COURT STRIKES DOWN INLAND EMPIRE WATER DEAL AFTER CITY OF ONTARIO LAWSUIT REVEALS ENVIRONMENTAL VIOLATIONS AND RISKS TO LOCAL WATER SUPPLY

ONTARIO, Calif., Sept. 16, 2025 /PRNewswire/ -- A California court has ruled in favor of the City of Ontario in its legal challenge against the Inland Empire Utilities Agency (IEUA), finding that IEUA's approval of the Chino Basin Program (CBP) in May 2022 violated the California Environmental Quality Act (CEQA). The court found that the IEUA:

1. "'piecemealed' the evaluation of the effects of the CBP by failing to evaluate the effects of the CBP and the Feather River Exchange outside of the Chino Basin";
2. "Used an unstable and inconsistent project description that evaluates the effects of a project life of 25 years, but then justifies the CBP based on purported water supply benefits over 50 years"; and
3. Adopted a biased and determinative project objective to justify a refusal to evaluate reasonable alternatives to the CBP."

(Ruling on Petition for Writ of Mandate, San Bernardino Superior Court Case No. CIVSB 2211925, pp. 35-36 (Sept. 4, 2025).) 

The Court ordered IEUA to set aside its certification of the Environmental Impact Report and IEUA's other approvals of the CBP.

The CBP would have transferred reliable, locally developed water paid in part by Ontario residents and the surrounding communities to the State of California, leaving Ontario and neighboring communities more dependent on imported water. The court found that IEUA violated the California Environmental Quality Act because it failed to analyze the effects of transferring 375,000 acre-feet of water to Northern California.

The court also found that IEUA adopted biased objectives for the CBP to support IEUA's refusal to evaluate a reasonable range of alternatives to the CBP. The City of Ontario argued that this CEQA violation resulted in IEUA's failure to evaluate reasonable and feasible alternatives to the CBP that would retain locally generated water for use by the residents of Ontario and other communities in the Chino Basin.

"This is a major victory for the City of Ontario and every community in the Chino Basin that depends on a secure, local water supply," said Ontario City Councilmember Debra Porada. "IEUA tried to push through a massive water deal that sent our water elsewhere without telling the full story of the adverse environmental and water supply effects of the CBP or evaluating reasonable alternatives to sending a reliable local water supply to Northern California. The court saw through it. We fought back because our future depends on protecting the resources our residents already paid for and rely on."

The City of Ontario had repeatedly raised concerns with IEUA about the lack of transparency and analysis surrounding the CBP, including in letters, public meetings, and direct outreach.

The court's ruling validates those concerns and underscores that IEUA committed multiple prejudicial CEQA violations. By defining the controversial Feather River Exchange as the cornerstone of the project while avoiding legal scrutiny of its impacts, IEUA undermined both environmental integrity and public trust.

The City of Ontario will continue to advocate for transparent and responsible regional water planning that prioritizes the needs of the communities who live here. "We remain committed to work in partnership with IEUA and surrounding agencies to develop regional water resource programs that meet our collective objectives," added Councilmember Porada. 

For more information, visit ontarioca.gov.

SOURCE City of Ontario