Precedent Setting Proposal Puts Too Much Power In Hands of Water Permit Holder

We are encouraging Albertans to take action on this critically important issue. Read on, and see what actions you can take.

A proposal before Alberta Environment is prompting public debate over water allocation on the Bow River. The proposal, which seeks to amend the water "use" on a large water licence, could have implications for water use and allocation across the province. If approved, this amendment would create a loophole to the existing Water Act which provides a system of checks and balances for the reallocation of water from one use to another. Its approval could pave the way for thousands of water licensees across Alberta to follow suit delegating significant government responsibility for the allocation and use of water to private license holders.

What is the proposal?

The Eastern Irrigation District (EID) located in southern Alberta has asked Alberta Environment for substantial flexibility to its existing license issued in 1903 allowing them to allocate water for any purpose. The previous allocation was for irrigation and agriculture uses only. The EID application is for 762,000 acre feet (the equivalent to a third of the Bow River). Recently, the EID publicly indicated they would only allocate 20,000 acre feet to non-irrigation purposes (an amount that is roughly equivalent to servicing 65,000 households annually). The amendment proposal, however, stands at 762,000 acre feet.

The EID application does not provide any information as to who would benefit from this water. Furthermore, the application does not provide any information demonstrating the hydrological effects the amendment will have on the river and how it might affect other users. While the EID has stated there will be no impact on the river, they did not provide any supplemental information with their application to support this. Finally, there has not been any analysis on the cumulative impacts of multiple amendments beyond 20,000 acre feet (should this be the approved amount) over time.

Why should I be concerned?

Allowing water licensees to become water brokers is not in the best interest of Albertans. This amendment would allow the EID to reallocate a portion of its licence without any government oversight, public input, or consideration of environmental impacts. It also empowers the EID to decide who gets the water in a river system that is already over-allocated. Although the EID currently has the flexibility to reallocate some water to non-irrigation uses subject to various important checks and balances, the proposed amendment would delegate significant decision-making powers to private licensees.

A loophole in Alberta's Water Act

If approved, this amendment would effectively create a loophole to the existing Alberta Water Act. Specifically, granting the EID this amendment would allow them to bypass the "transfer system" which allows for public input, consideration of environmental impacts, and the opportunity to "clawback" some water for the public good. This happens at a time when water scarcity is looming and when government and public involvement in the allocation of water is needed more than ever.

The EID could share its water with other users by using the "transfer system". However, as an Irrigation District, the EID has additional flexibility to allocate water for non-irrigation purposes subject to approval by its membership and notice to the government.

But the EID has chosen not to utilize the government regulated ‘transfer system' in its effort to reallocate water to other uses. The "transfer system" requires a willing buyer and a willing seller of a water right. The government cannot force the EID to utilize the "transfer system". Rather, the EID proposes to share its water through an amendment which bypasses public oversight, consideration of environmental protections, the possibility of a license "claw back", and limits the ability of the government to manage water use. This was not the intent of the Water Act which includes a government regulated system for the transfer of water between parties.

The government should not approve an amendment simply because a licensee chooses not to engage in government regulated "transfer" system. If water needs to be reallocated from one use to another, the government must step in to determine what is in the best interest of Albertans. If the law needs to be updated, then a public discussion should commence. Granting this amendment weighs heavily in favour of the water licensee and is most certainly not in the public interest of Albertans.

Note: This article focuses on public policy arguments and does not discuss the legality of the amendment which is in question.

What is the solution?

The moratorium on new licenses in the Bow River (and Oldman River) basin was an excellent step toward acknowledging we have over-allocated our rivers. Now we must deal with the consequences of closing a river basin such as the pressing issue of how to allocate a limited quantity of water to a growing population and booming economy without compromising the overall health of the river which sustains our water supply in the first place. This is even more challenging in a basin where three quarters of the water has been legally allocated to one use — irrigation. While most of the water is considered ‘protected' under Alberta's Water Act, it is important to remember the Crown holds the water in trust for the public — not licensees.

There are a number of examples across the globe where competing interests over a limited amount of water found a way to share water in a sustainable manner. The complexity of this problem should not prevent us from seeking solutions that are in the best interest of all Albertans. There are innovative solutions that would allow for a discussion of a market-based system but also a focused discussion on setting basic protections for environmental and human needs.

Given the emerging water crisis, it is time to ask some fundamental questions. What is sustainable water use in southern Alberta? How do we assure that our basic human needs for a growing population are met? How do we support our economy without compromising the health of our environment? What can we do to conserve water? What is the role of a "water market"? What sort of government regulation is needed to ensure it does not compromise our values?

Right now, more than ever, the government needs to pay careful attention to the use of our limited water supplies. This amendment would take a step in the opposite direction. It is time the government stepped in to find a solution that meets everyone's needs — not just those of the water licensees.

What can you do?

1. Submit a formal 'Statement of Concern' to Alberta Environment if you are directly affected by the application. Please quote file number 631-A. Deadline for submissions is October 13, 2007. For more information view the public notice.

2. Voice your opinion by writing to Premier Ed Stelmach. We have created a sample letter to assist you in crafting your own letter.

3. Paper submissions are generally thought to be more impactful, but if you would prefer to submit your comments online, you can do so at the Premier's contact us form