Findings Reinforce Urgent Need for SB 72 to Ensure Long-Term Water Security for California

A groundbreaking economic analysis conducted by researchers Jay Lund (UC Davis), Josué Medellín-Azuara (UC Merced), and Alvar Escriva-Bou (UC Davis) reveals the staggering costs of inaction regarding California’s ongoing water supply challenges. The study estimates that the state could lose enough water annually to supply up to 9 million households, resulting in economic losses ranging from $3.4 billion to $14.5 billion per year, depending on the severity of the scenario.

The report, titled *Inaction’s Economic Cost for California’s Water Supply Challenges*, builds on previous research indicating that California’s total water supply is projected to decline by 12–25% by 2050, equating to a loss of up to 9 million acre-feet per year—comparable to one or two Lake Shastas. The findings highlight that without coordinated state action, these reductions could lead to the fallowing of up to 3 million acres of farmland, the loss of 67,000 jobs, and long-term damage to California’s agricultural and rural communities.

The research underscores the critical importance of Senate Bill 72, authored by Senator Anna Caballero, which aims to establish the first-ever statewide water supply target and direct California to develop 9 million acre-feet of new water supply by 2040. This bill seeks to unite federal, state, regional, and local partners to better plan, invest, and build toward a more secure, reliable, and sustainable water future.

The study identifies four primary factors contributing to California’s anticipated water supply decline:

1. Groundwater Management:** Implementation of the Sustainable Groundwater Management Act (SGMA) limiting groundwater extraction.

2. Climate Change:** Diminished snowpack reducing natural water storage.

3. Environmental Needs:** Increased water requirements to support ecosystems and combat sea-level rise.

4. Colorado River Reductions:** Decreased allocations affecting Southern California.

“We’ve done the math—and the costs of inaction are high economically and environmentally,” said Dr. Jay Lund, Professor of Civil and Environmental Engineering at UC Davis. “California urgently needs a long-term, statewide strategy to prepare for the growing water challenges ahead.”

While conservation efforts remain vital, the research indicates that they alone are insufficient to address the projected water deficit. New investments in stormwater capture, water recycling, desalination, and storage and conveyance infrastructure are essential.

“California’s water system was designed for a climate that no longer exists,” said Senator Caballero. “SB 72 provides a roadmap to adapt our water strategies and tactics to meet the demands of our changing environment, expanding economy, and growing population.”

“From the local perspective, a statewide strategy to improve California’s water resilience that includes long-term planning and investment will not succeed without measurable outcomes and timelines,” said Paul Cook, General Manager of Irvine Ranch Water District. “SB 72 represents a critical step toward aligning regional efforts with a broader, coordinated vision—ensuring that communities across California are better equipped to address ongoing and future water supply challenges.”

Last year, Senator Caballero authored a similar bill that received unanimous support from the Legislature in both houses but was vetoed by Governor Newsom due to budget concerns. With a better budget year projected and increased pressure from climate-driven wildfires, the coalition is optimistic that SB 72 can garner unanimous legislative support again and secure a signature from Governor Newsom.

Co-sponsors of SB 72 include the California Municipal Utilities Association (CMUA), the California State Association of Counties (CSAC), and the California Council for Environmental and Economic Balance (CCEEB).

To learn more about SB 72, visit the state’s Legislative Bill Information portal. CA Water For All is a statewide effort aimed at educating policymakers on the urgent need for a legislative solution to address California’s ongoing water supply challenges. The initiative focuses on uniting the water community, policymakers, and stakeholders to ensure Californians have a sustainable and reliable water supply for all beneficial uses now and for future generations. To learn more or become a supporter, visit www.CaWaterForAll.com or http://www.CaWaterForAll.com.