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Interstate Water Disputes: A Road Map for States 1 Josh Clemons I. Introduction Disputes between
states over their shared waters have long been common in the arid West.
The Colorado River was first divvied up in 1922, after years of interstate
wrangling. In recent decades, as populations have risen, similar conflicts
have developed in the East. Maryland and Virginia fight over the Potomac;
South Carolina squares off against North Carolina over the Pee Dee River,
and against Georgia over the Savannah River; and in what is perhaps
the most contentious of these battles, Alabama, Florida, and Georgia
clash over the waters of the Apalachicola-Chattahoochee-Flint river
basin. Competing demands include booming cities, agriculture, industry,
environmental protection, fisheries, power generation, navigation, and
a host of other human and non-human uses. These conflicts
will grow in number, because the demands that spawn them will continue
to increase with the swelling population. State governments will find
themselves faced with situations in which their water needs and those
of their sister states exceed what their shared waterways can supply.
A state water manager facing such a situation would probably like the
answers to two questions: what power does my state have over this resource,
vis-à-vis the states with which it is shared; and how can the
problem be resolved? The answers to those questions will vary by state and circumstances. However, this paper provides guidance towards answering those questions by describing the development of the common law of interstate water use, and the methods by which interstate waters may be apportioned among states. The first section describes the authority states have over intrastate water and includes a brief description of the riparian and prior appropriation doctrines, which states have sometimes argued should apply among states as well as among private individuals. The next section discusses the Supreme Courts development of the federal common law of equitable apportionment and its principles, which illustrate the dynamics of state powers over interstate waters. Congressional apportionment and interstate compacts, the other two ways of resolving interstate water issues, are then described. Case histories of compacts, with special emphasis on the recent Apalachicola-Chattahoochee-Flint River Basin Compact, highlight the strengths and weaknesses of the compact mechanism. II. Allocation of intrastate waters The authority of states over the waters within their borders dates to the birth of the nation. When the original colonies separated from England after the Revolutionary War, they succeeded to the sovereignty over navigable waters and submerged lands that had previously been enjoyed by the Crown.2 Subsequent states, entering the Union under the equal footing doctrine, have the same authority.3 The states as sovereigns have near-absolute authority over navigable waters within their boundaries, limited by the federal navigation servitude and Congress power under the Commerce Clause to control navigation.4 These waters, and the lands underneath them, are held in trust by states for the benefit of their citizens.5 The Riparian
and Prior Appropriation Doctrines Prior appropriation
rights, in contrast, do not depend upon land ownership. An appropriative
right is established by diverting water from the stream and applying
it to beneficial use. Unlike riparian rights, which are correlative
and time-independent, appropriative rights are strictly hierarchical
based on the dates the rights were established. A right with an earlier
priority date is entitled to full satisfaction before a right with a
later priority date is entitled to a drop. The riparian doctrine or prior appropriation doctrine may determine the relative rights of private parties to water within a state, but the doctrines are of limited importance in disputes between sovereign states themselves. The different water rights doctrines of disputant states may be a factor for consideration if the dispute comes before the Supreme Court, but they are not themselves determinative.6 Nonetheless, the doctrines frequently have been asserted in disputes between states, as will be described below. III. Allocation of interstate waters Although a state
generally has broad authority over waters within its borders, and little
or no direct authority over waters in neighboring states, exercise of
its intrastate authority over an interstate stream cannot be entirely
dismissive of the interests of downstream states. It stands to reason
that an upstream state cannot entirely deprive a downstream state of
the benefits of a shared river, but how much water can the upstream
state use before it crosses the line? Who decides, and how? States involved
in an interstate water dispute, whether they are negotiating a compact
or poised to litigate, must understand the legal dynamics affecting
the answers to those questions. As discussed further below, there are three ways conflicts between states over interstate water quantity may be resolved: by Congressional action, by interstate compact, or by the U.S. Supreme Court. Congressional allocations and interstate compacts are, by their nature, ad hoc solutions that do not necessarily have precedential value in subsequent disputes. In the absence of federal statute or interstate compact, the authority a state has, relative to another state, over the waters of an interstate stream is not clearly defined. The Supreme Court has attempted to fill this void in a series of decisions establishing a federal common law of interstate water allocation. Equitable Apportionment by the U.S. Supreme Court In the absence of
Congressional apportionment, the Supreme Court may apportion interstate
waters pursuant to the Constitutions grant of original jurisdiction
over conflicts between states.7 The Courts original jurisdiction
cases are essentially equitable in nature.8 An equitable apportionment
case typically arises when a downstream state seeks to enjoin a diversion
by an upstream state. The downstream state must show that the diversion
will cause real or substantial injury or damage; the burden then shifts
to the upstream state to show that a diversion should still be permitted,
based on the equities involved. The Court may examine a variety of geographical,
hydrological, economic, and social factors in its deliberations. When New Jersey in the early 20th century sought to enjoin New York from diverting water from the Delaware River and its tributaries, within the state of New York, Justice Holmes characterized the situation this way:
An early example
of such a dispute over interstate water, between states as states, is
Kansas v. Colorado.10 Kansas alleged that the State of
Colorado and its licensees were diverting the Arkansas River upstream
of Kansas so as to diminish the rivers flow, to the detriment
of the State of Kansas and its citizens.11 The law governing
interstate water disputes was yet undeveloped; in its absence, it is
not surprising that the parties framed the issue using the water rights
doctrines with which they were familiar. Kansas argued that, by the
riparian doctrine, the state and its citizens were entitled to the undiminished
flow of the Arkansas River.12 Colorado argued that, by its constitution,
which recognized the appropriation doctrine, it owned all of the waters
within the state.13 In a seminal decision
the Court reaffirmed that states may determine how water is allocated
within their own borders, but may not impose their methods upon other
states.14 As Congress had not spoken on the subject, the Court
turned to federal common law including Federal law, state
law, and international law, as the exigencies of the particular case
may demand - as the appropriate law to apply.15 The guiding
principle was equality of right between the states, and
the goal was to adjust the situation such that both states would share
the rivers benefits approximately equally.16 The Court
found that in sum Kansas had suffered little from Colorados withdrawals
(primarily for irrigation), and Colorado had benefited greatly from
them; thus, the principle of equality of right precluded it from enjoining
Colorados withdrawals.17 Kansas could, however, bring the
case again if Colorados diversions increased to the point that
the division was no longer equitable.18 Colorado was brought
before the Supreme Court over interstate water again in 1922, but this
time by another prior appropriation state, Wyoming.19 Irrigators
in Colorado were proposing to divert substantial amounts of the Laramie
River into a purely intrastate watershed from whence none of the water
would flow to downstream users in Wyoming.20 Many of the Wyoming
appropriation rights were prior in time to the Colorado rights, and
one of Wyomings arguments was that the Court should enforce the
rule of prior appropriation paralleling Kansas assertion
in Kansas v. Colorado that the riparian doctrine should apply.21
Colorado argued three distinct theories: first, that it had absolute
control over the water within its borders; second, that it was entitled
to an equitable division of the water, and that the proposed diversions
did not exceed such a division; and third, that the proposed diversions
still left enough water in the river to satisfy Wyoming rights that
had priority.22 The Court cited
Kansas v. Colorado for the proposition that conflicts between
states over interstate water were to be decided by the principle of
equality of right, but distinguished that case as involving states that
adhered to different water rights doctrines.23 Between Wyoming
and Colorado the Court found it eminently just and equitable
to apply the prior appropriation doctrine that both states had consistently
followed since their territorial days.24 The Court determined
the relative priorities of the Colorado and Wyoming appropriators and
allocated the available water accordingly.25 In 1931 the Court
faced a similar controversy between two riparian states in Connecticut
v. Massachusetts.26 In that case, Massachusetts proposed
diverting water from the Ware and Swift rivers to provide water for
Boston and its surrounding towns.27 The Ware and Swift, non-navigable
rivers located entirely within Massachusetts, are tributary to the Connecticut
River, which is shared among New Hampshire, Vermont, Massachusetts,
and Connecticut.28 Connecticut sought to enjoin the diversion
on the grounds that, among other things, it would take water out of
the Connecticuts watershed, hamper navigation, reduce hydropower
potential, and harm agricultural lands that depended on yearly floodwaters.29
Connecticut, like Kansas before it, sought to have the Court follow
the riparian doctrine because unlike in the Kansas-Colorado dispute
both party states adhered to that doctrine.30 Connecticut,
perhaps unwisely in light of Kansas v. Colorado, asserted a right
to receive the waters of the Connecticut River unimpaired as to
quantity and uncontaminated as to quality.31 The Court
again refused to apply this harsh doctrine, reaffirming that [t]he
determination of the relative rights of contending States in respect
of the use of streams flowing through them
is not governed by the
same rules of law that are applied in such States for the solution of
similar questions of private right.32 After rejecting Connecticuts
bold request for undiminished flow, the Court found that the states
injury was too speculative to support an injunction.33 Later that year
the Court decided New Jersey v. New York, another dispute between
eastern riparian doctrine states.34 New York proposed to divert
substantial amounts of water from the Delaware River watershed to the
Hudson River to fulfill New York Citys water needs.35 New
Jersey, downstream on the Delaware, protested that New Yorks diversion
would injure it by, among other things: depriving New Jersey riparians
of the flow of the stream; diminishing hydropower potential; lowering
water quality, to the detriment of New Jersey municipalities and fisheries;
making cultivation of farmlands more difficult; and impairing recreation.36
New Jersey, arguing for strict application of riparian doctrine, insisted
upon the undiminished flow of the river.37 Justice Holmes,
citing Kansas v. Colorado, Wyoming v. Colorado, and Connecticut
v. Massachusetts, declared that the riparian and prior appropriation
doctrines are not controlling in interstate water disputes; rather,
the effort always is to secure an equitable apportionment without
quibbling over formulas.38 The Court rejected New Jerseys
argument for the strict riparian rule, and equitably allocated the Delaware
River in accordance with the Special Masters report.39 The Court followed
this principle in a subsequent dispute among prior appropriation states.
In Nebraska v. Wyoming,40 Nebraska, Wyoming, and Colorado
were at odds over the North Platte River. Nebraska asserted that irrigation
diversions by upstream states Wyoming and Colorado both violated the
rule of prior appropriation, which was in force in all three states,
and deprived it of water to which it was equitably entitled.41
Each state denied causing injury to the others and asked the Court to
equitably apportion the waters of the North Platte.42
This conclusion
was supported by reference to the flexible approach announced in Kansas
v. Colorado.45 The bulk of the seventy-five page case describes
an equitable apportionment of the North Platte based on factors like
those listed above. Nebraska v. Wyoming resolved any doubt that
the federal common law approach of Kansas v. Colorado would apply
even in disputes among prior appropriation states. More recently, the
common law approach was reaffirmed in Colorado v. New Mexico.46
In another conflict between prior appropriation states, Colorado sought
equitable apportionment of the Vermejo River, a small, non-navigable,
interstate stream that originates in Colorado but the major portion
of which flows through New Mexico.47 The Vermejo had not previously
been diverted in Colorado, but had been relied upon for years by agriculture
and industry in New Mexico.48 The New Mexico users consumed virtually
the entire flow of the river, and their rights had been adjudicated
in state court.49 Colorado had granted to a corporation a conditional
right to divert 4,000 acre-feet per year of the Vermejo and transport
it to another basin for future industrial development.50 New
Mexico argued that the rule of priority should be strictly applied to
prevent Colorado from diverting any of the Vermejo River.51 The Court noted
that [t]he laws of contending states concerning intrastate water
disputes are an important consideration governing equitable apportionment
and that, among prior appropriation states, priority becomes the
guiding principle in an allocation between those states.52
The Court reiterated that the multi-factor approach developed in the
Kansas v. Colorado line of cases would apply here.53 The
case was remanded for further findings of fact54 and ultimately
dismissed because Colorado failed to carry its burden of proof.55
The Court also clarified
the burdens of proof that states bear in interstate water disputes.
Whether plaintiff or defendant, a state that seeks to prevent or enjoin
a diversion by another state must prove that the diversion will cause
it real or substantial injury or damage.58 The opposing
state must then prove by clear and convincing evidence that the equities
nonetheless weigh in favor of its proposed diversion; that is, that
without the diversion the other state would be enjoying more than its
equitable share of the benefits of the stream.59 The Court also declared
that the equities may favor a diversion for future use in one state
at the expense of existing users in another, but that the equities
supporting the protection of existing economies will usually be compelling
because harm to them is usually immediate while benefit from proposed
uses is at least somewhat speculative.60 Finally, in its 1984
Colorado v. New Mexico decision, the Court made clear that the
fact that the headwaters of a stream are located in one state is essentially
irrelevant to a balancing of the equities, at least among appropriation
states.61 These cases clearly
establish that, when called upon to allocate interstate water, the Court
will seek to optimize the balance of benefits to and burdens upon the
contesting states, which stand on equal footing. That is the cardinal
rule. Subordinate principles include: (1) the internal water rights
doctrines of the competing states are relevant to but generally not
determinative of rights between the states (and arguing for strict application
of a doctrine such that your state gets all the water is futile); (2)
existing economic uses are to be protected, if possible, but may be
subordinated to diversions for future uses; (3) states may be obligated
to use water efficiently to protect the interests of other states; (4)
the location of a rivers headwaters is irrelevant, at least in
a dispute among appropriation states; and (5) the Court may consider
physical, climatic, and hydrologic conditions, and all other relevant
facts.62 These are the dynamics that will come into play
if states resort to litigation to settle fights over interstate water,
and as such they may be useful tools for negotiation.63 The specter of litigation always hovers above interstate water disputes. However, as will be discussed below, the Supreme Court disfavors judicial apportionment of interstate water resources. Judicial apportionment has also been assailed as a poor method of settling these conflicts for other reasons. Primary among them is that the Court has insufficient expertise to decide such highly technical matters, and providing the justices with enough information to make an informed decision is voraciously consumptive of both time and money.64 Secondly, judicial apportionments may be re-litigated whenever one state believes the allocation is no longer equitable under the circumstances.65 Although this feature does provide some flexibility for changing situations, it also has two possible drawbacks: the party states have limited security vis-à-vis other states; and upstream states may be encouraged to incrementally increase withdrawals over their proper allocations, because downstream states only remedy is burdensome litigation.66 The open-ended, and therefore unpredictable, legal standard by which the Court makes allocation decisions could be added as a third discouragement to judicial apportionment. Finally, judicial apportionment is likely to favor existing and imminent uses over more uncertain and remote future uses.67 This tendency may be especially troublesome for conservation-oriented or slow-developing states, which could be forced to watch the bulk of the shared resource allocated to their more assiduously consumptive neighbors.68 Apportionment by Congress Congress
power to apportion the water of interstate streams among states is grounded
in the power to regulate interstate commerce under Article I, §
8 of the U.S. Constitution.69 Congressional apportionment supersedes
any contrary arrangement by the states by action of the supremacy clause.70
Similarly, provided it is constitutional, Congressional apportionment
will not be disturbed by the Supreme Court.71 Congress has apportioned
interstate waters only twice. In the Boulder Canyon Project Act of 1928
Congress divided half of the flow of the Colorado River among Arizona
(2.8 million acre-feet/year), California (4.4 million acre-feet/year),
and Nevada (300,000 acre-feet/year).72 Intent to apportion the river
is not explicit in the Act; however, the Supreme Court in Arizona
v. California held that apportionment was, in fact, Congress
intent.73 In 1990 Congress apportioned the waters of the Truckee and Carson rivers and Lake Tahoe between California and Nevada.74 Though this was technically a Congressional apportionment, California and Nevada had negotiated the terms between 1955 and 1968 as a compact.75 Congress would not ratify the compact out of concern over effects on the Pyramid Lake Paiute Tribe, but ultimately apportioned the waters by statute as part of a settlement involving the tribe and other parties.76 Apportionment by Interstate Compact Congress almost
never apportions water among states, which is understandable given the
intensely local or regional nature of interstate water disputes. The
Supreme Court will apportion water under its original jurisdiction over
controversies between states, but has expressed its opinion that litigation
of such disputes is
a poor alternative to negotiation between the
interested States.77 The Court observed in 1938 that, even
at that relatively early date, the difficulties inherent in litigating
interstate water disputes were prompting states with increasing frequency
to settle their conflicts by interstate compact.78 Common sense
suggests that the compact mechanism guarantees that a state will get
at least some of what it wants, whereas with litigation it could get
all or it could get nothing. The first major interstate water compact
was the 1922 Colorado River Compact,79 in which the river basin
was divided into the Upper Division (Colorado, Utah, Wyoming, and New
Mexico) and the Lower Division (California, Arizona, and Nevada), with
each division receiving 7.5 million acre-feet of the rivers expected
annual flow of fifteen million acre-feet.80 There are now approximately
twenty-five compacts apportioning interstate water among states.81 The authority of
States to compact with one another comes from the Compact Clause of
the Constitution.82 The Compact Clause does not encompass every agreement
among states, but only those that may increase the compacting states
political power at the expense of the national government.83
Thus, when an interstate agreement sufficiently implicates federal interests,
the Compact Clause requires Congressional approval. Interstate water
disputes potentially implicate two federal interests: on navigable waterways,
the federal power to regulate navigation is affected; on non-navigable
waters, the exclusive power of the federal government to regulate interstate
commerce comes into play. Because interstate water conflicts will invariably
affect one or both of these federal interests, Congressional approval
is required. The compact process
typically begins with Congressional approval of the states wish
to negotiate.84 After negotiating, the participating states pass
identical legislation signifying their agreement on the compacts
terms, purposes, and policies.85 The compact takes effect and
becomes federal law when Congress ratifies it by statute.86 As
such, it takes precedence over contrary federal common law or state
law. A compact is, in addition to being federal statutory law, essentially
a contract (albeit one that requires federal approval), and is construed
and interpreted as such by courts that are called upon to remedy a dispute
between compacting states.87 The flexibility of the interstate
compact mechanism has allowed it to be adapted to such diverse subjects
as regulation of interstate electricity, flood control, tobacco production,
parks and parkways, crime prevention, forest fires, fisheries, and radioactive
waste management, in addition to water apportionment.88 Older compacts, like the Colorado River Compact, usually did little more than apportion water among the party states. As the mechanism has evolved compacts have been used to establish regional administrative bodies, usually called commissions, with authority to manage the shared resource in accordance with the terms of the compact.89 A typical commission includes equal numbers of representatives from each state and one from the United States.90 Often the federal commissioner has no vote, as in the various Texas water compacts.91 This structure is bound to cause difficulties in compacts in which decision-making requires unanimous consent among commissioners. The Pecos River Compact between Texas and New Mexico92 is the prime example of the pitfalls of this structure. The Pecos River Compact The Pecos River
Commission created by the Pecos River Compact consists of one voting
member from each state and one non-voting federal member.93 A
dispute arose when the standard by which allocations would be determined
was found to be based on faulty data.94 The original standard
favored Texas; a revised standard was more to New Mexicos liking.95
The Pecos River Commission could not agree on which standard to use.96
Because the compact did not specify how to break ties, Texas sued in
the Supreme Court to enforce the compact as written. The Court-appointed
Special Master recommended, among other things, that the Court designate
either the federal commissioner or a third party as a tie-breaker in
commission votes.97 Because the compact was constitutionally
enacted federal law, the Court held that it was without authority to
rewrite its express terms.98 Fixing the structural defect in
the compact would require negotiation between the states.99 As of 2003,
the compact has not been amended to fix this defect.100 While the Pecos River Compact provides a useful model of how not to structure a compact commission, the Delaware River Basin Compact101 is often cited as a more positive example.102 The Delaware River Basin Compact The 13,500 square
mile Delaware River basin includes portions of Delaware, New Jersey,
New York, and Pennsylvania.103 In 1961 this relatively small
watershed already served over 20 million people, including the populations
of Philadelphia and New York City.104 Wrangling over the basin
began in the early 20th century, and eventually brought the states to
the Supreme Court. The Court apportioned the river in 1931, and modified
the apportionment in 1954.105 The states had secured Court-blessed
rights, but with respect to the river they still operated as separate
entities with competing interests. The states, recognizing that this
regime was inadequate to manage water that would have to serve an estimated
40 million people by 2010, sought to negotiate a compact that would
allow for regional planning and management of the resource.106
The result was the Delaware River Basin Compact, and the Delaware River
Basin Commission (DRBC) it created. Where governance of the basin had
previously been unevenly divided among forty-three state agencies, fourteen
interstate agencies, and nineteen federal agencies,107 it was
now unified in one body whose purpose and policy are to develop
and effectuate plans, policies and projects relating to the water resources
of the basin
[to] adopt and promote uniform and coordinated policies
for water conservation, control, use and management in the basin
[and
to] encourage the planning, development and financing of water resources
projects according to such plans and policies.108 The DRBC is comprised
of the governor of each compacting state and one federal commissioner
appointed by the president.109 All commissioners, including the
federal commissioner, have a vote, which prevents impasses like those
faced by the Pecos River Commission.110 Active federal participation
helps ensure coordination between state and federal interests, which
serves to protect both the states and the federal government.111
Most decisions require only a majority vote,112 although changes
in water allocations require unanimity.113 The DRBC manages water
supply throughout the basin for virtually all uses, including domestic,
municipal, industrial, and agricultural.114 The central feature
of the compact is its requirement of a comprehensive plan, developed
by the DRBC, for the present and future use of the resource.115
The plan includes all public and private projects and facilities
which are required, in the judgment of the commission, for the optimum
planning, development, conservation, utilization, management and control
of the water resources of the basin to meet present and future needs.116
The plan serves as the basis for the annual water resource program,
which lays out the projects and facilities that will be developed over
the following six years.117 The program includes a description
of the quantity and quality of water resource needs over that period,
and the existing or future projects and facilities that will be required
to meet those needs.118 Any project that will have substantial
effect on the basins water resources must be approved by the DRBC
based on conformity with the comprehensive plan.119 The Delaware River
Basin Compacts comprehensive planning and regional management
scheme has no equivalent in compacts (like the Pecos River Compact)
that are primarily written to ratify apportionments and provide methods
for each state to protect its share.120 The Delaware River Basin
Compacts flexible, cooperative, planning-oriented structure has
enabled the DRBC to meet challenges including droughts, water supply
development, and pollution control.121 The next section will discuss the Apalachicola-Chattahoochee-Flint River Basin Compact in light of the preceding principles and case histories. IV. The Apalachicola-Chattahoochee-Flint River Basin Compact A major interstate water conflict is ongoing among Alabama, Florida, and Georgia over the waters of the Apalachicola-Chattahoochee-Flint river basin. The water at stake is vital for municipalities, including Atlanta; navigational interests; farmers; the environmental health of the watershed; and the Apalachicola Bay oyster industry. The states unsuccessfully attempted to use the compact mechanism to resolve this conflict. Background The Chattahoochee River rises in the mountains of northeast Georgia, flows past the metropolises of Atlanta and Columbus, and forms the nonlinear segment of the Alabama-Georgia border that runs from just above Columbus to Lake Seminole at the Florida line. There it meets the Flint River, which meanders through west Georgia from just below Atlanta and provides vital irrigation water to farmers in the southwest part of the state. From this confluence, flowing though the Florida panhandle towards the Gulf of Mexicos oyster-rich Apalachicola Bay, the river is known as the Apalachicola. The basin drained by this river is the Apalachicola-Chattahoochee-Flint (ACF) river basin. In 1939 the U.S.
Army Corps of Engineers (Corps) reported to Congress on the development
of the ACF basin, recommending full development of the basin
for flood control, navigation, and hydroelectric power generation.122
Acting on the Corps recommendation, Congress authorized various
projects in the basin.123 Among these is the Buford Project,
authorized in the 1940s and completed in 1958, which created the Buford
Dam and its massive reservoir, Lake Lanier, northeast of Atlanta.124
Although there is some question whether Congress authorized it to do
so, the Corps has operated the dam and reservoir to provide municipal
and industrial water for Atlanta in addition to the projects other
purposes.125 Responding to Georgia
officials concern about Atlantas long-range water supply,
Congress in 1972 authorized the Corps to study alternatives that would
meet the citys needs.126 While the Corps studied the alternatives,
major droughts in 1981, 1986 and 1988 lent urgency to the need for a
decision. In 1988, after other alternatives had been considered and
rejected, the Corps recommended reallocating storage in Lake Lanier
from hydropower to water supply.127 In 1989 the Corps issued
a draft Post-Authorization Change report recommending reallocating twenty
percent of the hydropower storage to water supply.128 This change
was expected to quench Atlantas growing thirst through the year
2010.129 The changes recommended
by the Post-Allocation Change report spurred the State of Alabama, in
1990, to sue the Corps to protect its interests in the waters of the
ACF basin.130 The Corps, Alabama charged, was unfairly favoring
Georgia over other states in the ACF basin, and had also failed to comply
with the National Environmental Policy Act (NEPA) in recommending reallocation.131
Florida and Georgia, as well as several smaller entities and groups,
intervened in the lawsuit.132 At that time the major players
in the ACF drama Alabama, Florida, Georgia, and the Corps
were all in place. The states were
motivated by a variety of concerns. Alabama claimed that more water
going to Georgia would mean higher hydropower costs, reduced dilution
of pollution in the river, and a chilling effect on Alabamas ability
to recruit industry to the state.133 Florida feared for the health
of the $70 million Apalachicola Bay oyster industry, which requires
clean, fresh water to pass over the Bays oyster beds.134
Georgia argued that as a sovereign it could manage the water within
its borders as it wished.135 In late 1990, with court approval, the parties agreed to attempt a settlement of the dispute without more litigation.136 Two years later the parties agreed to conduct a three-year comprehensive study of the basins water resources, which would be used to guide further negotiations on basin-wide water resource management issues.137 The study would consist of four categories of elements: (1) process support elements, including data, modeling, and public involvement; (2) water availability elements, including surface water and groundwater; (3) water demand elements, including agricultural, environmental, municipal, industrial, navigation, power, recreation, and water quality needs, and the needs of the Apalachicola Bay; and (4) comprehensive management strategy elements, including a basin-wide management study and a coordination mechanism.138 The Compact Even before it was
completed, the study yielded enough information to persuade the states
to enter into compacts to resolve allocation issues in the ACF river
basin (and, between Alabama and Georgia only, the neighboring Alabama-Coosa-Tallapoosa
(ACT) river basin).139 Alabama, Florida and Georgia entered into
the Apalachicola-Chattahoochee-Flint River Basin Compact (ACF Compact
or compact) in early 1997, for the purposes of promoting interstate
comity, removing causes of present and future controversies, equitably
apportioning the surface waters of the ACF, engaging in water planning,
and developing and sharing common data bases.140 Congress
authorized the compact by legislation, which was signed by President
Clinton on November 20, 1997.141 The ACF Compact
did not itself allocate water; rather than being an agreement on allocation,
it was instead an agreement to agree on allocation. The compact established
the ACF Basin Commission, comprised of the governors of Alabama, Florida,
and Georgia, and a non-voting federal member.142 All decisions
and actions by the commission required unanimous votes.143 The
dispute resolution mechanism for conflicts over the allocation formula
was to be non-binding mediation.144 The ACF Basin Commissions
primary duty was to agree on a formula for equitably allocating the
waters of the ACF river basin. The allocation formula could be in almost
any form the commissioners chose,145 but the state commissioners
would have to approve it unanimously.146 Until approval of an
allocation formula, the status quo would prevail, with minor conditions.
The compact provided that present withdrawals, diversions, and consumption
not only could continue, but also could increase to satisfy reasonable
increases in demand.147 Written notice to other states was required
for increases in use above certain levels, but the compact failed to
include binding restrictions on any present or future use.148 The ACF Compact would automatically terminate if the states did not reach agreement on an allocation formula by December 31, 1998, unless the states unanimously voted to extend the deadline.149 The deadline was extended numerous times, and several draft allocation proposals were developed.150 In July 2003 the states came tantalizingly close to a final agreement when they signed a memorandum of understanding on several key principles that were intended to guide the development of the allocation formula.151 Yet the August 31, 2003 deadline passed without being extended, and the compact terminated.152 Florida was unwilling to accept an agreement that guaranteed only minimum flows for the Apalachicola River; Georgia bristled at Floridas proposal that it limit irrigated farm acreage and control reservoir levels, refusing to be told by Florida how to micromanage its water use.153 An equitable apportionment battle in the Supreme Court is the likely next step.154 The Compacts Flaws The ACF Compacts
major flaw was its requirement of unanimity among the state commissioners
for any decision or action, with no method of breaking the almost inevitable
deadlocks. Non-binding mediation was not up to the task.155 Nearly
six years of negotiation has brought the states no closer to an apportionment
of the ACF. The only benefit obtained during this time has been the
information gathered for the comprehensive study, which will likely
serve as important evidence in the equitable apportionment showdown. A second flaw, at
least from the perspective of the downstream states, is the compacts
failure to impose any meaningful restrictions on water use during the
allocation formula negotiations. In a deadlock situation, maintaining
the status quo favors the upstream state.156 In this case, Georgia
could continue to increase withdrawals from the Chattahoochee as necessary
to supply Atlanta, and continue to allow farmers to partially dewater
the Flint River via groundwater pumping for irrigation.157 In short, the ACF states repeated the mistakes made by Texas and New Mexico in the Pecos River Compact. Although the situations in the two cases differed factually the core problem was the same inability to overcome an impasse. Even if the ACF states had emulated the lauded Delaware River Basin Compact the outcome would likely have been the same, because that compact also requires unanimity among commissioners for changes in allocation. It should also be borne in mind that the Delaware Basin states had a legally enforceable Supreme Court allocation as a starting point, while the ACF states did not. Thus, while the ACF compacts failure is regrettable, perhaps the ACF states should not be judged too harshly under the circumstances. V. Recommendations A state faced with
an interstate water dispute should first consider how the conflict might
be resolved in the Supreme Court, based on the federal common law principles
that have developed since Kansas v. Colorado. This assessment,
obviously necessary if the states go to the Court, is also necessary
if they attempt to negotiate because it will help to determine the relative
strengths of the states negotiating positions. If the states then
decide to allocate water by compact, they should then agree on interim
resolutions to immediate, pressing issues such as drought or pollution,
pending establishment of an allocation formula. Such resolutions might
include moratoria or meaningful, enforceable limits on additional withdrawals,
groundwater pumping, and reservoir construction; mandatory conservation
measures; or payments to water users or pollution dischargers in exchange
for agreements not to use water or discharge pollution for a period. The states should
agree on the scientific basis they will use as a standard to establish
the allocation. The guiding principle should be that there is no substitute
for quality data and analysis. The scientific basis should describe
the water resource in question as accurately as possible, in terms of
flow variations over short periods, such as seasons, and long ones,
such as five-, ten- and fifty-year intervals.158 Water quality,
as well as quantity, should be considered. Recall that disagreement
over data quality led to the Pecos River Compact litigation. The ACF
comprehensive study, on the other hand, may serve as a useful model. The states should
avoid allocation in absolute quantities. The tensions among the Colorado
River basin states developed in part because the Colorado River Compact
assumed an overly optimistic annual flow, and the Boulder Canyon Project
Act apportioned that unrealistic flow among the states in firm quantities.159
Hard numbers may inspire unwarranted confidence in future supply. An
allocation formula should be able to account more flexibly for varying
conditions, including extremes of flood and drought. Percentages of
flow could be assigned; for example, the current apportionment of the
Colorado River in the lower basin could be converted to percentages,
with 37.3% going to Arizona, 58.7% going to California, and four percent
going to Nevada. Alternatively, a realistic minimum annual flow could
be apportioned in hard numbers with surplus apportioned by percentages. The states should
thoroughly and honestly evaluate existing and possible future uses of
the resource and determine the water needs of those uses. This evaluation
must be completed before allocation formula negotiation begins. One
reason the ACF negotiations failed was that the needs of the Apalachicola
River and Bay had not been defined beforehand.160 Without an
accurate picture of demand as well as supply, the states stand on uncertain
ground when negotiating. The states must structure the compact to maximize the chances that an allocation will actually be agreed upon. Otherwise, it might be more efficient to go directly to the Supreme Court for an allocation and use that as a starting point, as the Delaware Basin states in effect did. The case studies above show that mutual agreement on a method of overcoming impasses is essential. Options include decisions by a simple majority rather than a unanimous vote; a federal tie-breaking vote; and binding arbitration.161 VI. Conclusion Clearly, there is no perfect method of apportioning interstate water among competing states. Congressional apportionment potentially is the fastest and most decisive method, but is extremely rare. Equitable apportionment by the Supreme Court has the advantage of being certain to provide an answer; its disadvantages are that it is expensive, time-consuming, and something of a gamble for the states, who may be stuck with an unfavorable outcome. The compact mechanism gives the states the most flexibility and control over their destinies, but it is prone to deadlock in the most contentious situations. Nonetheless, states are likely to continue trying the compact method of allocating water because they retain more autonomy with compact negotiation than they do with the other two methods. If states thoroughly evaluate their legal and equitable claims to interstate water, and avoid the pitfalls that have plagued previous compacts, the interstate compact may prove to be the best available mechanism to resolve interstate water quantity disputes. 1 This article appeared
in slightly different form in Southeastern Environmental Law Journal,
vol. 12, no. 2, Spring 2004. |
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