The origin and purpose of the Kern Water Bank is often mischaracterized in the context of California’s water infrastructure and supply. For example, Alexandra Nagy, California director for the advocacy organization Food and Water Watch, is quoted in Forbes Magazine as saying: “Assets like this (the Kern Water Bank) that were once in public control and now are in private control need to be returned to the public.” Since this concept has been perpetuated in one form or another for nearly two decades, it is worth understanding the accurate history of how the Kern Water Bank came to be, to ensure the facts are part of the broader conversation.
J.B. Haggin formed the Kern County Land Company in 1870. It grew to control vast acreages around Bakersfield, developing much of the water infrastructure, and was instrumental in forming many of the public water districts — including North Kern Water Storage District. The North Kern Water Storage District included the James-Pioneer Improvement District, located west of Bakersfield between Stockdale Highway and Taft Highway. Because the soil there was sandy and not productive, the water rights were moved to more productive land in North Kern. Tenneco West, which purchased the Kern County Land Company in August of 1967, dissolved the James-Pioneer Improvement District and sought buyers for the land. The person in charge of the sale was Bill Balch, Vice President of Tenneco West. Balch was a humble man with great vision.
When the Kern River flooded, the Land Company organized men on bulldozers to develop berms and move water around on the land to recharge the aquifers below. Balch knew the land’s unique geology and location allowed for substantial groundwater recharge. He approached the Kern County Water Agency and other local public entities seeking to sell the property, but there was no interest. Recognizing the value of the property as a water asset, Balch approached the California Department of Water Resources (DWR) and was successful in completing the sale in 1988. However, not all of DWR’s State Water Project contractors were excited about the purchase and project idea. Recognizing that the risks involved were significant, the Metropolitan Water District of Southern California wanted to ensure DWR could sell the land and recover its investment if the project was not successful…