Ontario has secured a legal victory in its dispute with the Inland Empire Utilities Agency (IEUA) over the Chino Basin Program, following a ruling by San Bernardino County Superior Court Judge Donald Alvarez. The court sided with Ontario’s challenge to the $985 million program, which aims to modernize water supply in the Inland Empire by treating recycled water and injecting it into the Chino Groundwater Basin.
Ontario filed its lawsuit in May, alleging that IEUA violated the California Environmental Quality Act (CEQA) when approving the basin program in 2022. According to Ontario, IEUA failed to properly assess the environmental impact of transferring water through the Feather River Exchange and did not evaluate reasonable alternatives that would keep locally generated water available for Ontario and other Chino Basin cities. These cities—Chino, Chino Hills, Montclair, Upland, Fontana, and Rancho Cucamonga—did not join Ontario in the lawsuit.
The Feather River Exchange is a system that allows for transferring water rights between agencies and municipalities to support environmental needs and improve statewide distribution. The Feather River itself is a key tributary of the Sacramento River and an important source for the California State Water Project.
Courtney Jones, Ontario’s assistant general manager for utilities, engineering and operation, said: “IEUA evaluated the environmental impact of the Chino Basin Program (based on) a 25-year period, but claimed water-supply benefits over a 50-year period. They didn’t evaluate the environmental impacts over that 50-year period in which they’re claiming water-supply benefits.”
Councilwoman Debra Porada commented on Ontario’s position: “This is a major victory for Ontario and every community in the Chino Basin that depends on a secure, local water supply. The (utilities agency) … did not tell the full story of the adverse environmental and water supply effects of the basin program. We fought back because our future depends on protecting the resources our residents already paid for and rely on.”
The court determined that IEUA had violated CEQA by failing to address potential effects from transferring 375,000 acre-feet of water to Northern California. In addition to Porada’s remarks, an official statement noted: “Ontario had repeatedly raised concerns with the utilities agency about the lack of transparency and analysis surrounding the Chino Basin Program, in letters, public meetings, and outreach. The court’s ruling validates those concerns, and it underscores that the utilities agency committed multiple violations against the environment quality act.”
Scott Burton, Ontario’s utilities general manager, explained that while environmental issues were part of their complaint, their primary concern was losing access to local water supplies under what is known as an “in-lieu transfer.” This process would send basin program water into state systems while reducing imported supplies otherwise destined for IEUA. Burton stated: “It would be trading two dimes and a nickel for a quarter. We won’t lose anything, but we won’t gain anything either.”
In response to Judge Alvarez’s decision, IEUA released its own statement: “the major technical aspects of the (Chino Basin) program were upheld,” though acknowledging that some areas must be “further examined and/or refined.” The agency has appealed the ruling and intends to continue pursuing implementation of its plans. “IEUA will continue to make the Chino Basin Program a priority,” according to its statement. “The benefits of the program are far-reaching; it is our responsibility to ensure safe and adequate water supplies to support the economic growth of our region.”
Both parties are set to present final proposals before Judge Alvarez on October 30. He may select one plan or combine elements from both sides’ submissions. However, Courtney Jones cautioned that resolution could take time: “It’s difficult to say how long this will go on. Whatever happens during the Oct. 30 meeting will probably help decide that. It could go on for a long time.”



