The U.S. Department of the Interior has awarded the San Diego County Water Authority $19.4 million for permanent upgrades to the seawater intake at the Claude “Bud” Lewis Carlsbad Desalination Plant through the Bipartisan Infrastructure Law.

“Securing federal funding is part of the Water Authority’s long-term strategy. Maintaining critical infrastructure ensures the continued delivery of safe and reliable water supplies while minimizing the financial impact to our ratepayers.”

Water Authority Board Chair Mel Katz

In total, Interior announced $142 million in grants for large-scale water recycling and desalination projects that will create additional water supply, increasing resilience and water security across the West. Another local project – the City of Oceanside’s Mission Basin Groundwater Purification Facility Well Expansion and Brine Minimization – was awarded $5.3 million.

“We must use every tool that works to develop water sources that build resiliency throughout the West,” said Bureau of Reclamation Commissioner Camille Calimlim Touton. “This funding through Reclamation’s water recycling and desalination construction programs enables partners to develop new water supplies through treatment of water that can be a part of the water supply portfolio.”

U.S. Rep. Mike Levin praised the $32.2 million in federal funding for three critical water desalination projects in north San Diego County and south Orange County. “I am thrilled that our region will receive this critical funding to support our water infrastructure,” said Levin. “In the face of threats from climate change, these projects are essential for ensuring a sustainable and resilient water supply for our communities. By investing in innovative solutions like groundwater purification and desalination, we are taking significant steps toward protecting our water resources for future generations.”

The Carlsbad desal project will enhance current operations by improving the existing seawater intake system to secure local reliable water supply for the region. The plant’s original intake structure that supported power generation is being decommissioned, and intake upgrades will support permanent stand-alone operation at the plant.

Federal funds will be used to modify the initial intake and discharge operations, along with construction of a new screening structure to protect sea life. The project will provide for environmental enhancements and continue to reduce the region’s demand for imported water from the Sacramento-San Joaquin Bay-Delta and the Colorado River.

The Carlsbad desalination plant started operations in December 2015 and has produced well over 100 billion gallons of high-quality drinking water for the region. It is an important piece of the San Diego region’s long-term investment in sustainable water supplies. Due to that investment and others, the region has sufficient water for 2024 and the foreseeable future.

Today the San Diego County Water Authority announced that the region has plenty of water to meet demands in water year 2025 regardless of the weather, thanks to regional investments in water reliability and two consecutive wet winters.

A water year is a 12-month period that extends from October 1 to September 30. Hydrologists chose October as the start of the water year because total annual precipitation reflects winter snow accumulation and summer rainfall. Precipitation that falls during a water year indicates how much water will contribute to stream flow and groundwater.

“San Diego County’s water supply remains stable and reliable to support our region’s people, economy, and quality of life,” said Water Authority Board Chair Nick Serrano, whose two-year term as chair starts today. “As we move forward, I am committed to preserving this stability and reliability while keeping water prices affordable for all. Our focus will be on ensuring that every household and business in the region benefits from a secure, sustainable, and affordable water supply.”

Despite two abundant water years in a row, a changing climate and years of drought on the Colorado River continue to impact the San Diego region and the West. These hotter and drier conditions stress water supplies. Over the past three decades, the Water Authority and its member agencies have been ahead of the curve by investing in supply reliability.

“San Diego County’s water supply remains stable and reliable to support our region’s people, economy, and quality of life.”

Nick Serrano, Chair, San Diego County Water Authority Board of Directors

Those investments include maintaining and upgrading water infrastructure, participating in the nation’s largest water conservation and transfer project, and building the nation’s largest seawater desalination plant in Carlsbad — all of which have paid off during dry times.

“The investments we’ve made are a down payment on a sustainable water future for our region,” said Water Authority General Manager Dan Denham. “We’re proud of the work we’ve done to ensure water reliability, not just today but in the years to come.”

As La Niña conditions are expected to replace El Niño conditions, the San Diego region remains prepared for the ongoing climate whiplash. During La Niña conditions, California residents can expect drier winters with reduced rainfall and snowfall, which could exacerbate drought and wildfire conditions. The latest outlook from NOAA’s Climate Predication Center shows a 71 percent chance of La Niña conditions emerging this fall. Seven of the 10 La Niña events this century resulted in dry years, according to California’s Department of Water Resources. However, research also suggests that as the climate grows hotter and drier, precipitation California receives will arrive in stronger storms, increasing the risk from flooding.

On the Colorado River, the Water Authority has worked collaboratively with other California water agencies as well as Arizona and Nevada on a Lower Basin voluntary conservation program. That program is intended to help stabilize water levels in Lake Powell and Lake Mead, which California depends on for its river supplies, through 2026.

The conservation effort exceeded 1.8 million acre-feet in water year 2024, maintaining Lake Mead storage at more than 8 million acre-feet, roughly the same storage volume as a year ago. Under the Bureau of Reclamation’s anticipated river operations for 2025, California will not face mandated supply reductions. Additional voluntary system conservation is expected in water year 2025 to support the river, but that won’t impact the amount of water available for San Diego County.

(An acre-foot is approximately 325,900 gallons, or enough water to meet the annual needs of 2.5 typical single-family households.)

Meanwhile, in Northern California, Lake Oroville and San Luis Reservoir – two key State Water Project reservoirs – have 3.2 million acre-feet in storage. Statewide reservoir storage at the end of August was 115% of average.

Meanwhile, in Northern California, Lake Oroville and San Luis Reservoir – two key State Water Project reservoirs – have 3.2 million acre-feet in storage. Statewide reservoir storage at the end of August was 115% of average.

In the San Diego region, water users will benefit from the supply reliability associated with ongoing operations at the Carlsbad desalination plant and water transfers of conserved agricultural supplies. Additionally, at the end of August 2024, member agency local surface water storage was roughly 287,000 acre-feet (129% of the historical 10-year average), and the Water Authority had approximately 89,000 acre-feet available in combined emergency and carryover storage to protect the region against drought or emergencies like an earthquake that could disrupt water imports.

For information on water-efficiency programs and rebates go here.

New officers for the San Diego County Water Authority’s Board of Directors were elected today, with Nick Serrano from the City of San Diego set to start a two-year term as Board chair on October 1.

Serrano, 34, has served as vice chair of the Board for the past two years as a representative of the City of San Diego. He was unanimously elected as Chair today and will serve with incoming Vice Chair Frank Hilliker from the Lakeside Water District, and incoming Secretary Joy Lyndes from the San Dieguito Water District.

Serrano will be the 28th board chair since the Water Authority’s founding in 1944 and the first openly LGBTQ+ and youngest chair in the Board’s history. He follows Mel Katz, representing the City of Del Mar, who has served as a Board member since 2018 and as chair since 2022. Katz’s term as chair ends on September 30.

“Chair Katz has served this Board and this region with distinction, laying a foundation that we will continue to build on for many years. As Chair, my pledge is to continue my unwavering focus on ensuring safe, clean, and affordable water for the ratepayers of San Diego, and to bring new, innovative solutions to the table in order to maintain affordability so that every San Diegan has a secure water future.”

Nick Serrano, incoming Board Chair, San Diego County Water Authority

A Board member since 2021, Serrano has been a member of the Water Authority’s committees for Imported Water, Legislation & Public Outreach, and the Colorado River Strategy Work Group.

A lifelong public servant, Serrano currently serves as Deputy Chief of Staff for San Diego Mayor Todd Gloria. He is a native San Diegan, SDSU graduate, and the proud son of a San Diego Police officer and longtime County of San Diego employee.

On October 1, Frank Hilliker will take on his new role as vice chair. He currently serves as chair of the Finance Planning Work Group and sits on the Legislation & Public Outreach Committee, Administrative & Finance Committee, Colorado River Strategy Work Group, Labor Contract Work Group, and Board Governance Work Group. Hilliker joined the Water Authority Board in 2007 representing the Lakeside Water District and is among the longest-serving Board members. He is the past chairman of the Lakeside Chamber of Commerce and president of Hilliker’s Ranch Fresh Eggs, Inc.

Incoming Board secretary Joy Lyndes currently serves on the Legislation & Public Outreach and Water Planning & Environmental committees. The Encinitas City Councilmember was appointed to the Board in December 2022 and is a Board member of the San Dieguito Water District. She is a licensed landscape architect and a Fellow of the American Society of Landscape Architects.

The Water Authority’s 35-member board, representing 23 retail member water agencies, holds its regular meetings on the fourth Thursday of each month January through October. The November and December meetings are combined, and this year that meeting is November 21. Board documents and webcasts of Board meetings are at www.sdcwa.org/board-directors.

Federal grant funds, an innovative water transfer, and operating budget cuts helped minimize wholesale water rate increases for 2025 despite long-lasting inflationary forces and climate impacts that are pushing prices higher.

The San Diego County Water Authority’s Board of Directors today approved a total increase of 14% in wholesale water rates for next year, while directing a one-year delay on a $7 million capital project and $2 million in additional cuts to the agency’s operating budget. That rate combines the Board-approved increase in June that covered rising prices from the Metropolitan Water District of Southern California with an additional increase to pay for other water supplies, along with financial and infrastructure needs.

During a months-long public process that included two public hearings, the Water Authority cut initial rate increase projections in half. That work included a decision by the Board to apply approximately $19.4 million in new federal grant money to lower 2025 rates. In addition, a new pilot program allows retail water agencies to trim about 1.5 percentage points from next year’s bill by prepaying fixed costs. For participating agencies, this will reduce the 2025 effective rate increase from 14% to 12.5%.

Every customer will feel the impact differently, based on their water use and how local retail water agencies handle costs.

“We realize cost increases are hard to swallow, and we are doing everything possible to combat rate inflation now and in the future. Our efforts include cutting expenses, deferring projects and purchases, selling surplus water, and seeking additional grant funds to boost income.”

Dan Denham, Water Authority General Manager

The 2025 rates are driven by passthrough costs that increase Water Authority rates 11% before accounting for internal factors. Passthroughs include the cost of water from all sources: Metropolitan, the Claude “Bud” Lewis Carlsbad Desalination Plant, and conserved water from the Colorado River. In addition, prices are driven by higher costs for inputs and the impacts of two member agencies detaching from the Water Authority. The detachment of the Fallbrook and Rainbow districts means millions of dollars in costs must be spread to other water districts in the Water Authority’s service area.

Internal factors account for a 3% increase in wholesale water rates, needed to meet debt obligations bound by legal covenants and adequately maintain the 308-mile system of critical pipes, pumps and facilities delivering reliable water to more than 3 million San Diegans. To mitigate rate increases, the Water Authority had previously cut 2% from its fiscal years 2024 and 2025 operating departments budget previously approved by the Board – a figure that will increase by $2 million in response to today’s Board direction. The operating departments include all staff and account for just 7% of the agency’s overall budget. More than 90% of the budget is for debt, water purchases and treatment, and infrastructure maintenance.

In December, the Water Authority saved $20 million with an innovative water transfer with the Metropolitan Water District of Southern California and the Imperial Irrigation District, contributing to a 3% reduction in 2025 rates. The Water Authority continues to pursue similar, new strategies to alleviate costs to ratepayers in the future.

From 2019 to 2023 the Water Authority spent $201 million in reserves, including more than $90 million in settlement dollars, to provide ratepayer relief during the COVID-19 pandemic, stubbornly high unemployment, and skyrocketing inflation. With the use of additional reserves in 2025, the Water Authority’s Rate Stabilization Fund is anticipated to fall nearly $30 million below Board policy.

For the past decade, San Diego County has been protected from drought-induced water cutbacks due to approximately $3 billion in long-term investments in water security. That strategy emerged in the early 1990s following an economically devastating drought. In addition, the region dramatically cut water demand, reducing per capita water use by more than 50% since 1990.

As a public water agency, the Water Authority doesn’t have stockholders or profits; it is required by law to set rates at the cost of service. Detailed information about rates starts on page 5 of the July Board memo.

The San Diego County Water Authority’s Board of Directors today approved an increase of approximately 4% in wholesale rates for 2025 and plans to assess the need for additional increases after a public hearing in July.

The approved increase was designed to cover passthrough costs from the Metropolitan Water District of Southern California that start accruing on July 1, 2024. In addition, the Board approved a pilot program that allows retail water agencies to trim about 1.5 percentage points from next year’s bill by prepaying fixed costs.

At its July 25 meeting, the Board plans to consider rate increases to support the continued maintenance and operations of the regional water treatment and delivery system, along with the Water Authority’s financial stability.

Consecutive wet winters combined with regional investments and conservation by residents and businesses mean that San Diego County has enough water to meet the region’s needs for 2024 and the foreseeable future. That’s good news for the region’s economy, which runs on water.

The California Department of Water Resources performed its fourth snowpack survey of the year today, confirming that the early winter’s “snow drought” gave way to a slightly above normal snowpack following a series of storms. DWR’s early April survey marks what is considered the peak snowpack for the year in the Sierra Nevada. The Colorado River Basin – the main source of water for San Diego County – also reports more snow than average for this time of year.

“Wet years are the right time to prepare for the inevitable dry years. That’s why we’re working every day to explore creative deals that help us reduce water rate pressures for San Diegans, enhance our long-term water security, and help our neighbors meet their needs for drought-resilient water supplies.”

Dan Denham, Water Authority General Manager

Across California, reservoirs are nearly full at the start of the heaviest water-use months – a rare occurrence in the arid Southwest where wild swings in precipitation are common from one year to the next. From 2020 to 2022, the state suffered severe drought conditions that forced water-use reductions for millions of residents.

For the past decade, however, San Diego County has been insulated from drought-induced cutbacks due to long-term investments in secure water supplies, a strategy that emerged in the early 1990s following an economically devastating drought. In addition, the region has dramatically cut water demand, reducing per capita water use by more than 50 percent since 1990.

Today, the Water Authority is working to sell or transfer some of its surplus water supply to areas with greater needs, and to maintain the viability of the Colorado River as the most critical water resource for the Southwest. A deal completed in late 2023 saved the San Diego region about $20 million, and a separate effort launched this year is under development.

“We are in a new era in water management for San Diego County, an era marked by collaboration, creativity and efficiency,” Denham said. “The Water Authority is leading the way with strategic alliances that create multiple benefits for San Diego County and the larger region.”

May 29, 2024 – The San Diego County Water Authority has launched a complex three-year construction project to upgrade the historic First Aqueduct and ensure continued delivery of safe and reliable water supplies for the region. The project, known as the Southern First Aqueduct Facilities Improvement Project, is expected to run through summer 2026 and retrofit 99 structures connected to two massive water pipelines. 

The $66 million effort is funded by water bills across the region as part of the Water Authority’s Capital Improvement Program. That investment supports one of the most extensive renovation projects in the Water Authority’s 80-year history. It is designed to reduce the long-term cost of system maintenance by making upgrades before failures occur and cause costly urgent repairs or leave communities without reliable water supplies.

“This project is a critical investment for our region. It’s part of our robust and continual maintenance of the water delivery system to ensure that we keep a reliable and safe water supply flowing to our member agencies countywide.”

— Tish Berge, Chief Operating Officer

Pipeline 1 of the historic First Aqueduct was constructed in the 1940s and Pipeline 2 was built in the 1950s. On November 28, 1947, the first Colorado River water flowed south from Riverside County for 71 miles into the City of San Diego’s San Vicente Reservoir via the First Aqueduct.

Since then, the Water Authority’s delivery system has reliably transported up to 120 million gallons of water per day across the San Diego region. However, the infrastructure requires ongoing rehabilitation, maintenance, and upgrades to extend its life by decades. Work on the Southern First Aqueduct will span 21 miles in Escondido, Rancho Bernardo, Poway and portions of unincorporated San Diego County.

The Water Authority and its member agencies coordinate construction activities to minimize impacts to residents and businesses, and to ensure continued water deliveries. Residents who have questions or concerns about deliveries should contact their local water supplier, while questions about the project should be directed to the Water Authority at FirstAqueduct@sdcwa.org.

The Water Authority is hosting a community open house on the project on Wednesday, June 5, from 5-7 p.m. at the Mickey Cafagna Community Center’s Oak Hall East at 13094 Civic Center Drive in Poway. The meeting will focus on information specific to the Poway section of the project. Additional presentations will be scheduled as work advances into other communities.

For more information about the Southern First Aqueduct Facilities Improvement Project, visit www.sdcwa.org/first-aqueduct.

The San Diego County Water Authority today released the following statement supporting efforts by the State Water Resources Control Board to enhance water-use efficiency through draft of regulations known as “Making Conservation a California Way of Life.”

“The San Diego County Water Authority appreciates the State Board’s efforts to balance complex interests while continuing to make conservation a way of life. The board’s draft regulations issued last week are a step in the right direction. The regulations remain ambitious and set aggressive standards for water stewardship. At the same time, the current proposal includes a more feasible timeline and a more cost-effective approach for water suppliers – and ultimately the residents and businesses – who will both implement and pay for the regulation. Water affordability continues to be a top priority for water suppliers across the state as they balance low water sales with the rising costs required to deliver a safe, reliable water supply.

“In San Diego County, we have invested heavily in water-use efficiency, and per capita water use today is 50% below 1990 levels. While water use fluctuates with the weather, our region has a proven, decades-long trend of lower and lower water use that shows a sustained commitment to conservation as a foundational piece of our water reliability portfolio.”

— Dan Denham, general manager of the San Diego County Water Authority

The San Diego County Water Authority and the Moulton Niguel Water District are exploring a potential transfer of drought-resilient water supplies to South Orange County, according to a Memorandum of Understanding signed by both agencies.

The MOU creates a three-year window for discussions expected to center on the Water Authority transferring water – including supplies from the Claude “Bud” Lewis Carlsbad Desalination Plant – to Moulton Niguel. The district serves more than 170,000 customers from Laguna Niguel to San Juan Capistrano. How and when that could happen will be the subject of talks between agency leaders.

This marks the second time in recent months the Water Authority has considered a water deal to combat increasing water rates for San Diegans while providing greater supply reliability for the broader Southern California region. A similar transaction was completed in December with the Metropolitan Water District of Southern California and the Imperial Irrigation District. That agreement is saving the Water Authority between $15 million and $20 million while helping to raise the level of Lake Mead.

“The San Diego region’s investments in water supply reliability are being used to protect local ratepayers from rising costs while offering solutions that benefit the entire Southwest,” said Water Authority Board Chair Mel Katz. “We appreciate Moulton Niguel’s vision to explore this concept and we look forward to fashioning a mutually beneficial agreement.”

Moulton Niguel’s 2020 Long -Range Water Reliability Plan and Water Reliability Policy prioritize the development and phased addition of new water supplies to sustain its service area during droughts, which have hit California with increasing frequency over the past three decades.

“Our Board is committed to making cost-effective investments to enhance water supplies that benefit our service area in dry years, and a potential partnership with the Water Authority is another piece of that plan. In the era of climate extremes, it’s in everyone’s best interest to find partnerships that maintain our economy and quality of life,” said Moulton Niguel Board President Duane D. Cave.

Over the past 20 years, the Water Authority has developed a nationally recognized portfolio of drought-resilient water supplies, including the nation’s largest seawater desalination plant in Carlsbad. Completed in 2015, the facility produces up to 56,000 acre-feet of water a year, meeting about 10% of the region’s water demand.

At the same time, the San Diego region’s per capita water use has dropped by more than 50%, allowing the Water Authority to collaborate with other water providers on solutions to climate-induced supply challenges.