COMMITTEE AGENDA MEMORANDUM
Water Supply and Demand Management Committee
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: title
Receive Update on Groundwater Banking Opportunities.
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RECOMMENDATION: Recommendation
Receive update on groundwater banking opportunities.
Body
SUMMARY:
Groundwater banking plays a vital role in managing Valley Water’s excess imported water supplies and providing dry year reliability. Imported Water Unit staff have been working to diversify Valley Water’s banking programs to reduce risks inherent to any singular program and provide additional put and take capacities. Valley Water continues to engage with potential partners across California on groundwater banking opportunities. This update provides the latest progress with Antelope Valley-East Kern Water Agency and Willow Springs Water Bank.
Antelope Valley-East Kern (AVEK)
AVEK and Imported Water Unit staff have developed terms for a water banking and exchange program. The current terms allocate 20,000 acre-feet (AF) of storage capacity in AVEK’s banking facilities to Valley Water over a 10-year period. Valley Water will be able to deliver up to 5,000 AF annually of its State Water Project (SWP) supplies to AVEK for recharge, and 80% of the delivered water will be available for return back to Valley Water during the agreement term. Valley Water’s maximum annual return volume will depend on the final SWP Table A allocation in that year and range from 2,000 AF in a 5% allocation year to 5,000 AF in a 15% or greater allocation year. AVEK will return water to Valley Water by making its SWP supplies available at the Delta or at San Luis Reservoir.
AVEK will assure that their SWP supplies will be available for delivery directly to Valley Water either from the Delta or from San Luis Reservoir. This minimizes concerns regarding potentially limited exchange capacity to withdraw banked water in dry years. In addition, the Antelope Valley groundwater basin is adjudicated, resulting in no SGMA related concerns. The guaranteed return in a 5% allocation year is limited but reliable in future drought years.
There is no upfront payment for Valley Water to participate in the program. For water that is delivered and returned, Valley Water will pay a recharge fee, conveyance costs, and a return fee that is linked to the SWP allocation in the year in which water is returned. In addition to water supply benefits, this program paves the way for future partnership opportunities. AVEK is currently exploring expansion of its banking capacities, and Valley Water and AVEK may look to grow this banking program after the initial term.
Imported Water Unit staff will continue to work with AVEK staff to finalize an agreement and obtain necessary approvals to facilitate the program.
Willow Springs Water Bank (WSWB)
Willow Springs Water Bank (WSWB) is a proposed groundwater banking and conjunctive use project located in the Antelope Valley near Rosamond, CA, within Antelope Valley-East Kern Water Agency’s service territory. The project is managed by CIM group, a private real estate and infrastructure owner and operator. WSWB has a permitted total storage capacity of up to 1 million AF, recharge capacity of 250,000 AF per year, and recovery capacity of 225,000 AF per year. WSWB would take delivery of SWP supplies off the East Branch of the California Aqueduct for recharge, and recovered water would be delivered back to the California Aqueduct and made available to Valley Water through exchange. WSWB is a California Water Storage and Investment Program (WSIP) project and is intended to produce public-benefit functions of ecosystem support and emergency storage capacity.
In June 2026, Imported Water Unit staff updated the Water Supply and Demand Management committee on the ongoing discussion with WSWB staff. Since then, DWR completed an initial turnout study, and Valley Water and CIM group executed a non-binding Memorandum of Interest in August 2026.
Valley Water staff will continue to work with WSWB staff to obtain information, such as conveyance capacity to and from the project, water quality, and operating costs, to evaluate the feasibility of the project for Valley Water.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice impacts associated with this item.
ATTACHMENTS:
Attachment 1: PowerPoint
UNCLASSIFIED MANAGER:
Manager
Vincent Gin, 408-630-2633