PCL’s Capital Insider – June 29 2026

PCL’s Capital Insider for June 29, 2026

El Niño or La Niña – there’s always a flood of water bills in California.

One thing is guaranteed when it comes to water in California – an annual flood of legislation related to this precious public resource. A quick search of the legislature’s information portal,  LegInfo, returns over 600 bills relating to water in 2026 – that means that 1 out of every 7 bills introduced by the legislature deals with water in one way or another. Every year, PCL wades through them all – looking to spot bad bills to oppose and good bills to support, knowing every legislator has an opinion, if not an actual water bill or two.

Some years, PCL sponsors water legislation, including successful efforts in past years to pass bills for water rights reform and modernization (SB 389, AB 460, SB 1205). In most years, we are co-sponsors or key allies with partners on good water bills we advance together. Every year, we work closely with our allies to improve, fix, or kill a whole host of bills – good and bad.

In 2026, we are supporting our coalition partners and allies in their efforts to expand recognition of Native American tribal water rights, strengthen California’s water laws as a backstop against weakening federal protections, restore protections lost during the 2025-secretive budget trailer bill process, and so much more.

One positive bill impacting water, for which PCL is taking the lead in organizing a coalition and building momentum, is the effort to fix the “advanced manufacturing” exemption passed last year under SB 131. We are working hard to pass SB 954, introduced by Senator Blakespear, which is advancing in the Senate. SB 954 would narrow this exemption by restoring protections for natural and protected lands, including coastal areas and wetlands, and excluding from the exemption hazardous land uses like metal shredding facilities that often threaten the health of our coastal ecosystems.

Below are PCL’s priority bills that impact water in California. Three that we are opposing, seven we are supporting, and one we are keeping our eye on.

PCL is Opposing

AB 2026 (Aguiar-Curry) Senate – Comm. On Natural Resources & Water, passed on June 23 and re-referred to the Committee on Environmental Quality. AB 2026 bill attempts to tie flood protection and groundwater recharge, but it has many concerning flaws that could upend both winter flows and water rights. Existing law prohibits substantially diverting or obstructing the natural flow of a river without first notifying the Department of Fish and Wildlife of that activity and entering into an alteration agreement if required by the department to protect fish and wildlife resources. This bill would revise and recast the conditions required for the appropriative water right exemption for the diversion of flood flows for groundwater recharge, would apply those requirements to a diversion commenced at any time, and would further exempt such diversions from CEQA requirements. The bill would expand the definition of “flood flow” for the purposes of this bill to include flows downstream of a dam that is: releasing water for flood control purposes. Many reservoirs release water in the days leading up to storm events to create additional flood control space in the reservoir – would these flows now be up for grabs?

AB 2215 (Calderon) Senate – June 10: Senate – Comm. On Natural Resources & Water – hearing set for July 1st. AB 2215 seeks to extend the water rights permit for the State Water Project through 2046. Last year, DWR filed a permit extension with the State Water Resources Control Board and is currently preparing the associated EIR. This bill attempts to circumvent the existing process, with potential implications for projects like the Delta Conveyance Project that depend on a valid water rights permit.

SB 872 (McNerney) Assembly – Comm. On Water, Parks, and Wildlife – hearing set for June 30th. SB 872 establishes the Delta Levees and Canal Subsidence Fund to address subsidence impacts to the State Water Project. PCL and our allies are concerned regarding the bill’s proposed appropriation of $150 million annually for a period of 20 years to the Department of Water Resources for the purpose of investments in state water conveyance systems that have been operationally impacted by land subsidence. The stated purpose of the bill is to restore the original design capacity, and we provided specific recommendations to amend the text to address our concerns. Finally, we propose adding a new funding stream to support water management actions that promote local self-reliance and reduce reliance on water supplies exported from the Delta. We are hopeful that discussions will bear fruit and PCL can at least go neutral.

PCL is Supporting

SB 954 (Blakespear) Assembly – Passed the Comm. On Natural Resources on June 22nd and Labor and Employment on June 24th, next to Appropriations. SB 954 restores protections for certain waterways, protected-species habitat, and wetlands as a fix to SB 131 (2025). SB 954 also restores critical health and safety guardrails for projects eligible for the “advanced manufacturing” exemption enacted under SB 131, including protections for disadvantaged communities.

SB 601 (Allen) Assembly- Two-year bill, placed on the Appropriations suspense file August 20, 2025. Although it hasn’t moved since last year, discussions around SB 601 continue in earnest. SB 601 seeks to provide state protection to waters that have lost federal protection (i.e., nexus waters), strengthening Porter-Cologne. This supplants the federal rollbacks on waters of the U.S., which were significantly weakened last year following Sackett v. EPA, which held that only “relatively permanent” waters with continuous surfaces are under federal jurisdiction and remain protected by the Clean Water Act.

AB 2218 (Kalra) Senate – Comm. On Natural Resources & Water, passed on June 23 and re-referred to the Committee on Environmental Quality. AB 2218 amends the Government and Water Codes to address violence and mistreatment against Native tribes and support their agency in water policy. It requires the protection of tribal water uses, consultation on water projects, plans, and policies, financial reparations to tribes for violating their water rights, and incorporation of indigenous knowledge to restore and protect ecosystems.

AB 2180 (Ward) Passed Senate Comm. On Local Government on June 10, to the Senate Floor. Proposition 218 Omnibus Implementation Act mandates proportional cost-of-service, specifically water and sewer services. SB 2180 allows for lower water rates for low-volume users (i.e., residential ratepayers versus industrial-scale/ag users).

SB 1085 (Durazo) Assembly – Comm. On Local Government – hearing set for July 1st. SB 1085 mandates that local governments assess and identify water supply availability for large-scale development projects as a general requirement under the water code, replicating what is currently required by CEQA and, as such, covering projects that are exempt from CEQA.

AB 2469 (Papan) Senate – Comm. On Local Government – hearing set for July 1st. AB 2469 requires data center project applicants to provide information on water use and assume infrastructure costs as conditions of project approval, place guardrails on data center siting, and create a new commercial, industrial, and institutional (CII) classification for large consumptive-use facilities. Amended May 22, no longer restricting data centers from being located within the boundaries of overdrafted groundwater basins.

AB 2260 (Connolly) Senate – Passed Comm. On Natural Resources & Water on June 23rd – referred to Committee On Appropriations with the recommendation: To Consent Calendar AB 2260 creates a new category for the acquisition of water rights entitled “small restoration use,” which includes small-scale restoration projects. It does require reporting of water diversions to the board in these registered areas.

PCL is watching

AB 2521 (Papan) Senate – Hearing set for July 1st in Comm. On Natural Resources & Water. AB 2521 would use a backward-looking analysis of the last 30 years of water use in two Central Valley watersheds to project future water supply potential. Sadly, the bill does not call for analyzing climate change impacts and ignores the need to establish river flow standards before determining any future water availability.