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State Water Board seeks short-term loan to staff probationary groundwater basins while fee collections are delayed
Summary
The State Water Resources Control Board asked the subcommittee for authority to borrow up to $16.4 million from the Underground Storage Tank Fund to cover staffing costs while delays in collecting SGMA probation fees persist; the board said fees should repay the loan once court matters and fee timelines are resolved.
The State Water Resources Control Board told the Senate subcommittee it needs an interim loan to continue staffing for its Sustainable Groundwater Management Act (SGMA) oversight work while fee collections are delayed in at least one probationary basin.
What was requested: Board staff and the Department of Finance representative said the board seeks a loan up to $16.4 million from the Underground Storage Tank Fund to cover the cost of 22 positions for up to three years while the board completes probationary work and waits for fee collections. The board explained that statute requires the board to recoup the cost of state backstop activities from basins that enter probation or receive an interim plan; recent court action affecting the first probationary basin (the Tulare Subbasin) has temporarily blocked fee collections and created a cash‑flow gap.
Why the loan is needed: Natalie Stork and Jonathan Bishop (State Water Board) explained that the board carries out a process when a basin’s submitted groundwater sustainability plan is found inadequate: the board may declare probation, open a 1‑year window, and — if necessary — adopt an interim plan and implement corrective actions. The board said seven basins have been found inadequate to date and two have been brought into probation; the board must maintain staff to oversee corrective work and potential interim plans as required by statute.
Repayment and timeline: Department of Finance staff told the committee the loan would be repaid from fee revenue once fee collection resumes; the board said it expects fee collections for probationary basins to begin as listed in statute but that timing is uncertain while litigation continues. The board said the earliest fee collections for a newly‑probationary basin would occur in February 2026 in the current schedule and that the loan period is intended to bridge the gap.
Discussion points: Committee members asked about the causes of delay in fee collection, financial exposure for basin stakeholders and steps the board is taking to minimize long‑term cost. State Water Board staff said the request is intended to keep oversight on schedule while avoiding burdening other state programs and reiterated that fee authority is statutory and intended to cover the board’s costs when it acts as the state backstop.
Outcome: The board asked the subcommittee to include the loan in forthcoming budget actions; the request was presented as an ask and no final vote occurred at the hearing.
Ending note: The board asked for short‑term authority to bridge a funding timing gap created by litigation and the timeline for statutory fee collection, with the intention that probation‑related fees will repay the loan once collected.
