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Water: It's essential to life itself. We drink it. We wash with it. We cool our power plants with it. We grow our food with it. We manufacture with it. We dispose of our waste in it. It sustains both our environment and our economy.

There was plenty of water for our 20th-century economy with dispersed population, power generation, manufacturing and agriculture. Each community developed its own water-supply system with little help or oversight by the state. The legal doctrine of riparian rights that allows riparian landowners to make "reasonable use" of water resources worked fine. There were few conflicts over the reasonableness of uses and enough water to provide certainty for public water systems, power companies, private industry and agriculture. When conflicts did arise, they were dealt with largely on a case-by-case basis, with little thought for the future of the overall security of water resources. Water allocation in North Carolina evolved to be a complex, non-integrated system.

The water resources that sustained a population of 4 million in 1960 and barely sustained 9 million during the 2007-08 drought will have to sustain a population of over 12 million in 2030. Our 20th-century water policy is inadequate for our 21st-century population and economy.

Water resources, like household budgets, are finite. We withdraw water from streams, reservoirs and wells; we return water from treatment plants and septic tanks. Current state law advises water users to "be reasonable" in their use. Imagine trying to balance your household budget by telling your family to "be reasonable" in their spending. Imagine state legislators trying to balance the state budget by telling agencies to "be reasonable" in their spending. This only works when there is plenty of money, or water, to go around. It doesn't work in times of scarcity. We need budgets to balance revenues and expenditures. It's now time to balance our water budget.

Water budgets

Fortunately, we have powerful new science-based tools to help us balance water budgets and to manage our water resources in each of the state's 17 river basins. We enter data about historic stream flows, in-stream flow needs, water withdrawals and water returns into a computer model. Then we can estimate future water demands and predict which river basins will be out of balance or over-allocated.

We recommend that the N.C. Department of Environment and Natural Resources develop a public, science-based model for the state's 17 river basins and update them as new information comes in. When the model predicts that demand for water in a river basin will exceed supply (when a failure occurs), then the state should create a regional river basin planning organization to balance the water budget by reducing demand through efficiency measures and/or by increasing water storage, or else the state should adjust the withdrawals and returns of water users in the basin. This policy will give us all the greatest assurance possible that all will have the water they need. A collaborative, public, science-based process can bring water users and citizens together to share information and to manage water as a shared resource. It can help identify the most cost-effective water-efficiency measures and storage options. It can demand better data and better science on which to base future predictions and decisions.

North Carolina has been developing river basin models for many years. A model for the Cape Fear River is nearly complete. Duke Energy, Progress Energy and Alcoa developed models as part of the Federal Energy Regulatory Commission's process of re-licensing their hydroelectric dams on the Catawaba/Wateree and Yadkin/Pee Dee rivers. Virginia and North Carolina are developing a model for the Roanoke River. A model is under development for the Neuse.

Other recommendations

The General Assembly should take other steps this year to modernize our water policies and to improve management of water resources:

* Clearly state policy goals to guide administrative and judicial decisions.

* Join the vast majority of states and require a permit for large water withdrawals.

* Conform existing water laws to each other and to policy goals (begin to integrate water quality and water quantity and management of surface water and groundwater).

* Simplify and integrate water and water-funding information.

* Address critical water research and study needs.

* Ensure that water infrastructure is maintained (fix leaky water and sewer lines and ensure that water system revenues exceed costs).

* Reward and spread best practices and leadership in water efficiency and integrate water and energy-efficiency efforts.

* Create more water storage.

Most states require water systems, industries and others that withdraw 100,000 gallons or more water per day to get a permit. North Carolina, South Carolina and Alabama appear to be the only three states that do not regulate large water withdrawals. Both South Carolina and Alabama are now considering a system of permits for large withdrawals.

One hundred thousand gallons of water will support 1,000 households. It makes sense to make sure that those who withdraw 100,000 gallons per day are using that water in a reasonable way.

Water-withdrawal permits provide important and accurate data to the state and public about water uses and returns. They protect the rights and investments of existing users and provide certainty to public water systems, private utilities, industries and farmers that they can invest in the future with confidence. They also provide an enforceable mechanism to balance water budgets.

Water is valuable

Our water systems have been so successful for so long in providing clean and inexpensive water and wastewater services that we take them for granted. For the price of one fast-food value meal we get 1,000 gallons of clean water delivered to our homes under pressure. For the price of a second value meal we get advanced wastewater treatment and protection of public health and the environment.

The era of cheap and abundant water in North Carolina and other Southern states is ending. Water is already a scarce and valuable resource in much of the world. It will become more scarce and valuable in North Carolina as well. We will value it more and price it accordingly.

The combined costs of replacing aging water infrastructure, paying for new infrastructure to support growth, and developing more expensive new sources of water (from efficiency, to rainwater harvest to new reservoirs) will increase the costs of water services.

Industries expanding or locating in North Carolina and the South have always asked about water services. Many companies are already evaluating their "water footprint" and also the risk that their operation may not have access to clean water in the future. Regions and states that can assure their citizens and their industries that clean water is available will have a competitive advantage in a world of water shortages and uncertainty.

About The Writers

Bill Holman is a native of Greensboro. He grew up looking for crawdads and other critters in South Buffalo Creek. He has a bachelor of science degree from N.C. State. He served as former Gov. Jim Hunt's Secretary of the Department of Environment and Natural Resources. He's director of state policy at Duke University's Nicholas Institute for Environmental Policy Solutions.

Richard Whisnant is a native of Winston-Salem. He has a bachelor of arts degree from UNC-Chapel Hill and a J.D. and master's degree in public policy from Harvard University. He has practiced law in Charlotte and served as general counsel at the Department of Environment and Natural Resources. He is a professor at UNC-CH's School of Government.