Groundwater Funding
Funding Tehama’s Groundwater: What it means for you
Summary:
- ~$19M in State grants since 2016; expiring in 2026.
- A local fee is being developed. This page explains what we know and what’s still being determined.
- NOTE: These are preliminary estimates only. The final amounts have NOT been set.
- A formal fee study is underway, and recommendations are expected in April/May 2026.
- A public hearing is required before any fee is adopted. You will have the right to comment and appeal.
Key Links
Tehama Resources: Tehama GSA | Tehama GSPs | Round 2 Grant Updates
Other Resources: State SGMA Site | SGMA Portal | State Intervention | Other factsheets
Background
Groundwater is essential for supporting our homes, farms, and economy.
Tehama County groundwater basins are experiencing moderate overdraft in some areas, with documented declines in groundwater levels, particularly during the 2020-2022 drought, which caused some domestic wells to go dry. The situation is serious but manageable if we act now.
- For years, State grants paid for nearly all of the costs of managing Tehama’s groundwater. No local cost to landowners
- 2023-2026: $15 million in implementation grants fund monitoring wells, modeling, and recharge studies. Grant expires 2026 [Learn more]
- State law requires a stable local funding source (grants are not a permanent solution)
- A local fee is being developed to continue the work and keep management decisions local and costs as low as possible.
What happens without local funding? State Intervention
If the county fails to establish funding for sustainable groundwater management, the State Water Resources Control Board can take over. [Learn more]
The consequences of State Intervention are significant:
- Much Higher Fees: State fees are typically 5–10× higher than locally designed fees.
- $0 Goes Back Locally: Every dollar collected goes to State administration. None returns to fund local support like recharge projects, water efficiency, or dry well programs.
- Loss of Local Control: Management decisions are made by the State not the locals who understand Tehama’s needs.
- Stricter Rules: State management is more rigid with less flexibility to adapt to Tehama’s specific conditions.
The purpose of developing a local fee is to prevent this outcome
and keep decisions and program dollars in Tehama County.
Proposed Fee Structure
The proposed fee separates two types of costs:
- Administrative/Operations
- Projects & Management Actions (PMAs)
Everyone benefits from sustainable groundwater management, but people who use more water will generally pay more.
While the parcel-based flat fee (for one of the Admin/Ops fee option) is relatively straightforward, the volumetric or water use-based calculations can differ based on several variables.
Hypothetical Scenario and Calculation Example
The following walks through a hypothetical scenario where:
- Both the Admin/Ops fee and the PMA fee are volumetric (water use)-based
- A farmer wants to estimate their total annual fee:
- Small ag (40 acres)
- Olive crops
- In Red Bluff (an overdrafted basin)
The table below shows the total estimated fee ranges depending on the user type. NOTE: The table focuses on fee estimates for those in overdrafted basins — those not in overdrafted basins would only pay the Admin/Ops fee.
How are fees and costs calculated?
The estimated fees were calculated by:
First, estimating the costs for the District to manage groundwater: Administrative/Operations + Projects & Management Actions (see imaged of forecasted budget estimates below)
Then, divide the costs by the fee approach (TBD whether the fees are based by areas, usage, or a combination)
How have these options evolved?
What has your input shaped?
- 110+ Demand management and funding community survey responses
- Stakeholder advisory working group meetings
- Regular public comment at Commission and Board meetings
- Direct outreach to agricultural operators, domestic well owners, and ranchers
What's Next?
Stay Informed. Stay Involved.
Join the email list for updates. Register your well to protect the accuracy of your fee estimate.