As global warming and drought hit California, state agencies turned their attention to strategies to increase water efficiency and reduce energy use. An August 23 hearing held by the state\u2019s two main water agencies--the Department of Water Resources and State Water Resources Control Board--attempted to assess the impacts of climate change on the interrelated water and energy sectors in a supply and greenhouse gas-constrained environment. The mandate of the state\u2019s global warming law, AB 32, increased the pressure on the water and energy agencies to achieve conservation to help meet the statute\u2019s mandated greenhouse gas reductions. There is also pending legislation that would require state and local water agencies to incorporate climate change assessments into their water supply plans. AB 224, by Assemblymember Lois Wolk (D-Davis), looks at the carbon cost of a range of strategies, from new dams to conservation. The bill is pending before the Assembly Appropriations Committee. \u201cMore efficient treatment and recycling of water reduces emissions and energy use,\u201d said Linda Adams, California Environmental Protection Agency secretary. \u201cWater use efficiency saves as much energy as the California Public Utilities Commission\u2019s energy efficiency programs at half the cost,\u201d said Peter Gleick, Pacific Institute president. The water sector, which includes moving resources hundreds of miles, treating water supplies and wastewater, and cooling and heating water, consumes 19 percent of the state\u2019s electricity. It also uses about 30 percent of the natural gas resources, with much of that used for heating by residents, hospitals and other end users. Adams said in a worst case scenario, global warming could shrink California\u2019s snow pack by 70 percent. Editors\u2019 note: For a more detailed version of the water & energy story, please see our sister publication E=MC2 \u2013 Energy Meets Climate Challenge. You can find it at www.energymeetsclimate.com.