The Board heard feasibility updates on New Seawater Intrusion Project concepts with large storage and pipeline needs and on Castroville intake alternatives relying on Permit 11043 winter flows. Staff clarified no mandatory demand management cutbacks will begin July 1, 2026 and that programs are still being developed. The 180/400 aquifer remains in a Stage 4 severity category.
Staff presented feasibility studies on Salinas River diversion concepts to help address seawater intrusion, noting potentially usable volumes from several thousand to tens of thousands of acre-feet annually depending on diversion size, with major storage likely needed. A project concept was discussed to serve the coastal area between CSIP and Salinas. Staff said the April 30 DWR response will focus on the decision-making process, not final project selection.
The Budget & Finance Committee received financial reports and provided feedback on draft fiscal year 2027 budget assumptions, including a proposal to collect some uncertain future project costs through valley-wide Tier 1 fees that could later be reconciled with Tier 2 fees. With major state grants winding down, previously grant-funded activities may shift to fee-based funding. The committee also reviewed demand management incentive programs recommended for Board consideration.
The Department of Water Resources requested a comprehensive response by April 30, 2026, addressing questions about seawater intrusion management in the critically overdrafted 180/400 subbasin. Participants raised concerns about the $127–168 million annual cost of the Brackish Groundwater Restoration Project and its economic impacts. All remaining subbasins will undergo periodic evaluations by January 2027, with possible GSP amendments.
The committee discussed the upcoming five‑year review of the 2022 Groundwater Sustainability Plan, due January 2027, which will address regulatory requirements and incorporate new monitoring data. Staff noted that project options for the Corral de Tierra area appear limited and costly, so demand management may need to play a primary role. The free water efficiency pilot program has seen very low participation despite outreach efforts.
