Sustainable Groundwater Management (SGM) Grant Program’s Proposition 68 Implementation Round 1

The SGM Grant Program’s Implementation grants will utilize funds authorized by Proposition 68 to assist Groundwater Sustainability Agencies (GSAs) implement their Groundwater Sustainability Plans (GSPs). The program will provide financial assistance to GSAs for investments in groundwater recharge and projects that prevent or clean up contamination of a groundwater that serves as a source of drinking water.

Prop 68 authorizes the Legislature to appropriate a total of $240 million to DWR for drought and groundwater investments to achieve regional sustainability. Of this, at least $120 million is for drought and groundwater investments to achieve regional sustainability through investments in groundwater recharge with surface water, stormwater, recycled water, and other conjunctive use projects, and projects to prevent or clean up contamination of groundwater that serves as a source of drinking water (Public Resources Code § 80146(a)). After program delivery and bond issuance costs, at least $103 million will be made available for grant awards broken up into two rounds of grant solicitations. Round 1 will include $26 million for grant awards to critically overdrafted (COD) basins only. $5 million of the $26 million available in Round 1 will be for projects that solely benefit Underrepresented Communities. DWR will solicit proposals to award funding on a competitive basis for tasks and activities that help the basins reach sustainability through investments in groundwater recharge and/or projects that prevent or clean up contamination of a groundwater that serves as a source of drinking water. Eligible projects include those activities associated with the implementation of an adopted GSP or approved Alternative and must also be listed within an adopted GSP or approved Alternative. Eligible applicants for the Round 1 Implementation Grant Solicitation are GSAs; member agencies of GSAs; an entity that represents a GSA(s) which can include public agencies, non-profit organizations, public utilities, Federally recognized Indian Tribes, State Indian Tribes listed on the Native American Heritage Commission’s Tribal Consultation list, or mutual water companies; and agencies with an approved Alternative to a GSP. Those entities representing a GSA(s) must have a letter of support from each GSA they represent. All Round 1 applicants must be within a COD basin with an adopted GSP that has been submitted to DWR for review and deemed complete by DWR or approved Alternative to a GSP. Basins that are adjudicated, in the process of becoming adjudicated, or considered probationary under SGMA by the State Water Resources Control Board at or after the time of application submittal are not eligible to apply for or receive grant funding. The project area and service area must be within the most current DWR Bulletin 118 basin or a non-adjudicated portion of a basin that is designated as COD by the latest SGMA Basin Prioritization at the time of application submittal. Only one application will be accepted per basin. Applicants who apply on behalf of a GSA(s) are required to obtain and submit a letter of support from each GSA they represent. The application process, application review process, schedule, program preferences, and definitions are outlined within the PSP. Applicants will apply through DWRs GRanTs portal and must follow the requirements established in the PSP. We recommend interested parties to review the 2019 SGM Grant Program Guidelines and the 2020 Implementation PSP for all details. They can be found on our website at: www.water.ca.gov/sgmgrants