West Basin backs acceleration of California climate bond funds as federal support stalls

West Basin backs acceleration of California climate bond funds as federal support stallsThe district is supporting legislation to bypass regulatory delays for Proposition 4 funding, citing a 50 percent cut to federal Title XVI grants and delays in executing agreements for key recycled water infrastructure.

The Water Policy & Legislation Committee recommended supporting AB 35 to exempt the $10 billion Proposition 4 bond from the Administrative Procedure Act, avoiding an estimated 12–18 month rulemaking delay.

Federal updates revealed a 50 percent cut to Title XVI water recycling grants and a 72 percent cut to WaterSMART programs in the recent spending minibus.

The Harbor South Bay recycled water project agreement has stalled at the U.S. Army Corps of Engineers South Pacific Division, delaying design and construction.

Recycled water demand in the West Basin service area rose 15 percent in Fiscal Year 2025 to 25,172 acre-feet, the highest level since 2021.

The West Basin Municipal Water District (WBMWD) is moving to accelerate access to state funding for water reuse projects as federal support faces reductions and administrative delays. On January 14, the district’s Water Policy & Legislation Committee recommended supporting California Assembly Bill 35 (AB 35), which seeks to exempt the $10 billion Proposition 4 climate bond from the Administrative Procedure Act (APA). Staff informed the committee that the standard APA rulemaking process typically requires 12 to 18 months to complete, potentially delaying the release of $3.8 billion allocated for water resilience in the bond approved by voters in November 2024. A policy analyst for the district stated that the exemption is necessary to address "pressing issues" like water recycling and wildfire prevention that require immediate funding. The bill, authored by Assembly Member David Alvarez, mirrors exemptions granted to previous state bonds, including Propositions 84, 1, and 68. The push for expedited state liquidity coincides with headwinds at the federal level. During a legislative update, staff reported that the recent federal "minibus" spending package included significant cuts to key water infrastructure programs. Specifically, funding for the Title XVI water recycling grant program was cut by 50 percent, while the WaterSMART program saw a 72 percent reduction compared to previous levels. Staff noted that this slowdown in federal funding makes the implementation of Proposition 4 "even more important" for California water agencies. Additionally, specific WBMWD infrastructure projects are facing federal bureaucratic hurdles. The district's Manager of Water Policy reported that the Harbor South Bay project—a recycled water pipeline initiative for the cities of Gardena and Carson—has "stalled" at the U.S. Army Corps of Engineers. While the project cleared the Corps' Los Angeles District review, progress slowed significantly upon reaching the South Pacific Division. The Corps has faced a mixed track record with pipeline approvals in recent years, often grappling with legal challenges and mandates for fuller environmental reviews that can complicate project timelines. Staff noted that despite securing nearly $5 million in federal funding support from the local delegation, the agreement required to proceed to design and construction remains unsigned. These funding constraints come as demand for alternative water supplies rises within the district. According to the Fiscal Year 2024-25 Annual Water Use Report presented at the meeting, recycled water use in the service area increased by 15 percent year-over-year to 25,172 acre-feet, the highest level since 2021. Concurrently, groundwater production reached a ten-year high of 34,003 acre-feet, reducing the region's reliance on imported water.