Blue-Green Intersections: Impacts of Water Shortages on Western State Energy Policies

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Executive Summary

California and Arizona, two of the nation’s leaders in renewable energy growth, are also among the states most severely impacted by severe water shortages.  In California, where aggressive targets for energy generation from renewable sources characterize state energy plans, hydropower, a major source of green power, has declined by 60 percent of the past three years of drought conditions.

This report analyzes the interdependencies of energy and water policies in Western states confronted with drought conditions.  It considers the impact of these conditions on present renewable energy plans, including renewable energy portfolio requirements, in the context of important water and energy consumption trends, as well as other factors, including:

• Relative water consumption by energy producers, particularly electric power plants.
• Local initiatives to address energy generation and water consumption.
• Policy questions surrounding water supply measurements.

Details follow.