General ProvisionsWater Leases
Section § 1020
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.
Section § 1021
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.
Section § 1022
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.
Section § 1024
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.
Section § 1024.5
This law states that there are no restrictions on reviewing how someone using leased water is utilizing it.
Section § 1025
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.
Section § 1025.5
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.
Section § 1025.7
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.
Section § 1026
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.
Section § 1027
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.
Section § 1028
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.
Section § 1029
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.
Section § 1030
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.
Section § 1031
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.