ECONOMIC APPRAISAL OF DESALINATION AND BEST MANAGEMENT PRACTICES FOR WATER STEWARDSHIP

• Sponsoring Institution: National Institute of Food and Agriculture
• Project Status: COMPLETE
• Funding Source: HATCH
• Reporting Frequency: Annual
• Accession No.: 0208146
• Project Start Date: Oct 22, 2012
• Project End Date: Oct 21, 2017
• Program Code: [(N/A)]- (N/A)

Recipient Organization
TEXAS A&M UNIVERSITY
750 AGRONOMY RD STE 2701
COLLEGE STATION,TX 77843-0001

Performing Department
Agri Economics

Non Technical Summary
Water issues are in abundance as population growth continues and creates increasing demand for potable water, food, and other water-related features of the requisite infrastructure to support such a larger society. Economic analyses are an important aspect of developing water policy and incentives for efficient water use, water conservation, water reallocation, and developing new supplies. As has been the case for the past several years, relevant issues deserving of attention in Texas and throughout the Southwest include the noted economic growth coupled with drought (particularly along the Rio Grande). There is recent history of addressing various water issues in these areas through conservation and alternative supply mechanisms. Conservation includes a host of opportunities including pricing of water, lining of canals, irrigation technologies of laser leveling and distribution systems, and other mechanisms. In addition to improved water efficiency and conservation, attention also turns to alternative supplies including importation, increased on-site storage, desalination, and reallocation from one set of users to another. Within all of these alternatives for Texas and the Southwest, the costs and benefits, as well as implications of institutions and policies, drive incentives and priority toward the most economical approaches. This project, building on past and related current Hatch projects, is designed to work with irrigation districts along the Rio Grande, the International Boundary and Water Commission (IBWC), the U.S. Bureau of Reclamation (USBR), the U.S. Army Corps of Engineers (USACE), the Texas Water Development Board (TWDB) and the Rio Grande Basin Initiative (overseen by the Texas Water Resources Institute of the Texas A&M University System) to bring economic principles, computer models, and local and institutional guidelines into the planning process. The economics will be evaluated relative to incentives provided along with implications of alternatives for agricultural, municipal, and industrial water users. Methodologies developed and documented in previous Hatch projects will serve as the foundation for continuing and expanding research on these topics.

Animal Health Component

(N/A)

Research Effort Categories

Basic

(N/A)

Applied

(N/A)

Developmental

(N/A)

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
111	0310	3010	10%
603	0399	3010	75%
605	0399	3010	15%

Knowledge Area
605 - Natural Resource and Environmental Economics; 603 - Market Economics; 111 - Conservation and Efficient Use of Water;

Subject Of Investigation
0310 - River basins; 0399 - Watersheds and river basins, general;

Field Of Science
3010 - Economics;

Keywords

water

economics

desalination

water quality

Goals / Objectives
The following objectives outline an over-arching research and extension program directed to addressing economic water issues in South Texas -- Objective 1. To evaluate the expected costs of alternative water supplies; including desalination and wastewater treatment; Objective 2. To identify and investigate alternative Best Management Practices for conserving and enhancing water supplies and quality thereof; and Objective 3. To estimate the quantity of water used for fracturing shale in the Eagle Ford energy development to include in the Region M water planning activity with quality implications. Water issues are particularly sensitive between regions, nations and even users in view of the recent prolonged drought. As a part of searching for solutions and alternatives, economics and policy play a strong role in helping guide decision makers by irrigation districts, municipalities, state agencies, federal agencies, and others. This project is designed to continue work that has been implemented, but seeks to expand it to new frontiers in comparison of alternative potable water sources, a broader set of Best Management Practices directed toward enhancing water quality, and educating local decision makers on relevant issues and appropriate principles to consider.

Project Methods
The intent is to further develop and enhance the research and outreach programs emphasizing economics that were a critical component of recent planning and/or decision making along the Rio Grande. Since 2002, close working relationships have evolved with irrigation district managers, federal agencies, and the regional water planning group (Region M of the 16 regional Texas water planning groups). By working closely with the decision makers and leaders of the community, model development and education of the economic principles involved make for a much better environment to review alternatives. Objective 1 involves application and extension of methodologies previous used to evaluate brackish water desalination and surface water treatment. Examples of the development of input data includes very detailed analysis of estimated water treated, initial and recurring capital investment cost requirements, annual maintenance and operating costs, and useful life (years) of required capital components comprising the total water treatment infrastructure. The results allow for comparable cost values, which in turn allow decisionmakers to rank alternatives; this ultimately aids in the identification of an optimal allocation of investment funds. Objective 2 involves the issue of addressing the costs of mitigating externalities in the form of adverse water quality impacts associated with traditional and emerging (e.g., biofuels) agricultural production technologies and urban development initiatives. SWAT analysis, capital budgeting, life cycle analysis, and enterprise budgeting will be used to identify the relative performance of alternative management practices. Economic consequences of alternative agricultural production incentives will be identified and provided to decisionmakers for their consideration. Objective 3 will use a review of literature as the basis for developing water used for fracturing the shale of the Eagle Ford energy development of Region M. This will include reports from the Barnett Shale activity as well as interviews with experts at Texas A&M. This will be compared to estimates of water availability and implications for the regional water needs.

Progress 10/22/12 to 10/21/17

Outputs
Target Audience:Rio Grande Valley Irrigation District managers - prior interactions involved frequent meetings and involvement in research process and manuscript review. Rio Grande Valley municipal potable water suppliers - prior interactions involved frequent meetings and involvement in research process and manuscript review. U.S. and Texas agency managers and other leaders - prior interactions involved frequent meetings and involvement in research process and manuscript review. The emerging effort involves principals in the supplemental medicine supply-chain along with numerous others associated with job creation activities. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?Planning meetings are occurring among stakeholders interested in the new direction of the project, with a symposium proposal currently being considered by College of AGLS administration. What do you plan to do during the next reporting period to accomplish the goals?Develop the final report for the current project and develop the project documentation for the new direction based on current planning underway.

Impacts
What was accomplished under these goals? Substantial teaching and administrative responsibilities, service commitments, no student involvement, and continuing health issues contributed to minimal progress again during the year. As CY201y ends, this project is evolving in a new, related direction. With this change in direction noted, it is also important to note that prior efforts and publications associated with this project continue to be useful to stakeholders in the Rio Grande Valley and in other regions of Texas. Irrigation managers', municipal managers', federal and state agencies', and agricultural producers' decision-making abilities are enhanced by the research associated with this project. The research results facilitate the comparison of alternative courses of action for conserving and augmenting Valley water supplies and the quality thereof while also allowing recognition of multiple objectives and limited resources. Improved, documented information allows for superior choices among available alternatives, thus benefitting all stakeholders. The results associated with these outcomes are worthy of consideration in other regions experiencing similar issues. The evolving opportunities in rural entrepreneurship, including water resources implications, are in a preliminary stage. An initial stakeholders meeting was held in Des Moines, Iowa during mid-fall, followed by a subsequent meeting on the Texas A&M campus in late fall. A proposal for a symposium involving various stakeholders is currently being considered. Outcome and impacts thus far include enlightened understanding among several principals in the supplemental medicine supply-chain.

Publications

Progress 10/01/15 to 09/30/16

Outputs
Target Audience:Irrigation managers', municipal managers', federal and state agencies', and agricultural producers' decision-making abilities are enhanced by the research associated with this project. The research results facilitate the comparison of alternative courses of action for conserving and augmenting Valley water supplies and the quality thereof while also allowing recognition of multiple objectives and limited resources. Improved, documented information allows for superior choices among available alternatives, thus benefitting all stakeholders. The results associated with these outcomes are worthy of consideration in other regions experiencing similar issues Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals?CY2017 is the final year of this project. Focus will be on identifying the appropriate path for continued progress on the project, recognizing my competing repsonsibilities.

Impacts
What was accomplished under these goals? Substantial teaching and administrative responsibilities, service commitments, no student involvement, and a health issue contributed to minimal progress during the year. As CY2016 ends, planning the next step on this project is in progress.

Publications

Progress 10/01/14 to 09/30/15

Outputs
Target Audience:Irrigation managers', municipal managers', federal and state agencies', and agricultural producers' decision-making abilities are enhanced by the research associated with this project. The research results facilitate the comparison of alternative courses of action for conserving and augmenting Valley water supplies and the quality thereof while also allowing recognition of multiple objectives and limited resources. Improved, documented information allows for superior choices among available alternatives, thus benefitting all stakeholders. The results associated with these outcomes are worthy of consideration in other regions experiencing similar issues. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?Presentations at the University Council on Water Resources annual meeting, Las Vegas, June 16-18, 2015. What do you plan to do during the next reporting period to accomplish the goals?Continue work on evaluating economics of seawater desalination.

Impacts
What was accomplished under these goals? Research output includes two publications and two presentations. Research continues directed to evaluating seawater desalination in comparison to traditional surface water and brackish groundwater sources of potable water for municipal customers. 2015 efforts focused on methodological considerations in selecting appropriate discount rate(s) for natural resources temporal streams. Results suggest a considerable range of perspectives regarding the appropriate discount rate to be used in evaluating projects involving temporal streams of natural resources. These results reflect the views of numerous experienced natural resource economists and others. One conclusion to be drawn is that several discount rates, ranging from positive to negative should be considered when evaluating such projects, with all results reported to decisionmakers, enhancing their abilities to select the most preferred project.

Publications

• Type: Journal Articles Status: Published Year Published: 2014 Citation: Naveen Adusumilli, Taesoo Lee, M. Edward Rister, and Ronald D. Lacewell. 2014. The Economics of Mitigation of Water Pollution Externalities from Biomass Production for Energy. Resources. 2014, 3(4), 721-733; doi:10.3390/resources3040721. Special Issue, Alternative Energy Sources in Developing and Developed Regions.
• Type: Other Status: Published Year Published: 2015 Citation: Lindsi R. Dutton, M.E. Rister, R.D. Lacewell, A.W. Sturdivant. 2015. A Review of Discounting Natural Resources. Texas Water Resources Institute TR-473. College Station, Texas.
• Type: Other Status: Other Year Published: 2015 Citation: Lindsi R. Dutton, M.E. Rister, R.D. Lacewell, and Allen Sturdivant. 2015. Impacts of Alternative Discounting Assumptions. University Council on Water Resources annual meeting, Las Vegas, June 16-18, 2015.
• Type: Other Status: Other Year Published: 2015 Citation: Lindsi R. Dutton, M.E. Rister, and R.D. Lacewell. 2015. Discounting Natural Resources: Results of a Survey of Natural Resource Experts. University Council on Water Resources annual meeting, Las Vegas, June 16-18, 2015.

Progress 10/01/13 to 09/30/14

Outputs
Target Audience: Rio Grande Valley Irrigation District managers – frequent meetings and involvement in research process and manuscript review. Rio Grande Valley municipal potable water suppliers – frequent meetings and involvement in research process and manuscript review. U.S. and Texas agency managers and other leaders – frequent meetings and involvement in research process and manuscript review. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Journal publications and meetings with stakeholders. What do you plan to do during the next reporting period to accomplish the goals? Continue to work on seawater desalination research report.

Impacts
What was accomplished under these goals? Work from CY2013 continues to be refined. Preliminary economic and financial investigations of seawater desalination suggest technological advancements are enhancing the competitiveness of this source of potable water, but all factors being consistent, conventional treatment of surface water and brackish groundwater remain most economical. There are some locations and other specific circumstances, however, for which seawater desalination may be a viable source of potable water. In all cases, recognition should be accorded the importance of operational costs and recurring capital replacement costs associated with water treatment choices, with their magnitude being of equal, if not greater, consequence than the initial required capital investment costs. Objective, composite life-cycle cost analyses developed in a consistent manner are valuable in planning for the rapidly-increasing needs of potable water associated with dynamic population growth in local regions. Preliminary estimates of production and delivery cost results compared to local municipal water rates are suggestive such rates will necessarily need to increase in the future as potable water supplies are increased. As in previous years, irrigation managers', municipal managers’, federal and state agencies’, and agricultural producers’ decision-making abilities are enhanced by the research associated with this project. The research results facilitated the comparison of alternative courses of action for conserving and augmenting Valley water supplies and the quality thereof while also allowing recognition of multiple objectives and limited resources. Improved, documented information allows for superior choices among available alternatives, thus benefitting all stakeholders. The results associated with these outcomes are worthy of consideration in other regions experiencing similar issues.

Publications

• Type: Journal Articles Status: Accepted Year Published: 2014 Citation: Naveen Adusumilli, Taesoo Lee, M. Edward Rister, and Ronald D. Lacewell. 2014. The Economics of Mitigation of Water Pollution Externalities from Biomass Production for Energy. Resources. 2014, 3(4), 721-733; doi:10.3390/resources3040721. Special Issue, Alternative Energy Sources in Developing and Developed Regions.

Progress 01/01/13 to 09/30/13

Outputs
Target Audience: Rio Grande Valley Irrigation District managers – frequent meetings and involvement in research process and manuscript review. Rio Grande Valley municipal potable water suppliers – frequent meetings and involvement in research process and manuscript review. U.S. and Texas agency managers and other leaders – frequent meetings and involvement in research process and manuscript review. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Collaborative interactions with stakeholders have occurred throughout the year. Informal presentations to peers have been used to solicit endorsement of the methods and processes being used. What do you plan to do during the next reporting period to accomplish the goals? Finalize the base research report and disseminate results to stakeholders.

Impacts
What was accomplished under these goals? Preliminary economic and financial investigations of seawater desalination suggest technological advancements are enhancing the competitiveness of this source of potable water, but all factors being consistent, conventional treatment of surface water and brackish groundwater remain most economical. There are some locations and other specific circumstances, however, for which seawater desalination may be a viable source of potable water. In all cases, recognition should be accorded the importance of operational costs and recurring capital replacement costs associated with water treatment choices, with their magnitude being of equal, if not greater, consequence than the initial required capital investment costs. Objective, composite life-cycle cost analyses developed in a consistent manner are valuable in planning for the rapidly-increasing needs of potable water associated with dynamic population growth in local regions. Preliminary estimates of production and delivery cost results compared to local municipal water rates are suggestive such rates will necessarily need to increase in the future as potable water supplies are increased.

Publications

• Type: Conference Papers and Presentations Status: Accepted Year Published: 2014 Citation: Lacewell, R.D., M.E. Rister, E.K. Seawright, A.W. Sturdivant, and J.A. Goolsby. 2013. The Cost of the Spread of Arundo in the Rio Grande; a.k.a. Arundo donax: Rio Grande Water Hog. Presented at 2013 Universities Council on Water Resources conference. Lake Tahoe, CA. June 2013
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2014 Citation: Adusumilli, N.C., M.E. Rister, R.D. Lacewell, T. Lee, J. Blumenthal, and R. Srinivasan. 2013. The Economics of Mitigating Effects of Bioenergy Production on Water Quality. Presented at 2013 Universities Council on Water Resources conference. Lake Tahoe, CA. June 2013

Progress 01/01/12 to 12/31/12

Outputs
OUTPUTS: Research output includes one journal article related to seawater desalination plant operating economics and another regarding economically optimal decisions related to corn production. One poster presentation was delivered regarding the potential impacts of bioenergy production on water quality. Research is in progress continuing more evaluation of seawater desalination capital investments. Work continues on developing and launching an enhanced web site accessible by various stakeholders. PARTICIPANTS: Ed Rister, P.I.-Professor and Associate Head, College Station, TX.; Allen Sturdivant - former Extension Associate, Weslaco, TX.; Andrew Leidner - former Graduate Student, College Station, TX. TARGET AUDIENCES: Rio Grande Valley Irrigation District managers - frequent meetings and involvement in research process and manuscript review. Rio Grande Valley municipal potable water suppliers - frequent meetings and involvement in research process and manuscript review. Texas corn producers - - frequent meetings and involvement in research process and manuscript review. U.S. and Texas agency managers and other leaders - frequent meetings and involvement in research process and manuscript review. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Particular results of interest achieved during the year include identification of critical parameters for economizing on operating costs versus capital investment costs for seawater desalination plants. In addition, the tradeoffs in investments for sunflower weed control in field corn production are examined in detail for associated yield loss prevention levels. The potential degradation of water quality associated with increased nutrient and sediment originating in biomass crop production fields is estimated along with identification of the feasibility of using alternative Best Management Practices to mitigate such offsite externalities. Irrigation managers', municipal managers', federal and state agencies', and agricultural producers' decision-making abilities are enhanced by the research associated with this project. The research results facilitated the comparison of alternative courses of action for conserving and augmenting Valley water supplies and the quality thereof while also allowing recognition of multiple objectives and limited resources. Improved, documented information allows for superior choices among available alternatives, thus benefitting all stakeholders. The results associated with these outcomes are worthy of consideration in other regions experiencing similar issues.

Publications

• A.J. Leidner, M.E. Rister, R.D. Lacewell, J.D. Woodard, and A.W. Sturdivant. 2012. An Analysis of Input Choice, Input Prices, and Environmental Factors on the Costs of Seawater Reverse Osmosis Systems. Desalination. 291,2(2012):48-55.
• N.R. Falkenberg, T.J. Cogdill, M.E. Rister, and J.M. Chandler. 2012. Economic Evaluation of Common Sunflower (Helianthus annuus) Competition in Field Corn (Zea mays L.). Weed Technology. 26,1(2012):137-44.

Progress 01/01/11 to 12/31/11

Outputs
OUTPUTS: In the Texas Rio Grande Valley, Texas AgriLife Research (previously known as Texas Agricultural Experiment Station (TAES)) and Texas Agrilife Extension (previously known as Texas Cooperative Extension (TCE)) economists have continued to collaborate with (a) irrigation managers and their consulting engineers and (b) municipal water suppliers, among others, to evaluate the economics of capital investments in water-delivery infrastructure, alternative water supplies, conservation via irrigation technology, and the financial implications of water-delivery rate changes. With the ending of funding for the Rio Grande Basin Initiative, much of the work in this venue has been focused on completing several projects in various stages of progress. With several graduate students involved in preliminary phases of their research, a majority of the output has manifest itself this year in the form of presented papers and posters and meetings with stakeholders (not reported here) as opposed to published papers. In 2011, research has continued in using (a) an economic model, VIDRA (Valley Irrigation District Rate Analyzer), to assist several irrigation districts in understanding the likely financial outcomes of changes in water-delivery rates to agricultural, municipal, and industrial users; and (b) in beginning to evaluate the impact on regional water resources of growing biofuels feedstocks. Additional efforts have continued on varied aspects of the water market and resulting water quantity and quality. As in previous years, frequent meetings were held with collaborators and stakeholders to disseminate results. Technical reports are being developed and an enhanced web site is being developed for access by these same audiences. Presentations were also made to professional audiences to obtain peer review and several professional publications are in progress. PARTICIPANTS: Ed Rister, P.I.-Professor and Associate Head, College Station, TX.; Allen Sturdivant - former Extension Associate, Weslaco, TX.; Andrew Leidner - Graduate Student, College Station, TX. TARGET AUDIENCES: Rio Grande Valley Irrigation District managers - frequent meetings and involvement in research process and manuscript review. Rio Grande Valley municipal potable water suppliers - frequent meetings and involvement in research process and manuscript review. U.S. and Texas agency managers and other leaders - frequent meetings and involvement in research process and manuscript review. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Particular results of interest achieved during the year include (a) irrigation district managers are more informed in adjusting their charges for the delivery of water to agriculture, municipal, and other customers; and (b) there are indications of enhanced information forthcoming with regards to impacts of growing biofuels feedstocks and regional water supplies. Irrigation managers', municipal managers', federal and state agencies', and agricultural producers' (and other stakeholders in the Rio Grande Valley) decision-making abilities are enhanced by the research associated with this project. The research results facilitated the comparison of alternative courses of action for conserving and augmenting Valley water supplies while also allowing recognition of multiple objectives and limited resources. Improved, documented information allows for superior choices among available alternatives, thus benefitting all stakeholders.

Publications

• M.E. Rister, A. W. Sturdivant, R.D. Lacewell, and A.M. Michelsen. 2011. Challenges and Opportunities for Water of the Rio Grande. Invited Paper, Southern Agricultural Economics Association annual meeting, and Journal of Agricultural and Applied Economics, Vol. 43, August 2011, Number 3, pp 367-78.
• A.J. Leidner, M.E. Rister, R.D. Lacewell, and A.W. Sturdivant. 2011. "The Water Market for the Middle and Lower Portions of the Texas Rio Grande Basin." Journal of the American Water Resources Association, 47: 597-610. doi: 10.1111/j.1752-1688.2011.00527.
• W.A. McLaughlin. 2011. The Economic and Financial Implications Of Supplying a Bioenergy Conversion Facility With Cellulosic Biomass Feedstocks. M.SC. Thesis. Department of Agricultural Economics, Texas A&M University, College Station, TX.

Progress 01/01/10 to 12/31/10

Outputs
OUTPUTS: In the Texas Rio Grande Valley, Texas Agricultural Experiment Station (TAES) and Texas Cooperative Extension (TCE) economists continue to collaborate with (a) irrigation managers and their consulting engineers and (b) municipal water suppliers, among others, to evaluate the economics of capital investments in water-delivery infrastructure, alternative water supplies, conservation via irrigation technology, and the financial implications of water-delivery rate changes. In 2010, research has continued in using (a) an economic model, VIDRA (Valley Irrigation District Rate Analyzer), to assist several irrigation districts in understanding the likely financial outcomes of changes in water-delivery rates to agricultural, municipal, and industrial users; and (b) in beginning to evaluate the impact on regional water resources of growing biofuels feedstocks. Additional efforts have commenced on varied aspects of the water market and resulting water quantity and quality. As in previous years, frequent meetings are held with collaborators and stakeholders to disseminate results. Technical reports are developed and posted on the web for access by these same audiences. Presentations are also made to professional audiences to obtain peer review and professional publications are in progress. PARTICIPANTS: Ed Rister, P.I.-Professor and Associate Head, College Station, TX.; Allen Sturdivant - Extension Associate, Weslaco, TX.; Andrew Leidner - Graduate Student, College Station, TX. TARGET AUDIENCES: Rio Grande Valley Irrigation District managers - frequent meetings and involvement in research process and manuscript review. Rio Grande Valley municipal potable water suppliers - frequent meetings and involvement in research process and manuscript review. U.S. and Texas agency managers and other leaders - frequent meetings and involvement in research process and manuscript review. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Particular results of interest achieved during the year include (a) irrigation district managers are more informed in adjusting their charges for the delivery of water to agriculture, municipal, and other customers; and (b) there are indications of enhanced information forthcoming with regards to impacts of growing biofuels feedstocks and regional water supplies.. Irrigation managers', municipal managers', federal and state agencies', and agricultural producers' (and other stakeholders in the Rio Grande Valley) decision-making abilities are enhanced by the research associated with this project. The research results facilitated the comparison of alternative courses of action for conserving and augmenting Valley water supplies while also allowing recognition of multiple objectives and limited resources. Improved, documented information allows for superior choices among available alternatives, thus benefitting all stakeholders.

Publications

• N.C. Adusumilli, R.D. Lacewell, C.R. Taylor, and M.E. Rister. 2010. Review of the Unintended Consequences of the National Bioenergy Policy. Journal of Global Intelligence & Policy - JGIP. 3(2).
• T. Lee, M.E. Rister, B. Narashimhan, R. Srinivasan, D. Andrews, and M.R. Ernst. 2010. Evaluation and Spatially Distributed Analyses of Proposed Cost-Effective BMPs for Reducing Phosphorous Level in Cedar Creek Reservoir, Texas. Transaction of ASABE, 53(5):1619-27.
• R.D. Lacewell, M. Dubois, A.M. Michelsen, M.E. Rister, and A.W. Sturdivant. 2010. Transboundary Water Crises: Learning from Our Neighbors in the Rio Grande (Bravo) and Jordan River Watersheds. Journal of Transboundary Water Resources. 01(2010):95-123.
• C.N. Boyer, M.E. Rister, C.S. Rogers, A.W. Sturdivant, R.D. Lacewell, C. Browning, and J.R. Elium III. 2010. Economies of Size in Municipal Water Treatment Technologies: A Texas Lower Rio Grande Valley Case Study. Texas Water Resources Institute. TR-367. College Station, TX. July.
• C.S. Rogers, A.W. Sturdivant, M.E. Rister, R.D. Lacewell, and J.G. Santiago. 2010. Economic and Financial Costs of Conventional Surface-Water Treatment: A Case Study of the McAllen Northwest Facility. Texas Water Resources Institute. TR-311. College Station, TX. February.

Progress 01/01/09 to 12/31/09

Outputs
OUTPUTS: In the Texas Rio Grande Valley, Texas Agricultural Experiment Station (TAES) and Texas Cooperative Extension (TCE) economists continue to collaborate with (a) irrigation managers and their consulting engineers and (b) municipal water suppliers, among others, to evaluate the economics of capital investments in water-delivery infrastructure, alternative water supplies, conservation via irrigation technology, and the financial implications of water-delivery rate changes. In 2009, research has continued in using (a) an economic model, VIDRA (Valley Irrigation District Rate Analyzer), to assist several irrigation districts in understanding the likely financial outcomes of changes in water-delivery rates to agricultural, municipal, and industrial users; and (b) in evaluating options for revising the economic model, DESAL ECONOMICS, to facilitate calculating the life-cycle costs to produce and deliver reverse-osmosis water, using seawater as the raw water source. An additional model, ARUNDO ECONOMICS, was developed and used to evaluate the economic impact of saving Rio Grande water via the biological agent control of Arundo donax (giant reed). As in previous years, frequent meetings are held with collaborators and stakeholders to disseminate results. Technical reports are developed and posted on the web for access by these same audiences. Presentations are also made to professional audiences to obtain peer review and professional publications are in progress. PARTICIPANTS: Ed Rister, P.I.-Professor and Associate Head, College Station, TX.; Allen Sturdivant - Extension Associate, Weslaco, TX.; Emily Seawright and Andrew Leidner - Graduate Students, College Station, TX. TARGET AUDIENCES: Rio Grande Valley Irrigation District managers - frequent meetings and involvement in research process and manuscript review. Rio Grande Valley municipal potable water suppliers - frequent meetings and involvement in research process and manuscript review. U.S. and Texas agency managers and other leaders - frequent meetings and involvement in research process and manuscript review. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Particular results of interest achieved during the year include (a) irrigation district managers are more informed in adjusting their charges for the delivery of water to agriculture, municipal, and other customers; and (b) there is evidence of substantial net positive economics associated with the biological agent mitigation of Arundo donax in the Rio Grande riparian area. Irrigation managers', municipal managers', federal and state agencies', and agricultural producers' (and other stakeholders in the Rio Grande Valley) decision-making abilities are enhanced by the research associated with this project. The research results facilitated the comparison of alternative courses of action for conserving and augmenting Valley water supplies while also allowing recognition of multiple objectives and limited resources. Improved, documented information allows for superior choices among available alternatives, thus benefitting all stakeholders.

Publications

• Seawright, E.K., M.E. Rister, R.D. Lacewell, D.A. McCorkle, A.W. Sturdivant, C. Yang, and J.A. Goolsby. 2009. Economic Implications for the Biological Control of Arundo donax: Rio Grande Basin. Southwestern Entomologist, Vol. 34, No. 4, pp. 377-94 (December, 2009).
• E.K. Seawright, M.E. Rister, R.D. Lacewell, D.A. McCorkle, A.W. Sturdivant, J.A. Goolsby, C. Yang, and B.L. Harris. 2009. Economic Implications of Biological Control of Arundo donax in the Texas Rio Grande Basin. Texas Water Resources Institute. TR-358. College Station, TX. November, 2009.
• A.W. Sturdivant, M.E. Rister, R.D. Lacewell, J.W. Norris, J. Leal, C.S. Rogers, J. Garza, J. Adams, and C.N. Boyer. 2009. Economic Costs of Desalination in South Texas -A Case Study of the Southmost Facility. Texas Water Resources Institute. TR-295. College Station, TX. September 2009.
• M.E. Rister, C.S. Rogers, R.D. Lacewell, J.R.C. Robinson, J.R. Ellis, and A.W. Sturdivant. 2009. Economic and Financial Methodology for South Texas Irrigation Projects - RGIDECON. Texas Water Resources Institute TR-203 (Revised). College Station, TX. August 2009.
• A.W. Sturdivant, M.E. Rister, and R.D. Lacewell. 2009. Rate Analyses for Irrigation Districts in South Texas. 2009. Proceedings of the 2009 Universities Council on Water Resources and The National Institutes for Water Resources Annual Meeting. Chicago, IL. July 7-9, 2009. (abstract only)
• A.W. Sturdivant, M.E. Rister, and R.D. Lacewell. 2009. Improving Financial Planning and Rate Analyses for South Texas Irrigation Districts. 2009. Annual Meeting of the Western Agricultural Economics Association. Kauai, HI. June 24-26, 2009.
• A.J. Leidner, C.N. Boyer, C.S. Rogers, A.W. Sturdivant, M.E. Rister, and R.D. Lacewell. 2009. Analysis of Economies of Size in Potable Water-Treatment Technologies in South Texas. Proceedings of the 2009 USDA-CSREES National Water Conference. St. Louis, MO. February 8-12, 2009. (abstract only)
• E.K. Seawright, M.E. Rister, R.D. Lacewell, A.W. Sturdivant, and J.A. Goolsby. 2009. Economic Implications of Biological Control of Giant Reed on the Rio Grande. 2009. Proceedings of the 2009 USDA-CSREES National Water Conference. St. Louis, MO. February 8-12, 2009. (abstract only)
• E.K. Seawright, M.E. Rister, R.D. Lacewell, A.W. Sturdivant, J.A. Goolsby, and D.A. McCorkle. 2009. Biological Control of Giant Reed (Arundo donax): Economic Aspects. Proceedings of the 2009 Southern Agricultural Economics Association Annual Meeting. Westin Peachtree Plaza. Atlanta, GA. January 31-February 3, 2009.

Progress 01/01/08 to 12/31/08

Outputs
OUTPUTS: In the Texas Rio Grande Valley, Texas Agricultural Experiment Station (TAES) and Texas Cooperative Extension (TCE) economists continue to collaborate with (a) irrigation managers and their consulting engineers and (b) municipal water suppliers, among others, to evaluate the economics of capital investments in water-delivery infrastructure, alternative water supplies, conservation via irrigation technology, and the financial implications of water-delivery rate changes. In 2008, research has continued in using (a) an economic model, VIDRA (Valley Irrigation District Rate Analyzer), to assist several irrigation districts in understanding the likely financial outcomes of changes in water-delivery rates to agricultural, municipal, and industrial users; (b) an economic model, DESAL ECONOMICS, to calculate the life-cycle costs to produce and deliver reverse-osmosis water; and (c) an additional model, CITY H2O Economics, to evaluate costs for conventional municipal surface-water treatment. As in previous years, frequent meetings are held with collaborators and stakeholders to disseminate results. Technical reports are developed and posted on the web for access by these same audiences. Presentations are also made to professional audiences to obtain peer review and professional publications are in progress. PARTICIPANTS: Ed Rister, P.I.-Professor and Associate Head, College Station, TX.; Allen Sturdivant - Extension Associate, Weslaco, TX.; Callie Rogers, Chris Boyer, Emily Seawright, and Andrew Leidner - Graduate Students, College Station, TX; Shauna Yow - Undergraduate research student, College Station, TX. TARGET AUDIENCES: Rio Grande Valley Irrigation District managers - frequent meetings and involvement in research process and manuscript review. Rio Grande Valley municipal potable water suppliers - frequent meetings and involvement in research process and manuscript review. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Particular results of interest achieved during the year include (a) irrigation district managers are more informed in adjusting their charges for the delivery of water to agriculture, municipal, and other customers; (b) brackish water desalination technology economics are competitive with the cost of producing potable water using conventional surface water treatment technology; and (c) there is evidence of economies of size with respect to conventional . Irrigation managers', municipal managers', and agricultural producers' (and other stakeholders in the Rio Grande Valley) decision-making abilities are enhanced by the research associated with this project. The research results facilitated the comparison of alternative courses of action for conserving and augmenting Valley water supplies while also allowing recognition of multiple objectives and limited resources. Improved, documented information allows for superior choices among available alternatives, thus benefitting all stakeholders.

Publications

• C.S. Rogers, A.W. Sturdivant, M.E. Rister, R.D. Lacewell, and J.G. Santiago. 2008. Economic Costs of Conventional Surface-Water Treatment: A Case Study of the McAllen Northwest Plant. Paper presented at Southern Agricultural Economics Association meeting, Dallas, TX, February 3-5, 2008. Abstract published in Journal of Agricultural and Applied Economics 40,2(2008):724.
• C.N. Boyer, C.S. Rogers, M.E. Rister, A.W. Sturdivant, R.D. Lacewell, and A.J. Leidner. 2008. Economics of Potable Water Alternatives Along an International Boundary. Proceedings of International Water Resources: Challenges for the 21st Century and Water Resources Education Universities Council on Water Resources Annual Meeting. Durham, NC. July 22-24, 2008. (abstract only)
• E.K. Seawright, M.E. Rister, R.D. Lacewell, J.A. Goolsby, and A.W. Sturdivant. 2008. Biological Control of Giant Reed Along the Rio Grande: An International Boundary. Proceedings of International Water Resources: Challenges for the 21st Century and Water Resources Education Universities Council on Water Resources Annual Meeting. Durham, NC. July 22-24, 2008. (abstract only)
• C.N. Boyer, M.E. Rister, A.W. Sturdivant, R.D. Lacewell, C.S. Rogers, and B.L. Harris. 2008. Identifying Economies of Size in Conventional Surface-Water Treatment and Brackish Groundwater Desalination: Case Study in the Rio Grande Valley of Texas. Paper presented at Southern Agricultural Economics Association meeting, Dallas, TX, February 3-5, 2008. Abstract published in Journal of Agricultural and Applied Economics 40,2(2008):725. .

Progress 01/01/07 to 12/31/07

Outputs
OUTPUTS: In the Texas Rio Grande Valley, Texas Agricultural Experiment Station (TAES) and Texas Cooperative Extension (TCE) economists continue to collaborate with (a) irrigation managers and their consulting engineers and (b) municipal water suppliers, among others, to evaluate the economics of capital investments in water-delivery infrastructure, alternative water supplies, conservation via irrigation technology, and the financial implications of water-delivery rate changes. In 2007, emphasis has been focused on using (a) An economic model, VIDRA (Valley Irrigation District Rate Analyzer), to assist several irrigation districts in understanding the likely financial outcomes of changes in water-delivery rates to agricultural, municipal, and industrial users; (b) An economic model, DESAL ECONOMICS, to calculate the life-cycle costs to produce and deliver reverse-osmosis water; and (c) An additional model, CITY H2O Economics, to evaluate costs for conventional municipal surface-water treatment. Frequent meetings are held with collaborators and stakeholders to disseminate results. Technical reports are developed and posted on the web for access by these same audiences. Presentations are also made to professional audiences to obtain peer review and professional publications are in progress. PARTICIPANTS: Ed Rister -- P.I. Allen Sturdivant -- Extension Associate Callie Rogers -- graduate student Chris Boyer -- graduate student Emily Seawright -- graduate student Andrew Leidner -- graduate student Shauna Yow -- undergraduate research student TARGET AUDIENCES: Rio Grande Valley Irrigation District managers -- frequent meetings and involvement in research process and manuscript review Rio Grande Valley municipal potable water suppliers -- frequent meetings and involvement in research process and manuscript review

Impacts
Particular results of interest achieved during the year include (a) irrigation district managers are more informed in adjusting their charges for the delivery of water to agriculture, municipal, and other customers; and (b) brackish water desalination technology economics are competitive with the cost of producing potable water using conventional surface water treatment technology. Irrigation managers', municipal managers', and agricultural producers' (and other stakeholders in the Rio Grande Valley) decision-making abilities are enhanced by the research associated with this project. The research results facilitated the comparison of alternative courses of action for conserving and augmenting Valley water supplies while also allowing recognition of multiple objectives and limited resources. Improved, documented information allows for superior choices among available alternatives, thus benefitting all stakeholders.

Publications

• Rogers, C.S., M.E. Rister, R.D. Lacewell, and A.W. Sturdivant. 2007. Identifying Most Economic Sources of Potable Water - Case Study in the Rio Grande Valley of Texas. Proceedings of Hazards in Water Resources Universities Council on Water Resources Annual Meeting. Boise, ID. July 24-26, 2007. (abstract only)
• Wolfe, C.D., M.J. Stubbs, M.E. Rister, A.W. Sturdivant, R.D. Lacewell, E.L. Pennington, and C.S. Rogers. 2007. An Overview of Operational Characteristics of Selected Irrigation Districts in the Texas Lower Rio Grande Valley: Harlingen Irrigation District Cameron County No. 1. Texas Water Resources Institute. TR-270. College Station, TX.
• Wolfe, C.D., M.J. Stubbs, E.L. Pennington, M.E. Rister, A.W. Sturdivant, R.D. Lacewell, and C.S. Rogers. 2007. An Overview of Operational Characteristics of Selected Irrigation Districts in the Texas Lower Rio Grande Valley: Delta Lake Irrigation District. Texas Water Resources Institute. TR-290. College Station, TX.
• Rister, M.E., R.D. Lacewell, and A.W. Sturdivant. 2007. Economic and Financial Costs of Saving Water and Energy: Preliminary Analysis for Hidalgo County Irrigation District No. 2 (San Juan) - Replacement of Pipeline Units I-7A, I-18, and I-22. Texas Water Resources Institute. TR-303. College Station, TX. June.

Progress 01/01/06 to 12/31/06

Outputs
In the Texas Rio Grande Valley, Texas Agricultural Experiment Station (TAES) and Texas Cooperative Extension (TCE) economists are collaborating with (a) irrigation managers and their consulting engineers, (b) agricultural producers, (c) municipal water suppliers, and (d) USDA Agricultural Research Services (ARS) scientists to evaluate the economics of capital investments in water-delivery infrastructure, alternative water supplies, conservation via irrigation technology, and the financial implications of water-delivery rate changes. In order to achieve the objectives outlined above, several tools have been utilized, including: (1) An economic and financial model RGIDECON (Rio Grande Irrigation District Economics) was developed and is being used to calculate the economic and financial costs of projected water and energy savings for several capital rehabilitation projects. (2) Another economic model, VIDRA (Valley Irrigation District Rate Analyzer), has been developed and is being used to assist several irrigation districts in understanding the likely financial outcomes of changes in water-delivery rates to agricultural, municipal, and industrial users. (3) Enterprise budgets for the many crops grown in the Valley are being updated. (4) An economic model, DESAL ECONOMICS, was developed to calculate the life-cycle costs to produce and deliver reverse-osmosis water. (5) An additional model, CITY H2O Economics, is being developed to evaluate costs for conventional municipal surface-water treatment. (6) An analysis of the expected benefits of the El Morillo Drain, a drain that diverts high-saline water from entering the Rio Grande, has been completed. (7) The Agricultural Economic Benefits model has been updated and used to estimate the benefits of flood control and major drainage infrastructures for the U.S. Corps of Engineers. (8) Collaboration has begun with the USDA-ARS to perform economic analyses associated with a potential management program for controlling Giant Reed (Arundo donax), an invasive weed that consumes excessive amounts of water.

Impacts
Irrigation managers', municpal managers', and agricultural producers' (and other stakeholders in the Rio Grande Valley) decision-making abilities are enhanced by the research associated with this project. The research results facilitate the comparison of alternative courses of action for conserving and augmenting Valley water supplies while also allowing recognition of multiple objectives and limited resources. Improved, documented information allows for superior choices among available alternatives, thus benefitting all stakeholders.

Publications

• Rister, M.E., R.D. Lacewell, A.W. Sturdivant. 2006. Economic and Conservation Evaluation of Capital Renovation Projects: United Irrigation District of Hidalgo County (United) - Rehabilitation of Main Canal, Laterals, and Diversion Pump Station - Final." Texas Water Resources Institute. TR-288. College Station, TX. March.
• Rogers, C.S., A.W. Sturdivant, M.E. Rister, R.D. Lacewell. 2006. Goal Seek Pamphlet for VIDRA using Microsoft Excel. Texas Water Resources Institute. SR 2006-02. August.
• Sturdivant, A.W., M.E. Rister, R.D. Lacewell, C.S. Rogers. 2006. Validating the Estimated Cost of Saving Water Through Infrastructure Rehabilitation in the Texas Lower Rio Grande Valley - A Case Study Using Actual Construction Costs for the Interconnect and Pumping Plant Project, Cameron County Irrigation District No. 2 (San Benito). Texas Water Resources Institute. SR 2006-04. College Station, TX. October.