Opinion: California Begins New Water Year with Robust Storage Levels

California's water year runs from Oct. 1 through the end of September. California ended the 2023-24 water year with almost every major storage reservoir above historical average for the date, and we began the 2024-25 water year with the biggest October storm in many years. The State Water Resources Control Board raised the allocation of water from the State Water Project to 50% of maximum earlier this year. Anything above 40% usually allows state water contractors like the Metropolitan Water District to make water available for storage. Our local water providers took advantage of the extra water to help recharge regional aquifers. With robust surface and underground storage levels California is in a good position to withstand several back-to-back dry years when they happen. If this is a wet winter, additional water can be placed in storage for use in future dry years.

Important Happenings in the World of Water

Senate Bill 72 is a bill supported strongly by water agencies, agriculture, labor and some environmental interests. It requires the Department of Water Resources to update the California Water Plan and identify at least 9 million acre feet of additional water supply by 2040, and to set an additional goal for 2050. It establishes an advisory committee with representation from water providers, agriculture, industry, and environmental interests to help guide this process. Western Water and its General Manager, Craig Miller, were in the forefront of efforts to pass this legislation. I am pleased to report that Governor Newsom signed the bill into law on Oct. 1 after it passed both houses of the legislature without a single negative vote. The Western Water Board set participation in the advisory committee as a performance goal for General Manager Miller. With the leadership he demonstrated developing the legislation over the past two years he should have a leadership position on the advisory committee.

The Delta Conveyance Project is a proposal to build a tunnel from the Sacramento River under and around the Sacramento River Delta to the existing pumping station that moves water into the California Aqueduct and points south. If completed, the Delta Conveyance project will allow water to be taken from the Sacramento River at either or both points. This is a major advantage because the presence of the Delta Smelt, a federally protected species of fish, prevents operation of the pumping station a significant portion of the time. Water diverted above the area the Delta Smelt inhabits would allow pump operation without harm to the fish. The project would also offer a significant flood control benefit as in times of high water flow water can be diverted above the delta, reducing risk of levee breeches in the delta.

Governor Newsom supports this project and attempted to streamline permitting and resolution of permitting appeals through a budget trailer bill. Budget bills do not go through legislative policy committees so this would have completed the legislative process more rapidly than typical legislation. The legislature did not approve this bill, largely on the grounds that there is legitimate debate about the project that must be had. The effort did produce much needed discussion on the project and California's water issues.

I believe the bill will be reintroduced next session as traditional legislation. Hopefully, agreement can be reached and a beneficial project with acceptable environmental impacts will be approved.

Sites Reservoir is a 1.5 million acre foot reservoir planned for construction in the Coast Mountain Range about 100 miles north of Sacramento. If completed it would divert water from the Sacramento River in times of very high water flow for use in dry years. It would largely use existing canals and other infrastructure to move water to the new reservoir and to deliver it back to the river in dry periods. The project has completed its environmental review and prevailed in a legal challenge of the sufficiency of the environmental study. The project has also received all the key permits for construction. Water rights are being finalized, and property acquisition is well on its way. Construction is anticipated to begin in late 2026 and the project should begin operation in 2032.

Western Water is on a waiting list for allocation of a portion of the storage and water rights in this project. As construction, and the need to actually spend significant money, nears some of the entities that have rights are considering downsizing their share. Western is watching this closely and if updated economic projections are favorable may seek to own a share of the project.

The Colorado River provides water to seven western states and to Mexico. Under the original Colorado River Compact signed in 1922, The Lower Basin States (California, Nevada and Arizona) are apportioned 7.5 million acre feet a year, The Upper Basin States (Wyoming, Utah, Colorado and New Mexico) are apportioned 7.5 million acre feet per year, and Mexico is apportioned 1.5 million acre feet per year. This is 16.5 million acre feet per year, but in recent years average annual flow has only been 12.2 million acre feet per year, and some projections show that dropping to 11 million acre feet per year.

Clearly this is not sustainable. The seven states have been negotiating for some time on a fair and sustainable reallocation. It looks promising that the Lower Basin states will reach agreement amongst themselves as will the Upper Basin states, but there is a major difference between the Upper Basin states and the Lower Basin states. To complicate things, Mexico is not yet involved in the discussions.

The Colorado River is managed by the United States Bureau of Reclamation (USBR). The USBR has told the states to reach agreement, or it will unilaterally reallocate available water. No one wants this to happen, and everyone is working hard to reach agreement. The USBR timeline is for principals of agreement to be signed by Feb. 14, 2026, and it will release the Draft Environmental Impact Statement shortly thereafter, with the Final Environmental Impact Statement certified and a decision made in October of 2026.

While our local water agencies do not take much Colorado River water they will be impacted if California allocations are cut as other water sources will have to fill the gap left by loss of Colorado River water. Watch this issue as it develops.