As part of its ongoing examination of Arizona groundwater policy, 91直播 is visiting with water experts and policy leaders about their views on groundwater and what they believe are the defining issues for one of the state鈥檚 most pressing challenges.

Today CBN visits with Todd Reeve, CEO of the Bonneville Environmental Foundation and co-director of Business for Water Stewardship.

This interview has been edited for clarity and length.

91直播: Tell us about the Bonneville Environmental Foundation and Business for Water Stewardship.

Todd Reeve: BEF, the Bonneville Environmental Foundation, is a nonprofit organization that’s a parent organization for several core pillars of work. Perhaps the largest pillar of work is Business for Water Stewardship. Business for Water Stewardship is BEF’s platform where we collaborate with the private sector, with businesses, large and small, to help advocate for and reinforce proactive and progressive water solutions. The goal for Business of Water Stewardship is to understand private sector and business needs and help build out policies, projects, platforms that can help stretch the benefit of every drop of water to support environment, community, and business needs. We’re very committed to our business partners, but we also see water security as having enough water to support business, community, and environment.

CBN: It鈥檚 central to the premise of Business for Water Stewardship that your organization believes that private employers can improve Arizona’s water standing?

Todd: Absolutely–in really, really big ways. Obviously, they all can do a great job of conserving water in their operations and facilitating reuse and water efficiency, which is fantastic and really important. But I think the real potential is when we think about how Arizona has evolved from a very rural kind of pioneering, ranching, farming, mining state to a place where Fortune 50 businesses are increasingly locating and growing. Businesses are critically important. They are massive employers in the state, they’re bringing investment. And so business influence has the potential to influence policymakers, community members, stakeholders. So, just seeing businesses step up, build awareness around these issues and come to the table has unbelievable influence. I sincerely believe that activating business influence is one of the biggest levers that we can push on to advance positive water policy and action needed to achieve long term water security for Arizona.

CBN: One of the things that we鈥檝e heard as part of these conversations with representatives from industry is the belief that development in and of itself doesn’t necessarily need to be a negative for Arizona’s water position. Would you agree with that position?

Todd: I do agree. And I think what we’re talking about is changing the narrative to say, if we do things right, we’ve got incredible promise and upside in the state of Arizona. This isn’t just a dire crisis and things are going to get worse from here. This is an opportunity to really shift the narrative and say, we’ve got the technology, we’ve got the capacity, we鈥檝e got the vision. We can create the policy and practice to really support and grow business investment and maintain adequate water for environment and for communities.

I would have to mention that it can also go the wrong way. Presumably any business use of water, any development, can certainly lead to negative consequences around water, but I think development and business engagement on this is about recasting the narrative and doing it in the right way. And there are examples from Las Vegas and Israel and other places where people continue to do more with less. I think that’s what the opportunity is here.

CBN: There seems to be an emerging opinion that there might be a technological solution here, that there are other arid regions in the world that are figuring out how to still sustain agriculture in arid regions. Is that your experience?

Todd: Absolutely. I think we’re really at the tip of the iceberg in terms of turning the corner on better, wiser water use. There’s no question that technology and agriculture can provide unbelievable gains, and we’re seeing articles every day and analysis showing that there’s new technology that allows agriculture to do more with less water. In some areas of the state agriculture is already very efficient, however, there are still large gains to be made in many regions. It’s interesting to reflect on this and think about our pioneering heritage. Most of our irrigation systems were hand-dug by pioneers a century ago, and because water flows downhill and because water rights exist–if you have access to it, water can be relatively cheap. We really haven’t upgraded some of these systems in significant ways. I think that’s one of the signals we’re seeing–it’s really time to make those investments. Leverage federal funding for infrastructure, leverage state, federal private programs that can put money into long-term irrigation, modernization, and really shore up the ag sector for long-term profitability and success. I think that’s at the top of the list: How do we invest in and deploy technology and infrastructure to sustain agriculture, to sustain ranching and use less water?

CBN: You’re also saying that about the agricultural sector as well. We don’t necessarily have to get rid of agricultural or ignore Arizona’s agricultural legacy. We can do it, but we might need to do it in a different way.

Todd: I think that’s right. Agriculture has evolved in many ways over the last century, and you look at some of these basins in the West and they’ve shifted what types of crops they plant, they’ve shifted how they use water over time. I think we’re at that stage where we’ve been using water in a certain way for a certain type of crop and we really don’t want to change. But I think opportunities are just around the corner and the demographic shift that exists in ranching and farming鈥攃ombined with the technology–I think we’re right on the cusp of making that shift. That’s where I think there’s incredible opportunity, and I’m optimistic both in the municipal, urban setting and in the ag setting that we will make that transition and will use water where it provides high value to rural communities and farming interests and be able to sustain our agricultural heritage.

CBN: Let’s say that you encounter a new legislator and they say, 鈥淭odd, I know I need to get smarter on this, but where do I start? What do I need to know? Or at least what sort of guidepost should I adhere to as I think about groundwater?鈥�

Todd: Given the conversation in Arizona today, I would say it鈥檚 really important to understand that Arizona was a pioneer in groundwater management 40 years ago in a small portion of the state. As a result, about 20% of the state has rigorous, active management of groundwater, primarily some of the urban areas, particularly Phoenix and Tucson. And I think the most important thing to know is that outside of those areas, in roughly the remaining 80% of the state, groundwater is open access, unmanaged. And what has shifted is the demands for that groundwater have changed dramatically because there’s open access, there’s risk of overexploitation, there’s risk of outside parties that are better capitalized, drilling deeper, pumping more, undermining existing farmers and ranchers or ones that even were there a hundred plus years ago. So, for me, that’s a central issue right now: 80% of Arizona’s groundwater, mostly in rural areas is unprotected, unmanaged, and the tools don’t exist to allow local communities to create their own pathway to understand, manage, protect, ensure groundwater supply, whether it’s for businesses, small farms, large farms, period.

Number two from my perspective is this matters! Whether you’re a big business or your district is in Phoenix or Tucson, the overall perception of water management and water security in Arizona matters to everyone. Even if you’re in Phoenix and you feel that water is relatively well managed in your region and you’re protected, I don’t think we can afford to have articles in the New York Times and other national outlets every week saying that Arizona’s running out of water, because I see our business partners scrutinizing water risk鈥攁nd public perception of risk IS water risk for businesses and companies. So, understanding that Arizona is comprised of an integrated water story is important, and it would be very advisable for us to be sure that we’re taking care of water in the rural areas in the same way that we’re taking care of water in the urban areas.

CBN:  Is Arizona groundwater policy still doing its job or do we need to reimagine a whole new regime of groundwater policy?

Todd: I don’t think we need to reimagine a whole new regime, but I do think we need to reflect on fundamental changes that have occurred over the last 40 years. We anticipated that the Colorado River would be a reliable input of renewable water supply to the state that, in concert with groundwater, could be managed to sustain long term water availability. We’re now seeing with 20 plus years of drought, with climate change and aridity, that renewable freshwater supply from the Colorado will not be able to provide what we thought it would. So, that puts additional pressure on groundwater, which increases the stakes. That has changed how we need to reflect on long-term water supply.

I think Arizona put a lot of quite amazing management pieces into the groundwater puzzle in 1980 and many — probably most — of those pieces are valuable and should remain. There certainly are questions about how the current Active Management Areas are functioning and whether there might be some tuneups that could enhance those region’s ability to sustain long-term water supply for business and communities. That’s important.

I think most important is not to throw those systems out. They’ve worked well, and we need to sustain them and maintain those systems so that they can continue to be refined and protect those water resources.

CBN: Will water supply necessarily always be depleting, or can we increase water supply?

Todd: The answer is yes, we can change the supply picture. Some of it is through management actions. If we think about aquifer storage projects, if we think about reuse projects, efficiency, that can be seen as increasing water supply. And sometimes we think about if there were federal or state incentives for more reuse and water recycling鈥攔ight out of the gate, we’d have potential for more water available for more uses. And certainly Arizona is exploring other pathways that could increase water availability in the state. And conversations about desalinization, about brackish water, there are pathways out there that have potential to deliver more water.

I think there’s a lot of room to do more with less, with a clearer pathway to water security and water benefits at less cost for the near term. And there are some very compelling pathways that potentially could free up additional water. These should be explored and evaluated, however, it鈥檚 important to note that some of these solutions could take many decades to implement. 

CBN: Got it. That’s all I’ve got for you. Is there something else I should have asked?Todd: I personally feel like we don’t want to put pressure on anyone to jump into some really complicated policy that no one understands. It’s about building awareness so that ultimately, we can make better decisions. There are near-term opportunities. There are longer-term opportunities. There’s growing the supply side. There is managing the demand side. And I just think changing the narrative, that’s where we want to be. Let’s turn the corner and get ahead of this. I think what’s inspiring to me.

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Arizona Senators Martha McSally and Kyrsten Sinema joined Representatives Tom O鈥橦alleran, Greg Stanton, Debbie Lesko, Andy Biggs, David Schweikert, Ruben Gallego, and Raul Grijalva in urging U.S. Trade Representative Robert Lighthizer to protect 鈥渇ree, fair, and reciprocal trade鈥� with Mexico.

The letter comes amid discussions among Trump Administration officials over whether to implement a new 鈥渟easonal trade remedy鈥� to protect growers in the Southeast U.S., which the delegation argues will hurt Arizona importers and shoppers. 

By  increasing barriers to the importation of Mexico fresh tomatoes in the form of tariffs or duties, the policy could potentially raise prices for domestic consumers.

Complicating matters is Florida and Georgia鈥檚 importance to the president鈥檚 reelection. 

Disputes linger despite USMCA implementation

Following the ratification of the U.S-Mexico-Canada Agreement (USMCA), a landmark trade agreement that replaced the North American Free Trade Agreement (NAFTA), the three North American powers are still debating the implementation of new rules.

Mexican firms, for instance, have been by American petroleum companies of participating in unfair trade practices that 鈥淸throw] up roadblocks to American companies seeking permits for new or rebranded gas stations, energy storage facilities, and liquefied natural gas terminals,鈥� said Gary Clyde Hufbauer, a nonresident fellow at the Peterson Institute for International Economics.

Hufbauer said that 鈥渇aithful implementation of the United States-Mexico-Canada Agreement is鈥� important鈥� for all member nations.

In the past weeks, President Trump was also accused of stymying the process of implementation when he a 10% increase in aluminum tariffs on Canada after they had been lifted more than a year earlier.

In response, Canada levied $2.7 billion in tariffs on American goods.

Despite the disputes, business leaders and economists remain optimistic that the USMCA will stimulate economic expansion.

Agriculture

The commercial relationship between Arizona and Mexico is significantly bolstered by the flow of imported Mexican produce to the state. 

Since the turn of the century, Arizona has seen an expanded agricultural importation relationship with Mexico, the University of Arizona鈥檚 Eller College of Management.

The dispute arising from the importation of Mexican agricultural products, specifically tomatoes and avocados, arose in 2019 when Trump Administration officials regarding 鈥渋ncreasing organized crime activity in Michoac谩n — the main avocado producing state in Mexico.鈥� 

They also had separate worries surrounding competition between the U.S. agricultural sector and the Mexican agricultural sector.

30% of all Mexico-grown tomato imports, the Nogales, Ariz. commercial port of entry is key to the Southwestern economy and Arizona commerce. This places Arizona at the center of the current conflict.

A 2018 by UArizona found that U.S. and Canadian importation of fresh tomatoes from Mexico is responsible for more than 30,000 U.S. jobs. 

Economic impacts

In 2019, when the U.S. considered levying a 17.5% tariff on Mexican tomatoes, economists from Arizona State University that 鈥渃onsumers could pay 40% to 85% more for vine-ripe and other fresh tomatoes.鈥�

If the U.S. administration establishes protectionist trade remedies, trade advocates  worry that Mexico will retaliate in kind againstAmerican imports. 

In January, Mexican Deputy Trade Minister Luz Maria de la Mora , 鈥淚f the U.S. government seeks any action of this kind against Mexican agricultural exports, the government of Mexico will apply similar measures to U.S. products.鈥�

As occurred last week between the U.S. and Canada, there is a possibility of a new trade dispute erupting — this time along the Southern border.

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Throughout the country, U.S. agricultural exporters, including soybean and pork producers, have taken major hits in their economic numbers as a result of the tariff war with China.

Now, The Trump Administration will spend $16 billion to help farmers hurt by the US-China trade war, Agriculture Secretary Sonny Perdue announced yesterday.

The fear among farmers, importers and consumers in Arizona is that Chinese tariffs placed on their goods will keep them out of the Chinese market for a long time.

鈥淲hat’s going to end up happening is you end up having an impact on those businesses that import,鈥� said economist Jim Rounds. 鈥淭he tariffs will end up passing more costs to consumers, so you and I will be paying for those tariffs. In the meantime, people will adjust and businesses will adjust their supplier network from other countries. But this will create a disadvantage with China.鈥�

China struck back at the U.S.鈥檚 tariff hike on $200 billion of imported Chinese goods with tariffs on about 5,000 types of American products reaching about $60 billion. Some of the major components of those tariffs are agricultural products including beef, soybeans, and vegetables.

China is Arizona鈥檚 third-largest exporter, shipping out goods such as meat products and cotton. According to the Arizona Beef Council, Arizona鈥檚 cattle community contributes about $435 million a year to the state鈥檚 GDP, and exports about $525 million of its total beef output to places such as China.

鈥淚 think it鈥檚 all very delicate,鈥� Rounds said. 鈥淭rade agreements for us on the border typically mean issues with Mexico. When it comes to China, however, I think most Americans in general, especially in Arizona, feel that China really hasn’t played by the rules when it comes to trade. I think it鈥檚 been very difficult for us to swallow the way China has gone about this.鈥�

Pig farmers in the country have faced two separate rounds of 25 percent punitive tariffs from China on their exports last year. The value of pork from the United States has dipped 14 percent so far this year and producers of the commodity are losing about $8 per pig because of the trade dispute.

鈥淚 think what you do have is a lot of conversation toward trade, which is very good,鈥� Jaime Chamberlain of J.C. Distributing in Nogales said. 鈥淚t鈥檚 always very good to have these discussions and issues. This will help more people realize where their products come from and how they get their goods and the costs of those goods. I think the American public needs to educate themselves a lot more.鈥�

The scuttlebutt around the farming and import community in Arizona is that hopes are now being turned toward finalizing the United States-Mexico-Canada Agreement (USMCA), or even expanding business with the European Union, which has called for more soybean imports.

鈥淥ur efforts should never turn away from Mexico. I think it鈥檚 something we need to continue to foster. It behooves us to have a very good relationship with our southern and northern partners,鈥� said Chamberlain. 鈥淲e should never take our eye off the ball with that. I do believe that the ratification of the USMCA is extremely important for our trade future. That should be the number one thing we should focus on. But with China, the tariffs most certainly need to be addressed.鈥�

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Leafy greens love Yuma winters. Three and four generations back, farmers took note of that fact, and today the region is a top producer of America鈥檚 five servings a day.

Many of the original Yuma Valley farm families are still here. Successful multi-generation operations like Dinsmore Farms, Sharp Farms and Desert Premium Farms are helping fuel Arizona鈥檚 agricultural industry that generates $23 billion annually.

鈥淵ear in and year out, Yuma County is one of the most profitable counties to operate a farm in because we can grow crops year round,鈥� said John Boelts, a fifth generation聽 farmer and a co-owner of the successful Desert Premium Farms, Inc., in Yuma that grows lettuce, vegetables, melons and hay. 鈥淥ur county almost always is in the top ten in the nation for return on investment for farms.鈥�

Boelts, an advocate for agriculture, is united in working with others to protect the industry in Arizona, the second highest supplier of fresh vegetables in the nation behind California. Right now, he and others who export produce to the Pacific Rim, Canada and elsewhere are watching closely as President Donald Trump weighs rejoining the multi-country trade agreement, the Trans-Pacific Partnership. To protect farmers from trade wars, the Trump administration just announced plans to extend billions of dollars in aid to farmers negatively affected by tariffs.

In turn, state, local, federal and Mexican officials are moving to resolve issues vital to the industry.

Gov. Doug Ducey and Sonoran Gov. Claudia Pavlovich met recently to cement increased cross-border cooperation through the Arizona-Mexico Commission.

The Arizona Department of Agriculture has taken measures to streamline redundant and outdated practices. It has reduced livestock branding application times to 51 days from nine months and has improved and eliminated 121 regulations. The Department has also reduced wait times for fuel dispenser calibration checks freeing up time to double inspections of underserved fuel categories such as high flow diesel.

Efforts also are restarting on a multi-state drought plan for preventing water shortages from the lower basin of the Colorado River to Arizona, California and Nevada. The Arizona Department of Water Resources and the Central Arizona Project recently formed a committee of approximately 40 water experts and elected officials from across the state that will develop a plan acceptable to Arizona鈥檚 water users.

The U.S. Bureau of Reclamation, which is prompting completion of the drought plan, announced that poor runoff projections indicate shortages as high as 50 percent in 2020, and more shortages through 2023. So far, the three states have avoided shortages through conservation tools and technology.

As Americans keep reaching for their salads, Yuma farmers will continue working to keep them fed and use technology and techniques to protect food from contamination and conserve water and energy, said John Courtis, CEO of the Yuma County Chamber of Commerce.

鈥淎griculture to Yuma, is twice what wine to the Napa Valley is,鈥� Courtis said. 鈥淭hrough conservation and technology, we conserve and treasure our water resource and don鈥檛 waste a drop of it. In fact, the Yuma area has used 20 percent less water to produce 20 percent more product in the last 35 years.鈥�

Take a peek at a day in the life of one of Arizona鈥檚 successful farming operations, Desert Premium Farms, in Yuma County:

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