Logo courtesy of Citrus Heights Water District

CITRUS HEIGHTS, CA (MPG) - On April 24, the Citrus Heights Water District (CHWD) announced that it has filed a lawsuit in Sacramento Superior Court against its wholesale water provider, the San Juan Water District (SJWD), after SJWD recently approved an agreement to sell and transfer up to 6,000 acre-feet of water between April 2026 and February 2027 to the Sacramento Suburban Water District (SSWD) without the environmental review required under the California Environmental Quality Act (CEQA).

An acre-foot is the volume of water needed to cover one acre of land to a depth of one foot. The sum of 6,000 acre-feet, converted to an estimated 1.9 billion gallons, enough to supply approximately 18,000 average households for a year.

“The Citrus Heights Water District is committed to protecting the interest of our customers,” said Hilary Straus, its general manager.

“The pattern of the San Juan Water District entering into agreements without conducting the necessary CEQA environmental review is a direct threat to the customers of the Citrus Heights Water District, and it needs to stop,” Straus said.

The San Juan Water District serves nearly 151,000 customers in its retail and wholesale service areas throughout Sacramento and Placer Counties.

SJWD’s 1853 water rights are some of the oldest in the American River watershed, making them extremely reliable and highly valuable, particularly during droughts or critically dry conditions. The SJWD also holds water rights from the North Fork Ditch Company, which received a state-issued permit in 1928. 

In March 2026, SJWD approved the water transfer agreement to the Sacramento Suburban Water District (SSWD) and declared it exempt from CEQA environmental review. The Citrus Heights Water District (CHWD) asserts in its lawsuit that this determination was unlawful.

The cost of preparing an Environmental Impact Report (EIR) varies depending on the complexity, size, and scope of a project. For a project of this size, CHWD estimates the cost would range from $150,000 to $200,000.

This is the second lawsuit filed against the San Juan Water District by the Citrus Heights Water District in two years, according to Sacramento Superior Court records.

CHWD also contends that a “properly scoped environmental review under the California Environmental Quality Act (CEQA) which would reveal potentially significant harmful impacts including ground water quality and depletion, interference with ground water recharge and a change to water supply reliability for the 70,000 customers which it serves.”

CHWD is asking the Sacramento Superior Court to direct the San Juan Water District to “rescind its approval of the transfer agreement and halt any further transfers to the SSWD until a legally adequate environmental review is completed.”

In its suit CHWD argues that “SJWD has entered into a series of virtually identical transfer agreements with the Sacramento Suburban Water District (SSWD) over multiple years that treat each one as a standalone project – rather than evaluating them together as a whole – violates the California Environmental Quality Act (SEQA) prohibition on piecemealing environmental review.”

If environmental studies are skipped, groundwater quality could be affected, as reduced surface water deliveries would drive greater reliance on groundwater pumping and interfere with groundwater recharge, impacting water supply reliability for Citrus Heights Water District customers, particularly during drought years.

“This water was originally secured on behalf of our customers – it is a critical part of our water supply, (especially during drought years) when other sources are cut back,” CHWD board president Caryl Sheehan said.

“San Juan simply cannot transfer our water to agencies outside the wholesale service area without following the law,” she said.

Greg Zlotnick, director of water resources and strategic affairs for the San Juan Water District (SJWD) responded to a request for comment regarding the litigation Citrus Heights Water District (CHWD) has filed against SJWD relating to its pending water transfer to Sacramento Suburban Water District (SCWD).

“It is unfortunate that CHWD chose to file a lawsuit that we are confident is without merit, and we will answer it in court,” Zlotnick said in a telephone interview. “At this time, we (SJWD) have no further comment regarding this active litigation.”

A representative for the Sacramento Suburban Water District (SCWD) also did not respond to a request for comment regarding the lawsuit currently filed by the Citrus Heights Water District (CHWD).

Sheehan said water transfers do not directly affect customer rates, but transfers influence the mix of water supplies which are available to the Citrus Heights Water District, she said.

“Water rates are determined through broader financial planning processes, while transfers are one tool used to manage available resources and system reliability.”

“SJWD has engaged in water transfer activities in the past. While a definitive number is not clear, at this point we believe SJWD has proposed and/or approved at least four sale or transfer agreements with Sacramento Suburban Water District since 2019–2020,” she said.

The Citrus Heights Water District was established in 1920 as an independent, not-for-profit public agency to provide safe and reliable drinking water in Citrus Heights, Fair Oaks, Orangevale, Carmichael and Roseville.

CHWD’s water supply is rooted in pre-1914 rights to surface water from the north fork of the American River.

“Before filing suit, we showed up at San Juan’s Board meeting and formally asked them to reconsider,” Sheehan said.

“We also sent them a settlement offer. They rejected our settlement request. Our customers deserve the water resource protections which the law provides, and our community is invested in, and we intend to enforce them,” Sheehan said.