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Santa Ana 2020 Urban Water Management Plan <br />arcadis.com <br />6-17 <br />6.3.3 Sustainable Groundwater Management Act <br />In 2014, the State of California adopted the Sustainable Groundwater Management Act (SGMA) to help <br />manage its groundwater sustainably, and limit adverse effects such as significant groundwater-level <br />declines, land subsidence, and water quality degradation. SGMA requires all high- and medium-priority <br />basins, as designated by DWR, be sustainably managed. DWR designated the non-adjudicated Coastal <br />Plain of OC Basin (“Basin 8-1” or “Basin”) as a medium-priority basin, primarily due to heavy reliance on <br />the Basin’s groundwater as a source of water supply. Compliance with SGMA can be achieved in one of <br />two ways: <br />1) A Groundwater Sustainability Agency (GSA) is formed, and a Groundwater Sustainability Plan <br />(GSP) is adopted, or <br />2) Special Act Districts created by statute, such as OCWD, and other agencies may prepare and <br />submit an Alternative to a GSP (City of La Habra et al., 2017) <br />The agencies within Basin 8-1, led by OCWD collaborated to submit an Alternative to a GSP in 2017, <br />titled the “Basin 8-1 Alternative” to meet SGMA compliance. This document will be updated every <br />five years. The current (2017) version is included in Appendix G. <br />6.3.4 Basin Production Percentage <br />Background <br />The OC Basin is not adjudicated and as such, pumping from the OC Basin is managed through a process <br />that uses financial incentives to encourage groundwater producers to pump a sustainable amount of <br />water. The framework for the financial incentives is based on establishing the BPP, the percentage of <br />each Producer’s total water supply that comes from groundwater pumped from the OC Basin. <br />Groundwater production at or below the BPP is assessed the Replenishment Assessment (RA). <br />While there is no legal limit as to how much an agency pumps from the OC Basin, there is a financial <br />disincentive to pump above the BPP. The BPP is set uniformly for all Producers by OCWD on an annual <br />basis. Agencies that pump above the BPP are charged the RA plus the Basin Equity Assessment (BEA). <br />The BEA is presently calculated so that the cost of groundwater production is equivalent to the cost of <br />importing potable water supplies. This approach serves to discourage, but not eliminate, production <br />above the BPP, and the BEA can be increased to discourage production above the BPP if necessary. <br />The BPP is set based on groundwater conditions, availability of imported water supplies, and Basin <br />management objectives. The supplies available for recharge must be estimated for a given year. <br />The supplies of recharge water that are estimated are: 1) Santa Ana River stormflow, 2) Natural incidental <br />recharge, 3) Santa Ana River baseflow, 4) GWRS supplies, and 5) other supplies such as imported water <br />and recycled water purchased for the Alamitos Barrier. The BPP is a major factor in determining the cost <br />of groundwater production from the OC Basin for that year. The BPP set for Water Year 2021-22 is 77%. <br />BPP Adjustments for Basin Management <br />OCWD has established management guidelines that are used to establish future BPPs, as seen in Table <br />6-5. Raising or lowering the BPP allows OCWD to manage the amount of pumping from the basin. OCWD <br />has a policy to manage the groundwater basin within a sustainable range to avoid adverse impacts to the <br />basin. OCWD seeks to maintain some available storage space in the basin to maximize surface water