Earlier this month, Jennifer Pierre, General Manager of the State Water Contractors (SWC), sent a letter to Governor Newsom acknowledging his work on water management and infrastructure investment. However, the letter cautions that several ongoing legislative and administrative actions could undermine these efforts and calls for leadership from the Governor and the legislature in 2026 to address these critical issues.
The letter notes that the State Water Project (SWP) serves as a foundational system for water supply, flood control, and green energy generation. It also provides significant environmental and water quality benefits, the costs of which are almost entirely paid for by SWC members and their ratepayers. However, the letter points out that despite the statewide benefits of the SWP, ongoing actions continue to drive up costs and reduce its reliability, ultimately harming all Californians.
The letter outlined several key issues:
- White Sturgeon Petition: A petition submitted to the Fish and Game Commission in November 2023 to list the white sturgeon as threatened or endangered could limit the benefits of key water supply projects, including SWP operations. Even though the SWP’s potential impact on the species is minimal, the California Department of Fish and Wildlife (CDFW) has already required the Department of Water Resources (DWR) to fund the majority of monitoring and science, habitat restoration, and new operational limits, costing the SWP over $10 million. The SWC urges CDFW and the Commission to make a fair, science-based final decision and to ensure any permit conditions are proportionate to the SWP’s actual impact.
- Inconsistent CESA Regulation: The SWP continues to be regulated in a manner inconsistent with the plain language of the California Endangered Species Act (CESA). The SWC is concerned that the connection between SWP operations and required mitigation is not clear and that the best available science is applied inconsistently. This can lead to significant water supply costs, potentially turning a manageable drought year into a drought emergency. The SWC requests that CDFW clearly state the scientific basis for its curtailments and costly mitigation measures, and that mitigation be proportional to the SWP’s effects.
- Bay-Delta Plan Update: The State Water Board began the Bay-Delta Plan update process in 2009. Water agencies subject to the regulation have since developed the Healthy Rivers and Landscapes Program, a workable and legally enforceable plan. The SWC asks that the State Water Board expeditiously adopt the update to the Bay-Delta Plan, including the Healthy Rivers and Landscapes Program.
- SWP Water Rights: A budget trailer bill proposal to establish the SWP’s water rights as perpetual failed to pass, leaving an issue unresolved since 2009. The SWP requires more time to obtain permits to continue its beneficial use of water, but this has been stalled for over 16 years due to a complex, multi-party administrative process established by the State Water Board. The SWC argues that legislation or State Water Board leadership is needed to create a common-sense approach to the administrative hearing process and remove this unnecessary obstacle.
- Subsidence Repair: DWR has urgently highlighted the need for critical repairs to the California Aqueduct due to subsidence. Despite warnings that repairs would cost billions, Proposition 4 included only $75 million for the entire state’s conveyance infrastructure. The SWC strongly urges the 2026 state budget to allocate an ongoing, dedicated funding stream for Aqueduct repairs. This would prevent significant consequences, such as water supply interruptions, and enable the use of federal and ratepayer funds to make repairs both affordable and timely.
Other issues mentioned in the letter include renewable energy costs and the unfunded state’s cost-share of recreation obligations.
The letter concludes by emphasizing that the SWP provides widespread benefits to all Californians, both directly and indirectly, by supporting economic activity, including in disadvantaged areas.
“It doesn’t need to be this way,” the letter states. “We have the opportunity to shape a better future for California. We look forward to working with you and the legislature in 2026 to address these critical issues.”
