What is the Sustainable Groundwater Management (SGM) Grant Program?

The SGM Grant Program is managed by the Division of Regional Assistance in the Department of Water Resources (DWR). We work in consultation with DWR’s Sustainable Groundwater Management Office (SGMO), which oversees implementation of the Sustainable Groundwater Management Act (SGMA) in California.

Our Mission

The mission of the SGM Grant Program is to provide funding to Groundwater Sustainability Agencies (GSAs) and other responsible entities under SGMA to promote healthy and sustainable groundwater basins, to reduce and eliminate undesirable effects, and to promote projects that provide multiple benefits while also improving groundwater supply and quality.

Our Vision

The vision of the SGM Grant Program is to achieve sustainable water balance in California, where GSAs and other responsible entities work cooperatively and innovatively to manage surface and groundwater together in a holistic and integrated manner.

We conduct the following activities to achieve the mission and vision of the SGM Grant Program:

• fund the development and implementation of a Groundwater Sustainability Plan (GSP) or an approved Alternative to a GSP
• fund projects that promote the sustainable use of groundwater
• educate the public on groundwater sources and uses, and ways to sustainably manage and protect it
• provide technical assistance for Underrepresented Communities to identify their risks and needs with respect to SGMA compliance
• research and disseminate information on sustainable groundwater best management practices
• partner with other State agencies, nonprofit organizations, and other interested parties to ensure that public funds are expended on activities and tasks that best suits the groundwater needs in California

As stewards of the public investment, DWR’s role is to verify public funds are being used in the most appropriate manner in accordance with the applicable propositions and General Obligation Bond law, State Budget acts and Executive proclamations, and the funding documents we develop to solicit applications and deliver the funds in compliance with such directives.

Why is Groundwater Important?

Groundwater is a vital resource pumped from underground water wells to supply water in homes, businesses, and farms. Groundwater contributes approximately 38 to 46 percent (or more) towards the statewide annual supply depending on average rainfall years and dry years. Many municipal, agricultural, and disadvantaged communities rely solely on groundwater as their source of water supply needs.

More information on SGMA and the importance of groundwater can be found on the SGMA Groundwater Story Map.

Current Solicitation Information

The Budget Act of 2021 (through Senate Bill 170) has provided $180 million in General Funds for Groundwater Projects.  Of the $180 million in General Funds, $171 million is available for grant awards after program administration costs. These $171 million were split into two distinct eligible project types and locations.

San Joaquin Valley Groundwater Basin Funding

Of the $171 million, $57 million has been marked for projects in groundwater basins within the San Joaquin Valley (SJV) for a) geophysical investigation(s) of groundwater basins to identify recharge potential; b) early implementation of existing regional flood management plans that incorporate groundwater recharge; or c) projects in the SJV that would complement efforts of a local GSP, that provide for floodplain expansion to benefit groundwater recharge or habitat.

SGM Grant Program have identified 19 groundwater basins within the SJV that are also listed as medium or high priority. Those basins are identified within the 2021 Guidelines.

SGMA Implementation Funding

The $114 million in General Funds will be combined with the $71.5 million remaining in Proposition 68 Implementation funds. Of the $71.5 million, $9.5 million is set aside for projects that are located within and benefit Severely Disadvantaged Communities (SDACs). Eligible applicants include 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.  Applicants must be located within medium and high priority basins (including critically overdrafted (COD) basins). Also included are those agencies located within adjudicated basins who adjudicated after January 1, 2015. Funds can be used for revisions, updates and/or modifications to a GSP or approved Alternative to a GSP and for funding projects outlined in those plans. Funding will be awarded in a competitive manner based upon the scoring criteria outlined in the Proposal Solicitation Package (PSP).

More information on eligible applicant(s), eligible activities/tasks, and eligible groundwater basins are found within the 2021 Guidelines and PSP.

This is a dynamic program and changes are occurring often. More information will be provided as it becomes available. We recommend checking this website frequently for any updates.