Search
×

CALIFORNIA’S WATER CRISIS AND WHAT IT MEANS FOR CRE OWNERS

After years of worry and concern over the lack of rainfall in California, Governor Jerry Brown made a historical announcement this past March. The statement made by Brown, officially recognized the alarming situation the Golden State is facing in regards to the sustainability of its water supply, and is the first mandatory water cut in California.

This is a sign that the drought is not only threatening the multi-billion dollar agricultural industry, but also the livability throughout the state. Not only does the drought have economical consequences, but it also extends through the social and environmental aspect of society. Without a booming agriculture, towns are given into poverty and unemployment rates soar to extreme. These are wages lost. Loss of revenue into the community.The money that supports families and businesses. On the other hand, it also impacts the environment around us. Plants and animals depend on water, just like people. When a drought occurs, their food supply can shrink and their habitat can be damaged. Sometimes the damage is only temporary and their habitat and food supply return to normal when the drought is over. But sometimes drought’s impact on the environment can last a long time, maybe forever. We don’t know what’s ahead of us, so we need to change the way we view our water supply and use it in a respectful and sustainable way.

This extends beyond the agricultural realm and is reaching commercial real estate owners as well. With Brown’s mandatory cuts, landlords will have to make a few changes to the way they manage their water usage. Considerations vary depending on water districts and type of commercial product owned. However, these are a few of the restrictions that landlords will need to address:

 

Even though, it seems extreme to implement such changes, in such a short amount of time, water districts are offering incentives to help mitigate the costs associated with the retrofitting. Owners will find rebate programs and other incentives to cut costs when it comes to replacing lawns, improving irrigation systems, and upgrading metering systems to monitor water flow more accurately.

We all have roles to play when it comes to living more sustainably. Water usage varies according to regions and the types of players that are involved, nevertheless if we all do our part, that 10, 15, 20 percent can add up to be a whole lot of gallons of water saved. And those gallons may be just what we need.

35% CUT FOR CALIFORNIA

LOGO

Can’t say we didn’t see this coming. With the current state of the drought it was a matter of when and not if. Therefore, when Governor Brown announced the mandatory statewide water restrictions last week, we weren’t surprised to see it hit the media in full force.

In an aggressive push to reduce water usage statewide, California regulators are proposing that the biggest urban water users cut consumption by as much as 35% over the next year. California’s cities consume 178 gallons per person per day, on average. That’s 40 percent more than the per capita water consumption in New York City. Pretty crazy!

Brown’s mandatory statewide water restrictions is the first in California’s history. And the timing makes perfect sense. The state of California endures a fourth year of drought and with Groundwater levels in some areas have plunged, causing the ground to sink it shows the magnitude of the situation. Farmers have been cut off on irrigation deliveries, which has forced thousands of acres of inactive cropland. Some small communities have ran out of water, and while reservoir levels are higher than last year, the mountain snowpack, which provides about a third of the state’s water supply in normal years, is at a record low.

With the mandatory cuts, water districts are offering rebates for home and business owners to retrofit appliances. This comes as an incentive since after Brown’s announcement, California Energy Commission approved standards for water efficient appliances. The standards require water appliances to consume less water thereby using less energy while performing the same function and it ranges from low flow toilets, waterfree urinals to kitchen and lavatory faucets.

The drought has never been so evident as it is today. It is all around and affects every aspect of our daily lives. But the challenges faced bring to surface discussions and changes that are long overdue. We can blame it on climate change, misuse of water supplies, or all the above. But one thing is clear, it is not going away and we have to alter our relationship with water.