomplish these objectives,
relevant economic analysis is developed in
the next section, and criteria based on
economic efficiency are de-rived. A physical
description of the case study area, legal and
institutional aspects of water resources and
quality, and the economic activities of the
region are outlined in the third section. An
operational procedure to accomplish the
stated objectives, based on a mathematical
optimiz3tion model, is developed in the
following section. The data needed to solve
the problem are developed in the next section.
In th-e final section, results of the study
and their policy implications are discussed.

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