Advancing sustainable groundwater management financing is a critical hurdle in the successful implementation of California's Sustainable Groundwater Management Act (SGMA). While SGMA provides a flexible framework for local Groundwater Sustainability Agencies (GSAs) to manage groundwater resources, the financial aspects of developing and executing Groundwater Sustainability Plans (Plans) require careful attention.
The implementation of these Plans to achieve California groundwater sustainability by 2040 necessitates significant financial investment. Generating new revenue and repurposing existing funds can be complex processes, and insufficient planning in this area poses a considerable risk to the successful SGMA implementation costs. Early indications of legal challenges and opposition to GSAs' revenue generation efforts underscore this concern.
A recent analysis evaluated the attention to financing within a sample of these Plans. The study developed a rubric to assess the adequacy of financial considerations and compared these findings with the California Department of Water Resources' (DWR) Plan review process.
The results suggest that the level of financial planning in the reviewed Plans varies significantly and is often inadequate to meet the substantial SGMA implementation costs. Furthermore, the study indicates that DWR's current oversight may not be sufficiently robust to ensure that local agencies are adequately prepared to finance their Plans effectively.
To improve the likelihood of successful SGMA financing and overall implementation, the following actions are recommended:
- GSAs should provide more comprehensive details within their plans and periodic evaluations regarding their strategies for securing the necessary funding.
- DWR should enhance its review process to more thoroughly assess the feasibility and adequacy of the proposed financing mechanisms in the Plans.
- DWR should offer more targeted technical resources and guidance to assist GSAs in developing sound financial strategies for California groundwater sustainability.
- The public should actively engage in scrutinizing the financing aspects of the Plans and demand greater transparency and accountability from GSAs.
Addressing the challenges of sustainable groundwater management financing through more comprehensive planning, robust state oversight, and increased stakeholder engagement is crucial for realizing the long-term goals of SGMA and ensuring the California groundwater sustainability.
