California Water Views

On February 25, 2026, Governor Gavin Newsom launched the California Water Plan 2028, initiating a comprehensive, multi-year effort to modernize the State's water planning framework. Dubbed the “most ambitious water plan in California history,” the initiative arrives at a critical juncture as the State continues to grapple with extreme hydrological whiplash—swinging from historic droughts to record-breaking atmospheric rivers.

For water agencies, agricultural stakeholders, and local municipalities, the launch marks a significant shift in California’s water regulatory landscape. Most notably, the rollout begins the implementation of Senate Bill 72 (Caballero, 2025) (“SB 72”), which recently established California’s first-ever statutorily mandated statewide water supply target: 9 million acre-feet of additional water supply by 2040.

I. The Core Mandate: SB 72 and the 9 Million Acre-Foot Target

Historically, the California Water Plan—updated every five years by the Department of Water Resources (“DWR”)—has served primarily as a broad policy document. The passage of SB 72 fundamentally altered that trajectory by infusing the plan with strict accountability measures and quantitative goals.

The interim target of 9 million acre-feet by 2040 is intended to offset the projected supply gap caused by climate-driven snowpack loss and intensified droughts. The target will act as a shared benchmark for the state, driving future investments, grants, and regulatory actions across four primary pillars:

• Water supply augmentation
• Water conservation
• Groundwater recharge
• Enhanced surface and groundwater storage

II. The Three Main Workstreams

According to DWR, the development of the 2028 Water Plan will be channeled through three primary workstreams, each with distinct regulatory and operational implications for local agencies:

1. Data for Water Use and Supply Balances: DWR will collect rigorous statewide and watershed-scale datasets. This effort will leverage new technologies and standardized statewide planning models to better track how water is used and stored. Stakeholders should anticipate heightened reporting expectations and the potential integration of new data standards into future water rights administration.
2. Targets for Long-Term Water Supply: The state aims to create credible, localized supply targets. This will require aligning regional goals with the State’s 2022 Water Supply Strategy and the Sustainable Groundwater Management Act (“SGMA”). For Groundwater Sustainability Agencies, this means the upcoming Water Plan could directly intersect with long-term SGMA compliance and groundwater allocation strategies.
3. Actions for Adaptation and Implementation: DWR will focus on place-specific strategies, heavily emphasizing nature-based solutions and cost-benefit analyses to close supply-demand gaps. Local agencies seeking state funding for infrastructure projects will likely need to ensure their projects align closely with these state-identified adaptation strategies.

III. Stakeholder Engagement and the Road Ahead

To shape the workplan for both the 2028 and 2033 updates, DWR is convening a new Advisory Committee reflecting a broad spectrum of urban and agricultural water suppliers, tribal representatives, environmental justice advocates, local governments, and business interests.

The California Water Commission will also play a formal, ongoing advisory role. The Advisory Committee is scheduled to hold its inaugural meeting in April 2026, providing an immediate opportunity for stakeholders to engage. DWR has also launched a central project hub website to track milestones and meeting schedules.

The transition of the California Water Plan from a high-level policy document to an “action-oriented blueprint” with rigid supply targets will have a profound cascading effect on local water planning. Nossaman’s Water and Government Relations & Regulation Groups will continue to monitor the rollout of the California Water Plan 2028 and the activities of the DWR Advisory Committee. If you have questions about how these new statewide targets may impact your agency’s water supply portfolio, SGMA compliance, or infrastructure funding opportunities, please contact our team.