The State Water Resources Control Board (SWRCB) authorized increases to water rights and water quality fees during its board meeting on September 18 that – not only raise fees – the actions also directly impact the cost of groundwater recharge projects and wastewater management. 
 
During the meeting, Ag Council’s Membership and Public Policy Coordinator Jacob DeFant provided public comments regarding the impact of the fee increases on the ag community. “These fee increases come at a time when California farmers are facing razor-thin margins and rising input costs. Repeated annual fee increases do not rise simply by a few dollars or percent. Rather, they compound, resulting in fee increases for farmers ranging from a few hundred dollars to tens of thousands,” DeFant said.
 
Water Rights Fees
The SWRCB initially proposed water rights fee increases that would have substantially increased fees by approximately 1,500 percent. Instead, Chair Joaquin Esquivel and Vice Chair DeeDee D’Adamo supported an alternative phased-in approach to avoid disincentivizing groundwater recharge projects. Specifically, rather than the massive proposed increases, Chair Esquivel proposed a 50 percent reduction in the water rights fee increases, which was then adopted by the full board. 
 
To read more about the water rights fee increases adopted by the SWRCB, click HERE.
 
In addition, on a positive note, the SWRCB decided to allow some water rights holders and water managers the option of applying for five-year water diversion permits at the same cost as 180-day permits. The board cited reduced staff labor and complexity for the five-year permit approval, and we are optimistic the longer-term permits will provide more opportunities for groundwater recharge projects to help better manage flood and drought events in the future.
 
Water Quality Fees
Water quality fees were adopted without change on September 18. Both wastewater discharge and irrigated lands fees will increase between 5.3 and 5.5 percent.

Water quality fees for confined animal facilities will see a similar increase of 5.4 percent for all facility size categories. Fees for facilities with less than 50 head remain at zero. 
 
To read more about the water quality fee increases adopted by the board, click HERE.
 
Stakeholder Meeting
The SWRCB’s Division of Water Quality is scheduling an upcoming fall stakeholder meeting to provide an opportunity to discuss the impacts of fee increases on farmers and producers, as well as budgetary demands for SWRCB programs. 
 
Ag Council will continue to engage on water quality fees and will participate in the upcoming stakeholder session with the Division of Water Quality.

Understanding that continuously skyrocketing fees are a challenge for our members, Ag Council previously attempted to offset SWRCB fees through the budget process. However, the current state budget deficit prevents such offsets.

Ag Council will keep members apprised of this issue going forward.