Overview of the Water-Energy Nexus in the United States
Updated November 2009
 Introduction
State legislatures and natural resource managers have traditionally addressed water and energy as two separate issues. However, water and energy are deeply connected and sustainable management of either resource requires consideration of the other. Thus, resource managers and lawmakers across the country are beginning to take a comprehensive and interdisciplinary approach to the management of water and energy. This report provides overview information about the nexus between water and energy and provides a summary of state legislation addressing this issue.
Water Energy Nexus Overview
Water and energy are critical, mutually dependent resources- the production of energy requires large volumes of water and water infrastructure requires large amounts of energy.
Water is required to generate energy. Thermoelectric cooling, hydropower, energy mineral extraction and mining, fuel production (including fossil fuels, biofuels, and other non-conventional fuels), and emission controls all rely on large amounts of water. In the United States, the electricity industry is second only to agriculture as the largest user of water. According to the National Renewable Energy Lab, electricity production from fossil fuels and nuclear energy requires 190,000 million gallons of water per day, accounting for 39% of all freshwater withdraws in the nation. Remarkably, in many regions of the country, we use as much water turning on the lights and running electric appliances in our homes, as we use in taking showers and watering lawns.
On the other hand, water supply also requires energy use. A large amount of energy is needed to extract, convey, treat, and deliver potable water. Additionally, energy is required to collect, treat, and dispose of wastewater. Approximately 4 percent of U.S. power generation is used for water supply and treatment and about 75 percent of the cost of municipal water processing and distribution is electricity, according to the Department of Energy.
Water and energy are both multifaceted issues with many variables impacting their supply, demand, and management. Lawmakers should consider the following variables which add complexity to the management of water and energy:
- Growing population: According to the 2001 National Energy Policy, our growing population and economy will require an additional 393,000 MW of new generating capacity. This generating capacity equates to 1,300 to 1,900 new power plants by 2020 that will require additional water withdraws.
- Agriculture: Water demands will increase as agricultural demands increase with the need to feed a growing population. In 2000 irrigation accounted for about 40 percent of fresh water withdraws in the U.S., according the U.S. Geological Society.
- Geographical water demand: Water supply and demand are not geographically linked. During the 1990's, the largest regional population growth, 25%, occurred in the mountain West, one of the most water deficient regions in the United States. In comparison to the Southeast, where population increased by 14% and the Northeast which only experienced a 2% growth in population. Additionally, water consumption in the western U.S. is much higher than other regions due to agricultural demands. It is estimated that it takes over 1 million gallons of water a year to irrigate one acre of farmland in arid conditions. In other words about 86 percent of irrigation water withdrawals were in western states in 2000.
- Climate Change: The impacts of climate change may also impact water supply and availably. It is predicted that the timing of spring rains and winter snows may change in many regions, impacting stored water, agricultural production, and water supply. For instance, in the northwest climate change may cause more winter precipitation to fall as rain instead of snow, increasing streamflow and decreasing the winter snowpack, in turn impacting hydro-ecltrcity capacity and water supply.
As water and energy demand and supply shift, managing the two resources in tandem will help states maintain reliable and sustainable supplies of both energy and water. To sustain energy production and a dependable water supply, the U.S. must gain a detailed understanding of the interdependencies of water and energy systems, balance the needs of all users, and develop technologies to reduce water use and loss (i.e. water conservation and efficiency). These goals can be achieved through advancing water and energy system prediction and forecasting, scientific and technological innovation, and the implementation of technologies and management systems. State lawmakers and constituents will be critical in this process given their responsibility formulating policy, convening stakeholders, facilitating negotiations, and ratifying reached agreements.
Figure 1. Examples of Interrelationships between water and energy.
Click for larger picture.
Adopted from "Energy demands on Water Resources" U.S. DOE Report to Congress on the interdependency of energy and water.
Summary of Water Energy Nexus Statutes
At least nine states (AZ, CA, CO, CT, NV, SD, WA, WV, and WI) have statutes that recognize the nexus between water and energy. AZ, CA, and NV have statutes that mention the appropriation of water for generating electricity. A detailed summary of the statutes in each state follows below.
| State |
Statute |
Summary |
| Arizona |
Ariz. Rev. Stat. Ann § 45-156; Legislative authorization for appropriation of water to generate power: change in use
Ariz. Rev. Stat. Ann § 45-166; Approval for appropriation of waters for generating electric energy
Ariz. Rev. Stat. Ann § 45-1450; Consideration of water uses in studying flood control projects
|
Requires legislative authorization for the appropriation or use of water to generate over 25,000 horsepower of electric energy.
34,100 acre feet of water per year maybe appropriated for the operation of thermal generating plants. The operation of thermal generation plant means the use of water for the thermal generation of electric energy.
All beneficial uses of the state's water and other natural resources, such as, irrigation, generation of electric energy, municipal and industrial consumption of water and power, recharge of groundwater basins, preservation and development of fish and wildlife resources, and recreational facilities, shall be considered when studying flood projects.
|
| California |
Cal. [Public Resource] Code § 25008; State policy; energy and water conservation; alternate supply sources; energy or water facilities at state-owned sites
Cal. [Public Resource] Code § 25402; Reduction of wasteful, uneconomic, inefficient or unnecessary consumption of energy
Cal. [Water] Code § 371; Definitions. Allocation-Based Conservation Water Pricing
Cal. [Water] Code § 522; Further Findings; reduction of energy consumption
Cal. [Water] Code § 5001; Notice; necessity of filing; exception
Cal. [Water] Code § 90-29; Cooperation with United States, state, municipalities, districts, etc.
|
Intent of the Legislature to promote all feasible means of energy and water conservation and all feasible uses of alternative energy and water supply sources. In recognition of recent and projected increases in the cost of energy and water from traditional sources, it is the policy of the state to use available resources at state facilities which can substitute for traditional energy and water supplies or produce electricity or water at its facilities when use or production will reduce long-term energy or water expenditures. Outlines criteria for analyzing proposed actions.
Outlines actions the commission shall take to reduce the wasteful, uneconomic, inefficiency, or unnecessary consumption of energy, including the energy associated with the use of water.
Procuring water supplies to satisfy increments of water use in excess of the basic use allocations for the customers of the public entity, including supply or capacity contracts for water supply rights or entitlements and related energy costs for water delivery.
The Legislature further finds and declares that waste or unreasonable use of water imposes unnecessary and wasteful consumption of energy to deliver or furnish the water, and it is necessary, therefore, to determine the quantities of water in use throughout the state to the maximum extent that it is reasonable to do so in order to reduce that energy consumption.
Information concerning extracting groundwater or surface water for generating electricity are exempt from submitting a "Notice of Extraction and Diversion of Water".
The Nevada County Water Agency may co-operate and contract with the US, State of CA, any municipality, district, public or private corporation, or any person in the sale or acquisition of water for the purpose of conserving and transporting waters for beneficial uses and purposes, including the generation of electric energy.
|
| Colorado |
Colo. Rev. Stat. § 23-41-114; Colorado energy research institute-- creation
Colo. Rev. Stat. § 40-2-123; New energy technologies- consideration by commission- incentives- demonstration projects- definitions- legislative declaration- repeal
|
Creates the CO energy research institute of the CO School of Mines. It is the duty of the Institute to maintain liaison with the state to identify important regional energy and energy-related minerals problems, including their relationship to the use of the waters of the states.
Energy is critically important to Colorado's welfare and development and its use has a profound impact on the economy and environment. In order to diversify Colorado's energy resources, attract new businesses and jobs, promote development of rural economies, minimize water use for electric generation, reduce the impact of volatile fuel prices, and improve the natural environment of the state, the general assembly finds it in the best interests of the citizens of Colorado to develop and utilize solar energy resources in increasing amounts.
|
| Connecticut |
Conn. Gen. Stat. Ann. § 16a-4a; Office of Policy and Management. Duties and powers
|
The Office of Policy and Management shall prepare state-wide or interregional plans for the physical, social, and economic development of the state. The plan may include land use and water considerations and as well as energy capabilities and requirements.
|
| Illinois |
Ill. Rev. Stat. ch.45, §147/5; Great Lakes--St. Lawrence River Basin Water Resources Compact
|
The Great Lakes- St. Lawrence River Basin Water Resources Compact. Definition of "environmentally sound and economically feasible water conservation measures" means those measures, methods, technologies or practices for efficient water use and for reduction of water loss and waste or for reducing a withdrawal, consumptive use or diversion that, among other things, are environmentally sound, reflect best practices applicable to water sector, and consider energy impacts.
|
| Indiana |
Ind. Code Ann. §14-25-15-1; Great Lakes--St. Lawrence River Basin Water Resources Compact
|
The Great Lakes- St. Lawrence River Basin Water Resources Compact. Definition of "environmentally sound and economically feasible water conservation measures" means those measures, methods, technologies or practices for efficient water use and for reduction of water loss and waste or for reducing a withdrawal, consumptive use or diversion that, among other things, are environmentally sound, reflect best practices applicable to water sector, and consider energy impacts.
|
| Michigan |
Mich. Stat. Ann § 324.34201; Great Lakes--St. Lawrence River Basin Water Resources Compact
|
The Great Lakes- St. Lawrence River Basin Water Resources Compact. Definition of "environmentally sound and economically feasible water conservation measures" means those measures, methods, technologies or practices for efficient water use and for reduction of water loss and waste or for reducing a withdrawal, consumptive use or diversion that, among other things, are environmentally sound, reflect best practices applicable to water sector, and consider energy impacts.
|
| Minnesota |
Minn. Stat. Ann. §103G.801; Great Lakes--St. Lawrence River Basin Water Resources Compact
|
The Great Lakes- St. Lawrence River Basin Water Resources Compact. Definition of "environmentally sound and economically feasible water conservation measures" means those measures, methods, technologies or practices for efficient water use and for reduction of water loss and waste or for reducing a withdrawal, consumptive use or diversion that, among other things, are environmentally sound, reflect best practices applicable to water sector, and consider energy impacts.
|
| New York |
N.Y. [Environmental Conservation] Law § 21-1001(McKinney)
|
The Great Lakes- St. Lawrence River Basin Water Resources Compact. Definition of "environmentally sound and economically feasible water conservation measures" means those measures, methods, technologies or practices for efficient water use and for reduction of water loss and waste or for reducing a withdrawal, consumptive use or diversion that, among other things, are environmentally sound, reflect best practices applicable to water sector, and consider energy impacts.
|
| Nevada |
Nev. Rev. Stat. § 533.372 Approval or rejection of application to use water to generate energy for export
|
Based upon the public interest and the economic welfare of the State of Nevada, the State Engineer may approve or disapprove any application of water to beneficial use or any application which contemplates a change in the place or beneficial use of water to a use involving the industrial purpose of generating energy to be exported out of this state.
|
| Ohio |
Ohio Rev. Code Ann. §1522.01; Great Lakes--St. Lawrence River Basin Water Resources Compact
|
The Great Lakes- St. Lawrence River Basin Water Resources Compact. Definition of "environmentally sound and economically feasible water conservation measures" means those measures, methods, technologies or practices for efficient water use and for reduction of water loss and waste or for reducing a withdrawal, consumptive use or diversion that, among other things, are environmentally sound, reflect best practices applicable to water sector, and consider energy impacts.
|
| Pennsylvania |
Pa. Cons. Stat. Ann. tit. 32, §817.22; Enactment of compact
|
The Great Lakes- St. Lawrence River Basin Water Resources Compact. Definition of "environmentally sound and economically feasible water conservation measures" means those measures, methods, technologies or practices for efficient water use and for reduction of water loss and waste or for reducing a withdrawal, consumptive use or diversion that, among other things, are environmentally sound, reflect best practices applicable to water sector, and consider energy impacts.
|
| South Dakota |
S.D. Codified Laws Ann. § 45- 5- 21.1; Permits for energy industry use- Period for application of water to beneficial use
S.D. Codified Laws Ann. §46A- 1- 71; Legislative findings regarding need for program of statewide water development and financing
S.D. Codified Laws Ann. §46A- 2- 18; Acquisition of water rights by district- rights to appropriate water for energy industry use
S.D. Codified Laws Ann. §46A- 2- 19; Transfer of water rights or permits to appropriate water for energy industry use to users- contract provisions
|
Section does not apply to permits issued to South Dakota Conservancy District for energy industry use or permit/ right held by energy industry acquired pursuant to assignment by the director. Periods for completion of construction or application of water to beneficial use for rights transferred by the district to energy industry users shall be fixed in the instrument of transfer but may not exceed ten years from the date the contract is executed for application of water to beneficial use.
The Legislature finds that the proposed use of Madison formation water for widespread energy development in Wyoming presents an immediate threat to ground and surface water supplies and agricultural, domestic, environmental, and other beneficial water uses in western South Dakota.
Notwithstanding any other provision of law, the district may acquire, by obtaining a permit or permits from the water management board, rights to appropriate water for energy industry use for marketing to energy industry users for such consideration and under such terms and conditions as are fixed by contract or instrument of conveyance. The district may not acquire rights to appropriate more than fifty thousand acre-feet of water for energy industry use per year.
The district may sell, grant, convey, assign, lease, or otherwise transfer perfected water rights or permits to appropriate water for energy industry use to energy industry users for such consideration and under such terms and conditions as are fixed by contract or instrument of conveyance. Such contracts shall represent the entire financial obligation for the use of water owed by an energy industry user to the State of South Dakota and no further fee, tax, or assessment shall be levied against such user except for an ad valorem tax as assessed under chapter 10-37.
|
| Washington |
Wash. Rev. Code Ann. §90.82.070; Water quality component
|
Watershed planning under this chapter shall address water quantity in the management area by undertaking an assessment of water supply and use in the management area and developing strategies for future use. Strategies for increasing water supplies in the management area, which may include, but are not limited to, increasing water supplies through water conservation, water reuse, the use of reclaimed water, voluntary water transfers, aquifer recharge and recovery, additional water allocations, or additional water storage and water storage enhancements. The objective of these strategies is to supply water in sufficient quantities to satisfy the minimum instream flows for fish, provide water for future out-of-stream uses for water, and ensure that adequate water supplies are available for agriculture, energy production, and population and economic growth under the requirements of the state's growth management act.
|
| West Virginia |
W.Va. Code § 5B-2F-2; Purpose
|
Creates the Division of Energy as a state agency under the Department of Commerce. The division shall hold public hearings and meetings to receive public input regarding proposed energy policies and development plans. The energy policy and development plans shall address increased efficiency of energy use, traditional and alternative energy, water as a resource and a component of energy production, energy distribution systems, the siting of energy facilities, the increased development and production of new and existing domestic energy sources, increased awareness of energy use on the environment and the economy, energy infrastructure, the development and implementation of renewable, clean, technically innovative and advanced energy projects in this state.
|
| Wisconsin |
Wis. Stat. Ann. §281.343; Great Lakes- St. Lawrence River Basin Water Resources Compact
Wis. Stat. Ann. §281.344 ;Water conservation, reporting, and supply regulation; when compact is not in effect
Wis. Stat. Ann. §281.346; Water conservation, reporting, and supply regulation; after the compact takes effect
|
Ratifies the Great Lakes-St. Lawrence River Basin Water Resources Compact. Definition also applies to statutes that apply when the compact is not in effect and after the compact takes effect. Definition of "environmentally sound and economically feasible water conservation measures" means those measures, methods, technologies or practices for efficient water use and for reduction of water loss and waste or for reducing a withdrawal, consumptive use or diversion that, among other things, are environmentally sound, reflect best practices applicable to water sector, and consider energy impacts.
|
Summary of Pending Water Energy Nexus Legislation Introduced in 2009
CA has nine 2009 bills pending that mention or address the intersection of water and energy. The bills address water and energy planning, mention that water conservation is a benefit of energy conservation and vise versa, and establishes a Commission responsible for energy and water use. Four bills were introduced in FL that would have permitted water use in renewable energy facilities, all four bills failed.
| State |
Title and Status |
Summary |
|
California
|
AB 212; Energy: Building Standards: Zero net energy buildings; Pending
AB 1371; Reasonable use of water; generating facilities; Pending
AB 1016; Energy: Commission and Department; Pending
AB 300; Subdivisions: water supply; Pending
AB 40; Water reasonable use: electrical generation facilities; Pending
PAB 2; Water conservation: urban and agricultural planning; Pending
AB 49; Water Conservation; Pending
SB 279; Local government: community facilities districts; Pending
AB 33 c; Energy: Commission & Department; Pending
|
Requires the State Energy Resources Conservation and Development Commission to adopt building design and construction standards and energy and water conservation standards to require new residential constructions to be zero net energy buildings. Requires the standards to be adopted to reduce the wasteful, uneconomic, inefficiency, or unnecessary consumption of energy, including energy associated with the use of water.
Declares that the use of potable domestic water for cooling towers that are part of a generating facility that is an eligible renewable energy resource is a reasonable use of water if certain conditions are met.
Creates the Department of Energy, the State Energy Commission, and the Office of Energy Market Oversight within the department. Outlines steps the commission should do to reduce the wasteful, eneconomic, inefficient, or unnecessary consumption of energy, including the energy associated with the use of water.
Requires a public water system, or, if none exists, a local agency, to review and verify for accuracy a housing subdivider's water savings projections attributable to voluntary demand management measures. States that more efficient use of water statewide also will reduce the energy necessary to pump, transport, and treat water with potentially significant
corresponding reductions in greenhouse gas emissions.
Declares that the use of potable domestic water for cooling towers that are part of a generating system that is an eligible renewable energy resources is a reasonable use of water if certain requirements are met.
Requires the State to achieve a 20% reduction in urban per capita water use by a specified date. Requires an incremental process towards such goal. States that reduced water use through conservation provides significant energy and environmental benefits, and can help protect water quality, improve
streamflows, and reduce greenhouse gas emissions.
States the intent of the Legislature to enact legislation to establish a 20% water efficiency requirement for the year 2020 for agricultural and urban water users. States that reduced water use through conservation provides significant energy and environmental benefits, and can help protect water quality, improve streamflows, and reduce greenhouse gas emissions.
Authorizes a community facilities district to finance and refinance the acquisition, installation, and improvement of energy efficiency, water conservation, and renewable energy improvements to or on real property and in buildings. Reduced water use through conservation provides significant energy and environmentally benefits, and can help protect water quality, improve streamflows, and reduce greenhouse gas emissions.
Abolishes the State Energy Resources and Conservation Commission and the Electricity Oversight Board. Creates the Department of Energy, and the Energy Commission and the Office of Energy Market Oversight. The commission shall take steps to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, including the energy associated with the use of water.
|
United States Congress
U.S. Senator Bingaman introduced two pieces of legislation in the U.S. Senate that address the integration of water and energy.
| Author & Title |
Status |
Summary |
| S 531 |
Pending
|
Provides for the conduct of an in-depth analysis of the impact of energy development and production on the water resources of the United States, and for other purposes.
|
| S 1462 |
Pending
|
Relates to clean energy technology development, vehicle technology deployment, enhanced energy efficiency, state energy efficiency grant programs, improved energy security, energy innovation and workforce development, energy markets, energy and alternative fuels studies and reports. Addresses energy and water integration and power plant water and energy efficiency.
|
|