This week’s Lake Powell Pipeline meetings offer citizen participation opportunity
On March 22 and 23, the Utah State Executive Water Finance Board created by Gov. Herbert in 2017 will conduct meetings in St. George on the proposed Lake Powell Pipeline Project. It is unfortunate that notice of these meetings was not made earlier than this weekend and seems somewhat at odds with the state’s desire to have an open process. Although the meetings provide citizens with an opportunity to participate in the process, the notice provides the citizens of this county little time to plan to attend given that most citizens schedule activities long in advance of this.
This project has been in the works since 2006 when the Lake Powell Pipeline Development Act (LPPDA) was passed by the Utah Legislature. The project received unanimous support in the legislature at that time, but since then, with costs escalating from around $585 million in 2008 to as high a s $2.5 billion when the controversial pumped storage project cost is included (which apparently the state and local leaders prefer to dismiss), many in the legislature have changed from supporting the project to opposing it. Not enough have changed, however, to stop the legislature from passing bill in the last few years to stash away money in hopes of reaching their goal.
In 2012, Gov. Herbert held public hearings in Utah regarding water. In St. George, the Dunford Auditorium at Dixie State University was filled with Washington County citizens, and latecomers were faced with standing room only. By far, the majority of citizens who gave public comments at that public meeting and who were not either elected officials or public employees spoke against the Lake Powell Pipeline.
Fast forward to 2018, when the current opportunity arrives for citizens to speak out regarding the Lake Powell Pipeline. Citizens for the past 12 years have been clamoring for the opportunity to vote on the project. Given the way the LPPDA is currently written, that will not happen. Citizens will not get a vote. But this is a great opportunity for citizens to be heard, and heard loudly! It’s critically important because local leaders will certainly be there making their voices in support of the project heard, and that needs to be balanced.
At the meeting, the Executive Water Finance Board will address the funding of the project. The project’s funding has been a huge issue ever since the cost of the project reached $1.06 billion in 2012. Now, if we are looking at a project costing as much as $2.5 billion “without financing costs,” we should be even more concerned. Even this figure should be questioned given that the proposed Snake Valley Pipeline in Nevada — a pipeline that would be longer and entail somewhat different characteristics (it’s a 263-mile and 84-inch diameter pipeline) — has been estimated by an independent firm to cost as much as $15 billion.
It will be interesting to hear what the board has to say about funding options. However, as recently as last October, the State responded to the Federal Energy Regulatory Commission’s (FERC) August 2017 request for additional cost information by stating that in support of the Lake Powell Pipeline project, the State of Utah will review and verify the state’s capacity to pay for the project and independently review and verity local capacity to repay the state, with interest, for its costs associated with the project, including through funding sources such as user fees, impact fees, and property taxes.
In 2008, when initial details of the Lake Powell Pipeline project were communicated to citizens of Washington County, it was emphasized that “growth” would pay for the project through impact fees. There was little if any discussion about raising user fees or property taxes to cover it. Over the last couple of years, the amount that would be paid by impact fees has diminished, and user fees and property taxes have been mentioned more often. In fact, during a legislative committee meeting several years ago when asked by a legislator what would happen if growth did not occur as expected to pay for the Lake Powell Pipeline, water manager Ron Thompson answered that water surcharges would apply.
The state’s letter to FERC also stated, “Project beneficiaries indicate that they have the financial capacity to repay the project’s costs to the state.” Apparently, the state defines “project beneficiaries” as the Washington County Water Conservancy District and the Kane County Water Conservancy District but not the citizens of these counties whose tax dollars will be required for repayment. However, and even more importantly, how could the state assert that “Project beneficiaries indicate that they have the financial capacity to repay the project’s costs to the state” when the Utah State Executive Water Finance Board has not even done its work and held these meetings?
The state’s response to FERC included this:
“The State of Utah maintains its AAA bond rating because it prudently manages its budget. However, even as existing debt is being paid off, the State of Utah is also in the process of incurring significant debt related to transportation projects (about $1 billion) and a prison relocation (about $570 million). Because of this, the State of Utah will need be very mindful about its debt levels as it assesses a funding and financing package for the project. As the project evolves, the State of Utah will better be able to assess project costs and local project beneficiary ability to repay those costs, and then determine how to proceed with funding.”
At the time the October 2017 letter was written to FERC, the prison relocation cost increase had not been included. That cost is now projected to be around $860 million. Also not mentioned in the letter were costs associated with Utah’s education, health care, and aging water infrastructure. In fact, Utah’s aging water infrastructure is one of the biggest concerns and is even mentioned by water manager Thompson and Lake Powell Pipeline Project leader John Fredell, while in the same breath they encourage spending more money on the new Lake Powell Pipeline Project.
Citizens from across Utah and nearby states have commented against this project directly to FERC through FERC’s public comment process. The only people who seem to be excited about the project are those who will stand to make a quick buck through development in southern Utah beyond its true and reasonable carrying capacity and leaders, many of whom want their names associated with the project.
Given that our area’s current water conservation is poor, the county and cities have lacking conservation plans with little or no measurement ability, our water usage numbers are questionable due to lack of metering for secondary water, and even Utah’s own state water engineer says our water is over allocated, one has to question the worth of this project even if the Executive Water Finance Board says we can afford it.
So, there are two chances to participate:
On March 22, from 6 to 8 p.m., there will be a project and status overview at Dixie High School, located at 350 E 700 S in St. George. See the agenda here.
On March 23 from 9 a.m. to 3 p.m. will be a discussion of project finances, water demand, and water supply at the Washington County Water Conservancy District, located at 533 E. Waterworks Dr. in St. George. See the agenda here.
Citizens are encouraged to attend both meetings and speak out. Much of the Lake Powell Pipeline information will be what the state has been communicating for over 12 years as to the need. But it’s important to be there. Perhaps something new will come to light.
The board members are as follows:
—Phil Dean, state budget director and chief economist in the Utah Governor’s Office of Management and Budget.
—Evan Curtis, Utah Governor’s Office of Management and Budget.
—David Damschen, state treasurer.
—Juliette Tennert, the director of economic and public policy research at the Kem C. Gardner Policy Institute specializing in Utah’s economy.
—Jonathan Bronson, senior vice president and managing director at Zions Bank Public Finance.
—Laura Briefer, director for the Salt Lake City Department of Public Utilities, a municipal water supplier.
—Eric Millis is the director of the Utah Division of Water Resources.
You can make comments in the meeting as well as email them to phildean@utah.gov, ecurtis@utah.gov, ddamschen@utah.gov, juliette.tennet@utah.edu, jonathan.bronson@zionsbancorp.com, laura.briefer@slc.gov, and ericmillis@utah.gov.
Here are some ideas for comments to the board:
—Disclose the full financial plan, including the repayment plan, to residents who will pay for the project.
—Consider cheaper alternatives, and build smaller projects as needed instead.
—Consider the economic risks of long-term reduced water availability from the Colorado River due to climate change.
—Provide the basis for data on water needs, water usage rates, and total county-wide water supplies.
In addition to the two meetings this week, there will be a one-hour Dixie Forum on the Lake Powell Pipeline in the Dunford Auditorium at DSU’s Browning Learning Center March 27 from noon to 1 p.m. Conserve Southwest Utah, Washington County’s grassroots conservation organization that has been tracking the Lake Powell Pipeline Project for 12 years, and the water district will present differing views and answer questions. More information is available here.
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