On the Use of System Performance Metrics for Assessing the Value of Incremental Water-Use Permits

Abstract

A novel approach on quantifying the value of an incremental surface water–use permit in an integrated water resources system consisting of groundwater, surface water, off-stream reservoir, and desalinated seawater sources is presented. First, a stochastic framework that accounts for demand uncertainties and variations in climatic parameters was used to generate regional demand and supply realizations. Second, a linked optimization-simulation model was used to navigate through complex system constraints and sustainable operational constraints. The resulting decision variables were then used to calculate system performance metrics, demonstrating the benefit of an increase in surface-water withdrawals at high flows. The Monte Carlo–based model took advantage of distributed computing capabilities on a private cloud computing system to significantly reduce the total run time. The model codes were developed in two different software environments, executed on different platforms, in which information was exchanged through an inter-process communication (IPC) protocol. The major contribution of this research is toward the practical use of stochastic-based integrated surface/groundwater–use permit application for a complex water resources system. The approach is demonstrated using Tampa Bay Water’s integrated water resources system.