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Corning recharge projects risk pause as DWR grant extension stalls
Summary
Staff said a critical DWR grant funding source for Corning may not be extended until July; if DWR does not approve an extension, reimbursements for projects after March could be denied and construction on several recharge projects — including the California Olive Ranch design — may be paused.
Tehama GSA staff warned March 11 that a key Department of Water Resources grant for the Corning subbasin may lapse without a timely extension, which could pause or delay construction on several groundwater recharge projects.
Justin Jensen, deputy director, said the GSA received grant closure letters for some subbasins and that Corning relies on two funding streams, one of which expires at the end of the month. "We cannot get reimbursements for anything that happens after March of this month until they approve an extension in July, if they choose to approve an extension in July," Jensen said.
Staff and consultant Jacques DeRay said nine of the 14 surface‑water connection projects in Corning will likely be finished by the end of March; others — including the California Olive Ranch project, which has completed 100% design and received a US Fish & Wildlife permit — would have construction delayed if the extension is not approved.
Several landowners and Kirkwood Irrigation District representatives told the commission that contract language and outstanding modifications have left some projects stuck in limbo. "We're letting $1,500,000 go back to the state," said Luke Alexander, who identified himself as a landowner in the Kirkwood district, describing projects that were bid but not yet constructed.
Staff said they are working with DWR and the GSA's grant administrator to secure amendments; if extensions are not approved, the GSA will pause projects to avoid unreimbursed expenditures. Where possible, the GSA will complete monitoring and smaller investments that are already within covered grant periods and will notify affected landowners about next steps and potential hold notices.
Commissioners asked for a follow‑up report showing which projects are complete, which are paused and the expected reimbursement exposure if DWR does not amend the grant agreements.
