California’s landmark water infrastructure law, SB 72, sets an ambitious 90 million acre-foot target by 2040, but its chief architect, Senator Anna Caballero, concedes the state has no cost estimate—relying instead on a proposed bond as climate science warns of vanishing snowpack and rising evaporation rates.
At a Friday morning press conference at San Luis Reservoir in Merced County, Senator Anna Caballero, D-Merced, addressed the implementation of her Senate Bill 72, which Governor Gavin Newsom signed into law in October 2025 to modernize the California Water Plan SB 72.
Caballero acknowledged the critical funding gap: “Frankly, we don’t know what the cost will be to meet that goal,” she said, referring to the bill’s mandate for the California Department of Water Resources to develop 90 million acre-feet of water by 2040. “It’s speculative to say it’s a certain amount. Will it be expensive? Yes.” To bridge this gap, she is proposing a general obligation bond to finance the infrastructure updates required by SB 72.
California’s water infrastructure already carries enormous costs. The federal Shasta Dam raise project has secured $2 billion in federal funding through 2034, while the Delta Conveyance Project—a proposed 45-mile tunnel to capture storm runoff—faces operating costs estimated at $20 billion to $50 billion annually according to independent analysis [Delta Conveyance Project].
These costs are driven by a climate crisis that is accelerating water loss. Research from the Scripps Institute of Oceanography shows climate change worsened California wildfires from 1972 to 2018, and NOAA findings indicate that higher temperatures caused 61% of water supply evaporation during the 2020-2022 drought, with reduced rainfall accounting for just 39% [NOAA Study].
Karla Nemeth, director of the California Department of Water Resources, painted a stark picture: “We anticipate, right now, in 2026, that when we go up into the Sierra Nevada and we do our snow survey on April 1, we will have almost no snowpack.” She warned that warming trends will further diminish snowpack by 2040, calling for a shift from emergency drought responses to sustained water efficiency and recycling [SB 72 Implementation].
Fern Steiner, chair of the California Water Commission, echoed this: “Instead of managing for drought and scarcity of supply, the state will work towards the water supply target of 90 million to ensure we have enough water for our communities, industry, agriculture, the environment and every Californian.”
Bipartisan support exists for modernization. Senator Tony Strickland, R-Huntington Beach, stated in an email, “SB 72 helps move us in the right direction by establishing reasonable water supply targets and ensuring the state properly plans for future water needs” [SB 72 Text].
The fundamental challenge is thus: California must invest vast sums to adapt to a hotter, drier future, but the funding blueprint remains undefined. Caballero’s bond proposal will face voters in a state already strained by economic pressures and climate disasters. As Nemeth noted, Californians are weary of perpetual drought emergencies—this bond could determine whether the state achieves water security or faces escalating shortages.
With snowpack declining and evaporation rising, the window for action is narrowing. The cost may be unknown, but the stakes are crystal clear: California’s water destiny hinges on filling this funding void now.
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