SECTIONS 1020-1031 - California Statutes

WATER CODE

SECTION 1020-1031

1020. Water may be leased for a period not to exceed five years to
assist water conservation efforts pursuant to the terms and
conditions of this chapter. The terms and conditions of this chapter
are not applicable to water leases or transfers governed by other
provisions of law.

1021. (a) The water subject to a water lease agreement shall be
water that is subject to a water right of the lessor. The amount of
water leased shall not exceed 25 percent of the water that would have
been applied or stored by the lessor in the absence of the lease
agreement in any given hydrological year.
(b) Each lease agreement shall include enforceable terms which
will ensure that the water lease will not injure any legal user of
water and will not unreasonably affect fish, wildlife, or other
instream beneficial uses.
(c) This chapter applies only to surface water appropriated
pursuant to the Water Commission Act (Chapter 586 of the Statutes of
1913, as amended) or this code, or to water appropriated prior to
December 19, 1914.

1022. If the water subject to the lease is held by a water
district, a water company, or a mutual water company, hereafter
collectively referred to as the district, the following provisions
apply:
(a) The governing body of the district may, by a resolution
adopted and entered in its minutes, determine that the district
should lease water pursuant to this chapter, or, if otherwise
required by law, determine that an election should be held to lease
water pursuant to this chapter. The district shall administer any
water lease and determine whether water is in excess of the needs of
the district and is available for a lease.
(b) Any water lease administered by the district shall include
provisions to achieve all of the following:
(1) Establish a schedule for district water users to provide
written notice of the intention to participate in a water lease.
(2) Establish a minimum price for the water available for leasing
to maintain the financial integrity of the district and enter into
leases for that water at market values at or above the minimum price.
(3) Annually distribute the net monetary proceeds to water users
in the district who have participated in the water leases, according
to district water allocation policies, after first deducting district
costs. These costs include, but are not limited to, the cost of the
water, whether or not water is delivered, the costs of conveyance,
distribution and development facilities, lease administration, and
other appropriate district costs apportioned to water users in the
district who forego the use of district water to participate in the
water lease.
(c) Participation in a water lease administered by the district
pursuant to this section is deemed to be a public service generally
provided by the public body or board for purposes of paragraph (3) of
subdivision (a) of Section 1091.5 of the Government Code.

1024. (a) Nothing in this chapter authorizes the sale of any water
right or the modification of any water right or contract.
(b) No right in any water, water contract, or water right shall be
acquired by a use permitted under this chapter.
(c) (1) When any person entitled to the use of water under an
appropriative right fails to use all or any part of the water because
of water conservation efforts and leases that conserved water under
this chapter, any such cessation of, or reduction in, the use of the
appropriated water that is leased is deemed equivalent to a
reasonable beneficial use of water to the extent of that cessation
of, or reduction in, use. No forfeiture of the appropriative right to
the water conserved shall occur upon the lapse of the forfeiture
period applicable to water appropriated pursuant to the Water
Commission Act (Chapter 586 of the Statutes of 1913, as amended) or
this code, or to water appropriated prior to December 19, 1914.
(2) The state board may require any lessor of water who seeks the
benefit of this chapter to file periodic reports describing the
extent and amount of the reduction in water use due to water
conservation efforts. To the maximum extent possible, the reports
shall be made a part of other reports required by the state board
relating to the use of water. Failure to file the reports shall
deprive the user of water of the benefits of this chapter.
(3) For purposes of this chapter, "water conservation" means the
use of less water to accomplish the same purpose or purposes of use
allowed under the existing appropriative right. Where water
appropriated for irrigation purposes is not used by reason of land
fallowing or crop rotation, the reduced usage shall be deemed water
conservation for purposes of this section.

1024.5. This chapter does not limit any review of the lessee's use
of the leased water.

1025. If the lessor or lessee is a water district, the water lessor
shall file a notice with the state board of the water lease
agreement and include in the notice all of the following:
(a) A copy of the lease agreement.
(b) Any water permit or license number.
(c) A description of the environmental conditions in the lease,
permit, and license which protect fish and wildlife.
(d) A statement of how the lease will assist water conservation
efforts of the lessor.
(e) An agreement undertaken by the lessor and the lessee which
specifies how the environmental protection terms and conditions in
the permit, license, or lease, and the applicable conditions
established pursuant to Section 1029 for the permit, license, or
other water right, will be complied with for the duration of the
lease.

1025.5. (a) If both the lessor and lessee are private parties, the
lessor shall file an application with the board for approval of the
lease agreement and shall include in the application all of the
following:
(1) The information and materials described in subdivisions (a) to
(e), inclusive, of Section 1025.
(2) Other information that the state board determines is necessary
to review the application.
(3) The application fee set pursuant to Section 1525.
(b) The board, after providing notice and opportunity for a
hearing, may approve the lease if, in the judgment of the board, the
lease would not operate to injure the legal users of water or
unreasonably affect fish, wildlife, or other instream beneficial
uses.

1025.7. Water leases pursuant to this chapter are not subject to
Chapter 10 (commencing with Section 1700) or Chapter 10.5 (commencing
with Section 1725) of Part 2.

1026. The lead agency shall not approve a water lease until 30 days
after the state board provides written public notice, including
notice by personal delivery or registered mail to legal users of
water which may be affected by the lease, as identified by the state
board, the Department of Fish and Game, and any party requesting
special notice of water leases pursuant to this chapter. The water
lessor shall pay a reasonable fee, in an amount determined by the
state board, for the cost of providing the notice.

1027. (a) Any water lease agreement entered into pursuant to this
chapter involving the transfer of water from the Sacramento-San
Joaquin Delta shall provide outflow consistent with the carriage
water requirements determined by the department to be necessary for
the transfer of the water subject to the lease to maintain the water
quality which would exist in the delta without the transfer
undertaken in connection with the water lease.
(b) Any water lease agreement providing for the lease of water
from a lessor north of the Sacramento/San Joaquin Delta to a lessee
south of the Sacramento/San Joaquin Delta shall provide for an amount
of water for delta salt water repulsion and environmental purposes
as administratively prescribed by the state board in proportion to
all similar requirements for delta exports.

1028. In any proceeding pursuant to Section 1029, the court shall
determine issues relating to the lease and the effects of the water
transfer pursuant to the lease on the legal users of water and on
fish and wildlife, but any request or petition to permanently change
the water right which may be subject to the lease shall be heard in a
separate proceeding.

1029. Division 13 (commencing with Section 21000) of the Public
Resources Code applies to water lease agreements authorized by this
chapter. For purposes of that division, the lessor is the lead
agency, except that if the lessor is a private party and the lessee
is a water district, the lessee is the lead agency. If both the
lessor and the lessee are private parties, the state board is the
lead agency.

1030. During the term of the water lease, the state board shall
monitor the lease, as appropriate. The state board shall initiate
proceedings, if appropriate, to enforce the terms and conditions of
water leases, and permits and licenses or water use authority to
ensure that the water lease does not operate to injure any legal user
of the water or unreasonably affect fish, wildlife, or other
instream beneficial uses.

1031. A water lease pursuant to this chapter shall not take effect
until the first annual fee, set pursuant to Section 1525, is paid,
and the lease shall not continue in effect in any subsequent year
unless the annual fee for that year is paid.