Groundwater Use Fee (Prop 218)
Groundwater Use Fee Election Results
The ETSGSA Board of Directors successfully passed a Proposition 218 election and adopted a Groundwater Use Fee to help fund water projects and groundwater demand reduction efforts necessary to implement the Turlock Subbasin Groundwater Sustainability Plan (Turlock GSP) and comply with the Sustainable Groundwater Management Act (SGMA).
The Public Hearing of the ETSGSA Board of Directors on April 8, 2025 at Cortez Hall. Written protests were submitted for 12 parcels out of 1,069 total parcels, which does not constitute a majority protest. Therefore, the GSA may impose fees up to the maximum amount approved, and consistent with the budget adopted each year.
| Category | Description | Rate (per AF) |
|---|---|---|
| Category 0 | Native Yield (no charge) | $0.00 |
| Category 1 | Sustainable Use | $57.81 |
| Category 2 | Use above sustainable yield, below reduction target | $138.61 |
| Category 3 | Use above reduction target | $316.94 |
Fiscal Year 2025-26 Groundwater Use Fee
For Fiscal Year 2025–26, Groundwater Use Fees will be charged for consumed groundwater used on all parcels within ETSGSA that are designated as “Irrigated”. Allocations are provided on a per-parcel acre basis, and fees are based on the measured consumptive use within irrigated fields.
| Category | Description | Consumed Groundwater Category Threshold (AF/ac) | Rate (per AF) |
|---|---|---|---|
| Category 0 | Native Yield (no charge) | 0.0 - 0.5 | $0.00 |
| Category 1 | Sustainable Use | 0.5 - 1.1 | $57.81 |
| Category 2 | Use above sustainable yield, below reduction target | 1.1 - 1.6 | $138.61 |
| Category 3 | Use above reduction target | Greater than 1.6 | $316.94 |
Groundwater Use Fee Deposit Invoices
2025 Groundwater Use Fee Deposit Invoices were mailed to landowners in mid-June. If you received a bill and need support, email us at etsgsa-support@formationenv.com, call us at (209) 407-1233, or attend one of our scheduled drop-in support events.
Key Resources:
Groundwater Accounting Platform (GAP)
The Groundwater Accounting Platform (GAP) is the online platform that allows landowners and water users in the East Turlock Subbasin to track and manage consumptive groundwater use on irrigated parcels.
Key Resources:
Key Information:
Category 1 fees will be collected on a “deposit billing” basis for Fiscal Year 2025-26. Your invoice reflects a Category 1 deposit, based on the total Category 0 and Category 1 groundwater allocation assigned to the irrigated parcels in your Water Account. This deposit will be applied toward your final groundwater use fees for the 2025 Reporting Period (November 1, 2024 – October 31, 2025).
If your Category 0 and Category 1 Allocation is not fully used at the end of the Reporting Period, you may request a refund for the unused portion of Category 1 allocation paid for in the Deposit Invoice or, if approved through upcoming Rules and Regulations, carry over the unused portion for up to three years.
If your groundwater use exceeds your allocation, this will be reflected in the “true-up” invoice that will be sent in early 2026 after the end of the current Reporting Period. All Water Accounts will receive a true-up statement detailing their consumed groundwater for the Reporting Period and an invoice for any additional use billed at the Category 2 or 3 rate.
Appeals: In accordance with General Appeal Policy in ETSGSA’s Rules and Regulations, water account holders may submit a written appeal regarding an issue related to the application of the Rules and Regulations to their owned, leased, or managed parcels or Water Account.
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For irrigated fields, consumed groundwater is measured from evapotranspiration (ET) data (note that this is not the same as applied water). ET measurements are gathered using satellite data and on-field stations to determine the amount of groundwater consumed by crops. For non-agricultural users like dairy, poultry, or food processing operations, fee calculations will rely on self-reporting. Property owners can appeal the use of ET data and use metered extraction data, if applicable, which would be converted to consumed groundwater use for the purpose of fee calculation.
There are four categories for use of groundwater:
Category 0 – Groundwater use within the estimated native yield, which is the minimum amount of groundwater assumed to be recharged on any parcel in a given year. There is no fee for this use.
Category 1 - Groundwater use within the estimated long-term sustainable yield once thresholds are met. The amount of long-term annual groundwater use that complies with our GSP and SGMA requirements.
Category 2 - Groundwater use above the estimated sustainable yield and below a use reduction target that is lowered from 10% to 20% over time.
Category 3 - Groundwater use above the use reduction targets.
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The fee provides funding for the water supply and recharge projects and the demand reduction actions that are needed for us to meet the objectives of our GSP and comply with state requirements under SGMA. Key activities that will be funded include the ability to receive up to 35,000 acre-feet per year of replenishment water from the Turlock Irrigation District under a Water Accounting Structure Agreement that was recently entered with them, implementation of incentivized land repurposing and rotational fallowing programs, other water supply projects, and implementation of a well mitigation program.
Specific projects and management action programs are described in this infographic: https://turlockgroundwater.org/s/Prop218-FAQ-Chart.png
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For more information on the rationale supporting the proposed Groundwater Use Fee, please see the Final Cost of Service Study.
Resources
The Sustainable Groundwater Management Act (“SGMA”) of 2014 requires Groundwater Sustainability Agencies (“GSAs”), including the East Turlock Subbasin GSA (“ETSGSA”) to develop and implement Groundwater Sustainability Plans (“GSPs”) to avoid undesirable results and mitigate groundwater overdraft by 2042. The Turlock Subbasin Groundwater Sustainability Plan (“GSP”) was developed and submitted on January 31, 2022, as a joint effort between the West Turlock Subbasin GSA (“WTSGSA”) and ETSGSA. The GSP was revised and resubmitted in July 2024.
If a GSA fails to develop or implement a local GSP, or the GSP is deemed inadequate by the Department of Water Resources (“DWR”), intervention by the State Water Resources Board (“SWRCB”) is triggered. The SWRCB will then determine whether to recommend probation for the basin. For basins in probation, SGMA imposes certain reporting requirements and the SWRCB will impose additional fees to recover the costs of state intervention.
In the fall of 2023, ETSGSA began working on establishing a new funding mechanism in support of the Operational Budget and Project and Management Action Budget to implement its GSP. It was determined that two separate funding mechanisms would be needed to generate the revenue required: a land-based Proposition 218 benefit assessment in support of the Operational Budget, and a groundwater use-based Proposition 218 property related fee in support of Project and Management Action Budget.
The ETSGSA Board of Directors initiated a process to adopt a Proposition 218 benefit assessment in January 2024 to cover the cost of its Operational Budget. ETSGSA mailed ballots to all landowners within ESTGSA boundaries on January 30, 2024. After a 63-day balloting period, the ETSGSA Proposition 218 SGMA Operational Assessment passed with over 80% support following a vote tabulation during a Public Hearing of the ETSGSA Board of Directors on April 2, 2024 at Cortez Hall.
The development of a fee based on groundwater use is underway to fund the Project and Management Action Budget. As part of this process, a Proposition 218 Fee Study was prepared to evaluate the potential costs of projects and management actions needed for the basin to achieve sustainable yield and the fees required to fund these projects and management actions. It is envisioned that ETSGSA will implement the groundwater use fees in categories that include a base category with no charge assigned for minimal groundwater use, and escalated rates for higher amounts of groundwater use in accordance with the cost of service necessary for groundwater use in each category. Groundwater use for most property owners will be determined by evapotranspiration measurements, which use satellite and weather data to calculate the amount of groundwater consumed on a given property. As an alternative, property owners will have the option to submit metered extraction data if they choose.
Revenue collected from the groundwater use fee program will fund the implementation of projects and management actions needed to offset groundwater overdraft within the basin and implement the GSP to the satisfaction of DWR. Key activities that would be funded include the ability to receive up to 35,000 acre-feet per year of replenishment water from the Turlock Irrigation District under a Water Accounting Agreement that was recently entered with them, implementation of incentivized land repurposing and rotational fallowing programs, and implementation of a well mitigation program. The purpose of this workshop is to inform our members of the development of the tentative fee structure and to receive valuable feedback. We expect that the Proposition 218 Groundwater Use Fee majority protest process will be conducted in early 2025 with the potential adoption of fees during the 2025 growing season if the Proposition 218 process is successful.
In accordance with the procedural requirements of Proposition 218 for property related fees, notice of the proposed fee program will be mailed to all affected property owners in the GSA. This notice will include information on the proposed fees and notice of a protest hearing to be held no sooner than 45 days after this mailing. Prior to the close of the protest hearing, all affected property owners will have the opportunity to submit written protest for each affected parcel under the proposed fee program. The fee can only be imposed if written protest is submitted for less than 50% of all affected parcels.
For more information on the rationale supporting the proposed Groundwater Use Fee, please see additional resources below.
To schedule an appointment to talk to a Groundwater Accounting Platform expert, please email us at etsgsa-support@formationenv.com.