Latest in Paso Robles Groundwater Basin war: Drop tax on small users

April 5, 2025

By KAREN VELIE

As part of a more than decade-long war over control of the Paso Robles Groundwater Basin, one of the partners in a newly formed joint powers authority now says it no longer wants to charge small residential water users.

A  group of people has fought for years to require landowners over the Paso Robles water basin to pay a fee for water usage. Officials from San Luis Obispo County, the City of Paso Robles, the Shandon-San Juan Water District and the Estrella-El Pomar-Creston Water District recently voted to create a joint powers authority to provide the power to levy taxes on those above the basin.

The basin was previously managed under a memorandum of agreement. One of the members, San Miguel Community Services District, voted not to participate in the new agency, meaning the property owners it serves will not be taxed or regulated by the new joint powers authority. Its board members were concerned with the unspecified costs tied to the new agency.

In 2016, nearly 80% of property owners above the basin voted against the creation of a new water district and its affiliated fees after opponents went door to door explaining the issues.

Even so, large agricultural businesses continued their pursuit of fees on residential properties and control of the basin, which included creating the Shandon-San Juan Water and the Estrella-El Pomar-Creston Water districts.

Approximately 9% of those over the basin are large corporate landowners who use 90% of the basin water. The goal of the joint powers authority was to have corporate landowners pay larger fees while charging a tax on everyone in rural areas with wells over the basin, including small residential properties.

After the SLO County Board of Supervisors and the Paso Robles City Council voted for the new joint powers authority, opponents of the authority began putting together a plan to question the legality of the formation of the Shandon-San Juan Water and the Estrella-El Pomar-Creston Water districts, and to stop the proposed fees for the joint powers authority through a 218 vote.

Proposition 218 was passed to ensure that property owners have an opportunity to vote on all new taxes.

Both of the water districts announced plans to restructure the joint powers authority, including no longer charging the small residential users.

“On April 2, the Estrella-El Pomar-Creston Water District (EPCWD) Board of Directors adopted a policy position opposing groundwater extraction fees for de minimis water users in the Paso Robles Groundwater Basin, according to a press release. “The vote took place as part of a broader discussion on recommendations to the Paso Robles Area Groundwater Authority regarding a rate study, which is set to be reviewed at the Authority’s April 7 meeting.

“The EPCWD Board maintains that de minimis users — defined as those extracting two acre-feet or less of groundwater annually — should not be subject to financial assessments that could impose undue burdens on local residents.

“‘Since agriculture is the largest consumer of groundwater in the region, it makes sense that larger users should play a key role in funding sustainable water management,’” said Dana Merrill, EPCWD Board President. “’Landowners who use minimal amounts of groundwater should not have to shoulder extraction fees. We believe a balanced approach that considers the impact of all users is the best path forward for long-term basin sustainability.’

“As a participating agency in the Paso Robles Area Groundwater Authority, EPCWD collaborates on the implementation of the region’s Groundwater Sustainability Plan under the Sustainable  Groundwater Management Act (SGMA). The Authority is considering funding mechanisms to support basin sustainability efforts, including potential groundwater extraction fees.

“Groundwater fees have been a topic of debate within the community, with concerns raised  about their financial impact and fairness. The EPCWD Board’s recent vote reflects its commitment to advocating for policies that balance effective groundwater management with economic equity for local residents.

“The Paso Robles Area Groundwater Authority will hold a public meeting on April 7 at 4 p.m. at the Paso Robles City Council Chambers (1000 Spring Street) to further discuss groundwater policies and potential fee structures. The EPCWD will support rate structures that align with its stance on protecting de minimis users while ensuring broader compliance with SGMA regulations.”

However, changing the structure of the joint powers authority, which was approved by the boards of the four member agency based on a plan to tax de minimis users, may require more than just a vote of its recently selected board members. The group currently waiting on the competition of a rate study needed before conducting a 218 vote.