Water Rights and Water Quality Certification Fees Program

FREQUENTLY ASKED QUESTIONS - FY 2003-2004

Questions Related to the Board of Equalization's (BOE) Notice of Determination (Water Right Fee Bill)
Questions Related to Your Water Rights

Questions Related to the Board of Equalization's (BOE) Notice of Determination (Water Right Fee Bill)

I have never received a water right fee bill. Is this a new annual water right fee assessment?
I received a letter dated January 14, 2004, from the State Board of Equalization after I received a bill for my Water Rights fee? Why did I receive this letter?
Why did I receive a Notice of Determination from BOE and not from the SWRCB?
I lost the payment envelope provided by BOE. Where do I send my payment?
I received an invoice from BOE related to a USBR identification account number. What is this account and why am I paying a fee for it?
I paid my water right fee and still received a Demand Notice for late payment from the State Board of Equalization. What should I do to resolve this problem?
I believe that the amount of the water right fee is incorrectly calculated. How do I dispute this fee bill?
Do tax-exempt organizations have to pay the assessed water right fee?
How can I get a copy of my water fee bill?
I want to file a petition for reconsideration. Should I pay the fee?
My wife and I received duplicate Notices of Determination from BOE. Now what do we do?
I cannot afford to make a lump sum payment. Is there a Payment Plan?
What do I get for my annual water right fee?
What happens if I refuse to pay?
When can I expect to receive a water right fee Notice of Determination from BOE for Fiscal Year 2004-2005?

Questions Related to Your Water Rights

How can I quickly conduct a review of my water right?
I want to revoke my water right. Do I have to pay the assessed fee?
How do I request revocation of my water right permit or license?
Although I have a water right, there is no water available to divert. Why should I pay the fee?
I have a water right permit/license that authorizes the diversion of water to storage in my reservoir. Can I convert my permitted/licensed storage right to a stockpond registration?
I received BOE invoices related to several of my licensed storage rights. It appears that these BOE invoices and license rights cover the same storage project. I do not believe that I should be required to pay all the invoices for the same project. What should I do?
I have not exercised my right for a period of 5 or more years. Haven\'t I forfeited my water right permit or license based on non-use of water?
I received the water right fee bill, but I am one of the co-owners of the water right permit or license. Who pays the fee?
I am legally appropriating water under my water right permit/license, but my neighbor is appropriating water without authorization from the State. Why do I have to pay an annual fee?
I no longer own the property covered by the water right permit or license. What do I do now?
I thought I requested revocation of my right. Now what do I do?
What happens if I want to revoke my storage right?
I only lease the property, but I received the fee notice. Now what do I do?
I am the owner of a water right permit and/or license. Why didn't I receive a water right fee invoice from the BOE?

Questions Related to the Board of Equalization's (BOE) Notice of Determination (Water Right Fee Bill)

Q. I have never received a water right fee bill. Is this water right fee a new fee being assessed on all water right permit and license holders?

A. Since 1914, the State General Fund has primarily funded the water right program. Effective January 1, 2004, Senate Bill 1049 (Stats. 2003, ch.741) amended the Water Code to require the SWRCB to annually adopt emergency regulations establishing fees to generate revenues specified in the State Budget to support the State\'s water rights program. The SWRCB adopted these emergency regulations by Resolution 2003-0077 on December 15, 2003, and the Emergency Regulations, as approved by the Office of Administrative Law (OAL) on December 23, 2003, became effective on January 1, 2004. The SWRCB has assessed an annual water right fee to each holder of a permit or license based upon the volume of water in acre-feet authorized for diversion under that water right permit or license. The annual water right fee for permits and licenses in fiscal year 2003-2004 is the greater of $100 or $0.03 per acre-foot based on the total annual amount of diversion. (Cal. Code Regs. Tit. 23, § 1066, subd. (a).) (see Fee Schedule).

Q. I received a letter dated January 14, 2004, from the State Board of Equalization after I received a bill for my Water Rights fee? Why did I receive this letter?

A. Your original bill Notice of Determination did not describe the proper petition process for those who are in disagreement with their bill. The January 14, 2004 letter was mailed to everyone who received a Water Rights bill in order to provide you with the proper description of the bill petition process.If you only received the January 14, 2004, letter and you did not receive the original Notice of Determination from BOE, please immediately contact BOE at either of the following numbers: (916) 445-2709, (916) 323-8739, (916) 445-0081.

Q. Why did I receive a Notice of Determination from BOE and not from the SWRCB?

A. The SWRCB has entered into a contractual arrangement with the BOE to process and collect all assessed annual fees. BOE\'s Fuel Taxes Division has been given the responsibility to administer the collection of fees.

Q. I lost the payment envelope provided by BOE. Where do I send my payment?

A. Please hand deliver, or mail you payment directly to BOE at the following addresses:

The physical address is:
State Board of Equalization
Fuel Industry Section, MIC: 30
450 N Street
Sacramento, CA 95814
The mailing address is:

Fuel Taxes Division, MIC: 30
State Board of Equalization
P.O. Box 942879
Sacramento, CA 94279-0030

Q. I received a Notice of Determination invoice from BOE related to a USBR identification account number. What is this account, and why am I paying a water right fee for this account?

A. The account number (USBR ####) is a BOE account number related to a United States Bureau of Reclamation (USBR) water supply contract. Under Water Code sections 1540 and 1560, if the SWRCB determines that a fee payer such as the USBR is likely to decline to pay a fee or expense based on a claim of sovereign immunity, then the SWRCB may allocate the fees due to that fee payer\'s water right supply contractors. In this instance, the SWRCB prorated the USBR\'s fees among its water supply contractors and sent invoices to the contractors for those amounts.

Q. I paid my water right fee and still received a Demand Notice for late payment from the State Board of Equalization. What should I do to resolve this problem?

A. As of March 2, 2004, the State Board of Equalization has not been able to record all of the water right fee payments into its computer system. If you paid your fee by the due date, no further action by you is required and any late charges will be cancelled. Any questions regarding your payment should be directed to the State Board of Equalization at the following number:If the last two digits of your BOE Account number is between:00-32, please call (916) 324-229033-66, please call (916) 324-211767-99, please call (916) 327-3356.

Q. I believe that the amount of the water right fee is incorrectly calculated. How do I dispute this fee bill?

A. If you believe that the water right fee amount is not correctly calculated based on (1) the face value of your water right permit or license (Water Rights Query Tool), and (2) the Fee Schedule adopted by the SWRCB, you may file a petition for reconsideration with the SWRCB prior to the due date of the invoice. The petition must be in writing, state the specific ground upon which it is founded, and include documentary evidence to support these specific grounds.

Q. Do tax-exempt organizations have to pay the assessed water right fee?

A. There is no exemption for tax-exempt entities (tax exempt entities include: 501(c)(3) and 501(c)(4) organizations, cities, counties, water districts, irrigation districts, the USBR, and DWR, among others). Any entity capable of owning property (in other words any entity capable of holding a water right) is subject to the fee.

Q. How can I get a copy of my water fee bill?

A. You can get a copy of your water right fee bill by calling the Board of Equalization at the following three numbers: (916) 445-2709, or (916) 323-8739 or (916) 445-0081.

Q. I want to file a petition for reconsideration. Should I pay the fee?

A. Interest will continue to accrue on the original date of the water right fee bill even if it is petitioned. Therefore, you should pay the bill along with filing the petition. Should your petition be denied, penalties and interest will be due and payable 30 days after a letter is sent on the results of SWRCB\'s petition review. Petitions must be sent to the State Water Resource Control Board within 30 days of the issuance date (January 8, 2004) of BOE\'s "Notice of Determination" invoice.

Q. My wife and I received duplicate “Notices of Determination” from BOE. Now what do we do?

A. It is possible that a married couple may have received duplicate bills for the same water right. In this case, if the “App. Id.” number (water right application number) on each bill is the same the married couple only needs to pay one of the bills. Please verify that the “App Id.” number is the same for both of the bills.

Q. I cannot afford to make a lump sum payment. Is there a Payment Plan?

A. Possibly, you will need to contact the Board of Equalization at the following telephone numbers:If the last two digits of your BOE Account number is between:

00-32, please call (916) 324-2290
33-66, please call (916) 324-2117
67-99, please call (916) 327-3356

Q. What do I get for my annual water right fee?

A. Payment of annual water right fees by water right permittees and licensees will result in a relatively stable funding source to support California\'s water rights program administered by the SWRCB\'s Division of Water Rights (Division). The Division's continued management of existing water rights provides assurances that a stable system of water rights in California is maintained that best develops, conserves and utilizes in the public interest the water resources of the State, while vested rights, water quality and the environment are protected.The Division administers programs related to the processing of water right applications and petitions for the protection of vested water right holders. Other associated programs managed by the Division include: investigating water right complaints filed by water right holders or environmental groups, conducting compliance inspections of existing diversion facilities, processing petitions to amend permit or license conditions, conducting field inspections of permitted diversion projects to establish maximum beneficial use of water for licensing purposes, providing notification to existing water right holders of new applications to appropriate water, and resolving protests filed by those water right holders.

Q. What happens if I refuse to pay?

A. The Board of Equalization will first assess penalties and interest to the outstanding fee amount. If payment is not received eventually they will seek collection of the fees with penalties and interest through other means such as attachment of wages, liens etc.

Q. When can I expect to receive a water right fee “Notice of Determination” from BOE for Fiscal Year 2004-2005?

A . For Fiscal Year 2004-2005, Notices of Determination invoices will tentatively be mailed by BOE no sooner than October 2004.

Questions Related to Your Water Rights

Q. How can I quickly conduct a review of my water right?

A . You can generate a hydrologic report that provides details about your water right by using the Division’s online Water Rights Query tool. Simply apply for a new account and conduct a search for your water right.

Q. I want to revoke my water right. Do I have to pay the assessed fee?

A. Yes, the assessed water right fee you received is for the Fiscal Year 2003-2004. Therefore, you must pay the fee, unless proof can be provided to the Division of Water Rights that a written request for revocation of your water right permit or license was submitted prior July 1, 2003. You may still request revocation of your permit or license to preclude payment of future water right fees, beginning with Fiscal Year 2004-2005.If you request revocation of your water right permit or license and the water right is revoked, all water diversion facilities associated with the appropriation of water granted under the revoke water right permit or license must be removed. The Division will investigate unauthorized diversions and uses of water and will take enforcement action resulting in Administrative Civil Liabilities of up to $500 per day. (Water Code section 1050-1062)

Q. How do I request revocation of my water right?

A. You may request revocation of your water right permit or license by submitting a written request to the Division of Water Rights. You can submit either a simple letter or a Request for Revocation Form. If, after review of your request for revocation, the Division revokes your water right permit or license, all water diversion facilities that were associated with the revoked right must be removed. If you continue to divert water without authorization from the SWRCB, you will be subject to Administrative Civil Liability of up to $500 per day for each documented day of violation. (Water Code section 1050-1062)

Q. Although I have a water right, there is no water available to divert. Why should I pay the fee?

A. The water right fee is based upon the face value of the water right permit or license and does not depend upon whether you can or are able to divert water.

Q. I have a water right permit/license that authorizes the diversion of water to storage in my reservoir. Can I convert my permitted /licensed storage right to a stockpond registration?

A . There is no provision in the water code for a conversion of this kind. You may register your ponds in the stockpond registration program if your ponds meet the provisions of that program (Water Code Section 1228-1229), and then cancel your water right permit or license. Be aware that you will lose the priority of right you enjoyed under your water right permit or license. Also, all new stockpond registrations are subject to conditioning by the California Department of Fish and Game, which means that improvements to your existing ponds may be required for the protection of fish and wildlife.If your storage project qualifies for a stockpond/livestock registration and you elect to file for such a registration, you must still pay the assessed annual permit or license fee for Fiscal Year 2003-2004, in addition to the one-time fee adopted by the SWRCB (Fee Schedule) for each stockpond/livestock registration sought.

Q. I received BOE invoices related to several of my licensed storage rights. It appears that these BOE invoices and license rights cover the same storage project. I do not believe that I should be required to pay all the invoices for the same project. What should I do?

A. You have two options:(1) you can send a payment to BOE for all the BOE invoices that you received, and file a petition to the SWRCB for reconsideration contending that the license water rights should be consolidated. The Division of Water Rights will investigate your petition and make a finding. If the Division's finds in favor of your petition, you may be eligible for a refund of part of the moneys already paid to BOE; or (2) based on your belief that you should not be responsible for multiple invoices that cover the same project, you can elect to partially pay the BOE invoices, and file a petition to the SWRCB for reconsideration contending that the license water rights should be consolidated. If the Division finds against your petition, you will be responsible for the unpaid balance owed to BOE, plus any penalties or interest.

Q. I have not exercised my right for a period of 5 or more years. Haven\'t I forfeited my water right permit or license based on non-use of water?

A. If your non-use of water is based on the fact that no water was physically available for use, no statutory forfeiture of right has occurred. Although your water right may be statutorily lost due to non-use of water for a period greater then 5 years (because you simply failed to use water that was available for use), your water right is still in effect unless the Division initiated revocation proceedings by sending a notice of proposed revocation and by providing an opportunity for hearing.

Q. I received the water right fee bill, but I am one of the co-owners of the water right permit or license. Who pays the fee?

A. You received the invoice because the SWRCB records show that you are identified as the mail recipient for the water right. All owners are individually responsible for paying the fee to the Board of Equalization.

Q. I am legally appropriating water under my water right permit/license, but my neighbor is appropriating water without authorization from the State. Why do I have to pay an annual fee?

A. You are being assessed a fee because the SWRCB\'s record show that you are the legal owner of record of a current water right permit or license. Unauthorized diverters of water are in violation of State Law and are subject to Administrative Civil Liability of up to $500 per day. (Water Code section 1050-1062) If you believe that your neighbor is diverting water without the proper authorized from the State, the Division of Water Rights encourages you to file a complaint with the Division, so that the Division may investigate your complaint and take enforcement action, if needed. Please visit the Division's Complaint Program web site for additional information pertaining to the water right complaint process.

Q. I no longer own the property covered by the water right permit or license. What do I do now?

A. The party who received BOE\'s Notice of Determination (water right fee bill) should advise the Division, in writing and before the due date for payment of the fee (February 7, 2004 for invoices issued January 8, 2004), that an ownership correction should be made. If the party who requests an ownership correction is certain that they are not the current owner of record, then the Division's receipt of a written request would preclude the payment of the assessed water right fee. However, if the Division determines that the party who requests a change in ownership is, in fact, the correct owner of record of the water right permit or license, the party must paid the assessed fee, plus penalty and interest.

Q. I thought I requested revocation of my right. Now what do I do?

A. The party who received BOE\'s Notice of Determination (water right fee bill) can submit a petition to the Division that states that they previously informed the Division of their desire to revoke their water right. However, the party must provide proof of the previously made request for revocation by sending a copy of the submitted report of licensee. The party could pay the assessed fee and submit the petition or they could risk not paying the assessed fee and perhaps be subject to penalties and interest, should the Division determine that the party did not request revocation previously.

Q. What happens if I want to revoke my storage right?

A. Revocation of a license covering a reservoir formed by a dam that is located in a stream channel normally requires removal or breach of the dam because of the potential of the project to continue to store water behind the dam. Please be aware that breach or removal of the dam will probably require clearance by the Department of Fish and Game and the Regional Water Quality Control Board due to the concern for erosion and sediment control and possible streambed alteration, and that there may be fees associated with these agencies\' review. The Division may consider other proposals for insuring that unauthorized collection of water does not occur after a revocation of the storage rights has been approved (e.g. removal or permanent opening of an outlet valve) on a case-by-case basis.

Q. I only lease the property, but I received the fee notice. Now what do I do?

A. The lessee may have been identified as the Agent to received mail, etc. on behalf of the property owner.... nevertheless, the property owner should ultimately be responsible for the assessed water right fee. If the lessee received the bill, he/she should either pay the water right fee bill on behalf of the owner, or provide the water right fee bill to the property owner to be paid before the BOE 02/07/04 deadline.

Q. I am the owner of a water right permit and/or license. Why didn't I receive a Notice of Determination invoice from BOE?

A. A water right fee Notice of Determination invoice was sent to the person identified in records maintained by the Division of Water Rights, as the Agent to receive mail for all matter related to the identified Application.

(Updated 10/15/07)