Water Boards: DWR - Licensing Program

All water right permits issued by the State Water Resources Control Board (State Water Board) specify a certain development schedule to complete construction and beneficial use of water. When that development schedule elapses, a permit holder should either: (1) request revocation of the permit if the project has been abandoned or cannot be diligently completed due to personal or financial reasons, (2) petition for an extension of time to extend the development schedule if the construction and use of water under the permit has been diligently pursued and additional time is necessary to complete full anticipated beneficial use of water, or (3) notify the State Water Board that the permitted project is complete and ready for licensing. (Note: A license can only be issued for the amount of water that has been placed to beneficial use during the authorized period and in compliance to all terms and conditions of the permit).

Water Code section 1605 requires the State Water Board to conduct a water right licensing inspection of the works constructed and the use of water as soon as practicable after receiving notification that a permitted project is complete and ready for licensing. When possible, staff from the Division of Water Rights (Division) will schedule and conduct an inspection of the project, which includes (1) taking measurements to determine the establishment of the permit’s beneficial use of water and (2) confirming compliance with all permit terms and conditions. If appropriate, an offer for final licenses will be made and if accepted by the permittee, the Division will issue a license. The license is recorded in the County Recorder’s Office and is the final confirmation of the water right and remains effective as long as its conditions are fulfilled and beneficial use continues.

From the date that the project is permitted, permittees should keep records of the following to assist in the final licensing process, if applicable:

Due to limited resources, the Division may be unable to promptly inspect all projects reported ready for licensing. Division staff will contact the Permittee when the project is scheduled for inspection. To expedite the licensing of water rights with reservoirs, the Division has set up an alternate process. If a permit authorizes diversion of water to a reservoir, the Permittee may retain a licensed land surveyor or civil engineer to (1) survey the reservoir and submit the certified survey to the Division with a request for a license inspection and (2) submit records of diversion or calculations of beneficial use of water under the permit. Whenever possible, the Division will prioritize its field inspections based on the date that the survey and diversion/use information is submitted to the Division.

The terms of all water right permits require Permittees to submit Progress Reports by Permittee (Progress Reports) promptly when requested by the State Water Board until the license is issued. The Division uses the Progress Reports to:

(1) update the ownership records,

(2) confirm the Permittee’s compliance with the terms and conditions of the permit, and

(3) establish a record of the amount of water beneficially used during each year.

The Division mails the Progress Report in February or March of each year and requires the Permittee to submit the completed report by May 1 of the same year. If a water project is covered by two or more water rights, the Permittee should only report the diversion and use of water for the project covered by the water right number listed on the form.

The terms of all water right licenses require Licensees to submit Reports of Licensee promptly when requested by the State Water Board. The Division uses the Report of Licensee to:

(1) update the ownership records,

(2) confirm the Licensee’s compliance with the terms and conditions of the water right license and

(3) determine the water right project status, including a record of the amount of water beneficially used.

If a water project is covered by two or more water rights, the Licensee should only report the diversion and use of water for the project covered by the water right number listed on the form.

The Division mails the Report of Licensee in three-year reporting cycles, which is determined alphabetically based on (1) the first letter of the owner’s or agent’s last name or (2) the first letter of the company’s name that has been authorized to receive water right-related mail. Each year’s mailing covers about one-third of the water right licenses. A change in the owner, agent, or company name authorized to receive mail may change the reporting cycle. Future licensing reporting cycles will cover the names as follows:

The Division mails the applicable Reports of Licensee in February or March of each year and requires the Licensee to submit the completed report by May 1 of the same year.

Standard Term 91 prohibits certain permittees and licensees from diverting water in the Sacramento-San Joaquin River Delta (Delta) watershed under specified conditions. The conditions are triggered when (1) the Delta is declared to be in "balance" by the U.S. Bureau of Reclamation and the State Department of Water Resources, and (2) stored water ("supplemental Project water") is being released from the Central Valley Project (operated by the U. S. Bureau of Reclamation) and the State Water Project (operated by the State Department of Water Resources) to meet water quality standards and inbasin entitlements in the Delta.

Term 91 has been included in recently issued permits and licenses that divert water at a rate greater than one cubic foot per second and/or collect more than 100 acre-feet of water to storage within the Sacramento-San Joaquin River Delta Watershed. The primary intent is to ensure that these diverters do not use the supplemental Project water being released so that the water will be bypassed through the Delta to improve water quality.

As of 2006, the Division has issued 129 water right permits or licenses that include Term 91. Of that group, about 90 have an authorized diversion season that covers all or a portion of June, July, or August. This smaller group is regularly affected by the diversion curtailments because, under normal conditions, supplemental Project water is only released during the summer months to meet Delta water quality standards. If the affected permittees and licensees plan to continue the use of water during the curtailment period, they must use an alternative source of water such as ground water or contract (purchased) water.

The Division is responsible for mailing diversion curtailment notices when required by Standard Water Right Term 91. The affected permittees and licensees are sent a “Notice of Probable Curtailment” (if time permits) followed by a “Notice of Curtailment of Water Diversion” by certified mail at the beginning of the diversion curtailment period. The Notice specifies a default end-date of August 31. The diversion curtailments are managed on real-time basis by reviewing calculations of the supplemental Project water releases that are presented on the Bureau's web site. Therefore, the start-dates and end-dates of the diversion curtailment will vary each year.

A similar water right term, Standard Term 93, applies to 104 permits or licenses within the San Joaquin River Watershed. Term 93 prohibits diversion of water: (1) when, in order to maintain water quality in the San Joaquin River at Vernalis at a level of 500 parts per million (ppm) Total Dissolved Solids (TDS), the Bureau is releasing stored water from New Melones Reservoir or is curtailing the collection of water to storage or (2) during any time of low flows when the TDS level exceeds 500 ppm. If the Division notifies a permittee or licensee that one of these conditions has occurred, they must immediately discontinue water diversion under the specified water right until August 31, unless notified earlier. If water quality conditions justifying continuing the Term 93 curtailment continue into September, a “Notice of Continued Curtailment of Water Diversion” will be sent at the end of August. If the permittee or licensee stills needs water, they must use an alternate water supply such as groundwater or contract (purchased) water from agencies that have available water.

The water diversion curtailment required by the curtailment notice does not apply if there is a section of streambed downstream of the point of diversion where there is no visible surface flow. A determination of “no hydraulic continuity” must be made by direct personal observation and only when there is no diversion occurring under the water right listed on the mailing label.