Proposition 218 Groundwater Use Fee
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.