At the May meeting of the California Water Commission, representatives from the Inland Empire Utilities Agency, the project proponent for the Chino Basin Program, updated the Commission on the status of the project and progress toward completing the WSIP requirements. Elizabeth Hurst, Chino Basin Program Manager, and General Manager Shivaji Deshmukh gave the update.
As a special district, the Inland Empire Utilities Agency (IEUA) serves approximately one million residents in southwest San Bernardino County. The region’s productive groundwater basin historically supported extensive agriculture and dairy operations throughout the mid-1900s.
Over the last three decades, IEUA has made significant strides in water recycling, becoming one of the first agencies to adopt groundwater recharge using recycled water. This approach replenishes the basin, providing a sustainable potable water supply for the community.
A member of the Metropolitan Water District, IEUA relies on the State Water Project for about one-third of its water supply. However, due to its high salinity, Colorado River water cannot be used for groundwater recharge, as it would fail to meet essential water quality standards.
THE CHINO BASIN PROGRAM
The Chino Basin Program (CBP) is designed to strengthen water supply reliability at both local and regional levels while addressing water quality issues in the Chino Basin and providing environmental benefits to Northern California. The Program aims to produce up to 15,000 acre-feet of purified water annually, which will be recharged into the groundwater basin to improve water quality, reduce salinity, and enhance preparedness for droughts and emergencies.
The CBP includes constructing an Advanced Water Purification Facility and groundwater injection facilities, expanding extraction facilities to a capacity of 40,000 acre-feet, and establishing a connection with the Metropolitan Water District to improve water management and distribution flexibility. The Program will also incorporate recycled water from the City of Rialto, allowing the Inland Empire Utilities Agency (IEUA) to make full use of Rialto’s excess recycled water. This water will undergo advanced treatment to create high-quality purified water for recharge into the Chino Basin.
I’m proud of this program because it really does marry environmental protection, adaptation to climate change, and investment in local supply,” said Mr. Deshmukh. “What we are doing with this project is expanding on what IEUA is known for, and that’s developing local supplies that are drought proof, that [use] much less energy than alternative sources, and ultimately, not only provides a water supply reliability but provides an overall environment benefit to not only our region but to the state. To be able to marry that up with the pulse flow part of the Water Storage Investment Program is such a creative and innovative way to look at water management. So we’re very proud to be part of this Program.”
PUBLIC BENEFITS
Projects in the Water Storage Investment Program are paid for the public benefits they provide, defined by the statute as water quality, emergency response, ecosystem benefits, recreation, and flood control. The Chino Basin Program would provide the following public benefits:
Providing the pulse flow: Each year, the project produces 15,000 acre-feet of water, which is recharged into the aquifer. A portion of this water is set aside annually in an account the state can use to implement pulse flows when needed. Over 25 years, the Chino Basin Program is projected to provide 375,000 acre-feet for pulse flows, with a maximum of 50,000 acre-feet available for any single pulse flow. The decision to implement a pulse flow in a given year will rest with the Department of Fish and Wildlife (DFW). The Department of Water Resources (DWR) will assess operational constraints. If both agencies approve, the pulse flow will be released.
The Program also requires several key agreements to ensure its success. A contract must be established between the Inland Empire Utilities Agency (IEUA) and the Department of Fish and Wildlife. Additionally, IEUA will need agreements with the Cucamonga Valley Water District and the Fontana Water Company, as these agencies will be responsible for pumping and storing the water. An agreement with the Metropolitan Water District, acting as the State Water Project contractor, will also be needed for program operations.
Water quality benefits: The Chino Basin Program aims to reduce salt levels and enhance water quality by storing purified water in the basin. To support this public benefit, a contract will be established between the Inland Empire Utilities Agency (IEUA) and the State Water Board. Under the agreement, IEUA will be responsible for reporting on the amount of water it treats and restores, ensuring transparency and accountability for the Program’s contributions to regional water quality improvements.
Emergency water supply: The Chino Basin Program includes an emergency water supply benefit, providing up to 50,000 acre-feet of water for emergency situations. This effort involves collaboration with the Cucamonga Valley Water District, the Fontana Water Company, and the Metropolitan Water District, as they will play key roles in pumping, distributing, and managing the water supply during emergencies.
OBTAINING AGREEMENTS
The Inland Empire Utilities Agency (IEUA) has made substantial progress in finalizing the required agreements. Last April, IEUA successfully executed an agreement with the City of Rialto. Additionally, a performing agency term sheet has been established with the Cucamonga Valley Water District and the Fontana Water Company, reaffirming their commitment to the Program. The agreement was secured with the Metropolitan Water District in October 2024, which serves as the foundational element of the entire Program.
Progress is also underway on the public benefit contract with the Department of Fish and Wildlife (DFW). Both parties have outlined and agreed on the terms, including performance expectations and the contract is nearing finalization. Similarly, the emergency response public benefit contract with the Department of Water Resources (DWR) is expected to be completed by late spring or early summer, alongside agreements with the State Water Resources Control Board.
There are still other essential agreements pending before the final funding hearing. These include an agreement between the Metropolitan Water District and DWR, as well as the efficiency carriage credit agreement. Some of these remaining agreements are contingent on environmental permitting requirements and other local agreements that need to be finalized to ensure the Program’s success.
“We’ve taken everything as far as we can, and we expect to be completed with those staff drafts by the end of this year.”
DELIVERING PULSE FLOWS
The Program has pledged to deliver a total of 375,000 acre-feet for pulse flows over 25 years, with a maximum of 50,000 acre-feet available for any single pulse flow. But would it work? To answer that question, IEUA and its partners developed a simulation model using both historical and potential hydrological scenarios to evaluate the project’s feasibility over its 25-year term. This past spring, they conducted a full simulation, which proved to be successful.
“If we had been able to build this project, a pulse flow would have happened this year,” said Ms. Hurst. “So it was a really nice proof of concept to see how the pieces all fit together, what information is needed when, and if the timing aligns with when it would be optimal to help those salmonids in the spring release. It showed that it’s possible.”
FUNDING
The Chino Basin Program (CBP) was awarded $215 million in conditional funding in 2018 through the State’s Proposition 1 Water Supply Investment Program (WSIP). However, project costs have risen dramatically since then—from $385 million to just over $1 billion—posing a significant financial challenge. With federal funding uncertain, IEUA is actively exploring every possible opportunity to secure additional resources.
The Program remains a priority for IEUA, and its board has included the costs shown in blue within the 10-year capital plan, covering the advanced treatment facility, recycled water program expansion, and storage initiatives. However, the portion requiring external funding is the upsizing of extraction facilities, which remains a key area of focus for securing outside financial support.
“It really creates that environmental resilience and reliability that we would like to have during emergencies, but we’re working with our partners to make sure that it’s cost-effective for them,” she said. “The design work is currently underway to figure out what that final cost is.”
PERMITTING
The Environmental Impact Report (EIR) for the advanced treatment facility was finalized in 2022. Work to determine precise street alignments, as well as findings of consistency for pipeline routes and well locations, is anticipated to be completed by December 2026.
Meanwhile, the Department of Water Resources pulse flow EIR has raised questions about how to adopt it effectively and separate out individual project components. To address this, IEUA is collaborating with other pulse flow projects to find the best approach. Additionally, efforts have begun to obtain the wastewater diversion permit.
SCHEDULE
The slide highlights key dates and milestones, reflecting significant progress while showing there’s still work to be done.
This year, two progressive design-build contracts—for the advanced treatment facility and the recycled water project—will be presented to the board. Staff drafts for all three public benefit agreements are expected to be completed by fall.
The preliminary design work for the extraction facilities will be finished this winter, paving the way for finalizing local performance agreements once the final cost estimates are determined. Additionally, after the preliminary design is completed, findings of consistency can be prepared to confirm the exact street alignments.
“That would bring us to a WSIP final funding hearing in the fall of 2027,” said Ms. Hurst. “So with that, construction would be happening beginning around as soon as the design work is completed, would be able to move into that stage. So 2027 to 2031 with everything operational and a pulse flow ready to be released by 2032.”
PUBLIC COMMENT
There was only one speaker during public comment. Randall Reed, president of the Cucamonga Valley Water District, spoke in favor of the project, noting that it will allow the region to make better use of local reclaimed water and benefit all who depend on the groundwater basin. “I’m asking you to continue your support for this very important project. The Chino Basin Program will serve so many people in Southern California by reducing reliance on North northern imported water, by improving the use of reclaimed water while in Northern California providing an ecosystem benefit.”
LOCAL CONTROVERSY
The project is not without local controversy. The cities of Chino, Montclair, and Ontario, and Monte Vista Water District, which provide retail wastewater and/or water services within the IEUA service area, sent a letter to the Commission. The main concerns raised in the letter include the lack of defined financial commitments from IEUA and its retail agencies, the potential adverse economic and water resource impacts on local communities, and what they see as the prioritization of transferring local water supplies to the State over addressing local groundwater sustainability amidst a significant decline in Safe Yield. (See also here and here).
“Rather than developing local resources for local needs such as housing and groundwater sustainability, IEUA is prioritizing the transfer of local water supplies at a time of uncertain groundwater availability,” the letter states.
IEUA Director Steve Elie addressed the letter in his comments at the beginning of the presentation. “Those who are complaining now have been the beneficiaries of hundreds of millions of dollars invested by all of our regions historically, and the others who did not benefit as much did not try to forestall those projects,” he said. “Despite participation in dozens of meetings by their staff and elected officials, these agencies persist in claiming that the CBP exports water. It does not. It’s an exchange to create local supplies. It creates a new local supply of purified water for our communities.”
During the discussion period, Commissioner Davina Hurt asked about community engagement. Mr. Deshmukh said they have had a long, proactive outreach program, so the public is receptive to potable reuse. The bigger problem is what he characterized as ‘misinformation.’
“This is the first time we’re connecting developing a local water supply with offsetting imported water and providing environmental benefit in the north and having this partnership has created confusion early on,” said Mr. Deshmukh. “There’s still confusion out there, so we’re trying to ramp up our efforts to address questions such as, are we actually exporting water to Northern California? That’s been a concern. Are we building a pipeline up 300 miles? It’s absolutely not the case. These are the kind of issues we’re working hard to address.”
Director Elie pointed out that the president of the Cucamonga Valley Water District made the trip to Sacramento today just to speak in support of the project. The groundwater basin underlies three counties, so Jurupa CSD, the City of Pomona, the Three Valleys MWD, Western MWD, and the Metropolitan are all engaged.
“So, in my 15 years on the board, we’ve been the ultimate collaborator of getting things done,” said Director Elie. “That’s not going to change whether or not there are a couple people saying yay or nay. We’re going to keep working with them. We have to work with them. We all have to work together.”
