California's new groundwater law explained

The landmark Sustainable Groundwater Management Act, or SGMA, requires some of the state's thirstiest areas to form local "Groundwater Sustainability Agencies" and submit long-term plans by Jan. 31 for keeping aquifers healthy.

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For decades, farmers fought the regulation and monitoring of groundwater tooth and nail. Now that it’s here, SGMA has already begun to change the region’s economy and landscape, as some farmers have sold or fallowed land in anticipation of the coming changes.

The Public Policy Institute of California predicts that agricultural interests may have to let 750,000 acres of land go fallow, mostly in parts of the San Joaquin Valley where the most severe over-pumping has occurred.

Farmers may also have to cycle current crops out for those requiring less water. For example, almonds are water-intensive but have been profitable in recent years; those margins would change if water becomes much more expensive than it is now.

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The groundwater plans are built around models for how to share water in a way that’s sustainable by 2040. Each one can be a little different, but local managers and the state have to check up on every single one and meet interim deadlines every five years.

The Department of Water Resources can accept the plans as is or ask for tweaks. DWR can also refer the plans to the state water board for intervention, meaning that local officials may have to try again if the state judges a plan unlikely to succeed. In extreme cases, the state may have to step in to settle disputes over local rights.