California Governor Announces New Water Supply Strategy to Address Drier Future

As California struggles with how to manage a future with less water, the Newsom Administration released its latest plans to conserve and develop more water supplies. “California’s Water Supply Strategy: Adapting to a Hotter, Drier Future” (August 2022) (“Strategy”) outlines four of California’s updated statewide priorities: Develop new water supplies; expand water storage capacity; reduce demand; and improve forecasting, data, and management.

The Strategy describes several future actions to support each priority in an effort to build on the investments already made in California’s water system and to prepare for a changing climate.

Develop New Water Supplies

The Strategy proposes to develop new water supplies through reuse and desalination. Specifically, the Strategy aims to reuse more recycled, treated wastewater that is currently discharged to the ocean. Its goal is to reuse 800,000 acre-feet of water per year (“AFY”)  by 2030 and 1.8 million AFY by 2040. To achieve this goal, the Newsom Administration will identify and consider funding water recycling projects and act on direct potable reuse regulations by December 2023.

The Strategy also supports expanding desalination of brackish groundwater and guiding the location of seawater desalination projects to help make them cost-effective and environmentally appropriate. Additionally, seawater desalination plants not operating at full capacity could produce additional water during drought, according to the Strategy. Although coastal desalination plants must be approved under the Coastal Act, the Strategy states that California must be more resourceful with its 840 miles of coastline that provides a unique opportunity for water resilience. A group of state agencies with water and coastal authority will develop new standards for siting coastal desalination plants, identify potential mitigation sites, and consider amending the Desalination Policy in the State Water Resource Control Board’s (“State Water Board”) Ocean Plan to help streamline and expedite permitting.

Expand Water Storage Capacity

Capturing runoff can help California adapt to reductions in snowpack and precipitation and can be used to recharge groundwater aquifers. The Strategy aims to expand California’s reservoir and aquifer capacity by 4 million acre-feet by expanding underground and above-ground storage facilities to capture high-flow events that otherwise are wasted and not beneficially used.

The Strategy estimates that underground storage capacity can be increased to store an additional 500,000 acre-feet of water. The California Department of Water Resources (“DWR”) will explore filing and paying for temporary permits for diverting runoff to underground storage on behalf of local agencies. Additionally, the Newsom Administration will pursue legislation to speed up the process for delivering decisions on water rights applications, and the State Water Board’s water right permitting staff will begin prioritizing groundwater recharge permits by October 2022. The Strategy also suggests that DWR and the State Water Board develop a mechanism for allocating water rights for groundwater recharge by securing future flood flows in the Central Valley and allocating that water using what it calls “a more consistent, economical, and equitable approach for allocation of water rights for groundwater recharge.”

The Strategy also states that it will work with local groups to complete the seven Proposition 1 storage projects that will increase California’s storage capacity by 2.77 million acre-feet. All the projects are expected to begin construction by 2025. The Strategy commits the Newsom Administration to facilitating permitting, monitoring development, and supporting project completion.

The Strategy highlights the San Luis Reservoir expansion project, in which DWR will continue to work with the U.S. Bureau of Reclamation to expand the reservoir by 135,000 acre-feet. DWR will also administer $100 million in the 2022-23 budget to repair dams, so the associated reservoirs can regain lost storage capacity due to dam safety issues. The Newsom Administration will also incentivize local stormwater capture projects.

Reduce Demand

The Strategy aims to reduce annual water demand by 500,000 acre-feet by 2030. Its primary approach is to continue building on urban conservation goals by setting conservation targets individually tailored to each urban water supplier. The Strategy also states that losing farmland to aridification will decrease water consumption, and the Newsom Administration will continue to build on grants for decreasing groundwater reliance and providing for land-use changes that reduce water use.

Improve Forecasting, Data, and Management

Administering California’s water rights system requires establishing readily available and accurate information about water supply and use. The Strategy commits the Newsom Administration to improving water supply forecasting and installing 430 new stream gages and upgrading an additional 200. The Strategy notes that DWR will advance the draft environmental impact report for the Delta conveyance project and disburse money to repair canals damaged by subsidence.

The Strategy also states that it will continue to digitize water rights records and to improve the water rights data management system. It also commits the State Water Board to developing pilot projects to collect real-time water diversion data and integrating the data into the water rights system, developing tools for implementing the priority system in select watersheds, and developing more robust supply and demand models for the Delta. The Strategy also notes that the State Water Board will consider adopting regulations to allow the Board to curtail water rights in years without a declared drought emergency, and consider legislation and regulations “to streamline and modernize the water rights system, clarify senior water rights, and establish more equitable fees.”

The Strategy explains that the Newsom Administration will work jointly with the relevant state agencies to implement these priorities and explore other ways to expedite projects and to amend regulatory structures to address the future shortage of water.

Questions

If you have any questions regarding this Legal Alert, please contact the following attorneys or any of Kronick’s Municipalities and Special Districts or Water Law attorneys.

Lauren Bernadett
lbernadett@kmtg.com | 916-321-4347

Eric Robinson
erobinson@kmtg.com | 916.321.4576

Dan O’Hanlon
dohanlon@kmtg.com | 916.321.4522

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