1. SUSTAINABLE WATER MANAGEMENT: How do we get there? AWRA Summer Specialty Conference July 2014 Gary Bardini, P.E. Deputy Director California Dept of Water Resources

2. California’s Water Crisis How did we get here?

3. California’s Water Management Challenge: A Tale of Two Extremes TOO MUCH Folsom Reservoir, 1976 TOO LITTLE

4. California Precipitation SOURCE: http://education.usgs.gov/california/resources.html#water Variable and extreme over time and location Most precipitation occurs November – March California Statewide Precipitation < 5 in 50+ in ~15 in

5. 5 n Average Annual Runoff ~71 MAF/Year 56 MAF (million acre-feet) (~80%) 15 MAF (~20%) 29 MAF (~66%) 15 MAF (~33%) N Distribution of Average Runoff (major river systems) Distribution of Water Use California Hydrology and Water Use

6. Groundwater Use Groundwater accounts for almost 40% of CA water supply; more than 16M acre-feet

7. Water Year 2014 to Date Third consecutive dry year Statewide unimpaired river runoff: 30% of average (May) All but one major reservoirs below historical average Lake Shasta, Feb 2014 (USGS)

8. Surface Water Storage (June 30)

9. SJ River Region -1.0 to -2.6 maf Tulare Lake Region -3.7 to -8.9 maf Sac River Region -0.7 to -1.7 maf

10. 10 CA Water Plan (1957) Water Management of the Past Focused on Challenges

11. California Water Plan – 3 Themes

12. Integrated Water Management is Part of the Solution Integrated Water Resources Management Definition (Global) A process which promotes the coordinated development and management of water, land and related resources, in order to maximize the resultant economic and social welfare in an equitable manner without compromising the sustainability of vital ecosystems - Global Water Partnership (GWP)

13. Integrated Water Management is Part of the Solution Integrated Water Management Definition (California) Comprehensive and collaborative approach for managing water to concurrently achieve social, environmental, and economic objectives. In the California Water Plan, these objectives are focused toward improving public safety, fostering environmental stewardship, and supporting economic stability. IWM delivers higher value for investments by considering all interests, providing multiple benefits, and working across jurisdictional boundaries at the appropriate geographic scale. – CA DWR, Calif Water Plan Update 2013

14. Defining “Sustainable Water Management” Recent CA Legislative Proposals for Groundwater: Senate Bill 1168  Management of a groundwater basin to provide for multiple long-term benefits without resulting in or aggravating conditions that cause significant economic, social, or environmental impacts such as long-term overdraft, land subsidence, ecosystem degradation, depletions from surface water bodies, and water quality degradation, in order to protect the resource for present and future generations. Assembly Bill 1739  Management and use of groundwater in a manner that can be maintained during the planning and implementation horizon without causing unreasonable adverse environmental, economic, or social consequences through the development, implementation, and updating of plans and programs based on the best available science, monitoring, forecasting, and use of technological resources, as determined by a groundwater sustainability agency.

15. Return on State Investments IRWM Implementation Projects  48 Regional Groups; 87% population  425 projects funded statewide  $577 Million in State grant investments  Leveraged by $2.85 Billion in local (non- State) cost match (Prop 50, Round 1 & 2 Prop 84, Round 1)

16. Benefits of IRWM Investments (claimed) (Prop 50, Round 1 & 2 Prop 84, Round 1) 195,000 ac-ft/yr 1,200,000 ac-ft/yr 55,000 acres 30,000 acres 512,000 ac-ft/yr 200,000 ac-ft/yr

17. Stakeholder Feedback Confirms Value of the Integrated Regional Approach “The greatest value of IRWM is creating more collaboration, integration and extra money to make projects succeed” “…promoting a better understanding of each others’ issues” “Since its beginning, there has been a huge difference in the working relationships among stakeholders” “Promoted cross- boundary, multi- benefit projects” “Supported smaller projects that wouldn’t have happened otherwise” “More towards watershed- wide water resources planning” We’ve made good progress on collaboration… now onto improved cooperation and compromise

18. What’s Needed to Move to Sustainable Water Management? What Water Leaders are saying:  Establish Stable Financing  Improve Alignment at all Levels of Government  Improve Investment in Science  Measure and Track Progress Towards System Resiliency  Improve Planning Tools 18

19. Communicating Value of the Integrated Approach to Customers and Partners

20. Application of IWRM Principles in Reclamation Planning Bureau of Reclamation

21. California Water Action Plan Ten Priority Actions/Objectives: 1. Make conservation a California way of life 2. Increase regional self-reliance and integrated water management across all levels of government 3. Achieve the co-equal goals for the Delta 4. Protect and restore important ecosystems 5. Manage and prepare for dry periods 6. Expand water storage capacity and improve groundwater management 7. Provide safe water for all communities; 8. Increase flood protection; 9. Increase operational and regulatory efficiency; 10. Identify sustainable and integrated financing opportunities.

23. Future Financing Strategies  Need more reliable, predictable diverse mix of finance mechanisms and funding sources to invest in actions with broad public benefits  Desired attributes:  Avoid stranded cost, funding discontinuity  Leverage funding across government agencies  Improve cost effectiveness, efficiency, accountability  Increase certainty of outcomes

24. Proposed Public Investments: Examples of Recent Water Bond Bills ExistingProposed Replacement Water Bonds Historical Finance Categories CA Water Action Plan – Priority Actions SB x7 7 (Cogdill) SB 848 (Wolk) AB 2686 (Perea) Governor Brown Water Reliability 1. Make conservation a California way of life 1.2** ? 2. Increase regional self-reliance and integrated water management across all levels of government 1.4*0 ? 5. Manage and prepare for dry periods 031.5 ? 6. Expand water storage capacity and improve groundwater management 3*4 ? Water Quality and Ecosystem Restoration 4. Protect and restore important ecosystems 1.7853.181.5 ? 7. Provide safe water for all communities 1.5053.021 ? Flood Management 8. Increase flood protection 00.40 ? Delta Management and Operation 3. Achieve the co-equal goals for the Delta 2.250.92.25 ? 9. Increase operational and regulatory efficiency *** ? Sustainable Financing through Integration and Alignment 10. Identify sustainable and integrated financing opportunities 000 ? TOTALS ($ Billions) $ 11.14 $ 10.500 $ 10.25 $ 6.0 Other Proposed Bills: AB 1331 - $8B, AB 2043 - $8B, SB 927 - $9.2B, AB 1445 - $5.8B, SB 1370 - $6.3B, SB 1250 - $9.5B, etc. *Funding provided in other categories ?

25. Financing Framework

26. Iceberg

27. Integrated Water Management Gary Bardini Deputy Director Integrated Water Management California Department of Water Resources For more information: (916) 591-1324 carmel.brown@water.ca.gov http://www.water.ca.gov

28. Extra slides

29. Past Investments: Relative to Current State Priorities