Board adopts AB 460 inflation adjustments for water‑rights civil penalties

The State Water Resources Control Board approved regulatory adjustments to water‑rights civil penalties required by Assembly Bill 460 (2024). Jason Grimm of the Office of Chief Counsel explained the statutorily required method: compare June CPI of the prior year to the CPI when the underlying statute or last amendment was adopted, compute a ratio, multiply each penalty amount by that ratio, and apply statutory rounding rules.

Grimm walked the board through example calculations and tables showing adjusted and current penalty amounts. He noted that the board can adopt the adjustments without submitting them to the Office of Administrative Law because the statute exempts this action from the Administrative Procedure Act. Staff will file the final regulation with the California Secretary of State and submit an implementation report to the legislature as required by AB 460.

Board members expressed support for the approach and said indexing penalties to inflation helps maintain deterrent value. The board adopted the resolution by roll call vote.

Staff said most adjustments occur in the initial year; future years may see fewer or no changes because rounding thresholds reduce year‑to‑year movement.