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Decades of groundwater overuse in the Pajaro Valley have contributed to an estimated groundwater overdraft of 12,100 acre-feet per year (AFY) in the basin. In response, the Pajaro Valley Water Management Agency adopted a pilot groundwater recharge program, called Recharge Net Metering (ReNeM). ReNeM encourages development of infiltration projects on private or public land by offering a rebate on groundwater pumping fees based on the net increase in infiltration. The rebate uses the following equation: Rebate = W50x (Inftot − Infinc), where Infinc is the incidental infiltration that would have occurred without the project, Inftot is total measured infiltration, and W50 represents the proportion (50%) of the pumping fee assessed to the landowner based on location. The goal of Pajaro Valley’s ReNeM pilot program is to infiltrate 1,000 AFY to the aquifer by creating and operating infiltration projects at multiple sites. This effort will help reduce groundwater overdraft and associated undesirable consequences (seawater intrusion, disconnection with surface water, and degradation to water quality). This case study analyzes the local conditions and institutions that make the ReNeM pilot program feasible, including previously established groundwater pumping fees, metered wells, and the existence of third-party certifiers able to verify the results of project sites. The ReNeM pilot has enabled increased recharge by creating new incentives that have drawn PV Water, landowners, and tenant farmers to develop recharge projects. The ReNeM pilot is the first and thus far only application of this approach, but the methods used by ReNeM may have potential applicability elsewhere. This potential will hinge on whether the pilot can prove the effectiveness of the rebate scheme and demonstrate measurable benefits in the Pajaro Valley.

Incentivizing Groundwater Recharge in the Pajaro Valley Through Recharge Net Metering (ReNeM)