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Inside California’s audacious plan to stash more than a trillion gallons of water underground
The world is slowly but surely running out of groundwater. A resource that for centuries has seemed unending is being lapped up faster than nature can replenish it.
“Globally speaking, there’s a groundwater crisis,” said Michael Kiparsky, director of the Wheeler Water Institute at UC Berkeley’s Center for Law, Energy, and the Environment. “We have treated groundwater as a free and limitless source of water in effect, even as we have learned that it’s not that.”
Aquifers are the porous, sponge-like bodies of rock underground that store groundwater; they can be tapped by wells and discharge naturally at springs or wetlands. Especially in places that have already been hard-hit by climate change, many aquifers have become so depleted that humans need to step in; the Arabian Aquifer in Saudi Arabia and the Murzuk-Djado Basin in North Africa, per a 2015 study, are particularly stressed and have little hope of recharging. In the U.S., aquifers are depleting fast from the Pacific Northwest to the Gulf, but drought-stricken California is the poster-child of both water stress and efforts to undo the damage.
In March, the state approved plans to actively replenish its groundwater after months of being inundated by unexpected levels of rainfall. While this move is not brand-new — the state’s Water Resources Control Board has been structuring water restrictions to encourage enhanced aquifer recharge since 2015 in the brief windows when California has water to spare — the scale of this year’s effort is unprecedented.
But just how will all that flood water get back underground? California’s approach, which promotes flooding certain fields and letting the water seep down slowly through soil and rocks to the aquifers below, represents just one potential technique. There are others, from injecting water straight into wells to developing pits and basins designed specifically for infiltration. It’s a plumbing challenge on an unprecedented scale.
The act of putting water back into aquifers has a number of unglamorous names — enhanced aquifer recharge, water banking, artificial groundwater recharge, and aquifer storage and recovery, among others — with some nuanced differences between them. But they all mean roughly the same thing: increasing the amount of water that infiltrates into the ground and ultimately into aquifers.
This can have the overall effect of smoothing the high peaks and deep valleys of water supply in places dealing with extreme weather fluctuations. The idea is to capture the extra water that floods during periods of intense rainfall, and bank it for use during droughts. (While aquifers can also be recharged using any old freshwater, water rights are so complicated in the West that floodwater often represents “the only surface water that’s not spoken for,” Thomas Harter, a groundwater hydrology professor at U.C. Davis, told local television outlet KCRA.)
Recharge has the potential added benefit of protecting groundwater from saltwater intrusion. As water is pumped from a coastal aquifer, water from the ocean can seep in to fill the empty space, potentially poisoning the well for future use for agriculture or drinking water. It’s a risk that will only get bigger as the climate warms and sea levels rise.
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According to the Environmental Protection Agency, aquifer recharge is most often used in places where groundwater demand is high and increasing even as supply remains limited. These tend to be places with lots of people and lots of farms; the San Joaquin Valley, which is the focus of California’s current plan, checks all of those boxes. Aquifers are the source of nearly 40% of water used by farms and cities in California, per the Public Policy Institute of California, and more in dry years. And, until 2023, most recent years have been dry.
In response to this year’s sudden reversal of California’s water fortunes, the state’s Water Board — which regulates water rights — allowed local contractors of the U.S. Bureau of Reclamation to move up to 600,000 acre-feet of water, or well over a trillion gallons, to places that normally would be off-limits this time of year. Those contractors, who are largely farmers and other major landowners, have until July 30 to take advantage.
“California is essentially the pilot project for how we want to do this in the future,” said Erik Ekdahl, deputy director for the Water Board’s water rights division. It won’t be until the end of the year that the state will know exactly how much water was successfully banked, but Ekdahl said anecdotally that some contractors have already taken steps to put the spare water underground.
This comes as California’s enormous snowpack begins to melt: a potential boon for the aquifers that could also mean problematic and dangerous floods for the communities downstream of the runoff.
How does enhanced aquifer recharge actually happen? It’s not as if the vast underground stretches of rock and sediment have faucets or even obvious holes leading to their watery depths. People aiming to reverse the centuries-long trend of drawing up water without actively replacing it have a range of artificial recharge options, which either speed along the natural seepage process or direct water straight to the aquifer below.
In the former cases, one option is to allow water to flood fields left fallow, a process known as “surface spreading,” as is beginning to happen in the San Joaquin Valley.
Heatmap Illustration/Getty Images
Water can also be directed to dedicated recharge basins and canals. In both cases, excess water is absorbed by fast-draining soil, which encourages it to pass below ground. Aside from the technical challenge of redirecting water from typical flood patterns, these approaches tend to be low-tech.
Heatmap Illustration/Getty Images
But in cases of aquifer depletion where those approaches are impractical — such as when the aquifer is under impermeable rock — injection wells represent a direct connection to the groundwater. These are either deep pits that drain into sedimentary layers above an underground drinking water source (like a traditional well functioning in reverse), or else webs of tubes and casing that blast water straight into the source.
Heatmap Illustration/Getty Images
Cities are also experimenting with aquifer recharge on a smaller scale. For urban stormwater, the EPA promotes certain “green infrastructure” approaches that mold the built environment to mimic natural hydrology. For instance, shallow channels lined with vegetation, known as bioswales, redirect stormwater while encouraging it to seep through the ground. Permeable pavement — in use in several Northeastern states — works much the same way. Meanwhile, rain gardens designed to prevent flooding have the added benefit of replenishing groundwater.
Determining when and where to use different approaches to aquifer recharge, though, can be unclear. We are still a long way from widespread or coordinated adoption of these techniques, but researchers are working on weighing their costs and benefits.
Supported by a $2 million EPA grant, Kiparsky is part of a U.C. Berkeley team looking at how to make California-esque recharge work on a national scale. , including by developing a cost-benefit tool for water managers. Some of the geochemical and physical considerations are relatively simple to measure: Is the soil in question porous? Are there gravel-filled “paleo valleys” that could allow water to rapidly seep to the aquifers below, as one 2022 study found?
More complicated, potentially immeasurable, but no less important are the legal and regulatory considerations around water rights. It is, as Kiparsky put it, one of the quintessential modern examples of the tragedy of the commons. Whether the government will be able to entice individuals to use their own little corner of Earth to fill an aquifer for the benefit of the many is an open question.
But Kiparsky is fairly optimistic that recharge will take hold in years where there is water to spare, as the West recognizes that future drought must be prepared for, especially when it’s raining.
“Is recharge going to become a bigger part of water management? I would say absolutely,” he said. “I’m not usually in the game of making predictions, but I would predict the answer is yes. When we can figure out how to do it.”
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Investing in red states doesn’t make defying Trump any safer.
In the end, it was what the letters didn’t say.
For months — since well before the 2024 election — when asked about the future health and safety of the clean energy tax credits in the Inflation Reduction Act, advocates and industry folks would point to the 20 or so House Republicans (sometimes more, sometimes fewer) who would sign on to public statements urging their colleagues to preserve at least some of the law. Better not to pull out the rug from business investment, they argued. Especially not investment in their districts.
These letters were “reassuring to a lot of folks in clean energy and climate communities,” Chris Moyer, the founder of Echo Communications and a former staffer for longtime Senate Majority Leader Harry Reid, told me.
“I never felt reassured,” Moyer added.
Plenty of people did, though. The home solar company Sunrun, for instance, told investors in a presentation earlier this monththat a “growing number of Republicans in Congress — including 39 overall House members and four Senators — publicly support maintaining energy tax credits through various letters over the past few months.” The company added that “we expect a range of draft proposals to be issued, possibly including draconian scenarios, but we expect any extreme proposals will be moderated as they progress.”
Instead, the draft language got progressively worse for the residential solar industry, with the version that passed the House Thursday morning knocking billions of dollars off the sector, as tax credits were further squeezed to help make room for other priorities that truly posed an existential threat to the bill’s passage.
What Sunrun and others appear to have failed to notice — or at least publicly acknowledge — is that while these representatives wanted to see tax credits preserved, they never specified what they would do if their wishes were disregarded. Unlike the handful of Republicans who threatened to tank the bill over expanding the deduction for state and local taxes (each of whom signed one of the tax credit letters, at some point), or the Freedom Caucus, who tend to vote no on any major fiscal bill that doesn’t contain sizable spending cuts (so, until now, every budget bill), the tax credit Republicans never threatened to kill the bill entirely.
Ultimately, the only Republicans to outright oppose the bill did so because it didn’t cut the deficit enough. All of the House Republicans who signed letters or statements in support of clean energy tax credits voted yes on the legislation, with a single exception: New York’s Andrew Garbarino, who reportedly slept through the roll call. (He later said he would have voted for it had he been awake.)
“The coalition of interests effectively persuaded Republican members that tax credits were driving investment in their districts and states,” Pavan Venkatakrishnan, an infrastructure fellow at the Institute for Progress, told me in a text message. “Where advocates fell short was in convincing them that preserving energy tax credits — especially for mature technologies Republicans often view skeptically — should take precedence over preventing Medicaid cuts or addressing parochial concerns like SALT.”
The Inflation Reduction Act itself was, after all, advanced on a party-line basis, as was Biden’s 2021 American Rescue Plan. Combined, those two bills received a single Democratic no vote and no Republican yes votes.
In the end, Moyer said, Republican House members in the current Congress were under immense political pressure to support what is likely to be the sole major piece of legislation advanced this year by President Trump — one that contained a number of provisions, especially on SALT, that they agreed with.
“There are major consequences for individual house members who vote against the president’s agenda,” Moyer said. “They made a calculation. They knew they were going to take heat either way. They would rather take heat from clean energy folks and people affected by the projects.”
It wasn’t supposed to be this way.
White House officials and outside analysts frequently touted job creation linked to IRA investments in Republican House districts and states as a tangible benefit of the law that would make it politically impossible to overturn, even as Congress and the White House turned over.
“President’s Biden’s policies are leading to more than 330,000 new clean energy jobs already created, more than half of which are in Republican-held districts,” White House communications director Ben LaBolt told reporters last year, previewing a speech President Biden would give on climate change.
Even after Biden had been defeated, White House climate advisor Ali Zaidi told Bloomberg that “we have grown the political consensus around the Inflation Reduction Act through its execution,” citing one of the House Republican letters in support of the clean energy tax credits.
One former Biden White House climate official told me that having projects in Republican districts was thought by the IRA’s crafters to make the bill more politically sustainable — but only so much.
“A [freaking] battery factory is not going to save democracy,” the official told me, referencing more ambitious claims that the tax credits could lead to more Democratic electoral victories. (The official asked to remain anonymous in order not to jeopardize their current professional prospects.) Instead, “it was supposed to make it slightly harder for Republicans to overturn the subsidies.”
Congresspeople worried about jobs weren’t supposed to be the only things that would preserve the bill, either, the official added. Clean energy and energy-dependent sectors, they thought, should be able to effectively advocate for themselves.
To the extent that business interests were able to win a hearing with House Republicans, they were older, more traditionally conservative industries such as nuclear, manufacturing, agriculture, and oil and gas.The biofuels industry (i.e. liquid Big Agriculture) won an extension of its tax credit, 45Z. The oil and gas industry’s favored measure, the 45Q tax credit for carbon sequestration, was minimally fettered. Nuclear power was the one sector whose treatment notably improved between the initial draft from the House’s tax-writing committee and the version voted on Thursday. Advanced nuclear facilities can still claim tax credits if they start construction by 2029, while other clean energy projects have to start construction within 60 days of the bill’s passage and be in service by the end of 2028.
“I think these outcomes are unsurprising. In places where folks consistently engaged, things were protected,” a Republican lobbyist told me, referring to manufacturing, biofuels, and nuclear power, requesting anonymity because they weren’t authorized to speak publicly. “But assuming a project in a district would guarantee a no vote on a large package was always a mistake.”
“The relative success of nuclear is a testament to the importance of having strong champions — predictable but notable show of political might,” a second Republican lobbyist told me, who was also not allowed to speak publicly about the bill.
But all hope isn’t lost yet. The Senate still has to pass something that the House will agree with. Some senators had made noises about how nuclear, hydropower, and geothermal were treated in the initial language.
“Budget reconciliation is, first and foremost, a fiscal exercise,” Venkatakrishnan told me. “Energy tax credits offer a path of least resistance for hitting lawmakers’ fiscal targets. As the Senate takes up this bill, the case must be made that the marginal $100 billion to $200 billion in cuts seriously jeopardizes grid reliability and energy innovation.” Whether that will be enough to generate meaningful opposition in the Senate, however, is the $600 billion question.
A loophole created by the House Ways and Means text disappeared in the final bill.
Early this morning, the House of Representatives launched a full-frontal assault on the residential solar business model. The new language in the budget reconciliation bill to extend the Tax Cuts and Jobs Act passed Thursday included even tighter restrictions on the tech-neutral investment tax credits claimed by businesses like Sunrun when they lease solar systems to residential buyers.
While the earlier language from the Ways and Means committee eliminated the 25D tax credit for those who purchased home solar systems after the end of this year (it was originally supposed to run through 2034), the new language says that no credit “shall be allowed under this section for any investment during the taxable year” (emphasis mine) if the entity claiming the tax credit “rents or leases such property to a third party during such taxable year” and “the lessee would qualify for a credit under section 25D with respect to such property if the lessee owned such property.”
This is how you kill a business model in legislative text.
“Expect shares of solar companies to take a significant step back,” Jefferies analyst Julien Dumoulin-Smith wrote in a note to clients Thursday morning, calling the exclusion “scathing.” Investors are “losing the now false sense of security that we had 'seen the worst' of it with the initial House draft.”
Joseph Osha, an analyst for Guggenheim, agrees. “Considering the fact that ~70% of the residential solar industry is now supported by third-party (e.g. lease or PPA) financing arrangements, the new language is disastrous for the residential solar industry,” he wrote in a note to clients. “We believe the near-term implications are very negative for Sunrun, Enphase, and SolarEdge.”
Shares of Sunrun are down 37.5% in mid-day trading, wiping off almost $1 billion worth of value for its shareholders. The company did not respond to a request for comment. Shares of fellow residential solar inverter and systems Enphase are down 20%, while residential solar technology company SolarEdge’s shares are down 24.5%.
“Families will lose the freedom to control their energy costs,” Abigail Ross Hopper, chief executive of the Solar Energy Industries Association, said in a statement, in reference to the last-minute alteration to the investment tax credit.
When the House Ways and Means Committee released the initial language getting rid of 25D by the end of this year but keeping a limited version of the investment tax credit, analysts noted that Sunrun was an unexpected winner from the bill. It typically markets its solar products as leases or power purchase agreements, not outright sales of the system.
The reversal, Dumoulin-Smith wrote, “comes as a surprise especially considering how favorable the initial markup was” to the Sunrun business model.
“Our core solar service offerings are provided through our lease and power purchase agreements,” the company said in its 2024 annual report. “While customers have the option to purchase a solar energy system outright from us, most of our customers choose to buy solar as a service from us through our Customer Agreements without the significant upfront investment of purchasing a solar energy system.”
The new bill, Dumoulin-Smith writes is “‘leveling the playing field’ by targeting all future residential solar originations, whether leased or owned.” The bill is “negative to Sunrun with intentional targeting of the sector.
Last year, Sunrun generated over $700 million from transferring investment tax credits from its solar and storage projects. The company said that it had $117 million of “incentives revenue” in 2024, which includes the tax credits, out of around $1.4 billion in total revenue.
But the tax credits play a far larger role in the business than just how they’re recognized on the company’s earnings statements. The company raises investment funds to help finance the projects, where investors get payments from customers as well as monetized tax credits. Fund investors “can receive attractive after-tax returns from our investment funds due to their ability to utilize Commercial ITCs,” the company said in its report. Conversely, the financing “enables us to offer attractive pricing to our customers for the energy generated by the solar energy system on their homes.”
Morgan Stanley analyst Andrew Perocco wrote to clients that “this is a noteworthy change for the residential solar industry, and Sunrun in particular, which dominates the residential solar [third-party owned] market and has recognized ITC credits under 48E.”
Current conditions: A late-season nor’easter could bring minor flooding to the Boston area• It’s clear and sunny today in Erbil, Iraq, where the country’s first entirely off-grid, solar-powered village is now operating • Thursday will finally bring a break from severe storms in the U.S., which has seen 280 tornadoes more than the historical average this year.
1. House GOP passes reconciliation bill after late-night tweaks to clean energy tax credits
The House passed the sweeping “big, beautiful” tax bill early Thursday morning in a 215-214 vote, mostly along party lines. Republican Representatives Thomas Massie of Kentucky and Warren Davidson of Ohio voted no, while House Freedom Caucus Chair Andy Harris of Maryland voted “present;” two additional Republicans didn’t vote.
The bill will effectively kill the Inflation Reduction Act, as my colleague Emily Pontecorvo has written — although the Wednesday night manager’s amendment included some tweaks to how, exactly, as well as a few concessions to moderates. Updates include:
The bill now heads to the Senate — where more negotiations will almost certainly follow — with Republicans aiming to have it on President Trump’s desk by July 4.
2. FEMA cancels 4-year strategic plan, axing focus on ‘climate resilience’
The combative new acting administrator of the Federal Emergency Management Agency, David Richardson, rescinded the organization’s four-year strategic plan on Wednesday, per Wired. Though the document, which was set to expire at the end of 2026, does not address specific procedures for given disasters, it does lay out goals and objectives for the agency, including “lead whole of community in climate resilience” and “install equality as a foundation of emergency management.” In axing the strategic plan, Richardson told staff that the document “contains goals and objectives that bear no connection to FEMA accomplishing its mission.”
A FEMA employee who spoke with Wired stressed that while rescinding the plan does not have immediate operational impacts, it can still have “big downstream effects.” Another characterized the move by the administration as symbolic: “There are very real changes that have been made that touch on [equity and climate change] that are more important than the document itself.”
3. Energy Department redirects Puerto Rican rooftop solar investment to upkeep of fossil fuel plants
The U.S. federal government is redirecting a $365 million investment in rooftop solar power in Puerto Rico to instead maintain the island’s fossil fuel-powered grid, the Department of Energy announced Wednesday. The award, which dates to the Biden administration, was intended to provide stable power to Puerto Ricans, who have become accustomed to blackouts due to damaged and outdated infrastructure. The Puerto Rico Electric Power Authority declared bankruptcy in 2017, and a barrage of major hurricanes — most notably 2017’s Hurricane Maria — have destabilized the island’s grid, Reuters reports.
In Energy Secretary Chris Wright’s statement, he said the funds will go toward “dispatching baseload generation units, supporting vegetation control to protect transmission lines, and upgrading aging infrastructure.” But Javier Rúa Jovet, a public policy director for Puerto Rico’s Solar and Energy Storage Association, added to The Associated Press that “There is nothing faster and better than solar batteries.”
4. EDF, Shell, and others to collaborate on hydrogen emission tracker
The Environmental Defense Fund announced Wednesday that it is launching an international research initiative to track hydrogen emissions from North American and European facilities, in partnership with Shell, TotalEnergies, Air Products, and Air Liquide, as well as other academic and technology partners. Hydrogen is an indirect greenhouse gas that, through chemical reactions, can affect the lifetime and abundances of planet-warming gases like methane and ozone. Despite being a “leak-prone gas,” hydrogen emissions have been poorly studied.
“As hydrogen becomes an increasingly important part of the energy system, developing a robust, data-driven understanding of its emissions is essential to supporting informed decisions and guiding future investments in the sector,” Steven Hamburg, the chief scientist and senior vice president of EDF, said in a statement. Notably, EDF took a similar approach to tracking methane over a decade ago and ultimately exposed that emissions were “a far greater threat” than official government estimates suggested.
5. The best-selling SUV in America will now be available only as a hybrid
Toyota
The bestselling SUV in America, the Toyota RAV4, will be available only as a hybrid beginning with the 2026 model, Car and Driver reports. The car will be available both as a conventional hybrid and as a plug-in that works with CCS-compatible DC fast chargers, meaning “owners can quickly fill up its battery during long road trips” to minimize their fossil fuel mileage, The Verge adds. The RAV4 will also beat the Prius for electric range, hitting up to 50 miles before its gas engine kicks in.
Toyota’s move might not come as a complete surprise given that the automaker already introduced a hybrid-only lineup for its Camry. But given the popularity of the RAV4, Car and Driver notes that “if you ever wondered whether or not hybrids have entered the mainstream yet, perhaps this could be a tipping point.”
Nathan Hurner/USFWS
The Fish Lake Valley tui chub, a small minnow threatened by farming and mining activity, could become the first species to be listed as endangered under the second Trump administration.