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In a pivotal move for California water policy, the State Water Resources Control Board has endorsed the Newsom administration’s voluntary agreement framework as the central strategy for updating how water is managed in the Sacramento-San Joaquin Delta and its tributaries.

This long-anticipated update marks a major shift in the state’s decades-long effort to balance water supply reliability for urban and agricultural users with the ecological needs of California’s most imperiled river systems. The voluntary agreements—formally called the Healthy Rivers and Landscapes program – allow water suppliers to forgo strict, mandated flow requirements in favor of collaborative habitat restoration and water contributions.

The agreements, backed by $1.5 billion in state funding and contributions from water suppliers and federal agencies, aim to restore up to 45,000 acres of habitat and deliver up to 700,000 acre-feet of water in certain years. These commitments are intended to benefit struggling native fish populations, including winter-run Chinook salmon and Delta smelt, while preserving water delivery flexibility for participating agencies.

A High-Stakes Balancing Act

At the heart of this debate is how much water must remain in California’s rivers to support fish and ecosystems, and how much can be exported for urban and agricultural use. On one side are state and federal water contractors, including Westlands Water District and the State Water Contractors, who support the voluntary approach as a more collaborative, science-informed alternative to litigation-prone regulatory mandates.

“The idea that it’s cities versus farms versus fish is a false narrative,” said Allison Febbo, General Manager of Westlands Water District. “We believe we can support ecological systems and maintain reliable water deliveries.”

Opponents, including environmental groups, fishing industry representatives, and Delta communities, remain deeply critical. They argue the voluntary agreements fall short in both water and habitat commitments, lack enforceable accountability, and may serve to justify future diversions, such as those anticipated with the proposed Sites Reservoir or Delta Conveyance Project.

“This is a plan to legalize the status quo, not reverse the ecological collapse of the Delta,” said Jon Rosenfield, Science Director for San Francisco Baykeeper. “Without sufficient flow, habitat restoration alone cannot sustain fish populations.”

A Regulatory Crossroads

The State Water Board’s staff report sets the voluntary agreements as the preferred pathway for updating the Delta’s water quality control plan. If adopted by the five-member board, water users that do not participate in the agreements would be subject to minimum flow requirements. These requirements, proposed under a regulatory alternative, would mandate that 35% to 55% of unimpaired river flows remain in the system – potentially requiring significant cutbacks in diversions.

Eric Oppenheimer, Executive Director of the State Water Resources Control Board, emphasized that while the voluntary agreements offer flexibility, they will remain legally enforceable. He also noted that if, after eight years, the agreements fail to demonstrate sufficient ecological benefit, the board retains the authority to revert to mandatory flow regulations.

“The goal is to achieve measurable ecosystem improvements through a more adaptive and cooperative approach,” Oppenheimer said.

Environmental Oversight and CEQA Controversy

A parallel controversy is unfolding over Gov. Gavin Newsom’s proposal to exempt these plans from the California Environmental Quality Act (CEQA). Though the bill stalled earlier this summer, Newsom signaled an intent to revive it during the remaining legislative session. Environmental groups warn such an exemption would limit transparency and restrict the public’s ability to challenge decisions in court.

“This borders on undemocratic,” said Ashley Overhouse, water policy advisor for Defenders of Wildlife. “The public deserves a say in how these plans affect one of the state’s most important ecosystems.”

Critics also question the effectiveness of relying on previously planned or existing habitat projects, many of which are now being folded into the voluntary agreements. Proponents counter that this early work strengthens the agreements and reflects ongoing progress.

The Path Ahead

California’s Bay-Delta watershed drains roughly 40% of the state and serves as the hub of its water supply system. It is also ground zero for longstanding water conflicts. Despite a 2018 decision to adopt new flow standards for parts of the Lower San Joaquin River, those rules have yet to take effect due to litigation and ongoing negotiations over voluntary agreements.

Now, regulators are proposing updates for the broader watershed, including the Sacramento River and its major tributaries. The board’s formal adoption process, which includes public hearings and a comment period, will determine the path forward.

In a state where water policy is often decided in courtrooms as much as boardrooms, the coming months will test whether voluntary collaboration can deliver where regulation has struggled – and whether California can reconcile its competing demands for water in the face of climate stress and ecosystem collapse.