Droughts and Groundwater
Lawmakers in California recently proposed the nation's first water efficiency standards for new toilets and faucets, which are expected to save the state 8.2 billion gallons of water in the first year. The standards should help relieve pressure on water providers in what is expected to be "a hot and dry future for the state."
California's drought "presents a catch-22 for the state and its residents," writes RFF Fellow Yusuke Kuwayama in an article for Resources magazine. "Water shortages will increase reliance on declining groundwater supplies, but the unsustainable use of this resource has contributed to the severity of the drought." He suggests that the creation of groundwater markets could serve the state's "changing conditions and demands" while preventing large declines in water tables.
North American Energy
North America's potential for energy independence through oil and gas extraction faces a number of significant challenges, according to a new report by the New York Times. The survey of Canadian, American, and Mexican production highlights numerous regulatory and economic challenges facing the industry, including the enforcement of new energy laws, the unpredictability of future markets, and clashes between international interests.
In a new commentary in Resources, RFF's Ray Kopp and Alan Krupnick suggest that drafting an energy-specific agreement akin to NAFTA, an "E-NAFTA," could help integrate the interests of North American countries and energy producers: "The negotiation of an E-NAFTA will raise domestic political and economic issues in each of the three countries as well as significant cross-border concerns. . . . While challenging, a coordinated consideration of these issues—whether bilateral or, better still, trilateral, and whether within a NAFTA framework or not—has much to recommend."
