Background

The Paso Robles Area Groundwater Authority (PRAGA) was formed in 2025 to help ensure a sustainable future for the Paso Robles Subbasin—our region’s primary source of groundwater. This vital resource supports agriculture, businesses, and homes across the area, but it is under increasing pressure from overuse and drought.

To meet the requirements of California’s Sustainable Groundwater Management Act (SGMA), PRAGA is responsible for implementing a Groundwater Sustainability Plan (GSP). This plan outlines how we will monitor, manage, and protect groundwater supplies over the long term.

Groundwater Sustainability Agencies (GSAs) in the subbasin had previously been coordinating basin-wide activities through a memorandum of agreement (MOA), but the GSAs expressed a desire to coordinate under a single joint powers authority to implement the GSP efficiently including a way to fund basin-wide activities, and formed PRAGA to do so.

The draft Cost of Service Study was developed to determine how to fund the programs and services needed to carry out the GSP, which include:

• Monitoring groundwater levels and quality
• Reducing groundwater demand through voluntary and incentive-based programs
• Improving data collection and transparency
• Ensuring compliance with state regulations

The study proposes a Groundwater Management Charge based on how much groundwater is actually consumed—not just pumped. This approach ensures that those who use more groundwater contribute more to the cost of managing and sustaining it.

Purpose of the Study

The cost of service study provides the basis for:

• Establishing a fair, usage-based fee to fund basin groundwater management activities and programs.
• Ensuring adequate funding to implement the GSP and maintain local control of basin management which avoids the potential for State Water Resources Control Board intervention.
• Supporting programs like well protection, water use monitoring, and demand reduction programs.

Why It Matters

Without adequate funding to implement the GSP, the basin is at risk of intervention by the State, which could take over management of the basin, develop a new plan for the basin, impose fees and require reporting of pumping. The proposed charge program is intended to retain local control by funding the implementation of the GSP and achieving sustainability by the 2040 regulatory deadline.

Notice of First Year Water Use

The proposed 5-year rates are described in the draft cost of service study, and if the charge program passes at a hearing on August 1, 2025, agricultural and commercial groundwater pumpers, and public water supply groundwater pumpers will be charged based on consumptive use (the amount of estimated water that does not return to the groundwater basin).

For agricultural users, the basin contracted with Land IQ to provide consumed water estimates using a satellite-based evapotranspiration (ET) methodology, an industry standard used throughout the State.

Since Land IQ started estimating consumed water in August 2024, the basin will have 10 months of ET data (August 2024 through May 2025). On average, June and July account for approximately 33% of the basin’s water usage. Because June and July data is not available, the first-year charge will be approximately 33% less than a full 12-month period. In future years, the charge will be based on 12 months of ET data, and if irrigation practices are similar next year, agricultural landowners should expect an increase to the charge to account for a full 12 months of ET data.

FAQ

1. Who will be charged?

Agricultural and commercial groundwater pumpers, and public water supply system groundwater pumpers. Rural domestic users (de minimis extractors) will not be charged directly.

2. How is groundwater use measured?

Agricultural: Consumed water estimated using a satellite-based evapotranspiration (ET) methodology that is supplemented by precipitation and land use data.

Commercial: Water use considerations specific to the property in question are used to calculate consumptive use. Consumptive use for wineries, which make up the vast majority of commercial groundwater use, is calculated using data from the California Regional Water Quality Control Board and wine industry expertise

Public Water Supply Systems: Total pumping is converted to consumptive use based on considerations of the type of properties within a system’s service area.

3.  How are rates determined?

Based on a five-year budget projections and proportional to each user’s consumptive groundwater use. The costs associated with Services provided to each type of groundwater user are divided up by the estimated groundwater used.

4. Will the rates change over time?

Yes. In the current rate study, the rates gradually increase from year 1 to year 5 to address the potential reduction in groundwater consumption as demand reduction occurs in the basin.

5. Can I appeal my groundwater use calculation?

Yes. Users can submit a variance form and submit metered data, or other documentation if you believe your usage has been overestimated (form included on the website).

6.  Why is the charge necessary and how will the funds be used?

The charge is necessary to fund the implementation of the GSP and avoid the potential for State Water Resource Control Board intervention and penalties. Funds will support groundwater monitoring, data collection, demand reduction programs, and mitigation for domestic well programs.

7.  When will the charges begin?

If successfully implemented at the August 1, 2025 public hearing, charges will be placed on the tax roll and appear on the 2025-26 property tax bill.

For more information, please see the draft cost of service study linked above.