Addressing Declining Appropriations for Bureau of Reclamation Infrastructure: Policies Needed for Enabling Private Finance

Abstract

Western water infrastructure was funded in the early and mid‐20th Century through federal financing through the Bureau of Reclamation. Over the past 30 years, federal financing has been less forthcoming, which has been commensurate with an increase in the need for financing rehabilitation and replacement of western irrigation infrastructure. As federal appropriations have declined, there has been increased interest in alternative approaches to infrastructure including public–private partnerships (P3s), loan guarantees, or title transfer of federal infrastructure. However, two of these approaches — P3s and loan guarantees — are precluded by existing federal budgetary policies, particularly Office of Management and Budget (OMB) scoring practices. If the OMB changed its policies for P3s or loan guarantees, private capital could play an important role in recapitalizing aging Reclamation infrastructure.

Missing power: Nostalgia and disillusionment among Southern California water engineers

“…Even if the WaterFix project had been popular, the state’s estimated $15 billion price tag – widely considered a lowball – presented its own set of challenges. Importantly, in a break with the region’s water development heyday, when the federal Bureau of Reclamation and Army Corps of Engineers provided essential financing assistance for water projects, Congressional appropriations for such undertakings have dwindled since the 1980s (Doyle, 2018; Hanak et al, 2014; Reisner,1993 [1986]). As such, despite the considerable political power and financial reach of agencies like MWD and LADWP, they often struggle to move new, large-scale infrastructural projects past the drawing board.…”

Looking Back at 2018

“…Insightful commentaries on exploring nontraditional participation to improve water quality trading efficiencies (Heberling et al. ) and how policies can be changed to infuse private capital to rehabilitate aging western irrigation infrastructure (Doyle ) showcase innovative out‐of‐the‐box solutions presented in JAWRA with the potential to transform the practice of water resources.…”