California State Auditor: Dam Safety Report Reveals 57 Unsafe Dams

• California's state auditor identified 57 dams in poor or unsatisfactory condition, many near major population centers.
• The potential failure of these high-risk dams could impact 1.5 million people and cause $265 billion in economic damage.
• State law currently lacks requirements for dam owners to maintain financial reserves for major repairs or emergencies.
• The audit criticized the Department of Water Resources for not fully utilizing its enforcement authority despite gaining powers after the 2017 Oroville Dam crisis.
• Recommendations include legislative changes to empower the Department of Water Resources to order dam condemnation and decommissioning.

The state auditor's findings reveal a critical vulnerability: the failure of these high-risk dams could collectively endanger up to 1.5 million individuals and inflict over $265 billion in economic devastation.

The California state auditor's recent report has cast a stark light on the precarious condition of the state's dam infrastructure, identifying 57 dams currently classified as being in poor or unsatisfactory states. For security reasons, the specific locations of these compromised structures are not disclosed in the report, though it notes that a significant number are situated in close proximity to densely populated areas such as Los Angeles, San Diego, and the Bay Area. The potential ramifications of these deficiencies are severe; the auditor estimates that if the most critical of these dams were to fail, it could jeopardize as many as 1.5 million people and result in economic damages exceeding $265 billion.

Further illustrating the gravity of the situation, the audit highlights specific instances of extreme degradation. One particular century-old dam, for example, has concrete that has deteriorated to such an extent that any repair attempts would further compromise its structural integrity. This same dam is also deemed seismically unstable, with its decaying concrete exacerbating its vulnerability to earthquakes and major storm events. The report also notes that several other crumbling dams have been in a deficient state for at least nine years, with one identified in 2017 as having "potential geologic, structural or performance issues" that would compromise its ability to withstand floods, yet only partial repairs have been carried out since then.

California is home to nearly 1,500 dams, with the majority owned and managed by a diverse array of local government entities and private corporations, including Pacific Gas & Electric. While state law mandates that these dam owners maintain their infrastructure, a significant regulatory gap exists: there is no state law requiring dam owners to engage in formal financial planning or to establish monetary reserves specifically for large-scale repair projects or emergency responses. This absence of mandatory financial foresight is a key factor contributing to the current state of disrepair, as many deficient dams, often predating modern safety standards, are not being adequately maintained due to a lack of available funding.

The financial burden of addressing these issues is substantial. The Department of Water Resources (DWR) estimates that the cost to repair all of California's dams over the next five years will surpass $28 billion. Given that the repair of a single dam can easily exceed $100 million, such costs frequently prove prohibitive for local governmental bodies. The audit was particularly critical of the California Department of Water Resources dam oversight, noting that despite gaining significant enforcement powers in 2017 following the Oroville Dam crisis, the DWR "has not fully exercised its enforcement authority to ensure dam owners repair their dams in a timely manner." This suggests a failure to leverage existing regulatory tools to compel necessary maintenance and upgrades.

In response to the audit's findings, Karla Nemeth, who was then the director of the Department of Water Resources, challenged the auditors' conclusions. Nemeth asserted that the audit demonstrated "a fundamental lack of understanding of the complexities of flood management in California’s Central Valley and dam safety statewide," arguing that the proposed recommendations would not effectively enhance public safety. She further highlighted that the Association of State Dam Safety Officials had previously conducted its own analysis, which designated California's dam safety program as "the leading state dam safety program in the nation." Nemeth also clarified that some dams labeled as "deficient" were not necessarily degraded but rather had not yet met newer, heightened safety standards.

Despite the DWR's counter-arguments, the California state auditor dam safety report includes a series of critical recommendations aimed at both the Department of Water Resources and the state Legislature. To proactively address public safety concerns before a dam's condition escalates into an emergency, the audit specifically recommends that the Legislature amend state law. This amendment would grant the Department of Water Resources the authority to order the condemnation and decommissioning of dams when necessary, thereby strengthening California dam maintenance regulations and enforcement capabilities.

Lawyers representing dam owners in California should advise clients on the current lack of mandatory financial planning for dam repairs and emergencies, and prepare for potential legislative changes recommended by the state auditor to address these gaps and strengthen DWR's enforcement powers. Compliance officers should review existing maintenance and emergency preparedness protocols in light of the audit's findings regarding degraded infrastructure and the DWR's criticized enforcement.

Source: Reporting based on the California State Auditor's findings