Sustainable Groundwater Management Grant Program

DWR joined State and local elected officials and the Pajaro Valley Water Management Agency team to celebrate the groundbreaking of the innovative College Lake Integrated Resources Management Project, which received $7.6M in funding from DWR to use treated lake water as an alternative to groundwater for agricultural irrigation to help eliminate overdraft and seawater intrusion. The local disadvantaged community of Watsonville relies on groundwater as the sole drinking water source.
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.
Current Solicitation Information
The Budget Act of 2021 (through Senate Bill 170) provided $180 million in General Funds for SGMA Implementation projects. Of the $180 million in General Funds, $171 million was available for grant awards after program administration costs. In addition, the Budget Act of 2021 allocated $60 million in Fiscal Year (FY) 2022/2023 and $60 million in FY 2023/2024. In July 2022, DWR received the $60 million from the Budget Act of 2022 of which $47 million is available for award after administration costs and a $10 million reservation for small farmer technical assistance. A trailer bill (Assembly Bill 211) provided an additional $56 million in General Funds. Of the $56 million, approximately $47 million is available after administration costs and added funds for the URC TA Program. The remaining $60 million ($57 million after administration costs) is subject to Legislature approval for FY 2023/2024.
Assembly Bill 179 of the Budget Act of 2022 required a minimum of $10 million of the grant funds used towards small farmer technical assistance, which also provided DWR with the authority to award grants or contracts in a non-competitive manner. The 2021 SGMA Implementation Guidelines were amended to add the Budget Act of 2022 information and added the small farmer technical assistance to the original $2 million in URC TA Program funds. The final version of the Amended 2021 Guidelines were approved on April 21, 2023.
SGM Implementation, Round 2 solicitation, for eligible applicants located within eligible high and medium priority groundwater basins, including critically overdrafted basins, closed on December 16, 2022. DWR received 82 applications requesting over $780 million in grant funds. Applications have been reviewed and a final funding list was announced. Round 2 will provide over $187 million from the General Fund and Proposition 68.
SGM Grant Program's SGMA Implementation - Round 2 Final Award List
DWR is providing an additional $4 million in General Funds to the existing Underrepresented Community Technical Assistance Program (URC TA Program) to help identify the needs, risks and vulnerabilities of these communities with respect to SGMA implementation. The URC TA Program started in mid-2021 using $2.5 million in Proposition 68 funds. More information can be found in the “Underrepresented Communities” tab below.
PLEASE NOTE:
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.
Program Schedule and Key Dates | |
---|---|
Milestone or Activity | Tentative Schedule |
Final Award List Posted | September 12, 2023 |
Execute Agreements | November 2023-January 2024 |
- 2021 SGM Grant Program Guidelines - Final (Amended April 2023)
- 2021 SGM Grant Program PSP - Final
- Updated Required Resolution Language (Application Attachment 1)
- Updated Eligibility Criteria Self Certification Form (Application Attachment 2)
- Work Plan/Budget/Schedule: Directions/Template (Application Attachment 3)
- Examples of Scope of Work including tasks and deliverables
- SGM Grant Program Agreement Template
- DWR CEQA Environmental Information Form
- Link to Drought Self-Certification Form to obtain CEQA Exemption per Executive Order N-7-22, Paragraph 13
Contact Us
What's New?
Public Meetings & Applicant Assistance Workshop

The California Grants Portal – your one destination to find all state grant and loan opportunities provided on a first-come or competitive basis. Visit grants.ca.gov to find funding opportunities for you and your community.