After months of public debate and closed door negotiations, the legislature finally passed a comprehensive, five-bill water package covering Delta governance, groundwater monitoring, conservation and water rights enforcement, along with an $11.14 billion bond measure to finance environmental and water development projects. On the plus side, many of the most onerous provisions relating to mandatory conservation, water rights and groundwater management were set aside for future legislative deliberation. The package is being broadly acclaimed as being important step towards solving California’s long term water needs. However, the “Devil is always in the details” as evidenced by the following key components:

Delta Protection/Conveyance: A new legal and governance framework is established to resolve the inherent conflicts in managing Delta resources. A seven member Delta Stewardship Council is created to oversee the development and enforcement of a unified state plan for the Delta based on new fundamental co-equal goals of “ecosystem restoration and water supply reliability.” The legislation does not authorize a “Peripheral Canal.” However, it does set forth specific procedures for considering options for changing Delta conveyance for the State and Central Valley Water Projects. If and when a conveyance option is ultimately approved, water users would be required to pay mitigation and construction costs.

New Water Storage: The proposed $11.14 billion bond provides financing for a broad spectrum of projects relating to water supply reliability, Delta sustainability, conservation, water system operational improvement, recycling and watershed and groundwater protection. Most importantly, $3 billion is specifically earmarked for water storage projects. Eligible projects include (a) surface storage projects identified in the CALFED Bay-Delta Program Record of Decision (ROD), dated August 28, 2000; (b) groundwater storage projects and groundwater contamination prevention or remediation projects that provide water storage benefits; (c) conjunctive use and reservoir reoperation projects; and (d) local and regional surface storage projects that improve the operation of water systems in the state and provide public benefits.

The allocation of these funds will be directed at the “public benefits” associated with projects such as ecosystem improvements including temperature and flow improvements, water quality improvements in the Delta or other river systems, flood control benefits, or recreational purposes. No project may be funded unless it provides ecosystem improvements that are at least 50 percent of total public benefits.

Groundwater Monitoring: A new statewide groundwater elevation monitoring system is authorized for the purpose of systematically monitoring and reporting groundwater elevations. Local groundwater management entities may voluntarily assume the monitoring and reporting responsibilities. If no local agencies volunteer, the state will assume the responsibility and charge well owners the monitoring costs. Additionally, state grants and loans would be denied to counties and local agencies that fail to implement the monitoring program.

Urban & Agricultural Water Conservation: Urban water suppliers are required to establish water conservation targets of 10% by 2015 and 20% by 2020.

Four alternative methodologies are authorized for attaining the water savings:
  1. 20% reduction in baseline daily per capita use;
  2. Combination of efficiency standards for residential indoor use [55 gallons per capita daily (gpcd)]; residential outdoor use (Model Water Efficient Landscape Ordinance); and commercial, industrial, and institutional (CII) use (10 % reduction);
  3. 5% reduction from DWR targets for applicable region;
  4. A method to be developed by DWR, using specified factors, by December 31, 2010.

A special provision is included for “processing water,” which is beneficial to food processors. It prohibits urban suppliers from requiring changes that reduce process water and allows urban water supplier to exclude process water from the development of the urban water target if substantial amount of its water deliveries are for industrial use, but allows for reductions in emergencies.

Agricultural water suppliers (those that provide water to 10,000 or more irrigated acres, not including DWR) must implement water measurement and pricing practices. Additionally, they must fully consider other steps such as efficient on-farm irrigation practices, use of recycled water and incentive pricing. Agricultural water management plans must be adopted by December 31, 2012 and updated every five years. However, agricultural water suppliers serving less than 25,000 irrigated areas from compliance with either water conservation or agricultural water management planning requirement if state funding is not provided for those purposes.