Section § 1020

Explanation

This law allows water to be leased for up to five years to support water conservation efforts, according to the terms set in this chapter. It does not apply to water leases or transfers that are governed by other laws.

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.

Section § 1021

Explanation

This law section sets rules for leasing water in California. It states that the water in a lease agreement must come from the lessor's legally held water rights. A lease can cover up to 25% of the water the lessor would usually use or store in a year without the lease.

Additionally, lease agreements must include enforceable conditions to make sure that the lease doesn't harm other legal water users or negatively impact fish, wildlife, or beneficial instream uses.

This applies specifically to surface water rights established under the Water Commission Act or before December 19, 1914.

(a)CA Water Code § 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)CA Water Code § 1021(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)CA Water Code § 1021(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.

Section § 1022

Explanation

If water is controlled by a district (like a water district or company), they can decide to lease it out if they find they have more than they need. This can be decided by the district's leaders or possibly a vote. They will manage the leasing process and ensure the water is available.

For the lease, they must set up a system where users can say they want to lease water and establish a minimum price to keep the district's finances stable. They will lease the water at or above this minimum price. After the lease, any money earned must be shared among the users who participated, minus district costs such as managing the lease and maintaining facilities.

Being part of this leasing system is considered a public service, like other services given by public agencies.

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)CA Water Code § 1022(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)CA Water Code § 1022(b) Any water lease administered by the district shall include provisions to achieve all of the following:
(1)CA Water Code § 1022(b)(1) Establish a schedule for district water users to provide written notice of the intention to participate in a water lease.
(2)CA Water Code § 1022(b)(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)CA Water Code § 1022(b)(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)CA Water Code § 1022(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.

Section § 1024

Explanation

This section of the California Water Code makes it clear that you cannot sell, change, or gain water rights through the rules in this chapter. If you have a water right and you conserve water by using less of it, you won't lose your right to that water even if you don't use it for the entire period. Conservation efforts, like leaving land unused or rotating crops, are treated as beneficial uses of water. But, if you're leasing out conserved water and want to keep your rights, you must report your reduced water usage to the state board. If you don't file these reports, you won't receive the benefits outlined in this chapter.

(a)CA Water Code § 1024(a) Nothing in this chapter authorizes the sale of any water right or the modification of any water right or contract.
(b)CA Water Code § 1024(b) No right in any water, water contract, or water right shall be acquired by a use permitted under this chapter.
(c)Copy CA Water Code § 1024(c)
(1)Copy CA Water Code § 1024(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)CA Water Code § 1024(c)(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)CA Water Code § 1024(c)(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.

Section § 1024.5

Explanation

This law states that there are no restrictions on reviewing how someone using leased water is utilizing it.

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

Section § 1025

Explanation

This law states that if a water district is either renting out or leasing water, they must inform the state board about the lease agreement. The notice must include several specific details: a copy of the lease, any related water permit or license numbers, a description of environmental protections for fish and wildlife included in the lease, an explanation of how the lease supports water conservation, and an agreement detailing how both parties will comply with environmental protection terms during the lease period.

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)CA Water Code § 1025(a) A copy of the lease agreement.
(b)CA Water Code § 1025(b) Any water permit or license number.
(c)CA Water Code § 1025(c) A description of the environmental conditions in the lease, permit, and license which protect fish and wildlife.
(d)CA Water Code § 1025(d) A statement of how the lease will assist water conservation efforts of the lessor.
(e)CA Water Code § 1025(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.

Section § 1025.5

Explanation

This law states that when two private parties are involved in a lease, the person leasing out (lessor) must apply for approval from the board. The application needs to include specific information and documents outlined in another section, any other details required by the state board, and a fee. Additionally, the board will decide to approve the lease after ensuring it won’t harm other legal water users or negatively impact the environment, like fish and wildlife, after giving notice and a chance for a hearing.

(a)CA Water Code § 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)CA Water Code § 1025.5(a)(1) The information and materials described in subdivisions (a) to (e), inclusive, of Section 1025.
(2)CA Water Code § 1025.5(a)(2) Other information that the state board determines is necessary to review the application.
(3)CA Water Code § 1025.5(a)(3) The application fee set pursuant to Section 1525.
(b)CA Water Code § 1025.5(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.

Section § 1025.7

Explanation

This law states that water leases governed by this chapter do not have to follow the rules outlined in Chapters 10 and 10.5 of Part 2. These chapters typically deal with certain regulatory requirements for water management.

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.

Section § 1026

Explanation

Before approving a water lease, the lead agency must wait 30 days after giving written public notice. This notice must be sent to potentially impacted legal water users, as well as the Department of Fish and Wildlife, and anyone who has requested special notice about water leases. The person leasing out the water must pay a fee, set by the state board, to cover the cost of sending this notice.

The lead agency shall not approve a water lease until 30 days after the 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 board, the Department of Fish and Wildlife, 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.

Section § 1027

Explanation

This law section outlines specific requirements for water lease agreements involving water transfers from the Sacramento-San Joaquin Delta. First, any lease must ensure that enough water outflow is maintained to keep the delta's water quality at its natural state, without the transfer. Second, if the water is leased from an area north of the delta to one south, it must include provisions for water to help fend off saltwater intrusion and support the environment, as prescribed by the state board.

(a)CA Water Code § 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)CA Water Code § 1027(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.

Section § 1028

Explanation

This law section explains that in cases related to water leases under Section 1029, the court will consider how the lease and water transfer impact those who legally use the water, as well as fish and wildlife. However, if there's a need to permanently change the water usage rights tied to the lease, that issue must be handled in a different court case.

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.

Section § 1029

Explanation

This law explains who is in charge when environmental evaluations are needed for water lease agreements. If the person leasing the water is a government agency, they're the main decision-maker. But if they're a private entity and the water user is a water district, then the water district is in charge. If both the lessee and lessor are private parties, the state board takes the lead.

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.

Section § 1030

Explanation

The state board is responsible for monitoring water leases during their term. If necessary, the board will take action to enforce the lease terms to make sure that the water lease doesn't harm anyone legally using the water or negatively impact fish, wildlife, or other beneficial uses of the water.

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.

Section § 1031

Explanation

This law states that a water lease will only start and stay valid if the annual fee is paid. The lease won't begin without the first year's fee, and it won't continue in the following years unless each year's fee is also paid.

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.