Business Matters

A ten-part series on resolving Washington's anti-business climate

"We will do everything in our power to guarantee a thriving, environmentally-sustainable business climate." – Governor Gary Locke –

Part 2: Tapping the state’s water potential

A water crisis in the rainy Northwest? Sounds more like an oxymoron than a serious threat to our state’s economy and business climate. While it is true that we are enduring what could be Washington’s worst drought since 1977, it is our state’s own water policies that played the biggest role in leaving state businesses high and dry. Although there was plenty of advance warning about this year’s low water supplies, little was done to prepare for the shortage.

According to a Department of Ecology news release on July 17, 2001, 5,600 to 8,900 jobs will be lost in our state’s agriculture industry this year as a result of the water crisis. But even though this drought is almost as severe as the one experienced in 1977, only 172 temporary emergency water-rights permits have been issued this year compared to the 517 issued then. There is no denying the low availability of water, but sufficient resources do exist to ease the suffering of our state economy if emergency water permits are granted to help individuals and businesses through the dry spell.

Unfortunately, there are strict and onerous regulations blocking the needed flow of water. The Central Puget Sound Water Supplier’s Forum report notes that: "Regulatory and institutional constraints . . . inhibit the implementation of numerous municipal supply options. These constraints need to be resolved before many effective solutions with regional benefits can be planned and implemented."

Currently, obtaining water rights can take months, even years, depending on the location of one’s watershed. Even if an individual or business is able to finally obtain authorization to use public water resources, that water right does not assure the availability of water when the state determines a drought is present even if emergency sources exist. This means water needs must be forecast years in advance before any project or use of water can begin. These conditions do not entice new businesses into our state, nor provide incentives to existing businesses to expand operations.

Three Water Acts have helped limit the availability of water for individuals and businesses:

Water Resources Act of 1971 – While the goal of this Act is to preserve the state’s water resources for "the greater benefit of the people," its result has been to place the supposed needs of state fish above those of citizens. It does so by mandating a minimum stream flow level before approving any new water rights.

1971 Water Well Construction Act – As stated in the Department of Ecology Water Law Primer, this statute reads: "Well construction cannot begin unless a water right permit has been issued (if required for the quantity and use proposed). A driller must submit a water well report to Ecology following construction of a well. By rule, Ecology may limit or prohibit well drilling in areas requiring intensive control of ground water withdrawals." Under a streamlined process this Act may work, but when the permitting process often takes years, the readily available resource of well water evaporates as a viable option for individuals and businesses.

1990 and 1991 Growth Management Acts – These Acts prohibit issuing new building permits for businesses until those businesses can prove they are able to access an adequate, safe-to-drink water supply. Unfortunately, the length of time it takes to meet these requirements causes many businesses to give up long before they can be approved.

While problematic, even these three pieces of legislation are no excuse for the bureaucratic road-blocks the Department of Ecology has placed in the way of businesses seeking to obtain water rights. The key to improving the water crisis in our state is to allow individuals and businesses to responsibly use available water resources, and to dramatically streamline the current permitting process.

House Bill 1832, signed into law on May 10, 2001, provides hope that the state may be ready to address this crisis. Some of the bill’s highlights include:

• Creation of two avenues for water rights applicants: one for new water rights and one for changing or transferring existing water rights.
• Allowing water rights transfers and changes without tying the decision into the effect on pending applications for new water rights.
• Authorizing local water conservancy boards to process water rights changes and transfers.

While this bill is the first step toward opening the state’s spigot, more needs to be done to address the long wait facing water rights applicants. To keep our current business base and bring new businesses to Washington, the Pacific Northwest needs to live up to its reputation of abundant natural resources by streamlining the water permit process to responsibly accommodate the current market opportunities of businesses. Even in times of drought emergency sources are available, and hastening the water permitting process will allow businesses to meet the needs of their enterprise as well as the surrounding community. The state’s obstruction to timely approval of water permits only serves to reduce Washington’s economic potential.

This is part two in a ten-part series on resolving Washington’s anti-business climate.

Intro | Part 1 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10

Contact: Jason Mercier, Deputy Communications Director, (360) 956-3482 or jmercier@effwa.org.

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org