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State Water Board adopts fee rules; pauses new increases by using fund reserves and adjusts water‑rights fee language
Summary
The State Water Resources Control Board adopted its annual fee regulations on Sept. 16, maintaining most fees at current levels by using fund reserves, correcting a small construction‑fee calculation, and approving a temporary suspension of some FERC pre‑licensing fees for stalled hydro/energy projects.
The State Water Resources Control Board on Sept. 16 voted unanimously to adopt its annual fee regulations for water quality and water rights, preserving most current fee rates for the coming year by drawing on higher‑than‑expected fund reserves and making limited regulatory clarifications.
Deputy Director John Russell and David Ciccarelli, chief of the Revenue and Fee Branch, told the board that although ordinary indexing would have pushed many fees up 2–3 percent, the division proposed using reserves to offset increases this year because implementation of prior vacancy and operating reductions has temporarily boosted fund balances. David Ciccarelli described three technical updates to the water quality fee schedule: clarifying that the invoice‑date fee schedule applies to invoiced amounts, renaming several categories from “special flat fee” to “activity special fee,” and correcting a mathematical discrepancy that increased the maximum fee for certain construction/linear project filings by about $88 (from $11,223 to $11,311) to match a 200‑acre cap. Staff said roughly 134 large projects would be affected by that correction.
The board adopted the water quality fee resolution by roll call vote (ayes from Board Members Nicole Morgan, Laurel Firestone, Sean Maguire, Vice Chair D'Adamo and Chair Joaquin Esquivel; unanimous). Stakeholders including municipal water agencies, grower associations and sanitation districts spoke in support of the staff approach and praised the stakeholder outreach process.
On water rights fees, staff recommended a small set of clarifying text changes (for example, replacing references to the Board of Equalization with the California Department of Tax and Fee Administration) and an annual CPI‑based adjustment to the cap on change‑petition fees. Staff also proposed a temporary suspension of annual water‑rights fees tied to Federal Energy Regulatory Commission (FERC) hydropower licensing when a Notice of Intent (NOI) has been filed but a draft or final license application has not been submitted for five years. Staff said that suspension was developed in response to the extended development timeframe of a proposed San Vicente Energy Storage Project and would apply to similar stalled projects; staff said fees would be reactivated when a license application is submitted.
The board adopted the water‑rights fee regulation package by unanimous roll call vote. Commenters from the San Diego County Water Authority and City of San Diego supported the temporary FERC fee suspension as a means to avoid charging ratepayers for prolonged inactive prelicensing periods; other commenters urged continued collaboration on fee design and cost containment. A public commenter representing the Allensworth community urged the board and GSAs to consider fee equity for small farmers and rural communities in related groundwater fee discussions.
Why it matters: Fee rules fund the board’s permitting, compliance and monitoring programs. This year’s decision to hold rates steady by using reserves delays fee increases for permittees but may require adjustments in future years when special‑fund reductions are finalized.
Details and next steps: Staff said most funds are expected to normalize after the current fiscal year and that next year’s fee schedule may require further changes when budget negotiations and special‑fund allocations are finalized. The specific FERC fee suspension is time‑limited and contingent on the five‑year stalled NOI criterion; staff noted it was developed for a particular project but could be applied to other projects that meet the same conditions.
Votes and motions: The board adopted the water quality fee resolution (unanimous roll call) and adopted the water rights fee resolution (unanimous roll call). No member voted against either resolution.
Sources: Staff presentations by John Russell and David Ciccarelli; public comments by Bob Gore, Rosario Cortez, Spencer Sachs, Nina Kuzmic, Dan Denham, Takoa Kodara; roll call and vote recorded during the Sept. 16, 2025 State Water Resources Control Board meeting.
