Water Resources Professional Project Reports

Document Type

Report

Publication Date

Fall 2023

Abstract

In principle, Development Water Offset programs (offset programs) are designed to allow for urban growth without increasing water demand. Offset programs necessitate a reduction in existing water demand, typically achieved through plumbing retrofits, equal to the expected new demand, resulting in a net zero increase in water use. The City of Santa Fe (Santa Fe) has administered an offset program since 2002. The program banks water saved from its retrofit rebate programs. The banked water savings, known as Conservation Credits, can then be purchased by developers, and dedicated to new development projects. Under the water bank model, new demand has outpaced the creation of conservation credits almost every year, despite actual declines in water use. The objective of this research is to understand why so few Conservation Credits have been deposited into Santa Fe’s Water Bank and assess the program’s long-term viability. This paper explores demand hardening, water use accounting, and program design as three possible explanations. A review comparing Santa Fe’s offset program to those in Santa Monica, CA, Santa Rosa, CA, and Soquel Creek Water District (CA), is included and offers lessons learned from other programs, which may provide a new path forward for Santa Fe. It was found that rebate programs provide minimal water savings are not a cost-effective way to reduce existing water use and should not be the focus of water offsets. The water bank model misplaces conservation incentives on existing customers. It was found that Santa Fe has reached its lower limit for indoor water use and it is believed obtaining water neutrality may not be feasible due to prior successful conservation efforts.

Keywords

Development Water Offset programs, water demand, Santa Fe, water bank, Conservation Credits, offset program

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